U.S. patent application number 11/253180 was filed with the patent office on 2006-02-16 for system and method for providing database security measures.
Invention is credited to Mark Seegar.
Application Number | 20060032909 11/253180 |
Document ID | / |
Family ID | 35066038 |
Filed Date | 2006-02-16 |
United States Patent
Application |
20060032909 |
Kind Code |
A1 |
Seegar; Mark |
February 16, 2006 |
System and method for providing database security measures
Abstract
A trigger card and system for preventing credit and debit card
fraud is disclosed. The trigger card is adapted to be
indistinguishable from typical credit cards and other cards issued
by financial institutions. The system is adapted to receive signals
when a standard card reader reads the trigger card. The system is
further adapted to initiate an automated procedure to reduce fraud
upon receipt of the signal indicating that the trigger card has
been read by the card reader.
Inventors: |
Seegar; Mark; (Arlington,
TX) |
Correspondence
Address: |
LAW OFFICES OF JAMES E. WALTON, PLLC
1169 N. BURLESON BLVD.
SUITE 107-328
BURLESON
TX
76028
US
|
Family ID: |
35066038 |
Appl. No.: |
11/253180 |
Filed: |
October 18, 2005 |
Related U.S. Patent Documents
|
|
|
|
|
|
Application
Number |
Filing Date |
Patent Number |
|
|
10913636 |
Aug 6, 2004 |
6955294 |
|
|
11253180 |
Oct 18, 2005 |
|
|
|
Current U.S.
Class: |
235/380 |
Current CPC
Class: |
G06Q 20/10 20130101;
G06Q 20/04 20130101; G06Q 40/00 20130101; G06Q 20/4016 20130101;
G06Q 40/025 20130101; G06Q 20/40 20130101 |
Class at
Publication: |
235/380 |
International
Class: |
G06K 5/00 20060101
G06K005/00 |
Foreign Application Data
Date |
Code |
Application Number |
Aug 5, 2005 |
WO |
PCT/US05/27708 |
Claims
1. An electronic database system for providing database security
measures, the electronic database system comprising: one or more
blocks of data for storing and retrieving data associated with the
electronic database system; one or more financial accounts stored
in the one or more blocks of data; and one or more trigger accounts
stored in the one or more blocks of data; wherein the trigger
account is not and cannot be a financial account.
2. The electronic database system of claim 1, further comprising:
an issuing institution coupled with the electronic database system
and operable to initiate the database security measures; and a
network capable of providing communication with the issuing
institution and the transactional entities.
3. The electronic database system of claim 1, wherein the trigger
account is associated with a predetermined number of financial
accounts.
4. The electronic database system of claim 3, wherein the trigger
account is represented by a trigger line.
5. The electronic database system of claim 4, wherein a trigger
line may be denoted from the group consisting of an alpha trigger
indicator, a numeric trigger indicator, or an alphanumeric trigger
indicator.
6. The electronic database system of claim 5, wherein the trigger
indicator is encrypted into the account information of the trigger
account and is provided as a stealth means to denote the trigger
account.
7. The electronic database system of claim 1, further comprising: a
notification procedure in which selected parties are notified in
response to an unauthorized access of a the trigger account.
8. The electronic database system of claim 1, wherein the database
security measures comprise: a financial account cancellation
procedure in which predetermined financial accounts associated with
the trigger account are cancelled in response to the unauthorized
access to the electronic database system.
9. The electronic database system of claim 8, wherein the database
security measures comprise: a financial account ordering procedure
in which predetermined replacement financial account information
associated with the trigger account is ordered in response to the
unauthorized access to the electronic database system.
10. The electronic database system of claim 1, wherein the database
security measures automatically respond to any unauthorized access
by only canceling the affected financial accounts.
11. The electronic database system of claim 1, further comprising:
a computer coupled with the electronic database system and operable
to initiate the database security measures; and a network capable
of providing communication with the issuing institution and the
transactional entities.
12. An electronic security measure system comprising: one or more
security measures activated at one or more monitoring institutions
in response to the transmission of a digital red flag transmitted
by a trigger card that is not and cannot be a valid financial
card.
13. The electronic security measure system of claim 12, wherein the
one or more security measures is activated through the transfer of
information from a transmitting device selected from the group
consisting of a card reader, a cash register, or an automatic
teller machine.
14. The electronic security measure system of claim 12, wherein the
one or more security measures is activated through the use of an
internet online transaction.
15. The electronic security measure system of claim 12, wherein the
one or more security measures monitor the account for suspicious
activity selected from the group consisting of: requests for
additional lines of credit; requests for increase in credit limit
requests for increase in credit amount; requests for change of
address; unusual activity; and unusual buying habits.
16. The electronic security measure system of claim 12, further
comprising: a computer trigger software for tracing the transaction
to the exact computer or keyboard associated with the fraudulent
transaction.
17. The electronic security measure system of claim 16, wherein the
computer trigger software is further operable to generate a snap
shot of the fraudulent transaction for additional security
measures.
18. The electronic security measure system of claim 12, further
comprising: a notification procedure in which selected issuing
institutions are notified in response to the transmission of the
digital trigger red flag over the network to the one or more
monitoring institutions.
19. A method for providing database security measures, comprising
the steps of: storing financial accounts in an electronic database
system coupled to an issuing institution; storing trigger accounts
in an electronic database system coupled to an issuing institution;
and encrypting a trigger indicator into the account information of
the trigger account.
20. The method according to claim 19, further comprising the steps
of: canceling a predetermined financial account associated with the
trigger account in response to an unauthorized access to the
electronic database system; and ordering predetermined replacement
financial accounts associated with the trigger account in response
to the unauthorized access to the electronic database system.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation-in-part (CIP) of U.S.
patent application Ser. No. 10/913,636, filed on 6 Aug. 2004,
titled "APPARATUS AND METHOD FOR PREVENTING CREDIT CARD FRAUD," and
this application claims priority to International Application No.
PCT/US2005/027708, filed 5 Aug. 2005, titled "APPARATUS AND METHOD
FOR PREVENTING CREDIT CARD FRAUD," both of which are incorporated
herein by reference as if fully set forth herein.
BACKGROUND
[0002] 1. Field of the Invention
[0003] The present invention relates generally to the prevention of
credit card fraud and more particularly, to a system and method for
providing database security measures.
[0004] 2. Description of Related Art
[0005] It is well known that credit card fraud is a major problem
in the credit card industry. Such fraud is achieved in many ways,
one method being the theft of a cardholder's wallet or purse and
the subsequent unauthorized usage of the credit cards and debit
cards stored therein. Often, stolen credit cards are used within
the first few hours of the theft. Most credit card fraud is
detected before the cardholder knows there is a problem. Adding to
this problem is the fact that most cardholders carry more than one
credit card. Often, the cardholder does not even know how many or
which cards he is carrying, and most cardholders do not keep a
separate list of all of their credit and debit cards. Credit card
companies often end up paying for the majority of unauthorized
usage. This reduces the credit card companies' profits and leads to
increased fees for cardholders.
[0006] Because cardholders often carry more than one credit or
debit card, even if one credit card company notices irregular
purchases on the credit card and restricts the use of that
particular credit or debit card, the fraud continues because the
thief simply switches to another credit card in the wallet or
purse. Because the cards are usually issued by different companies,
it is unlikely that the fraudulent use of one card will be reported
to the issuing companies of the other cards. Thus, even if the
theft is noticed by the cardholder, it is very difficult and time
consuming to contact every financial institution that has issued a
credit or debit card to the cardholder.
[0007] These methods of restricting the use of credit cards are not
without their problems. Computerized monitoring systems
occasionally restrict the valid use of a credit card merely when
the cardholder's purchasing habits change. For instance, it is
possible for a generally frugal shopper to have their credit card
locked by the issuing company when the cardholder goes on an
unusual shopping spree or travels to an unusual location. The
prospect of angering customers by such mistakes makes automated
monitoring an undesirable alternative of fraud protection for most
credit card companies.
[0008] One proposed solution is for the cardholder to register all
of his credit, debit, and other financial institution cards under a
single credit card fraud protection plan. This allows the plan
administrator to contact the credit card issuers in the event a
fraud or theft is reported to the plan administrator by the
cardholder. Although such credit card fraud protection plans offer
a valuable service to the cardholder, it is still incumbent upon
the cardholder to realize that a theft or fraud has taken place and
to notify the plan administrator. Unfortunately, the theft is
usually not realized until several hours or days have passed. This
is true for many different reasons, including: the theft occurs
while the cardholder is sleeping; the cards are stolen from the
cardholders home while the cardholder is away or out of town; the
thief only steals the cards, and not the entire wallet or purse;
the cards are not actually stolen, but the numbers, expiration
dates, and code numbers are copied for use over the phone or the
Internet; and a wide variety of other reasons.
[0009] Therefore, although there have been significant developments
in the area of credit card fraud prevention, considerable
shortcomings remain.
SUMMARY OF THE INVENTION
[0010] There is a need for credit card fraud prevention system that
provides an immediate and reliable indication that theft, fraud, or
unauthorized use has occurred. There is also a need for a system
which increases the arrest rate for credit card theft.
[0011] Therefore, it is an object of the present invention to
provide an apparatus and method for preventing and reducing credit
card fraud that provides an immediate and reliable notification
that theft, fraud, or unauthorized use of a credit, debit, or
financial institution card has occurred, and that provides an
immediate procedure for canceling and reordering credit cards. It
is a further object to provide a system that provides an increase
in the arrest rate for credit card theft.
[0012] These objects are achieved by providing a trigger card that
looks and feels like a credit card and that is carried by a
cardholder along with his other credit and debit cards. Although
the trigger card looks and feels like a regular credit card, any
attempted use of the trigger card immediately signals the theft,
fraud, or unauthorized use of the card and sets a variety of
systems into action. The first system triggered by use of the
trigger card is one that immediately cancels, some, all, or any
predetermined number of credit and debit cards stored on a list of
cards provided by the cardholder. A second system, which is
optional, that is triggered by the use of the trigger card is a
law-enforcement system that gathers information about the
unauthorized user. This second system may include having the clerk
request further identification in the form of a state-issued
identification card or biometric data, such as a fingerprint. A
third system triggered by the use of the trigger card is one that
notifies various agencies, personnel, or third parties who may need
to know of the theft, fraud, or unauthorized use. For example, the
notification might be sent to state and federal agencies, credit
card issuers, credit reporting or monitoring companies, banks,
relatives, and to personal email or telephone numbers of the
cardholder, among other possibilities. A fourth system that is
triggered by the use of the trigger card is one that immediately
orders and delivers new cards to the cardholder at a pre-designated
address by expedited delivery. This pre-designated address can be
the cardholder's home address, his business address, or a "safe"
address, such as a bank or post office box, or to a temporary
address if the cardholder is away from home.
[0013] The present invention provides significant advantages,
including: (1) immediate response to fraud notification in the form
of card cancellation, notification, and delivery of new cards; (2)
increased reporting of credit card theft; (3) simplified
"back-to-normal" status for cardholders; (4) increased collection
of data about fraudulent users; (5) reduced false positive
notifications of fraud or theft; and (6) significantly reduced
losses to credit card issuers and retail entities due to credit
card fraud.
[0014] Additional objectives, features, and advantages will be
apparent in the written description that follows.
DESCRIPTION OF THE DRAWINGS
[0015] The novel features believed characteristic of the invention
are set forth in the appended claims. However, the invention
itself, as well as, a preferred mode of use, and further objectives
and advantages thereof, will best be understood by reference to the
following detailed description when read in conjunction with the
accompanying drawings, wherein:
[0016] FIG. 1 is a schematic of a wallet storing financial cards
and a trigger card according to the present invention;
[0017] FIG. 2 is a schematic of a trigger card according to the
present invention;
[0018] FIG. 3 is a diagram of a system triggered by the trigger
card of FIG. 2 according to the present invention;
[0019] FIG. 4 depicts a high level flowchart illustrating security
measures of the present invention; and
[0020] FIG. 5 is a diagram of a database system according to the
present invention.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
[0021] The present invention represents the discovery that a
trigger card that looks and feels like a credit card, but which is
not a credit card, may be placed among actual credit and debit
cards in a cardholders wallet or purse to prevent credit card
fraud. The trigger card is stored with the cardholder's other
financial cards, but not used by the cardholder. Any attempt to use
the trigger card as a credit card is a clear indication of theft or
fraud; thereby triggering a range of possible responses tailored to
reduce fraud. The trigger card and associated system for use will
result in more limited fraud exposure and act as a fraud
deterrent.
[0022] Referring to FIG. 1 in the drawings, a conventional wallet
11 is shown with financial cards 13. It will be appreciated that
wallet 11 also represents purses and other devices, including
pouches, money clips, checkbook, pockets, drawers, file cabinet,
furniture, automobiles, and safes, used by cardholders to carry and
store credit, debit, and other financial institution cards.
Financial cards 13 may be credit cards, debit cards, debit cards,
automatic teller machine cards, cash value cards, voucher cards, or
any card used for financial transactions. As is typical, financial
cards 13 include graphical designs, logos of banks, logos of credit
card institutions, such as VISA and MASTERCARD, identification
names, identification numbers, code numbers, expiration dates, and
one or more magnetic strips or other digital memory means for
storing digital data.
[0023] In accordance with the present invention, a trigger card 15
is carried or stored randomly among financial cards 13. Trigger
card 15 looks and feels like a typical financial card, in that
trigger card 15 preferably includes graphics, logos of banks, logos
of popular credit card institutions, such as VISA and MASTERCARD,
identification names, identification numbers, code numbers,
expiration dates, and one or more magnetic strips or other digital
memory means for storing digital data; however, trigger card 15 is
not a financial card. Trigger card 15 is preferably manufactured by
the same means as financial cards 13.
[0024] The purpose of trigger card 15 is to fool an unauthorized
user into believing that trigger card 15 is a valid credit card.
Thus, it is preferred that trigger card 15 not be identical to any
other financial card 13 in wallet 11, but should look as much like
a regular credit card as every other financial card 13 in wallet
11. The importance of this is two fold: first, the user should be
able to easily avoid using trigger card 15; second, most
cardholders do not have two identical cards from the same issuer,
so the pair would stand out as a possible trigger card 15. Also,
many financial cards 13 offer varying levels of membership with
varying issuer logos, card designs, and indicators, such as
"Platinum Card," "Gold Card," or "Exclusive." These options are
available for trigger card 15 to further insure that the trigger
card 15 is indistinguishable from a financial card 13 to anyone but
the cardholder. Indeed, trigger card 15 may include features or
indicia that entice a thief or an unauthorized user to attempt to
use trigger card 15 before attempting to use any other financial
card 13. If a thief can be enticed into using trigger card 15
first, then, as explained below, as soon as trigger card 15 is
used, the cardholder's valid financial cards 13 are cancelled. This
prevents any unauthorized or fraudulent transactions on valid
financial cards 13.
[0025] Referring now to FIGS. 2A and 2B in the drawings, the front
and back of a preferred embodiment of trigger card 15 is shown. As
shown in FIG. 2A, the front of trigger card 15 preferably includes
typical indicia of a credit or debit card, including a bank logo
17, a 16-digit card number 19, an expiration date 21, a security
label 23, such as a hologram, the cardholder's name 25, a credit
card institution logo 27, such as VISA or MASTERCARD, and other
marketing images. It is important that these indicia look
authentic. The back of trigger card 15 is shown in FIG. 2B. Trigger
card 15 preferably includes at least one magnetic strip 29 or other
means for storing digital trigger data, a signature block 31, and a
security code 33. Although trigger card 15 is shown and described
as comprising a means for storing digital trigger data in the form
of magnetic strip 29, the present invention contemplates trigger
card 15 comprising any type of digital storage means according to
particular needs. For example, trigger card 15 may comprise a
miniature transponder programmable means of storing digital trigger
data rather than magnetic strip 15. In addition or as an
alternative, trigger card 15 may comprise a Radio Frequency (RF)
chip that provides for wireless transmission of digital trigger
data rather than magnetic strip 29. Thus, trigger card 15 may
include a contactless means of transmitting digital trigger data
via the miniature transponder or a wireless means of transmitting
digital trigger data via the RF chip of trigger card 15.
[0026] In addition to the need for stealth, as more fully explained
below, magnetic strip 29 and card number 19 are utilized by trigger
card 15 and the associated credit card fraud prevention system of
the present invention to communicate that trigger card 15 has been
used. For the foregoing reasons, it is preferred that trigger card
15 be manufactured with the same materials and in the same fashion
as valid financial cards 13.
[0027] It will be appreciated that trigger cards 15 for use in the
present invention undergo the same security and usage upgrades over
time that regular financial cards undergo. As such, trigger card 15
may include security features that are currently known but not
widely used, or may include security or usage features that are not
yet known. In other words, trigger card 15 is easily adaptable to
keep up with the latest trends in credit card security and
usability.
[0028] Referring now to FIG. 3 in the drawings, a system 34
according to the present invention that utilizes trigger card 15 to
prevent fraud is illustrated. System 34 includes conventional card
readers 35 that are used to read, process, and display the status
of financial transactions. Card readers 35 may be point of sale
readers, as found at typical sales counters and cash registers,
automatic teller machines, or any other type of transactional based
means. System 34 further comprises one or more computers 36 for use
with internet online sales, as described in more detail below. Card
readers 35 serve as an interface between financial cards 13 and a
system of approval and payment. Upon transfer of information from
magnetic strip 29 of financial card 13 to card reader 35, either by
manual entry of card number 19, expiration date 21, and/or other
data; or by swiping magnetic strip 29 through card reader 35; data
about financial card 13 and the current transaction is transmitted
to a network 37. It is recalled from the above discussion that
although trigger card 15 is shown and described as comprising a
means for storing digital trigger data in the form of magnetic
strip 29, the present invention contemplates trigger card 15
comprising any type of digital storage means, including but not
limited to a miniature transponder programmable means of storing
digital trigger data or an RF chip that provides for wireless
transmission of digital trigger data.
[0029] Network 37 may be a computer network, telephone network,
wireless network, the internet, or any other network suitable for
transmitting data. Network 37 transmits the data to one or more
issuing institutions 39. In addition or as an alternative, network
37 may transmit data to one or more monitoring institutions 40, as
described in more detail below. Monitoring institutions 40 may be
any type of credit reporting agency or other institutions or
agencies. Issuing institutions 39 may be banks, financial services
companies, or other institutions or agencies. Issuing institutions
39 evaluate the requested transaction and reply through network 37
to card reader 35, either approving or denying the transaction. For
card readers 35 located at point of sale counters and cash
registers, the approval or denial by issuing institution 39 may be
appropriately displayed on a display of card reader 35.
[0030] According to the present invention, if trigger card 15 is
used instead of financial card 13, card reader 35 transmits
selected data stored on magnetic strip 29 over network 37 to a
trigger computer 41. Trigger computer 41 may be located at issuing
institution 39 or may be located at a remote location. It will be
appreciated that the data from trigger card 15 may be sent from
card reader 35 through network 37 to trigger computer 41, from
issuing institution 39 through network 37 to trigger computer 41,
from institution 39 directly to trigger computer 41, or directly
from card reader 35 directly to trigger computer 41. Variations in
the order or direction of transmission of the data from trigger
card 15 may be easily controlled by appropriate programming on
system 34. In the preferred embodiment, trigger computer 41 is
programmed to initiate certain anti-fraud procedures based upon the
receipt of data indicating an attempted use of trigger card 15.
[0031] The procedures initiated by trigger computer 41 include a
data acquisition procedure, a card cancellation procedure, a
notification procedure, and a card ordering procedure. The
cancellation procedure includes the immediate and automatic
canceling of all financial cards 13 that have been previously
chosen and listed by the cardholder to be cancelled by system 34 in
the event trigger card 15 is ever used. Alternatively, the spending
limits on the associated financial cards 13 may be severely reduced
to allow tracing of the fraudulent use and to allow continued
limited use in the event of an accidental use of the trigger card
15.
[0032] The data acquisition procedure occurs immediately after
trigger card 15 is swiped at a card reader 35 or after the data
from trigger card 15 is submitted in an online transaction. In the
preferred embodiment, the method and location of use is recorded
and transmitted to trigger computer 41, or other computers
dedicated to the carrying out of the various procedures of the
invention. The data acquisition procedure may be enhanced in
several ways upon the use of trigger card 15, such as by trigger
computer 41 informing card reader 35 that an official
identification card (ID) is required to continue with the
transaction. Trigger card 15 and/or magnetic strip 29 may include
certain biometric data about the cardholder, such as fingerprint,
retinal scan, facial scan, palm print, etc. As such, trigger
computer 41 may transmit a request that the user of trigger card 15
submit such information. As such requests for biometric data become
more commonplace, such requests may not necessarily alarm a thief
that trigger card 15 has been used.
[0033] It should be appreciated that in one embodiment of the
invention the data acquisition procedure may allow for a
transaction to occur at a low cost to increase the likelihood of
capturing the thief. For instance, if trigger card 15 is used at a
location with poor data acquisition characteristics, such as a
remote automatic teller machine with a low quality camera, a
withdrawal may be allowed so that the thief may use the trigger
card 15, or any of the associated financial cards 13, at a location
with better data acquisition equipment, such as at a store with a
finger print scanner. Such options may be at the issuer's
discretion depending on the importance of catching every thief, or
may be an option selected by the cardholder as an extra protection
feature.
[0034] Because of the common usage of financial cards 13, in one
embodiment of the invention, a disable code for canceling the
mistaken usage of trigger card 15 by the cardholder may be
provided. An example may be the entry of a code within a certain
time limit after using the trigger card 15, such as within thirty
seconds after usage. This additional feature would not delay the
response of the trigger computer 41 unduly, but would allow the
cardholder some ability to recover from the mistaken use of trigger
card 15.
[0035] The notification procedure preferably requires that trigger
computer 41 be connected to an external network 43 for automated
communication to the cardholder and any other listed parties. For
example, trigger computer 41 could send an email notification to
the cardholder. Additionally, if the cardholder wishes to list
other email addresses to be notified, an email may be sent to the
card holder's spouse, children, attorney, company, security
service, credit reporting institution, credit monitoring
institution, credit card fraud monitoring division, or any other
entity that the card holder would want notified of the use of the
trigger card 15. Likewise, an automated telephone message may be
sent to a list of numbers selected by the cardholder. The message
may be computer generated, including the date, time, and location
of the unauthorized use of trigger card 15. Additionally, any
automated communication may include a personal message pre-recorded
by the card holder, such as an introduction to the email, or a
voice message added to the telephone notification. Additionally,
the notification may include notification of the proper authorities
or an appropriate law-enforcement agency based upon the location of
the unauthorized use.
[0036] The card ordering procedure includes immediate ordering and
delivery of replacement financial cards 13 for all financial cards
13 that were cancelled by system 34 and issuance of a new trigger
card 15. Delivery may be automatic to a home address, a business
address, or a "safe" address, such as a bank or post office box, or
to a temporary address if the cardholder is away from home, or
delivery of the replacement financial cards 13 may be deferred
until the cardholder has replied to the notification. While home
delivery tends to be safest, this may be of no help when the
cardholder is traveling. Therefore, home delivery may be initiated
immediately, or delivery may be delayed pending confirmation of the
cardholder's location. This confirmation may be automated by email,
text messaging, web page entry, or telephone, for example.
Alternatively, the confirmation may be handled by personal
communication, such as over the telephone or in person at a
financial institution, to ensure that no continuing fraud is
perpetrated by the theft of a communication device along with
trigger card 15.
[0037] In one embodiment of the present invention, one method for
associating financial cards 13 with trigger card 15 is to provide a
specially adapted card reader 35 inside a financial institution,
such as a bank lobby. The cardholder simply swipes trigger card 15
in the special card reader 35 and initiates a signup menu instead
of a transaction menu. The cardholder then swipes any financial
cards 13 that need to be associated with the trigger card 15. This
procedure might require a code to prevent a thief from swiping
various financial cards 13 in an attempt to find a trigger card 15.
In addition or as an alternative, the specially adapted card reader
35 provides the cardholder the option of setting up a profile in
which certain actions are automatically initiated upon the
activation of trigger card 15. For example, the profile may include
canceling some or all financial cards 13, limiting the credit
limits of some or all of financial cards 13, ordering some or all
replacement financial cards 13, or other like actions.
[0038] Referring now to FIG. 4 in the drawings, the preferred
embodiment of a high level flowchart 400 of the present invention
is illustrated. Flowchart 400 starts at step 402 with the
activation of trigger card 15. It is recalled from the above
discussion, that trigger card 15 may be activated by fraudulent
means via card readers 35 located at point of sale counters and
cash registers or via computers 36 using internet online
transactions. Next as represented by step 402, after trigger card
15 is activated via fraudulent activity a digital trigger red flag
is transmitted to monitoring institutions 40. Monitoring
institutions 40 may be any type of credit reporting company, credit
monitoring company, or any other company associated with consumer
credit. It is recalled from the above discussion that upon transfer
of information from trigger card 15 to card readers 35 or computers
36, data about trigger card 15 and the current transaction is
transmitted to issuing institutions 39. Step 402 occurs
substantially concurrently as this transfer of information to
issuing institutions 39.
[0039] The process continues with step 404, in which monitoring
institutions 40 initiates a security measure based on the digital
trigger red flag received from the fraudulent activation of trigger
card 15. Monitoring institutions 40 are capable of substantially
simultaneously initiating multiple security measures associated
with the account of the fraudulently activated trigger card 15. As
an example and not by way of limitation, monitoring institutions 40
may initiate security measures to monitor the account for any
suspicious activity, such as for example, request for additional
lines of credit, requests for increase in credit limit or credit
line, requests for change of address, unusual activity or buying
habits, or the like.
[0040] The security measures continue with inquiry step 408, in
which a determination is made as to whether the fraudulent use was
initiated via a computer. If the fraudulent activity was initiated
via a computer, the process continues with step 410. Next in step
410, computer trigger software is initiated to identify the exact
location and pertinent information regarding computers 36. For
example, if the fraudulent activity was initiated via a computer or
keyboard associated with a computer, issuing institutions 39
automatically, or through other means, initiates computer trigger
software to trace the transaction to the exact computer or
keyboard. In addition, computer trigger software may take a snap
shot or a finger print of the transaction for additional security
measures, thereby creating a means to prosecute, trace fraud rings,
use cookies, implant spy software, and the like. On the other hand,
if the fraudulent activity was not initiated via a computer, the
process continues with step 412.
[0041] Next the process ends at step 412, in which monitoring
institutions 40 transmits a report to issuing institutions 39,
thereby curtailing fraudulent activity, credit card fraud, and
identity theft.
[0042] Referring now to FIG. 5 in the drawings, the preferred
embodiment of an electronic database system 500 according to the
present invention is illustrated. In this embodiment, electronic
database system 500 is adapted for use with one or more issuing
institutions 39. Electronic database system 500 is also adapted to
communicate with a network or other communication access
connections, via communications line 502, as described above in
connection with FIG. 3. Database system 500 comprises one or more
data blocks, such as for example, data block A 510, data block B
520, and data block C 530. Although, database system 500 is shown
and described as having data block A 510, data block B 520, and
data block C 530, the present invention contemplates more, fewer,
or any number of data blocks associated with database system 500,
according to the needs of issuing institutions 39.
[0043] Data block C 530 comprises account information and other
personal consumer data associated with financial information stored
at issuing institutions 39. For example, data block C 530 may
comprise an account number, an account type, either a normal
account or a trigger account, or any other financial or personal
consumer data. Additionally data block A 510 and data block B 520
each comprise account information and other personal consumer data
associated with financial information stored at issuing
institutions 39, similar to those shown and described in data block
C 530. In addition or as an alternative, the number of accounts and
various account types associated with the data block A 510, data
block B 520, and data block C 530 may be more, fewer, or any
amount, according the needs of issuing institutions 39. This
embodiment of the present invention is in place to curtail identity
theft from taking place at the issuing institution, or other
electronic databases associated with financial data.
[0044] For simplicity and clarity, only so much of database system
500 is shown and described, as is unique to the present invention
or necessary for an understanding of the present invention. As
such, FIG. 5 shows a trigger account associated with every ten
accounts, represented by the account number and further represented
by a trigger line associated with every ten accounts. However, it
is understood that a trigger line may be denoted via an alpha
trigger indicator, a numeric trigger indicator, or even an
alphanumeric trigger indicator. In addition, the trigger account
does not have a valid financial value associated with it, but
instead is designed for the purpose of fooling an unauthorized user
into believing that the trigger account is a valid normal account.
The trigger account and in particular the trigger indicator may
further be encrypted into the account information and may be
provided as a stealth means to denote the trigger account. These
options are available for the trigger indicator to further insure
that the trigger account is indistinguishable from a normal account
to anyone but issuing institutions 39.
[0045] For example, a trigger line may include an alphanumeric
trigger indicator, such as for example, an X1 following the account
number, a special number or character placed in the address line,
or any other like encrypted form. Although FIG. 5 shows a trigger
line of data being associated with every ten accounts, the present
invention contemplates a trigger line of data associated with every
hundred accounts, every thousand accounts, every ten thousand
accounts, every randomly generated number of accounts, or according
to the needs of issuing institutions 39.
[0046] To further explain the operation of database system 500, an
example is now given. In the following example data block C 530
comprises 10,000 accounts. Likewise, data block A 510 comprises
10,000 accounts and data block B 520 comprises 10,000 accounts.
Accordingly, database system 500 comprises a total of 30,000
accounts. If database system 500 is accessed, hacked, copied, or
otherwise compromised by unauthorized means, the trigger lines
associated with each trigger account activate a system or process
that automatically cancels, some, all, or any predetermined number
of normal accounts in data block A 510, data block B 520, and data
block C 530, or otherwise makes them inoperable. For example, if
trigger account 0010 of data block C 530 is compromised, a 20 block
of both forward and reverse accounts is automatically cancelled and
reissued. Additionally, if trigger account 0100 of data block C 530
is compromised, a 200 block of both forward and reverse accounts is
automatically cancelled and reissued. Still additionally, if
trigger account 1000 of data block C 530 is compromised, a 2000
block of both forward and reverse accounts is automatically
cancelled and reissued. In essence, an unauthorized access to any
of the data blocks within data system 500 may automatically cancel
some, all, or any predetermined number of normal accounts
associated with data block A 510, data block B 520, or data block C
530.
[0047] Accordingly, in the event of unauthorized access to database
system 500, issuing institutions 39 may selectively cancel and
reissue normal accounts based on the above system and process.
Therefore, issuing institutions 39 are no longer required to cancel
all existing normal accounts associated with database system 500,
upon the compromise of only a small amount of data or even an
unknown amount of data. Instead, issuing institutions 39 can
quickly respond to any unauthorized access, by only canceling the
affected accounts, thereby providing less time for other
unauthorized information to be used and to simultaneously minimize
the inconvenience of a cancelled account to its financial
customer.
[0048] In an alternate embodiment of the present invention,
computer 36 comprises database 500. In this embodiment, database
500 may, prevent the unauthorized access to personal consumer
accounts stored on a home or office computer. In this manner,
financial software associated with computer 36 provides for a
trigger account associated with the valid normal financial
accounts. If computer 36 is accessed, hacked, copied, or otherwise
compromised by unauthorized means, the trigger lines associated
with each trigger account activate a system or process that
automatically cancels, some, all, or any predetermined number of
normal accounts in database system 500, or otherwise makes them
inoperable. This embodiment of the present invention is in place to
curtail identity theft from taking place at computer 36, or other
electronic databases associated with personal financial data.
[0049] In an alternate embodiment, the present invention may be
carried out by using a trigger number, as opposed to an actual
trigger card. In this embodiment, a trigger number is placed in
with a group or list of actual valid financial card numbers stored
in a list or electronic database. This embodiment protects
databases of credit card numbers from being stolen and used
electronically, even before the actual credit cards have been
created.
[0050] In this trigger-number embodiment, one or more selected
trigger numbers, which are not valid numbers for a financial cards
and which cannot be validated into valid financial cards, are
placed in one or more lists or databases of numbers which can be
used as or to create valid financial cards. If a list or database
containing a trigger number is accessed, copied, or otherwise used
by unauthorized means, the trigger number activates a system or
process that cancels, some, all, or any number of the valid numbers
in the list or database and makes them inoperable. In particular,
any attempted use of a trigger number as a financial card number,
cancels and/or invalidates all of the numbers or financial cards
associated with that list or database, initiates response,
cancellation, and notification procedures, such as those explained
above, and records and tracks the location of the computer from
which the unauthorized access initiated. This system prevents and
deters unauthorized users from hacking into, and stealing credit
cards numbers from electronic databases, both before the numbers
can be used to create valid financial cards and after the cards
have been created.
[0051] It is apparent that an invention with significant advantages
has been described and illustrated. Although the present invention
is shown in a limited number of forms, it is not limited to just
these forms, but is amenable to various changes and modifications
without departing from the spirit thereof.
* * * * *