WO1991003801A1 - Detection d'utilisation frauduleuse de cartes de credit - Google Patents

Detection d'utilisation frauduleuse de cartes de credit Download PDF

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Publication number
WO1991003801A1
WO1991003801A1 PCT/GB1990/001388 GB9001388W WO9103801A1 WO 1991003801 A1 WO1991003801 A1 WO 1991003801A1 GB 9001388 W GB9001388 W GB 9001388W WO 9103801 A1 WO9103801 A1 WO 9103801A1
Authority
WO
WIPO (PCT)
Prior art keywords
card
identity
code
holder
verification
Prior art date
Legal status (The legal status is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the status listed.)
Ceased
Application number
PCT/GB1990/001388
Other languages
English (en)
Inventor
Martin Reef
Current Assignee (The listed assignees may be inaccurate. Google has not performed a legal analysis and makes no representation or warranty as to the accuracy of the list.)
Individual
Original Assignee
Individual
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Individual filed Critical Individual
Publication of WO1991003801A1 publication Critical patent/WO1991003801A1/fr
Anticipated expiration legal-status Critical
Ceased legal-status Critical Current

Links

Classifications

    • G—PHYSICS
    • G07—CHECKING-DEVICES
    • G07F—COIN-FREED OR LIKE APPARATUS
    • G07F7/00—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus
    • G07F7/08—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means
    • G07F7/10—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means together with a coded signal, e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06K—GRAPHICAL DATA READING; PRESENTATION OF DATA; RECORD CARRIERS; HANDLING RECORD CARRIERS
    • G06K7/00—Methods or arrangements for sensing record carriers, e.g. for reading patterns
    • G06K7/08—Methods or arrangements for sensing record carriers, e.g. for reading patterns by means detecting the change of an electrostatic or magnetic field, e.g. by detecting change of capacitance between electrodes
    • G06K7/082—Methods or arrangements for sensing record carriers, e.g. for reading patterns by means detecting the change of an electrostatic or magnetic field, e.g. by detecting change of capacitance between electrodes using inductive or magnetic sensors
    • G06K7/083—Methods or arrangements for sensing record carriers, e.g. for reading patterns by means detecting the change of an electrostatic or magnetic field, e.g. by detecting change of capacitance between electrodes using inductive or magnetic sensors inductive
    • G—PHYSICS
    • G06—COMPUTING OR CALCULATING; COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/30—Payment architectures, schemes or protocols characterised by the use of specific devices or networks
    • G06Q20/34—Payment architectures, schemes or protocols characterised by the use of specific devices or networks using cards, e.g. integrated circuit [IC] cards or magnetic cards
    • G06Q20/347—Passive cards
    • G—PHYSICS
    • G07—CHECKING-DEVICES
    • G07F—COIN-FREED OR LIKE APPARATUS
    • G07F7/00—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus
    • G07F7/08—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means
    • G07F7/10—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means together with a coded signal, e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
    • G07F7/1025—Identification of user by a PIN code
    • G07F7/1058—PIN is checked locally

Definitions

  • the invention in general relates to an apparatus and a method for use in fraud detection in credit cards and the like, and in particular relates to an apparatus and method for verifying the identity of a holder of a credit type card.
  • the verbal authorisation procedure is cheap because it only involves the cost, of a telephone call, but it is unpopular particularly with large department stores for example, because there is usually a delay of a number of minutes associated with this procedure.
  • the electronic authorisation procedure is quicker because there is usually only a delay of a few seconds, but it is expensive because it requires the use of electronic point of sale terminals connected over telephone lines via MODEMS and the like to a remote computer.
  • a final check in the form of the cardholders signature provides verification that the person using the card is the card holder.
  • the requirement for a signature to be given can often be the downfall of would be thieves because the signature will be written in front of the retailer on a credit card sales slip.
  • Whilst there are always variations in a signature the manner in which the cardholder behaves when signing can sometimes arouse suspicion in the mind of the retailer. If the cardholder does not appear to be relaxed this may indicate that the card is not his to use.
  • This signature verification is limited however in that signatures can be forged and indeed although difficult to do, an original signature can be removed from a card and replaced with a bogus signature. Furthermore, if a card is stolen in transit before it reaches the cardholder a bogus signature can easily be written onto the card.
  • PIN numbers are known only to the bank and the holder of the credit card holder and are stored together with other information in the form of a magnetic pattern in a magnetic strip on one side of the card.
  • PIN numbers are known only to the bank and the holder of the credit card holder and are stored together with other information in the form of a magnetic pattern in a magnetic strip on one side of the card.
  • the magnetic strip is read electronically and the PIN number extracted.
  • the user also inputs the PIN number via a keyboard and this input number is compared with the number read electronically from the card's magnetic strip. If the two numbers match the user is allowed to request services etc. from the machine.
  • the present invention aims to provide a solution to the above by providing a cheap stand alone apparatus for use in providing a first verification of the identity of a card user.
  • the invention in one of its aspects provides an apparatus for use in verifying the identity of the holder of a credit type card, which apparatus comprises reading means for reading a predefined identifying code from a card, input means by which the holder can enter an identifying code, and comparing means for comparing the holder input code with the code read from the card and for indicating whether a predefined relationship exists between the two codes thereby providing verification of the identity of the card holder.
  • the invention in another aspect provides a method for verifying the identity of the holder of a credit type card, the method comprising obtaining a predefined identifying code from a card, obtaining an identifying code from the card holder, and comparing the predefined identifying code from the card with the identifying code from the card holder to determine whether or not a predefined relationship exists between the two codes.
  • the invention in another of its aspects, provides a method for providing first verification of the identity of a credit-type card user, in which method an encoded identity code is read from the card and compared with a code supplied by the user, and wherein where a predefined relationship is found to exist between the two numbers, verification of the identity of the cardholder can be assumed.
  • Figure 1 is a schematic perspective view of an apparatus for use in confirming the identity of a credit-type cardholder
  • Figure 2 is a schematic diagram of a verification circuit used in the apparatus of Figure 1.
  • Figure 3 is a block diagram of a second embodiment of a card holder identifying device.
  • Figure 4 is a flow diagram of the operation of the second embodiment.
  • a verification device indicated generally at 1 comprises a card swipe slot 2, a keyboard 3, a liquid crystal display 4 and card "confirm” and reject indicators 5 and 6.
  • the "confirm” indicator 5 may for example be a green LED arranged to light up when a match is found between the PIN number input by the card user and the PIN number held on the card and the "reject” indicator 6 may for example be a read LED arranged to light up when the PIN numbers do not match.
  • Credit cards have a magnetic strip on one side which carries information unique to that card in the form of a coded magnetic pattern. Behind and associated with the swipe slot 2 is a swipe reader.
  • the swipe reader which for example may be an off the shelf reader such as the HSR4 swipe reader available from McCorquodale Ltd., is arranged to read data relating to a PIN (Personal identification Number) from the magnetic strip as a credit card is swiped therethrough.
  • PIN Personal identification Number
  • the magnetic strip on credit cards is divided into three tracks, each of which carries data relating to the credit card and its user.
  • the PIN number is encrypted into a twenty digit number which is held in track 2 of the card.
  • the card is swiped through the swipe slot 2 and at least the PIN number extracted from the magnetic strip on the card.
  • the cardholder keys in the PIN number at the keyboard 3 and as the numbers are keyed in they ⁇ are displayed on a liquid crystal display 4.
  • the keypad includes numerical key pads representing the numbers zero to nine together with at least one additional key pad to identify an error (and to reset to enable the correct number to be entered) .
  • the card valid indicator 5 is lit to indicate the match. If the relationship is bad, i.e. the two PIN numbers are found not to match, then the "invalid" indicator 6 is lit. The cardholder may be given another opportunity to enter his PIN number or the trader may contact the card company for positive verbal confirmation that the card is valid.
  • the device 1 provides a means by which a first verification of the identity of a card user can be obtained.
  • the device 1 includes a verification circuit comprising the circuitry associated with the card swipe slot 2 and with the keyboard 3 which are connected via respective data lines 6, 7 to a comparator 8.
  • the swipe circuit reads at least the coded PIN number from the card and outputs a signal representing that code along data line 7 to one input of the comparator 8.
  • the user keys in the PIN number on the keyboard 3 a signal is output to the other input the comparator 8 via data line 7.
  • FIG. 3 A second embodiment of the invention is shown in Figure 3 of the accompanying drawings.
  • the device comprising a swipe reader 2 interfaced via an R5232 or other similar interface 10 to a personal computer 11.
  • a personal computer 11 has been used in prototype versions of the device but it will be appreciated that in practice dedicated circuitry or a dedicated microprocessor would instead be used.
  • the personal computer 11 may be an IBM PC/AT or an Amstrad PC1512 for example.
  • the keypad 3 and the accept and reject LED's 5, 6 are connected to the personal computer 11 via a suitable multichannel interface 12 (e.g. a 48 Channel 1/0 card) .
  • the first stage of operation 15 is to locate and print information on the liquid crystal display.
  • This information may for example be a message that the device is ready to receive a card for PIN number verification.
  • the system is initialized to a state at which all variables required to decode data from the card once it has been read are available.
  • This stage is represented by block 16.
  • the system enters a decoding routine represented by block 18 where it reads the encrypted PIN number from the card decodes the PIN number and performs other checks to ensure that the card has been correctly read and is generally in order. If the reading of the card fails
  • the keyboard is scanned repeatedly in a scanning cycle represented by blocks 19 to 28 in Figure 4.
  • the entered PIN number code is compared with the decoded PIN number from the card. This comparison is represented by block 29 in Figure 4. If the match is found to be good then the green "confirm” LED is illuminated and a message to the shopkeeper to proceed with the transaction is displayed in written form, e.g. on the liquid crystal display 4 or the display of the personal computer 11. If the two PIN numbers do not match the read "reject" LED is lit and a suitable message not to proceed is displayed.
  • Appendix 1 is a source code listing in BASIC of the sequence of operations represented by the flow diagram in Figure 4.
  • the present invention provides an independent stand alone device for obtaining a first method of identification of a cardholder.
  • the device requires no costly telecommunications or other links with a central computer and thus is simple and cheap to manufacture, install and maintain.
  • the described embodiments are both sufficiently small to be powered by batteries and to be transportable.
  • T 0 to 10000:,NEXT, RUN

Landscapes

  • Engineering & Computer Science (AREA)
  • Physics & Mathematics (AREA)
  • General Physics & Mathematics (AREA)
  • Theoretical Computer Science (AREA)
  • Business, Economics & Management (AREA)
  • Microelectronics & Electronic Packaging (AREA)
  • Computer Vision & Pattern Recognition (AREA)
  • Computer Networks & Wireless Communication (AREA)
  • Artificial Intelligence (AREA)
  • Accounting & Taxation (AREA)
  • Strategic Management (AREA)
  • General Business, Economics & Management (AREA)
  • Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)

Abstract

Un appareil permettant de vérifier l'identité d'un utilisateur d'une carte du genre carte de crédit comprend un lecteur à balayage de carte (2) pour lire le numéro d'identification de la carte, et un clavier (3) qui permet audit utilisateur d'entrer un numéro d'identification. Le numéro d'identification entré par l'utilisateur et le numéro lu sur la carte sont comparés; s'il y a une correspondance, l'identité de l'utilisateur est considérée comme vérifiée. Dans une réalisation, la comparaison est faite par un comparateur, dans une autre réalisation, elle est faite par un microprocesseur programmé de manière adéquate, ou par ordinateur individuel. L'appareil donne une première vérification de l'identité de l'utilisateur sans faire appel à des liaisons coûteuses aux banques de données centrales et semblables.
PCT/GB1990/001388 1989-09-08 1990-09-07 Detection d'utilisation frauduleuse de cartes de credit Ceased WO1991003801A1 (fr)

Applications Claiming Priority (2)

Application Number Priority Date Filing Date Title
GB8920387.1 1989-09-08
GB898920387A GB8920387D0 (en) 1989-09-08 1989-09-08 Improvements in and relating to fraud detection

Publications (1)

Publication Number Publication Date
WO1991003801A1 true WO1991003801A1 (fr) 1991-03-21

Family

ID=10662785

Family Applications (1)

Application Number Title Priority Date Filing Date
PCT/GB1990/001388 Ceased WO1991003801A1 (fr) 1989-09-08 1990-09-07 Detection d'utilisation frauduleuse de cartes de credit

Country Status (2)

Country Link
GB (1) GB8920387D0 (fr)
WO (1) WO1991003801A1 (fr)

Cited By (2)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US5424520A (en) * 1993-01-26 1995-06-13 Goldstar Electric Machinery Co., Ltd. Automatic sales slip register for credit card
WO2001046902A1 (fr) * 1999-12-21 2001-06-28 American Express Travel Related Services Company, Inc. Procede et appareil destines a illuminer une carte de transactions

Citations (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US3794813A (en) * 1972-07-28 1974-02-26 Mosler Safe Co Verification system
JPS57111760A (en) * 1980-12-29 1982-07-12 Fujitsu Ltd Data processing device
GB2114348A (en) * 1982-02-02 1983-08-17 Brian Joseph Burke Credit card checking method and apparatus
DE3632294A1 (de) * 1986-09-23 1988-04-07 Siemens Ag Bedieneinheit fuer chipkarten

Patent Citations (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US3794813A (en) * 1972-07-28 1974-02-26 Mosler Safe Co Verification system
JPS57111760A (en) * 1980-12-29 1982-07-12 Fujitsu Ltd Data processing device
GB2114348A (en) * 1982-02-02 1983-08-17 Brian Joseph Burke Credit card checking method and apparatus
DE3632294A1 (de) * 1986-09-23 1988-04-07 Siemens Ag Bedieneinheit fuer chipkarten

Non-Patent Citations (1)

* Cited by examiner, † Cited by third party
Title
PATENT ABSTRACTS OF JAPAN vol. 6, no. 206 (P-149)(1084) 19 October 1982, & JP-A-57 111760 (FUJITSU) 12 July 1982, see the whole document *

Cited By (2)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US5424520A (en) * 1993-01-26 1995-06-13 Goldstar Electric Machinery Co., Ltd. Automatic sales slip register for credit card
WO2001046902A1 (fr) * 1999-12-21 2001-06-28 American Express Travel Related Services Company, Inc. Procede et appareil destines a illuminer une carte de transactions

Also Published As

Publication number Publication date
GB8920387D0 (en) 1989-10-25

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