U.S. patent application number 13/341072 was filed with the patent office on 2012-04-26 for identity verification switch.
This patent application is currently assigned to Early Warning Services, LLC. Invention is credited to Richard Mayo, Robert Perrotta, Glen Sgambati.
Application Number | 20120101945 13/341072 |
Document ID | / |
Family ID | 37660785 |
Filed Date | 2012-04-26 |
United States Patent
Application |
20120101945 |
Kind Code |
A1 |
Mayo; Richard ; et
al. |
April 26, 2012 |
IDENTITY VERIFICATION SWITCH
Abstract
Methods, systems, and machine-readable media are disclosed for
an identity verification switch. According to one embodiment, the
method comprises receiving from an inquirer a request to verify an
identity of an individual initiating a transaction. The request
includes account information for an account subject to the
transaction and identity information for the individual initiating
the transaction. Based on the request, a verifying financial
institution is selected from one or more participating financial
institutions. The request is forwarded to the verifying financial
institution for verification of the identity information. An answer
is received from the verifying financial institution indicating
results of verification of the identity information. The answer is
returned to the inquirer.
Inventors: |
Mayo; Richard; (Cave Creek,
AZ) ; Sgambati; Glen; (Glendale, AZ) ;
Perrotta; Robert; (Scottsdale, AZ) |
Assignee: |
Early Warning Services, LLC
Scottsdale
AZ
|
Family ID: |
37660785 |
Appl. No.: |
13/341072 |
Filed: |
December 30, 2011 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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11183167 |
Jul 14, 2005 |
8109435 |
|
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13341072 |
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Current U.S.
Class: |
705/44 |
Current CPC
Class: |
G06Q 20/12 20130101;
G06Q 20/027 20130101; G06Q 20/10 20130101; G06Q 20/4014 20130101;
G06Q 20/102 20130101; G06Q 20/40 20130101 |
Class at
Publication: |
705/44 |
International
Class: |
G06Q 40/02 20120101
G06Q040/02 |
Claims
1. A method comprising: receiving at an identity verification
switch system from an inquirer a request to verify an identity of
an individual initiating a transaction, the request including a
plurality of data elements representing account information for an
account subject to the transaction and identity information for the
individual initiating the transaction; selecting, with the identity
verification switch system and based on the request, a verifying
financial institution from one or more participating financial
institutions; forwarding the request from the identity verification
switch system to the verifying financial institution, wherein the
verifying financial institution verifies the account information
and the identity information of the request; receiving at the
identity verification switch system from the verifying financial
institution an answer including results of verification for each of
the plurality of data elements of the request, the answer
comprising a plurality of data elements corresponding to the
plurality of data elements of the request; and returning the answer
with the plurality of data elements from the identity verification
switch system to the inquirer, for the inquirer to assess the
individual data elements in the answer to determine the risk of
completing the transaction.
2. The method of claim 1, wherein the account information from the
request comprises a Routing Transit (RT) number.
3. The method of claim 2, wherein selecting the verifying financial
institution from one or more participating financial institutions
is based on the RT number.
4. The method of claim 1, wherein verification of the identity
information comprises determining whether the individual is
authorized to conduct transactions on the account based on the
identity information from the request and account information
maintained by the verifying financial institution.
5. The method of claim 4, wherein the answer comprises positive
indications corresponding to identity information from the request
that matches identity information for individuals authorized to
conduct transactions on the account maintained by the verifying
financial institution.
6. The method of claim 4, wherein the answer comprises negative
indications corresponding to identity information from the request
that does not match identity information for individuals authorized
to conduct transactions on the account maintained by the verifying
financial institution.
7. The method of claim 4, wherein the answer comprises cautionary
indications corresponding to identity information from the request
that is not found in identity information for individuals
authorized to conduct transactions on the account maintained by the
verifying financial institution.
8. A system comprising: a processor; and a memory communicative
connected with and readable by the processor and containing
instructions that, when executed by the processor, cause the system
to receive from an inquirer a request to verify an identity of an
individual initiating a transaction, the request including a
plurality of data elements representing account information for an
account subject to the transaction and identity information for the
individual initiating the transaction, select, based on the
request, a verifying financial institution from one or more
participating financial institutions, forward the request to the
verifying financial institution, receive from the verifying
financial institution an answer including results of verification
for each of the plurality of data elements of the request, wherein
the answer comprises a plurality of data elements corresponding to
at least data elements of the request representing identity
information, and return the answer to the inquirer for the inquirer
to assess the individual data elements in the answer to determine
the risk of completing the transaction.
9. The system of claim 8, wherein the account information from the
request comprises a Routing Transit (RT) number and wherein
selecting the verifying financial institution from one or more
participating financial institutions is based on the RT number.
10. The system of claim 8, wherein verification of the identity
information comprises determining whether the individual is
authorized to conduct transactions on the account based on the
identity information from the request and account information
maintained by the verifying financial institution.
11. The system of claim 10, wherein the answer comprises positive
indications corresponding to identity information from the request
that matches identity information for individuals authorized to
conduct transactions on the account maintained by the verifying
financial institution.
12. The system of claim 10, wherein the answer comprises negative
indications corresponding to identity information from the request
that does not match identity information for individuals authorized
to conduct transactions on the account maintained by the verifying
financial institution.
13. The system of claim 10, wherein the answer comprises cautionary
indications corresponding to identity information from the request
that is not found in identity information for individuals
authorized to conduct transactions on the account maintained by the
verifying financial institution.
14. A machine-readable medium having stored thereon a series of
executable instructions that, when executed by a processor, cause
the processor to: receive from an inquirer a request to verify an
identity of an individual initiating a transaction, the request
including a plurality of data elements representing account
information for an account subject to the transaction and identity
information for the individual initiating the transaction, the
account information comprising a Routing Transit (RT) number and an
account number; select, based on the RT number, a verifying
financial institution from one or more participating financial
institutions; forward the request to the verifying financial
institution; receive from the verifying financial institution an
answer including results of verification for each of the plurality
of data elements of the request, wherein the answer comprises a
plurality of data elements corresponding to the plurality of data
elements of the request; and return the answer having the plurality
of data elements to the inquirer for the inquirer to assesses the
individual data elements in the answer in order to determine the
risk of completing the transaction.
15. The machine-readable medium of claim 14, wherein verification
of the identity information comprises determining whether the
individual is authorized to conduct transactions on the account
based on the identity information from the request and account
information maintained by the verifying financial institution.
16. The machine-readable medium of claim 15, wherein the answer
comprises positive indications corresponding to identity
information from the request that matches identity information for
individuals authorized to conduct transactions on the account
maintained by the verifying financial institution.
17. The machine-readable medium of claim 15, wherein the answer
comprises negative indications corresponding to identity
information from the request that does not match identity
information for individuals authorized to conduct transactions on
the account maintained by the verifying financial institution.
18. The machine-readable medium of claim 15, wherein the answer
comprises cautionary indications corresponding to identity
information from the request that is not found in identity
information for individuals authorized to conduct transactions on
the account maintained by the verifying financial institution.
19. The method of claim 1, further comprising reformatting the
request with the identity verification switch system prior to
forwarding the request to the verifying financial institution,
wherein the reformatting the request is based on a format required
by the verifying financial institution.
20. The method of claim 19, wherein reformatting the request
comprises generating a new request message.
21. The method of claim 19, further comprising reformatting the
answer with the identity verification switch system prior to
returning the answer to the inquirer, wherein the reformatting the
answer is based on a format required by the inquirer.
22. The method of claim 21, wherein reformatting the answer
comprises generating a new answer.
23. The method of claim 1, wherein the inquirer comprises a
merchant, the transaction comprises a purchase, the account
comprises a checking account, and the individual initiating the
transaction comprises a purchaser paying for the purchase with a
check drawn on the checking account.
24. The method of claim 1, wherein the one or more financial
institutions comprises a plurality of financial institutions and
the inquirer comprises a financial institution of the plurality of
financial institutions other than the verifying financial
institution.
25. A method comprising: receiving at an identity verification
switch system from an inquirer a request to verify an identity of
an individual initiating a transaction, the request including a
plurality of data elements representing account information for an
account subject to the transaction and identity information for the
individual initiating the transaction; selecting, with the identity
verification switch system and based on the request, a verifying
financial institution from one or more participating financial
institutions; forwarding the request from the identity verification
switch system to the verifying financial institution, wherein the
verifying financial institution verifies the account information
and the identity information of the request; receiving at the
identity verification switch system from the verifying financial
institution an answer including results of verification for each of
the plurality of data elements of the request, wherein the answer
comprises a plurality of data elements, each of the plurality of
data elements in the answer corresponding to one of the plurality
of data elements in the request; and returning the answer,
including each of the corresponding data elements in the answer,
from the identity verification switch system to the inquirer for
the inquirer to assesses the individual data elements in the answer
to determine the risk of completing the transaction.
Description
CROSS-REFERENCES TO RELATED APPLICATIONS
[0001] This application is a continuation of U.S. patent
application Ser. No. 11/183,167, filed Jul. 14, 2005, entitled
"IDENTITY VERIFICATION SWITCH," which is incorporated herein by
reference.
BACKGROUND OF THE INVENTION
[0002] Numerous losses to merchants and/or financial institutions
occur due to identity theft, counterfeiting, and account takeovers.
With the rapid growth in Internet transactions and E-Check
payments, fraud perpetrators can conduct fraud remotely when they
want, where they want, and with no face-to-face contact. Because of
the anonymity, reach and speed that the Internet provides for fraud
perpetrators, risk management and fraud prevention are increasingly
important and valuable. For example, with the increase of web
transactions, (non face-to-face transactions), efforts to identify
the person conducting the transaction as an authorized user of the
account is important to help mitigate losses from identity theft
and account take-over. Similarly, identification of an authorized
account owner for new account funding opening deposits and account
to account transfers, processed through financial services
companies, is beneficial for preventing losses as well as for
customer convenience.
[0003] In order to reduce the risk of losses due to fraud, banks,
merchants, and other entities routinely verify information related
to a particular financial account when conducting transactions with
that account. For example, payment processors and financial service
companies verify checking account information for a consumer
wishing to make a transaction using that account. Such transactions
occur in a variety of forms, including traditional paper checks,
debit cards, electronic checks, or Automated Clearing House system
transactions.
[0004] Presently, verification systems exist which include a
centralized database populated with account information contributed
directly by participating banks and institutions. These systems
provide advance notification of potential check returns to
participating financial institutions by allowing financial
institutions inquiry to a national shared account and transaction
database (NSD), which is contributed to by major financial
institutions and updated daily, and which includes the most current
checking account status information as well as check level detail
on returned items and stop payments. The information stored in the
NSD is intended to be available to inquirers receiving funds by
check or electronic payment in sufficient time to enable them to
avoid loss that might result from non-payment. The NSD thus stores
information about each participant institutions checking accounts,
such that, if queried about a particular participant bank's
account, the database may return the status (e.g., closed,
overdrawn, high check return rate, new account) of that account to
the inquirer. The inquirer (such as a merchant or depository bank)
may then decide how they want to handle the transaction (e.g.,
merchants and financial institutions may decide whether to accept
the check and financial institutions may decide whether to place an
"extended hold" on the checking account). Inquiries may take place
immediately (i.e., in real time) or in overnight batch
processes.
[0005] Additionally, the NSD can include identity information
related to individuals authorized to use the account. For instance,
the NSD can maintain names of authorized individuals for each
account. Such information can be used to verify that a particular
individual is authorized to conduct a given transaction on a
specific account, prior to completion of the transaction.
[0006] However, because of the account and identity information
such a centralized database holds, it presents an attractive target
for hackers, thieves, and other assorted miscreants. Typically,
such a centralized database will be protected by the best
firewalls, encryption, and other security technology available to
prevent unauthorized access and/or theft of the information stored
therein. Nevertheless, some financial institutions may be reluctant
to contribute account information to such a centralized system for
fear of the information being stolen or misused.
BRIEF SUMMARY OF THE INVENTION
[0007] Methods, systems, and machine-readable media are disclosed
for an identity verification switch. According to one embodiment,
the method comprises receiving from an inquirer a request to verify
account ownership and, thus, authorized use of the account based on
the identity of an individual initiating a transaction. The request
can include account information for an account subject to the
transaction and identity information for the individual initiating
the transaction. Based on the request, a verifying financial
institution can be selected from one or more participating
financial institutions. The request can be forwarded to the
verifying financial institution for verification of the identity
information and the linkage of the account owner(s) to the account.
An answer can be received from the verifying financial institution
indicating results of verification of the identity information. The
answer can be returned to the inquirer.
[0008] The account information from the request can include a
Routing Transit (RT) number and account number. In this case,
selecting the verifying financial institution from one or more
participating financial institutions can be based on the RT
number.
[0009] Verification of the identity information can comprise
determining whether the individual is authorized to conduct
transactions on the account based on the identity information from
the request and account information maintained by the verifying
financial institution. The answer can include positive indications
corresponding to identity information from the request that matches
identity information for individuals authorized to conduct
transactions on the account maintained by the verifying financial
institution. The answer can include negative indications
corresponding to identity information from the request that does
not match identity information for individuals authorized to
conduct transactions on the account maintained by the verifying
financial institution. The answer can include cautionary
indications corresponding to identity information from the request
that is not found in identity information for individuals
authorized to conduct transactions on the account maintained by the
verifying financial institution.
[0010] According to another embodiment, a system can comprise a
processor and a memory communicatively connected with and readable
by the processor. The memory can contain instructions which, when
executed by the processor, cause the system to receive from an
inquirer a request to verify account ownership of an individual
initiating a transaction. The request can include account
information for an account subject to the transaction and identity
information for the individual initiating the transaction. Based on
the request, a verifying financial institution can be selected from
one or more participating financial institutions. The request can
be forwarded to the verifying financial institution for
verification of the identity information. An answer can be received
from the verifying financial institution indicating results of
verification of the identity information and linkage to the account
owner(s). The answer can be returned to the inquirer.
[0011] According to yet another embodiment, a machine-readable
medium can have stored thereon a series of executable instructions
which, when executed by a processor, cause the processor to receive
from an inquirer a request to verify account ownership of an
individual initiating a transaction. The request can include
account information for an account subject to the transaction and
identity information for the individual initiating the transaction.
The account information can comprise a Routing Transit (RT) number
and an account number. A verifying financial institution can be
selected from one or more participating financial institutions
based on the RT number. The request can be forwarded to the
verifying financial institution for verification of the identity
information. An answer can be received from the verifying financial
institution indicating results of verification of the identity
information and the answer can be returned to the inquirer.
BRIEF DESCRIPTION OF THE DRAWINGS
[0012] FIG. 1 is a block diagram conceptually illustrating an
exemplary environment in which an identity verification switch
system may be implemented according to one embodiment.
[0013] FIG. 2 is a block diagram illustrating an exemplary computer
system upon which various elements of the exemplary environment
illustrated in FIG. 1 may be implemented.
[0014] FIG. 3 is a block diagram illustrating functional components
of an identity verification switch system according to one
embodiment.
[0015] FIG. 4 is flowchart illustrating, at a high level, a process
for verifying an identity according to one embodiment.
[0016] FIG. 5 is a flowchart illustrating an identity verification
switch system process for verifying an identity according to one
embodiment.
[0017] FIG. 6 is a flowchart illustrating a process for verifying
request information received from an identity verification switch
system according to one embodiment.
[0018] FIG. 7 is a block diagram illustrating an inquiry message
and an answer message according to one embodiment.
DETAILED DESCRIPTION OF THE INVENTION
[0019] In the following description, for the purposes of
explanation, numerous specific details are set forth in order to
provide a thorough understanding of various embodiments of the
present invention. It will be apparent, however, to one skilled in
the art that embodiments of the present invention may be practiced
without some of these specific details. In other instances,
well-known structures and devices are shown in block diagram
form.
[0020] FIG. 1 conceptually illustrates an exemplary environment in
which an identity verification switch system may be implemented
according to one embodiment. In this example, the environment 100
includes an identity verification switch system 105, a number of
participant financial institutions 125-135, and a number of
inquirers 110-120. The inquirers 110-120 and participating
financial institutions 125-135 may be communicatively connected
with the identity verification switch system 105 in a variety of
ways including, but not limited to, a wire or wireless Local Area
Network (LAN), Wide Area Network (WAN), the Internet, or other
common communications media.
[0021] As used herein, the term inquirer can refer to an entity
requesting confirmation or verification of account information for
a particular individual or other entity. For example, inquirers
110-120 can comprise one or more financial institutions 110, one or
more merchants 115, one or more financial service providers 120,
and/or other types of entities. Inquiring financial institutions
110 may be any type of financial institution such as banks, credit
card companies, lenders, etc. Merchants 115 may comprise online or
storefront retailers, wholesalers, etc. Financial services
providers 120 may be brokerages, mortgage companies, and other
types of entities offering various types of financial services.
[0022] Generally speaking, an inquirer, such as merchant 115,
considering conducting a sale or other transaction with an
individual or other entity can submit a request 140 to identity
verification switch system 105. The request 140 may include account
and other information presumably related to the individual or other
entity. As will be seen, the identity verification switch system
105 then sends a request 150 to one of the participating financial
institutions 125-135 for verification of the information contained
in the request 150.
[0023] The term participant financial institution can refer to an
entity communicatively connected with the identity verification
switch system 105 to assist the identity verification switch system
105 in confirming or verifying account and identity information.
For example, verifying financial institution 130 may represent a
bank in which an individual or other entity holds a checking
account. When, for example, this individual or entity tries to pay
merchant 115 with a check drawn on this account and identity
verification switch system 105 has received a request 140 to verify
account and/or other information related to this individual,
identity verification switch system 105 can forward the request 150
to the verifying financial institution 130 upon which the check is
drawn for assistance in the verification process. In this way, the
identity verification switch system 105 maintains information for
routing verification requests 140 from inquirers 110-120 to the
appropriate participating financial institution 125-135 but does
not need to maintained detailed information about individual
accounts. In other cases, a different participating financial
institution may act as the verifying financial institution. That
is, the identity verification switch system 105 can select a
verifying financial institution from among the participating
financial institutions 125-135 based on the account information
from the request 140.
[0024] Some entities connected with the identity verification
switch system 105 can act as an inquirer 110-120, a participating
financial institution 125-135, or a verifying financial institution
at any given time. For example, financial institution 110, when
presented with a check drawn on an account from participating
financial institution 125 can act as an inquirer of identity
verification switch system 105 while financial institution 125 acts
as a verifying financial institution. However, these roles may be
reversed when financial institution 125 is presented with a check
drawn on an account from financial institution 110.
[0025] Therefore, in operation, an inquirer such as merchant 115
may send information for verification to identity verification
switch system 105 via request 140. The information in the request
140 may include account information such as a routing transit
number, an account number, etc. as well as identity information
such as a name, phone number, address, Social Security number, date
of birth, etc related to an individual or entity initiating a
transaction.
[0026] Identity verification switch system 105 maintains a database
of information that it uses to identify a financial institution
associated with the account information from the request 140. For
example, identity verification switch system 105 maintains a list
of routing numbers and associated financial institutions.
Therefore, identity verification switch system 105 need not
maintain detailed information regarding the account or the holder
of that account. Rather, the identity verification switch system
sends the account and identity information from the inquirer to the
appropriate participant financial institution for verification. The
verifying financial institution 130 then receives the request 150
information from the identity verification switch system 105 and
performs a verification of the account info and personal info.
[0027] The verifying financial institution 130 receives the request
150 from the identity verification switch 105 and verifies the
account and identity information from the request 150 based on
account information in one or more lists or databases maintained by
the verifying financial institution 130. That is, the verifying
financial institution 130 can look-up or search for account and
identity information based on the account information from the
request and compare the account and identity information from the
request with that stored by the verifying financial
institution.
[0028] In one embodiment, verifying financial institution 130 may
return an answer 155 with verification of each submitted data
element corresponding to the account identified by the account
information in the request 150. By way of example, for each data
element in an inquiry, a response of "yes", "no" or "information
not available" may be returned to the inquirer. A positive response
(e.g., "Y" or "yes") may be received if the entered data element
matches the content of a corresponding data element in an account
database for the indicated account. Similarly, a negative (e.g.,
"N" or "no" response) may be returned to the inquirer if the
entered data element does not match the content of the
corresponding data element in the account database for the
indicated account. An "unavailable information" or other cautionary
response may be received if the data element in account database
corresponding to the indicated account is empty. The complete
response received by the inquirer may contain one or more of each
of the possible responses. That is, verifying financial institution
130 may respond according to each individual data element from the
request 150. According to some embodiments, account-specific data
may not be provided back to the inquirer in the answer 155. Rather,
the verifying financial institution 130 may only confirm or deny
the accuracy of the information received in the request 150 as it
corresponds to the account. An exemplary request 150 and answer 155
will be discussed in detail below with reference to FIG. 7.
[0029] In one example, if Mr. John Doe writes a check to pay for
goods purchased from merchant 115, merchant 115 can collect some
identifying information from Mr. Doe such as his name, address,
Social Security Number (SSN), Date of Birth (DOB), etc. Then, prior
to completing the sale, merchant 115 can send account information
for the account subject to the transaction, i.e., the account Mr.
Doe is using to pay to merchant 115, and Mr. Doe's identity
information to identity verification switch system 105. Identity
verification switch system 105 can determine from the routing
number that Mr. Doe's checking account is held by financial
institution 130. The identity verification switch system 105 can
then forward the account information and identity information to
the appropriate verifying financial institution 130.
[0030] Upon receipt of this request 150 from the identity
verification switch system 105, verifying financial institution 130
verifies both the account information and the identity information
from the request 150. For example, the verifying financial
institution 130 can look up identity information associated with
the account and compare the identity information submitted by Mr.
Doe with the stored information for the account. Verifying
financial institution 130 can then, based on the results of the
verification process, generate an answer indicating positive,
negative, and/or cautionary results for elements of the request 150
and return the answer to the identity verification switch system
105.
[0031] Upon receipt of the answer 155, identity verification switch
system 105 returns the answer 145 to the inquirer, in this example,
merchant 115. Merchant 115 can then read the answer and determine
whether to complete the sale to Mr. Doe. If all items related to
Mr. Doe matched and were verified, merchant 115 may expect minimal
risk and can decide to complete the transaction.
[0032] In another example, Mr. Doe may try to do a credit card cash
advance and deposit the funds into a checking account he owns at a
financial institution 125. So, the credit card issuer 110 can
generate a request including the routing transit number, account
number and some identity information for Mr. Doe such as name, SSN,
DOB, address, etc. This request can be sent to the identity
verification switch system 105 to be forwarded to the appropriate
verifying financial institution (i.e., 125-135) based on the
account information from the request. The answer from the verifying
financial institution may indicate, for example, that the name or
other identity information associated with the account does not
match Mr. Doe's information possibly indicating fraudulent use of
the credit card. In such a case, the inquirer can decide to
investigate further before completing the transaction or can decide
to not complete the transaction as it may be fraudulent or
otherwise lead to losses. In another example, the answer may
indicate that the name associated with the account matches Mr. Doe,
but the address does not match. This may indicate that Mr. Doe
recently moved but has not yet changed his address with his
financial institution. However, it may also indicate a more serious
problem and perhaps even fraud by Mr. Doe. Therefore, the inquirer
may decide to investigate further by requesting additional
information from Mr. Doe before proceeding with the
transaction.
[0033] FIG. 2 is a block diagram illustrating an exemplary computer
system upon which various elements of the exemplary environment
illustrated in FIG. 1 may be implemented. The computer system 200
is shown comprising hardware elements that may be electrically
coupled via a bus 255. The hardware elements may include one or
more central processing units (CPUs) 205; one or more input devices
210 (e.g., a scan device, a mouse, a keyboard, etc.); and one or
more output devices 215 (e.g., a display device, a printer, etc.).
The computer system 200 may also include one or more storage device
220. By way of example, storage device(s) 220 may be disk drives,
optical storage devices, solid-state storage device such as a
random access memory ("RAM") and/or a read-only memory ("ROM"),
which can be programmable, flash-updateable and/or the like.
[0034] The computer system 200 may additionally include a
computer-readable storage media reader 225; a communications system
230 (e.g., a modem, a network card (wireless or wired), an
infra-red communication device, etc.); and working memory 240,
which may include RAM and ROM devices as described above
communicatively coupled with and readable by CPU(s) 205. In some
embodiments, the computer system 200 may also include a processing
acceleration unit 235, which can include a DSP, a special-purpose
processor and/or the like.
[0035] The computer-readable storage media reader 225 can further
be connected to a computer-readable storage medium, together (and,
optionally, in combination with storage device(s) 220)
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 230 may permit data to be exchanged with a
network and/or any other computer or other type of device.
[0036] The computer system 200 may also comprise software elements,
shown as being currently located within a working memory 240,
including an operating system 245 and/or other code 250, such as an
application program. The application programs may implement the
methods of the invention as described herein. It should be
appreciated that alternate embodiments of a computer system 200 may
have numerous variations from that described above. 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.
[0037] FIG. 3 is a block diagram illustrating functional components
of an identity verification switch system according to one
embodiment. As illustrated in this example, the identity
verification switch system 105 includes logic 310 communicatively
coupled with communications interface 305, participate database
315, and a database management system 320. A communicative coupling
is a coupling that allows communication between the components.
This coupling may be by means of a bus, cable, network, wireless
mechanism, program code call (e.g., modular or procedural call) or
other mechanism that allows communication between the components.
Thus, it should be appreciated that the components 305-320 of
identity verification switch system 105 may reside on the same or
different physical devices.
[0038] Communications interfaces 305 may be used to receive
requests 140 from inquirers requesting verification of identity
information associated with an account subject to a transaction. In
some instances, received communications may be batch communications
requesting verification of a plurality of identities.
Communications interfaces 305 may also be used to transmit
verification requests 150 to participating financial institutions,
receive answers 155 or results from the participating financial
institutions and return the answers 145 to the inquirers. In some
embodiments, communications interface 305 may include an interface
to a wide area network (WAN), such as the Internet, or proprietary
networks. Alternative or additional types of interfaces may also be
included as components of communications interface 305.
[0039] Logic 310 may be used to process requests to verify account
and identity information. Logic 310 may interact with participant
database 315 via database management system 320 to search for or
select a verifying financial institution based on the account
information from the request. In some embodiments, logic 310 may
interact directly with participant database 315 to select a
verifying financial institution. It should be appreciated that
logic 310 may be one or more software programs, one or more
components of a software program (e.g., function or program
object), firmware, or other type of machine-executable
instructions.
[0040] Participant database 315 may include information used to
determine which participant financial institution maintains a
particular account indicated in a request from an inquirer. This
information may include a list of Routing Transit (RT) numbers and
associated participating financial institutions. The participant
database 315 may alternatively or additionally include a list of
issuers or otherwise related financial institutions. Additional
details of the processes and functions performed by identity
verification switch system 105 will be discussed below with
reference to FIGS. 4 and 5
[0041] FIG. 4 is flowchart illustrating, at a high level, a process
for verifying an identity according to one embodiment. According to
this example, verifying an identity comprises the inquirer
generating 405 a request to verify an identity of an individual
initiating a transaction. As discussed above, an inquirer such as a
merchant, financial institution, or other entity may collect
information related to an account subject to a transaction and an
individual initiating the transaction. Therefore, the request can
include the account information for the account subject to the
transaction and the identity information for the individual
initiating the transaction. An exemplary request will be discussed
below with reference to FIG. 7. Once the request has been generated
405, the inquirer sends 410 the request to the identity
verification switch system.
[0042] The identity verification switch system receives 415 from
the inquirer the request to verify the identity of the individual
initiating the transaction. Based on the request, the identity
verification switch system selects 420 a verifying financial
institution from one or more participating financial institutions.
For example, the account information from the request can comprise
a Routing Transit (RT) number. In this case, selection 420 of the
verifying financial institution from one or more participating
financial institutions can be based on the RT number.
[0043] Once the verifying financial institution has been selected
420, the request can be forwarded 425 to the verifying financial
institution for verification of the identity information. The
verifying financial institution receives 430 the request and
verifies 435 the identity information contained therein.
Verification 435 of the identity information can comprise
determining whether the individual is authorized to conduct
transactions on the account. This determination can be based on the
identity information from the request and account information
maintained by the verifying financial institution. That is, the
verifying financial institution can check the account information
from the request against its own account information to obtain
identity information related to individuals authorized to use that
account. Then the verifying financial institution can check this
identity information against the identity information from the
request.
[0044] The verifying financial institution also generates 435 an
answer based on the verification. As will be discussed in detail
below with reference to FIG. 7, the answer can comprise positive
indications corresponding to identity information from the request
that matches identity information for individuals authorized to
conduct transactions on the account maintained by the verifying
financial institution, negative indications corresponding to
identity information from the request that does not match identity
information for individuals authorized to conduct transactions on
the account maintained by the verifying financial institution,
and/or cautionary indications corresponding to identity information
from the request that is not found in identity information for
individuals authorized to conduct transactions on the account
maintained by the verifying financial institution.
[0045] This answer is sent 440 back to the identity verification
switch system. The identity verification switch system receives 445
the answer indicating results of verification of the identity
information from the verifying financial institution and returns
450 the answer to the inquirer. The inquirer receives 455 the
answer and determines 460, based on the contents of the answer,
what actions to take. For example, if the answer indicates that all
information from the request has been verified, the inquirer may
decide to proceed with the transaction. However, if the answer
indicates that some information from the request can not be
verified, i.e., there are negative or cautionary responses for some
elements of the request, the inquirer may decide to place a hold on
the transaction or cancel the transaction.
[0046] FIG. 5 is a flowchart illustrating an identity verification
switch system process for verifying an identity according to one
embodiment. In this example, the identity verification switch
system receives 505 a request to verify an identity of an
individual initiating a transaction from the inquirer. As described
above, the request may include account information such as a
routing transit number, an account number, etc. as well as identity
information such as a name, phone number, address, Social Security
number, date of birth, etc related to an individual or entity
initiating a transaction.
[0047] The identity verification switch system then reads 510 the
account information from the request. Based on this information
from the request, the identity verification switch system selects
515 a verifying financial institution from one or more
participating financial institutions. For example, the account
information from the request can comprise a Routing Transit (RT)
number. In this case, selection 515 of the verifying financial
institution from one or more participating financial institutions
can be based on the RT number.
[0048] The identity verification switch system can optionally
generate 520 or format the request to the verifying financial
institution. That is, the identity verification switch system may
generate a new request, separate from the message received from the
inquirer or may reformat the received request. In some cases, the
format of the new request may depend on the verifying financial
institution to which it will be sent. That is, some participating
financial institutions may require request in different formats
than others. However, generation of a new request or reformatting
of the received request is considered optional since the original
request received from the inquirer may be passed directly to the
verifying financial institution as it is received from the
inquirer.
[0049] The request, original, reformatted, or newly generated, can
be forwarded 525 to the verifying financial institution for
verification of the identity information. In return, the identity
verification switch system receives 530 an answer from the
verifying financial institution. As will be discussed in detail
below with reference to FIG. 7, the answer can comprise positive
indications corresponding to identity information from the request
that matches identity information for individuals authorized to
conduct transactions on the account maintained by the verifying
financial institution, negative indications corresponding to
identity information from the request that does not match identity
information for individuals authorized to conduct transactions on
the account maintained by the verifying financial institution,
and/or cautionary indications corresponding to identity information
from the request that is not found in identity information for
individuals authorized to conduct transactions on the account
maintained by the verifying financial institution.
[0050] The identity verification switch system can optionally
generate 535 or format the answer from the verifying financial
institution. That is, the identity verification switch system may
generate a new answer, separate from but based on the answer
received from the verifying financial institution or may reformat
the received answer. In some cases, the format of the new answer
may depend on the verifying financial institution and/or the
inquirer to which it will be sent. That is, some inquirers may
require answers in different formats than others. However,
generation of a new answer or reformatting of the received answer
is considered optional since the original answer received from the
verifying financial institution may be passed directly to the
inquirer as it is received from the verifying financial
institution. The answer, original, reformatted, or newly generated,
can be returned 540 to the inquirer for a decision on how or
whether to proceed with the transaction.
[0051] FIG. 6 is a flowchart illustrating a process for verifying
request information received from an identity verification switch
system according to one embodiment. In this example, the verifying
financial institution receives 605 the request from the identity
verification switch system and reads 610 the request data. That is,
the verifying financial institution reads both the account
information and the identity information from the request.
[0052] The verifying financial institution verifies 615 the
identity information contained in the request. Verification 615 of
the identity information can comprise determining whether the
individual is authorized to conduct transactions on the account.
This determination can be based on the identity information from
the request and account information maintained by the verifying
financial institution. That is, the verifying financial institution
can check the account information from the request against its own
account information to obtain identity information related to
individuals authorized to use that account. Then the verifying
financial institution can check this identity information against
the identity information from the request.
[0053] The verifying financial institution can generate 620 an
answer based on the verification 615. The answer includes results
of the verification 615. As will be discussed in detail below with
reference to FIG. 7, the answer can comprise positive indications
corresponding to identity information from the request that matches
identity information for individuals authorized to conduct
transactions on the account maintained by the verifying financial
institution, negative indications corresponding to identity
information from the request that does not match identity
information for individuals authorized to conduct transactions on
the account maintained by the verifying financial institution,
and/or cautionary indications corresponding to identity information
from the request that is not found in identity information for
individuals authorized to conduct transactions on the account
maintained by the verifying financial institution. This answer is
sent 625 back to the identity verification switch system to be
returned to the inquirer.
[0054] FIG. 7 is a block diagram illustrating an inquiry message
and an answer message according to one embodiment. As illustrated
here, the inquiry or request message 702 and the answer message 704
are shown together. According to one embodiment, the answer message
704 may be appended or added to the request message 702 and the
combined message 700 may be sent back to the inquirer.
Alternatively, the answer message 704 may be separate from the
request message 702 and sent back to the inquirer as a stand-alone
message rather than appended or added to the request message
702.
[0055] As discussed above, the request message 702 can include
account information 706 for an account subject to the transaction
and identity information 708 for the individual initiating the
transaction. The account information 706 of the request message 702
can comprise a Routing Transit (RT) number 714 and an account
number 716 which can be used by the identity verification switch
system to select the verifying financial institution from one or
more participating financial institutions and by the verifying
financial institution to verify the identity information 708 as
described above.
[0056] Identity information 708 included in the request message 702
can vary widely but generally comprises information relating to or
identifying the individual initiating the transaction. As
illustrated in this example, identity information 702 can include,
but is not limited to, a name 718, address 720, phone number 722,
Social Security Number (SSN) 724, Date of Birth (DOB) 726, and/or
other information 728 like a driver's license number, etc.
[0057] The answer message 704 corresponds to the request message
702 and generally, but not necessarily, includes the same or
similar fields. For example, the answer message 704 can include
account information 710 for an account subject to the transaction
and identity information 712 for the individual initiating the
transaction. As illustrated in FIG. 7, the account information 710
of the answer can include Routing Transit (RT) number result 730
and/or an account number result 732 corresponding to the RT number
714 and account number 716 of the account information 706 of the
request message 702. Similarly, the identity information of the
answer message 704 can include fields corresponding to those of the
request message 702 such as a name result 734, address result 736,
phone number result 738, Social Security Number (SSN) result 740,
Date of Birth (DOB) result 742, and/or other information 744.
[0058] The result fields in the answer message can comprise
positive indications corresponding to identity information from the
request that matches identity information for individuals
authorized to conduct transactions on the account maintained by the
verifying financial institution. For example, a "Y" character or
other textual, graphic, or other format indication can be used to
indicate a positive result for verification of a particular field
when the data of that field in the request matches the
corresponding data maintained by the verifying financial
institution. Conversely, the result fields can comprise negative
indications corresponding to identity information from the request
that does not match identity information for individuals authorized
to conduct transactions on the account maintained by the verifying
financial institution. For example, a "N" character or other
textual, graphic, or other format indication can be used to
indicate a negative result for verification of a particular field
when the data of that field in the request does not match the
corresponding data maintained by the verifying financial
institution. Further, the results can comprise cautionary
indications corresponding to identity information from the request
that is not found in identity information for individuals
authorized to conduct transactions on the account maintained by the
verifying financial institution. For example, a "U" character or
other textual, graphic, or other format indication can be used to
indicate an unknown data of a particular field when the field in
the request is not found in the data maintained by the verifying
financial institution.
[0059] In the foregoing description, for the purposes of
illustration, methods were described in a particular order. It
should be appreciated that in alternate embodiments, the methods
may be performed in a different order than that described.
Additionally, the methods may contain additional or fewer steps
than described above. It should also be appreciated that the
methods described above may be performed by hardware components or
may be embodied in sequences of machine-executable instructions,
which may be used to cause a machine, such as a general-purpose or
special-purpose processor or logic circuits programmed with the
instructions, to perform the methods. These machine-executable
instructions may be stored on one or more machine readable mediums,
such as CD-ROMs or other type of optical disks, floppy diskettes,
ROMs, RAMs, EPROMs, EEPROMs, magnetic or optical cards, flash
memory, or other types of machine-readable mediums suitable for
storing electronic instructions. Alternatively, the methods may be
performed by a combination of hardware and software.
[0060] While illustrative and presently preferred embodiments of
the invention have been described in detail herein, it is to be
understood that the inventive concepts may be otherwise variously
embodied and employed, and that the appended claims are intended to
be construed to include such variations, except as limited by the
prior art.
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