U.S. patent application number 11/396247 was filed with the patent office on 2007-10-04 for management of biometric information.
This patent application is currently assigned to Early Warning Services, LLC. Invention is credited to Sathish Anickode, Julie McNelley, Glen Sgambati.
Application Number | 20070233614 11/396247 |
Document ID | / |
Family ID | 38560565 |
Filed Date | 2007-10-04 |
United States Patent
Application |
20070233614 |
Kind Code |
A1 |
McNelley; Julie ; et
al. |
October 4, 2007 |
Management of biometric information
Abstract
Fraud risk is monitored in financial transactions. Biometric
information is received over the communications interface
configured to exchange data with multiple distinct financial
institutions. The received biometric information is compared with a
database of biometric information to identify an individual. A
fraud-detection analysis is performed on the financial transaction
information associated with the individual. The financial
transaction information associated with the individual is
identified as suspicious in accordance with a result of the
fraud-detection analysis. The biometric parameters associated with
the individual are designated as associated with suspicious
financial activity.
Inventors: |
McNelley; Julie; (Oakland,
CA) ; Sgambati; Glen; (Glendale, AZ) ;
Anickode; Sathish; (Scottsdale, AZ) |
Correspondence
Address: |
TOWNSEND AND TOWNSEND AND CREW, LLP
TWO EMBARCADERO CENTER
EIGHTH FLOOR
SAN FRANCISCO
CA
94111-3834
US
|
Assignee: |
Early Warning Services, LLC
Scottsdale
AZ
|
Family ID: |
38560565 |
Appl. No.: |
11/396247 |
Filed: |
March 30, 2006 |
Current U.S.
Class: |
705/75 |
Current CPC
Class: |
G06Q 20/40145 20130101;
G06Q 20/401 20130101; G06K 9/00885 20130101; H04L 63/0861 20130101;
G06Q 20/403 20130101; G06Q 20/40 20130101; G06Q 40/02 20130101;
G06Q 20/4016 20130101 |
Class at
Publication: |
705/075 |
International
Class: |
H04L 9/00 20060101
H04L009/00 |
Claims
1. A system for monitoring fraud risk in financial transactions,
the system comprising: a communications interface configured to
exchange data between the system and a plurality of distinct
financial institutions; a storage device maintaining a database of
biometric information associating biometric parameters with
identified individuals and maintaining a database of financial
transaction information associated with the individuals; a
processor in communication with the communications interface and
with the storage device; and a memory coupled with the processor,
the memory comprising a computer-readable storage medium having a
computer-readable program embodied therein for operating the system
to monitor fraud risk in financial transactions, the
computer-readable program comprising: instructions for receiving
biometric information over the communications interface;
instructions for comparing the received biometric information with
the database of biometric information to identify an individual;
instructions for performing a fraud-detection analysis on the
financial transaction information associated with the individual;
instructions for identifying the financial transaction information
associated with the individual as suspicious in accordance with a
result of the fraud-detection analysis; and instructions for
designating the biometric parameters associated with the individual
as associated with suspicious financial activity.
2. The system recited in claim 1 wherein the individual comprises
an employee of one of the plurality of distinct financial
institutions.
3. The system recited in claim 1 wherein the computer-readable
program further comprises instructions for transmitting a warning
over the communications system that the biometric parameters
associated with the individual have been designated as associated
with suspicious financial activity.
4. The system recited in claim 1 wherein the received biometric
information comprises raw biometric data.
5. The system recited in claim 1 wherein the received biometric
information comprises derived biometric parameters.
6. The system recited in claim 1 wherein the instructions for
receiving biometric information over the communications interface
further comprise instructions for receiving at least part of a
commercial transaction request over the communications
interface.
7. The system recited in claim 6 wherein the computer-readable
program further includes instructions for transmitting a denial of
the commercial transaction request over the communications
interface.
8. The system recited in claim 1 wherein the plurality of distinct
financial institutions comprise a bank.
9. The system recited in claim 1 wherein the plurality of distinct
financial institutions comprise a money-transfer organization.
10. The system recited in claim 1 wherein the instructions for
receiving biometric information over the communications interface
comprise instructions for receiving biometric information from one
of the plurality of distinct financial institutions.
11. The system recited in claim 1 wherein: the communications
interface is further configured to exchange data between the system
and a plurality of distinct merchants; and the instructions for
receiving biometric information over the communications interface
comprise instructions for receiving biometric information from one
of the plurality of distinct merchants.
12. The system recited in claim 1 wherein the computer-readable
program further includes: instructions for receiving second
biometric information over the communications interface;
instructions for comparing the received second biometric
information with the database of biometric information to identify
a second individual; and instructions for returning details of the
financial transaction information associated with the second
individual over the communications interface.
13. A system for managing biometric information, the system
comprising: a communications interface configured to exchange data
between the system and a plurality of distinct financial
institutions; a storage device maintaining a database of biometric
information associating biometric parameters with identified
individuals and maintaining a database of financial transaction
information associated with the individuals; a processor in
communication with the communications interface and with the
storage device; and a memory coupled with the processor, the memory
comprising a computer-readable storage medium having a
computer-readable program embodied therein for operating the system
to manage biometric information, the computer-readable program
comprising: instructions for receiving biometric information over
the communications interface; instructions for comparing the
received biometric information with the database of biometric
information to identify an individual; instructions for performing
an analysis on the financial transaction information associated
with the individual; instructions for identifying the financial
transaction information associated with the individual as favorable
in accordance with a result of the analysis; and instructions for
designating the biometric parameters associated with the individual
as associated with favorable financial activity.
14. The system recited in claim 13 wherein the individual comprises
an employee of one of the plurality of distinct financial
institutions.
15. The system recited in claim 13 wherein the received biometric
information comprises raw biometric data.
16. The system recited in claim 13 wherein the received biometric
information comprises derived biometric parameters.
17. The system recited in claim 13 wherein the computer-readable
program further includes: instructions for receiving second
biometric information over the communications interface;
instructions for comparing the received second biometric
information with the database of biometric information to identify
a second individual; and instructions for returning details of the
financial transaction information associated with the second
individual over the communications interface.
18. A system for managing the use of biometric information, the
system comprising: a communications interface configured to
exchange data between the system and a plurality of distinct
financial institutions, each of the distinct financial institutions
maintaining a data store of biometric information associating
biometric parameters with identified individuals and maintaining a
database of financial transaction information associated with the
individuals; a storage device maintaining records identifying, for
each of a plurality of individuals, which of the plurality of
distinct financial institutions maintains the data store of
biometric information associating biometric parameters with the
each of the plurality of individuals; a processor in communication
with the communications interface and with the storage device; and
a memory coupled with the processor, the memory comprising a
computer-readable storage medium having a computer-readable program
embodied therein for operating the system to manage the use of
biometric information, the computer-readable program comprising:
instructions for receiving biometric information and a purported
identity of a specified individual over the communications
interface from a requesting party; instructions for using the
records maintained on the storage device to identify which of the
plurality of distinct financial institutions maintains the data
store of biometric information associating biometric parameters
with the specified individual; instructions for routing the
received biometric information to the identified financial
institution; instructions for receiving results of a comparison of
the received biometric information and the biometric parameters
associated with the specified individual; and instructions for
transmitting the results over the communications interface to the
requesting party.
19. The system recited in claim 18 wherein the specified individual
comprises an employee of one of the plurality of distinct financial
institutions.
20. The system recited in claim 18 wherein the received biometric
information comprises raw biometric data.
21. The system recited in claim 18 wherein the received biometric
information comprises derived biometric parameters.
Description
BACKGROUND OF THE INVENTION
[0001] This application relates generally to biometrics. More
specifically, this application relates to management of biometric
information used in fraud-detection analyses for financial
applications.
[0002] In recent years, there has been a steadily increasing
emphasis on the potential for using biometrics to identify
individuals reliably. Generally, "biometrics" refers to the use of
statistical analysis to characterize living bodies, with such
characteristics commonly being used to identify human individuals.
Different physical features may be used for the characterization,
with a widely known and conventional form of biometric being
fingerprints. Other physical features that may be used for
biometric functions include geometrical facial structures,
structures of the iris or retina in eyes, geometrical structure of
a person's hand, vein structure, voiceprints, and the like.
[0003] At the same time as biometrics have been developing in
sophistication as potentially useful mechanisms for identifying
individuals, there has also been a separate increase in various
types of fraud, one example of which is the phenomenon of "identity
theft," in which a victim's identity is misappropriated and used
fraudulently to gain access to the victim's financial affairs. The
cost of fraud is large, not only in terms of the cumulative
financial impact of the large number of instances that now
routinely occur, but also in terms of its impact on victims.
[0004] The use of biometrics has been recognized as a potential way
to limit the ability to engage in identity theft. This is because
the biometric is ultimately tied to the physical characteristics of
individuals, not to extraneous forms of identification. It is
considerably more difficult to reproduce forgeries of biological
characteristics than it is of paper documents, and certainly much
more difficult to engage in their actual theft. Despite this
recognition, there has been relatively little effort expended on
integrating the use of biometric identifications into an
infrastructure used in coordination financial transactions. There
is accordingly a general need in the art for such integration.
BRIEF SUMMARY OF THE INVENTION
[0005] In a first set of embodiments, a system is provided for
monitoring fraud risk in financial transactions. A communications
interface is configured to exchange data between the system and a
plurality of distinct financial institutions. A storage device
maintains a database of biometric information associating biometric
parameters with identified individuals and maintains a database of
financial transaction information associated with the individuals.
A processor is provided in communication with the communications
interface and with the storage device. A memory is coupled with the
processor. The memory comprises a computer-readable storage medium
having a computer-readable program therein for operating the system
to monitor fraud risk in financial transactions. The
computer-readable program has instructions to receive biometric
information over the communications interface. It also has
instructions to compare the received biometric information with the
database of biometric information to identify an individual. A
fraud-detection analysis is performed on the financial transaction
information associated with the individual. The financial
transaction information associated with the individual is
identified as suspicious in accordance with a result of the
fraud-detection analysis. The biometric parameters associated with
the individual are designated as associated with suspicious
financial activity.
[0006] The individual may comprise an employee of one of the
plurality of distinct financial institutions. In some embodiments,
the computer-readable program also has instructions for
transmitting a warning over the communications system that the
biometric parameters associated with the individual have been
designated as associated with suspicious financial activity.
[0007] The biometric information may comprise raw biometric data or
may comprise derived biometric parameters in different embodiments.
In one embodiment, the instructions for receiving biometric
information over the communications interface further comprise
instructions for receiving at least part of a commercial
transaction request over the communications interface. A denial of
the commercial transaction request may then be transmitted over the
communications interface. The distinct financial institutions may
comprise a bank or may comprise a money-transfer organization in
different embodiments. For example, in one embodiment, the
instructions for receiving biometric information over the
communications interface comprise instructions for receiving
biometric information from one of the plurality of distinct
financial institutions.
[0008] The communications interface may be further configured to
exchange data between the system and a plurality of distinct
merchants. In such embodiments, the instructions for receiving
biometric information over the communications interface may
comprise instructions for receiving biometric information from one
of the plurality of distinct merchants.
[0009] In certain embodiments, second biometric information is also
received over the communications interface. The received second
biometric information is compared with the database of biometric
information to identify a second individual. Details of the
financial transaction information associated with the second
individual are then returned over the communications interface.
[0010] In a second set of embodiments, a similar structure is used
for managing biometric information. The computer-readable program
comprises instructions for receiving biometric information over the
communications interface. The received biometric information is
compared with the database of biometric information to identify an
individual. An analysis is performed on the financial transaction
information associated with the individual. The financial
transaction information is identified as favorable in accordance
with a result of the analysis. The biometric parameters associated
with the individual are designated as associated with favorable
financial activity.
[0011] In some such embodiments, the individual may comprise an
employee of one of the plurality of distinct financial
institutions. The received biometric information may comprise raw
biometric data or may comprise derived biometric parameters in
different embodiments. In one embodiment, second biometric
information is received over the communications interface. The
received second biometric information is compared with the database
of biometric information to identify a second individual. Details
of the financial transaction information associated with the second
individual are returned over the communications interface.
[0012] In a third set of embodiments, a system is provided for
managing the use of biometric information. A communications
interface is configured to exchange data between the system and a
plurality of distinct financial institutions. Each of the distinct
financial institutions maintains a data store of biometric
information associating biometric parameters with identified
individuals and maintains a database of financial transaction
information associated with the individuals. A storage device
maintains records identifying, for each of a plurality of
individual, which of the plurality of distinct financial
institutions maintains the data store of biometric information
associating biometric parameters with the each of the plurality of
individuals. A processor is provided in communication with the
communications interface and with the storage device. A memory is
coupled with the processor and comprises a computer-readable
storage medium having a computer-readable program embodied therein
for operating the system to manage the use of biometric
information. The computer-readable program comprises instructions
for receiving biometric information and a purported identity of a
specified individual over the communications interface from a
requesting party. The records maintained on the storage device are
used to identify which of the plurality of distinct financial
institutions maintains the data store of biometric information
associating biometric parameters with the specified individual. The
received biometric information is routed to the identified
financial institution. Results of a comparison of the received
biometric information and the biometric parameters associated with
the specified individual are received. The results are transmitted
over the communications interface to the requesting party.
[0013] In these embodiments also, the specified individual may
comprise an employee of one of the plurality of distinct financial
institutions, and the received biometric information may comprise
raw biometric data or derived biometric parameters in different
embodiments.
BRIEF DESCRIPTION OF THE DRAWINGS
[0014] A further understanding of the nature and advantages of the
present invention may be realized by reference to the remaining
portions of the specification and the drawings wherein like
reference numerals are used throughout the several drawings to
refer to similar components. In some instances, a sublabel is
associated with a reference numeral and follows a hyphen to denote
one of multiple similar components. When reference is made to a
reference numeral without specification to an existing sublabel, it
is intended to refer to all such multiple similar components.
[0015] FIG. 1A illustrates a schematic overview of a first
architecture in which embodiments of the invention may be
implemented;
[0016] FIG. 1B illustrates a schematic overview of a second
architecture in which embodiments of the invention may be
implemented;
[0017] FIG. 2 illustrates a schematic structure of a computational
device on which methods of the invention may be embodied; and
[0018] FIGS. 3A-3D are flow diagrams illustrating methods of the
invention that may be implemented within the architectures shown in
FIGS. 1A and 1B.
DETAILED DESCRIPTION OF THE INVENTION
[0019] Embodiments of the invention provide an integrated
infrastructure that permits different, unrelated entities to make
use of structures for managing biometric information in considering
and executing a variety of different kinds of financial
transactions. For example, in some embodiments, a common biometrics
repository is provided; in other embodiments, the biometric
information is stored in discrete data stores distributed over a
network, with a biometric switch coordinating the routing of
information over the network. These architectures permit the use of
biometrics in a wide array of applications. In some instances, the
biometrics are used to verify purported identities of individuals
and in other instances, the biometrics are used for independent
identification of individuals. These kinds of identification may be
negative or positive--that is, organizations may associate negative
characteristics of individuals with biometric information such as
when they have criminal records, or may associate positive
characteristics such as when they have a history of desirable
behavior with the organizations.
[0020] An overview of a structure that may be used for embodiments
that make use of a biometrics repository is provided with the
schematic diagram of FIG. 1A. The structure of the architecture
illustrated in this drawing may be considered to surround a
fraud-identification system 100 that has access to a number of data
repositories 104 used in monitoring transactions for irregularities
that may signal potential fraud. The combination of the
capabilities of the fraud-identification system 100 and the data
repositories 104 permits it to act as a trusted registrar with
which biometric data are checked. The data repositories 104 may
include a biometrics repository that comprises a database
associating biometric parameters with identities of individuals. In
some instances, the individuals may comprise employees or customers
of financial institutions or merchants integrated within the
architecture. When the individuals comprise employees, the actions
taken by the fraud-identification system 100 may be forms of
employee-information screening. The biometric parameters may
comprise raw biometric parameters, such as in embodiments where an
entire fingerprint is stored or where a retinal pattern is stored.
Alternatively, the biometric parameters may comprise derived
biometric parameters, such as in embodiments where geometrical
positions of fingerprint minutiae or other statistical
characteristics of a raw biometric pattern are stored. More
generally, the information stored in the biometrics repository may
comprise any type of biometric information, including information
that results from fingerprints or other dermatoglyphic patterns,
hand or facial geometry, retinal or iris patterns, vein structure,
and the like. In some embodiments, the biometrics repository stores
multiple types of biometric information.
[0021] The other data repositories 104 may include a variety of
types of financial transaction information, which may also be
associated with particular individuals (including employees or
customers). The financial transaction information stored in the
data repositories 104 may be obtained from a variety of different
sources and subjected to statistical analyses using methods known
in the art to identify irregularities characteristic of potential
fraud. It is thus generally anticipated that improved fraud
detection results when the financial transaction information stored
in the data repositories 104 is relatively complete. While
embodiments of the invention may readily use information that
contains gaps, the presence of such gaps has the potential of
obscuring certain behaviors that might otherwise be used in
identifying potential fraud.
[0022] Collection of the financial transaction information is
facilitated with interfaces between the fraud-identification system
and a variety of financial networks, some of which are identified
in FIG. 1A for illustrative purposes. For example, the
fraud-identification system 100 may be interfaced with a financial
network 108 through which communications with or among financial
institutions 120 are routed. The financial institutions 120 may
comprise a variety of different types of financial institutions,
and embodiments of the invention are not limited by the specific
types of financial services offered by the respective financial
institutions 120. For example, the financial institutions 120 may
comprise banks, credit unions, trust organizations, brokerage
firms, and/or the like. Interactions by individuals (including
employees or customers) with respective financial institutions may
be effected with a number of different types of devices, some of
which are indicated explicitly in the drawing. For example,
magnetic-stripe readers 124 may be used to read a variety of
different card instruments, including bank cards, credit cards,
debit cards and the like, as well as identity instruments such as
drivers' licenses that include magnetic-stripe cards. Magnetic-ink
readers 128 may be used to read a variety of instruments that have
information printed on them using magnetic ink, such as checks,
deposit slips, and the like.
[0023] In addition to these type of devices, biometric readers 132
may be provided to collect biometric information from individuals
(including employees or customers). The specific design of the
biometric readers 132 may vary, depending on the type of biometric
to be collected. For example, fingerprints may be collected using
optical fingerprint readers that use total internal reflection to
discriminate between ridges and valleys in the surface structure of
fingers. Facial geometry measurements may be collected using
digital cameras coupled with computational units that perform
eigenvalue analyses to extract characterizing features. Similar
techniques may be performed using cameras to collect biometric
retinal or iris information. Hand geometry measurements may be
collected using a template over which a user places his hand,
resulting in separation of the fingers, to permit cameras to
acquire top and side views of the hand.
[0024] The fraud-identification system 100 may also be interfaced
with a transaction network 116 through which transaction
information may be routed both to the financial network 108 and to
the fraud-identification system 100. The routing through the
financial network 108 permits transaction information to be
considered by financial institutions as described in further detail
below to determine whether to approve or deny particular
transactions by customers with merchants. The routing to the
fraud-identification system 100 generally includes biometric
information collected when the transaction is staged, permitting
authentication of the biometric information by a centralized
source. In some embodiments, particulars of the transaction are
also routed to the fraud-identification system, which may then add
such particulars and/or information derived from such particulars
to the data repositories. This information then becomes part of the
body of data that may be used by the fraud-identification system in
identifying patterns that indicate the existence of suspicious
behavior.
[0025] The transaction network 116 receives transaction information
from merchants 152, each of which may in turn collect transaction
information at a point-of-sale using a variety of different types
of devices. Some of these devices are identified explicitly in FIG.
1, such as a magnetic-stripe reader 156, a magnetic-ink reader, a
chip-card reader 164, and the like. The availability of multiple
types of devices provides versatility in accepting different forms
of payment from a customer, and may sometimes simplify providing a
self-service facility for executing transactions with a customer.
Examples of point-of-sale devices that include multiple
capabilities for identifying transaction instruments are provided
in the following commonly assigned applications, the entire
disclosures of which are incorporated herein by reference for all
purposes: U.S. Prov. Pat. Appl. No. 60/147,889, entitled
"INTEGRATED POINT OF SALE DEVICE," filed Aug. 9, 1999 by Randy J.
Templeton et al.; U.S. patent application Ser. No. 09/634,901,
entitled "POINT OF SALE PAYMENT SYSTEM," filed Aug. 9, 2000 by
Randy J. Templeton et al.; U.S. patent application Ser. No.
10/116,689, entitled "SYSTEMS AND METHODS FOR PERFORMING
TRANSACTIONS AT A POINT-OF-SALE," filed Apr. 3, 2002 by Earney
Stoutenburg et al.; U.S. patent application Ser. No. 10/116,733,
entitled "SYSTEMS AND METHODS FOR DEPLOYING A POINT-OF-SALE
SYSTEM," filed Apr. 3, 2002 by Earney Stoutenburg et al.; U.S.
patent application Ser. No. 10/116,686, entitled "SYSTEMS AND
METHODS FOR UTILIZING A POINT-OF-SALE SYSTEM," filed Apr. 3, 2002
by Earney Stoutenburg et al.; and U.S. patent application Ser. No.
10/116,735, entitled "SYSTEMS AND METHODS FOR CONFIGURING A
POINT-OF-SALE SYSTEM," filed Apr. 3, 2002 by Earney Stoutenburg
("the point-of-sale device applications"). Biometric information at
a point-of-sale may be collected using a biometric reader 168,
which may have any of the structures described above in different
embodiments, depending on the specific type of biometric
information to be collected.
[0026] The fraud-identification system 100 may also be interfaced
with a money-transfer network 112, over which currency-transfer
transactions may be executed between money-transfer providers 136.
Again, each of the money-transfer providers 136 may have a number
of different types of devices for collecting or providing finds in
executing the money-transfer transactions, such as magnetic-stripe
readers 140, chip-card readers 144, and the like. In some
embodiments, such devices may be comprised by an integrated
point-of-sale device as described in the point-of-sale device
applications. Biometric information may be collected using a
biometric reader 148 like those described above.
[0027] An overview of a structure that makes use of a distributed
network throughout which biometric information may be stored is
illustrated in FIG. 1B. The basic architecture shown in this
drawing is generally similar to the architecture described in
connection with FIG. 1A. The architectures differ in that the
fraud-identification system 100 has been replaced by a biometric
switch 180 and the biometrics repository has been replaced by data
stored at data stores 184 associated with respective financial
institutions 120. The operation of the architecture is accordingly
similar to that described in connection with FIG. 1A, but differs
in that the biometric switch 180 acts to coordinate the routing of
requests for biometric analyses and the results of those requests
so that the locally stored biometric information may be applied
directly. The biometric switch 180 may accordingly comprises its
own data store 188 that maintains information used in implementing
the routing of requests and responses over the network defined by
the architecture.
[0028] The fraud-identification system 100 or the biometric switch
180 may advantageously be embodied on a computational device such
as illustrated schematically in FIG. 2, which broadly illustrates
how individual system elements may be implemented in a separated or
more integrated manner. The system 100 or switch 180 is shown
comprised of hardware elements that are electrically coupled via
bus 226. The hardware elements include a processor 202, an input
device 204, an output device 206, a storage device 208, a
computer-readable storage media reader 210a, a communications
system 214, a processing acceleration unit 216 such as a DSP or
special-purpose processor, and a memory 218. The computer-readable
storage media reader 210a is further connected to a
computer-readable storage medium 210b, the combination
comprehensively representing remote, local, fixed, and/or removable
storage devices plus storage media for temporarily and/or more
permanently containing computer-readable information. The
communications system 214 may comprise a wired, wireless, modem,
and/or other type of interfacing connection and permits data to be
exchanged with the transaction network 116, the financial network
108, and/or the money-transfer network 112.
[0029] The computational device 200 also comprises software
elements, shown as being currently located within working memory
220, including an operating system 224 and other code 222, such as
a program designed to implement methods of the invention. It will
be apparent to those skilled in the art that substantial variations
may be used in accordance with specific requirements. For example,
customized hardware might also be used and/or particular elements
might be implemented in hardware, software (including portable
software, such as applets), or both. Further, connection to other
computing devices such as network input/output devices may be
employed.
[0030] Methods of the invention are illustrated with the flow
diagrams of FIGS. 3A-3D. FIG. 3A illustrates an overview of how
information collected from various sources may be used to identify
potentially fraudulent financial activity and associate such an
identification with one or more biometrics. Such methods broadly
begin with customer or employee enrollment of biometric information
into the system. For instance, as indicated at block 302, a
customer may enroll his biometric with a financial institution 120,
which applies a standardized analytical algorithm to the collected
biometric at block 304. Such a standardized algorithm seeks to
identify sufficiently many distinguishing characteristics that a
later match with the distinguishing characteristics is highly
likely to be a unique identity confirmation. For instance, the
analytical algorithm might operate on a fingerprint pattern to
identify and record minutiae. Alternatively, the analytical
algorithm might operate on a facial-geometry pattern to extract
eigenvalue identifications. In embodiments using the architecture
shown in FIG. 1A, the financial institution 120 then transmits the
results of the analytical algorithm to the fraud-identification
system 100 at block 306. If an architecture like that shown in FIG.
1B is used, the biometric or results of the analytical algorithm
are instead stored locally at the financial institution 120 in the
data store 184 at block 304.
[0031] In some alternative embodiments, the financial institution
120 may transmit a raw biometric to the fraud-identification system
100 at block 306, permitting application of the analytical
algorithm to be made by the fraud-identification system 100 itself.
The system 100 stores the biometric and/or the results of applying
the analytical algorithm, whether the algorithm be applied by the
fraud-identification system or by another party, in the biometric
repository at block 308.
[0032] Irrespective of where the biometric information is stored,
whether it be centrally as in an architecture like that shown in
FIG. 1A or in a distributed fashion as in an architecture like that
shown in FIG. 1B, an association may be made in some embodiments
between the stored biometric and fraud information and account
information at block 310. It is generally anticipated that account
information and item-level transaction information will regularly
be received over the financial network 108, the money-transfer
network 112, and/or the transaction network 116, as indicated at
block 312. This regularly received information is analyzed with
fraud-detection algorithms at block 314. Such fraud-detection
algorithms typically seek to identify patterns of behavior evident
from the item-level transaction and account information that raise
a suspicion of fraud. For example, some relatively simple fraud
patterns that may be identified are multiple near-simultaneous
transactions originating at different geographical locations by the
same individual. More complex fraud patterns that might be
identified take place over extended periods of time and are evident
by repeated inconsistencies in transactions. The scope of potential
fraud patterns that may be identified is large and known to those
of skill in the art. When a particular analysis identifies a
suspicious pattern that may be associated with a particular
biometric, that biometric is designated as suspicious at block
316.
[0033] The methods of FIG. 3A may operate substantially
continuously, collecting updated account information from financial
institutions, collecting item-level transaction information as
transactions are executed, and adding additional biometric
information as new customers become enrolled. The
fraud-identification system thus has comprehensive and evolving
information that may be used in detecting fraud and in coupling
such detection with biometric methods.
[0034] The availability of this information may thus find
application in the context of individual transactions, as
illustrated by the flow diagram of FIG. 3B. When a customer visits
a merchant to engage in a commercial transaction at block 320, such
as for the purchase of goods and/or services, the customer may
provide a biometric identification and perhaps other information to
the merchant 152 at block 322. For example, the biometric
identification might operate solely as a mechanism to verify the
identity of the customer, but might alternatively act as a
mechanism to access financial accounts of the customer's used in
support of the transaction. In embodiments where it is used solely
as an identification mechanism, the other information provided to
the merchant 152 may comprise information used in identifying the
financial account(s) to be used in supporting the transaction.
[0035] Irrespective of how the biometric information is to be used,
transaction and biometric information is transmitted from the
merchant 152 to the transaction network 116 at block 324. The
transaction information might comprise item-level information that
specifies each product that is to be purchased as part of the
transaction and its price, or might comprise higher-level
information that specifies only the total transaction amount.
Processing of the transaction may follow a two-pronged path in some
embodiments. The left prong in FIG. 3B, beginning at block 326,
shows how financial aspects of the transaction may be processed,
while the right prong in FIG. 3B, beginning at block 332, shows how
identification aspects of the transaction may be processed. Certain
embodiments require satisfaction of both financial processing and
identification processing to be satisfied for the transaction to be
approved.
[0036] Thus, seeking approval for the financial aspects of the
transaction begins at block 326 with a request for transaction
approval being transmitted from the transaction network 116 to the
financial network 108, which routes the request to the appropriate
financial institution 120. The appropriate financial institution
120 may be identified by the financial network 108 using
information included with the transaction-approval request. A
request for sufficient account information to verify that adequate
funds, or an equivalent credit line, are available to support the
transaction is accordingly issued to the financial institution 120
at block 328. An approval code is transmitted back to the merchant
152 through the financial network 108 and transaction network 116
if the verification is successful.
[0037] Seeking approval for the identification aspects of the
transaction begins at block 332 with the biometric information
being transmitted to the fraud-identification system 100. The
biometric information that is transmitted may comprise raw
biometric data or may comprise biometric parameters derived from
the raw data by application of the analytical algorithm discussed
above. In many instances, devices maintained by merchants 152 may
have inadequate processing power or may not be specifically
configured to apply the algorithm so that the algorithm is applied
to biometric information by the fraud-identification system 100 at
block 334. The customer is thus identified by the biometric
information and a check is made at block 336 whether the stored
biometric information for that customer has been designated as
associated with suspicious activity.
[0038] If not, and an approval code has resulted from the left
prong of FIG. 3B, an approval code for the transaction is returned
to the merchant 152 at block 338 so that the merchant 152 may
proceed with executing the transaction with the customer at block
340. If the biometric has been designated as associated with
suspicious activity, an alert may be issued back to the merchant to
that effect at block 344 and in some instances an alert may also be
issued to law enforcement at block 344.
[0039] The centralized maintenance of biometric information enabled
by embodiments of the invention advantageously permits other
functionality to be implemented that uses the biometrics. For
example, the biometric information may be used at financial
institutions 120 to access information as illustrated in FIG. 3C.
The customer visits the financial institution 120 at block 346 and
provides a biometric measurement, permitting the financial
institution 120 to apply the analytical algorithm to the biometric
at block 350. The results of applying the algorithm are transmitted
to the fraud-identification system 100 at block 352 so that the
fraud-identification system 100 may identify the corresponding
stored biometric. In some alternative embodiments, the financial
institution 120 may transmit the raw biometric data so that the
application of the analytical algorithm is carried out by the
fraud-identification system 100 instead of by the financial
institution.
[0040] Once the corresponding biometric information maintained by
the fraud-identification system has been identified, a
determination is made at block 354 to verify that that biometric
information has not been designated as associated with suspicious
activity. A confirmation of the customer's identity is accordingly
returned to the financial institution 120 at block 356. Having been
properly identified, in this embodiment the customer may then
access information maintained by the fraud-identification system,
including account and item-level transaction information, which may
be displayed to the customer at block 358.
[0041] The descriptions provided above in the context of FIGS. 3B
and 3C apply more directly to an architecture using a centralized
biometrics repository as shown in FIG. 1A. FIG. 3D provides a flow
diagram that illustrates how a distributed arrangement like that
shown in FIG. 1B may be used. The methods illustrated with the flow
diagram of FIG. 3D make use of the biometric switch 180 to
coordinate the routing of requests and responses that make use of
locally stored biometric information. These methods may begin when
an individual presents himself at a financial institution or at a
merchant at block 360. While such presentation will often be as
part of performing some kind of transaction with the financial
institution or merchant, the invention is intended also to
encompass circumstances in which biometrics of employees of the
financial institution or merchant are used.
[0042] A biometric measurement is accordingly taken from the
individual at block 362, such as by optically scanning a
fingerprint, retinal pattern, or the like. The measured biometric
is transmitted to the biometric switch 180 at block 364, permitting
the switch 180 at block 366 to route the measured biometric to the
financial institution maintaining a purportedly corresponding
biometric in its local data store 184. A biometric function is
accordingly performed by the financial institution at block 368,
such as by comparing aspects of the biometric received from the
biometric switch 180 against the purportedly corresponding
biometric. This permits a purported identity of the individual
presenting himself at block 360 to be verified. A result of the
biometric function, such as in the form of a confirmation or denial
of a match between the measured and stored biometrics, is returned
to the biometric switch at block 370. This result is routed back to
the original financial institution or merchant by the biometric
switch 180 at block 372, permitting the original financial
institution or merchant to take appropriate action. For instance, a
transaction may be denied upon discovering that a failure for the
proffered biometric to be confirmed, or a transaction may be
executed upon receiving satisfactory indications that identity has
been verified. While this method is unlikely to be applied when the
individual visits the financial institution where the purportedly
corresponding biometric is maintained, it is useful when
individuals attempt to perform transactions at different financial
institutions or merchants.
[0043] Thus, having described several embodiments, it will be
recognized by those of skill in the art that various modifications,
alternative constructions, and equivalents may be used without
departing from the spirit of the invention. Accordingly, the above
description should not be taken as limiting the scope of the
invention, which is defined in the following claims.
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