Method and apparatus for authenticating financial transactions

The invention will be more readily understood by reading the description of the preferred embodiments. For the moment the invention will be considered in general terms.

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Suitable unique biological identifiers of the present time include fingerprints (the most preferred form of unique biological identifier), palm prints, retinal scans, voice prints and DNA measurement. By linking the unique biological identifier, for example a stored fingerprint, with an account number, then by taking a fingerprint at a point of sale terminal and transmitting information about that fingerprint to a financial clearing house (bank, credit or debit card company or the like), that unique biological identifier can be identified by the clearing house and then linked to the financial information for that particular customer. By this means a unique biological identifier such as a fingerprint can serve as both the account number and the equivalent of the signature or PIN which would give the customer access to that particular account. Indeed it is possible by using fingerprints to use the prints on different fingers to access different accounts at the same bank, or to access • · · ·

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-3 different accounts at other banks or credit card companies. This will become apparent from the description of the preferred embodiment.

In one aspect the invention consists in a computer implemented method of authenticating 5 a financial transaction requested by a user using a remote terminal, the method including the steps of having multiple organisations storing account information in machine readable form, the information relating to one or more financial accounts, storing identity information relating to each account, the identity information including 10 machine readable information corresponding to a unique biological identifier supplied by at least one individual authorised to access at least one of the accounts, submission by the user of means identifying only the organisation storing the users unique biological identifier, submission by the user of the user's unique biological identifier, and submission of the user's transaction request at the remote terminal, transmission from the remote terminal to a clearing house of a code identifying the organisation, the user's unique biological identifier and the user's transaction request, a comparison made by the clearing house of the user's unique biological identifier with the stored identity information, if the users unique biological identifier matches any of the stored identity information, then the transaction information is compared with the account to which the biological information relates to ascertain whether the requested transaction is allowable, and if the transaction is allowable, processing the transaction wherein the means identifying the organisation is a bank, credit or debit card carrying information sufficient to identify only the organisation and the card is machine read.

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-4Preferably the card therefore only carries numbers visible on the card which relate to the particular clearing house or bank etc to which the card relates and no other information regarding the users specific account or identity is carried on the card.

DRAWINGS DESCRIPTION

These and other aspects of this invention, which would be considered as novel in all aspects would become apparent from the following description, which is given by way of example only, with reference to the accompanying drawings in which:

Figure 1 illustrates the combination of an EFTPOS terminal, EFTPOS remote and finger print reader.

Figure 2 is a finger print credit card flow chart.

Figure 3 illustrates the combination of an internet camera, connected to a personal 15 computer, and shows a selected view of the camera output on the computer monitor screen.

Figure 4 is a diagrammatic illustration of a typical electronic funds transaction using a credit card at a remote terminal.

Figure 5 is a diagram of a credit card or other financial transaction card according to the invention.

j ; PREFERRED EMBODIMENTS • · · ·«·· ··;;* Examples 2 to 7 are indicative of the field of the invention and are presented to provide • · j·:»’ background '*·*: Example 1 * · • · · · ····’ 25 In this first example a finger print reader is used in conjunction with an electronic funds transfer point of sale terminal. Typically such a terminal will have a card reader to read

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-5the magnetic strip on a credit or debit card, and this information on the customer's account will be linked to a keypad, on an EFTPOS remote terminal enabling the customer to enter a PIN if required, and in the case of credit card transaction to push the button marked credit so that the information from the card and the customer's PIN (if required) is transmitted to a clearing house. Typically such terminals are connected by a telephone line and modem to a bank or credit card clearing house, and depending upon the size of the country and number of accounts, there may be a number of such clearing houses associated with a particular financial enterprise.

In this example a finger print reader, preferably a capacitive reader (described below) is linked to the EFTPOS terminal of EFTPOS remote. Preferably the reader has controls, enabling the user to select one or more accounts associated with that unique biological identifier. It will be appreciated that some customers may only have a single account, with one company, while some customers may have multiple accounts with multiple companies.

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In the example illustrated in Figure 1, the display enables the customer to choose between the most commonly used credit card or charge card companies approved by that particular merchant. It will be the merchant's choice as to which company the merchant deals with, and hence this information may be pre-set on the merchant's EFTPOS terminal, or maybe scrolled through on a LCD display. At the time the transaction takes place the merchant will enter the amount of the transaction, will ask the customer whether the customer wishes to use a credit or debit card, or use what the inventor believes should be called a finger print credit card (although no such physical card is required, it is believed that this term will perhaps be more acceptable to both the merchant and the customer when such accounts are marketed). If the customer chooses to use his or her finger print credit card the customer will then be asked to place their finger print on the finger print reader, to nominate which of the available accounts is associated with the customer's finger print, to then press the OK button to transmit that information through the EFTPOS terminal to the clearing house.

Turn now to Figure 2 to consider the flow chart detailing these transaction. The first few steps deal with the operation of the remote terminal. The customer having chosen to use a finger print credit card, the finger print must first be identified on the finger print reader. The finger print reader will have the appropriate software to determine whether or not the scan of the finger print is a good scan or a bad scan and must be repeated. Once the device recognises that there is good scan ie a sufficiently clear scan of the finger print, that

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-6information is sent via the EFTPOS terminal to the clearing house, in this case a credit data base. As shown in Figure 1, the customer has chosen the VISA (trade mark) credit card database. The EFTPOS terminal thus dials the appropriate number for the nearest VISA clearing house.

At the VISA clearing house, the transaction is logged, and the finger print which may have been transmitted as an analogue signal, or more likely as a digitised finger print, is then checked against the appropriate finger print data base, and if a match is made the clearing house then recognises the customer's account number (and may also recognise the customer's name as that is stored against the account number). The clearing house then checks the customer's credit balance, and determines whether the transaction will be approved or declined based on the rules in place for that particular customer, or that particular type of merchant transaction. If the transaction is declined due to lack of credit, or otherwise, information is transmitted back to the remote terminal to say that the transaction is declined. If the transaction is accepted, then the credit card company performs the appropriate financial transaction, logging the nature of the transaction onto the customer's ledger, sending a confirmation of acceptance to the merchant. This allows the merchant to print out a receipt for the customer.

Example 2

In this example the customer may wish to access multiple accounts, with the minimum of entry on the key pad. To do this, the customer may have chosen different unique biological identifiers to be associated with different accounts.

In the simplest version the customer may chose different finger prints or thumb prints to be associated with different accounts.

For example, consider the case of a customer who has existing credit cards with

MASTERCARD, VISA and DINERS CLUB, who wishes to travel, yet minimise the risk of inconvenience resulting from lost or stolen credit cards. In which case the customer may apply to MASTERCARD to use the finger print from his/her index finger as the unique biological identifier for MASTERCARD transaction. This means that the customer could continue to use the credit card in some circumstances but when travelling, or perhaps out running or walking and wishes to make a transaction without the presence of his or her credit

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-7card, the customer can simply use the finger print identification from the customer's first finger to access the customer's MASTERCARD account to allow the transaction.

Similarly, the customer may have chosen the finger print his or her second finger to identify the customer's VISA card account. Similarly the third finger may be used as the identifier for the customer's DINERS CLUB account.

Example 3

The customer may still wish to use a PIN to validate certain transactions. Whether or not a PIN is required, it can be stored in association with the data on the account held at the clearing house. Thus the customer and/or the clearing house may determine the level of security on a particular account. In an extreme case the customer may have to supply the credit card, finger print, and also a PIN. In those circumstances, it is envisaged that the customer will first supply the credit card to the merchant, who processes the transaction, and then the clearing house will ask for either or both a finger print and a PIN.

However, the convenience of the concept of a finger print credit card allows the user to do away completely with the use of plastic card, and to rely solely on the user's finger print as the unique biological identifier.

Example 4

In this example the customer and the financial enterprise or clearing house may have decided that the customer should provide a finger print as an identification for the customer and also provide secondary means of identification in the case of any ambiguity or uncertainty involving that transaction. Such uncertainty may arise because of corruption of information transmitted over the telephone lines, or the possibility (which is extremely remote) but should be allowed for that the scanned information is similar to that of more than one customer. In this unlikely eventuality, the customer may be required to supply a

PIN, or may have determined with the clearing house that a second biological identifier may be used, for example a finger print taken from another finger or better still a finger print taken from a finger on the customer's other hand.

A number of other such permutations suggests themselves, once the concept of using of a finger print credit card is considered.

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-8Example 5

In this example the remote terminal may rely on a retinal scan rather than a finger print reader. Retinal scans are now available, to uniquely identify individuals. In which case the device of Figure 1 simply requires the replacement of the finger print reader for a retinal scan device, and information can be supplied to the clearing house in a similar way to that outlined in Figure 2, with a digitised version of the retinal scan being used to replace the digitised finger print scan. It is also possible to take a voice print by having an appropriate sound transducer such as a microphone sample the user's voice and transmit the sampled signal to the clearing house for the required comparison with stored voice file information. Similarly, a palm print could be used rather than a finger print.

Example 6

In this example it is possible to measure the customer's DNA to send digitised information to the clearing house, based on the DNA, taken from a small body sample, perhaps a skin scraping or sample of hair, and to use this as the unique identifier. Alternatively, a DNA scan may be performed rather than a body sample having to be provided.

At this time this is less practical, than the finger print reader described above, as the equipment to speedily determine the customer's DNA is not yet as mature as that of the finger print technology which will be discussed in more detail below.

Example 7 - Internet Fingerprint Transactions

In order to use fingerprint financial transactions over the internet, there must be some way of transmitting the fingerprint from the user's computer to the bank's computer or the computer of the clearing house. This requires either a pre-scanned fingerprint to be present on the user's computer or a way to scan the fingerprint into the machine.

The easiest way for the fingerprint to be scanned on today's PC's is via an internet camera.

Real-time imaging of the fingerprint can be taken, and the computer can interact with the user to achieve an optimal scan. Once the camera has taken the scan it can then transmit it over the internet.

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-9The following is an example of how the process may work:

1. The user decides on a purchase.

2. The user clicks on make payment via fingerprint.

3. The computer activates the camera and brings up a display of the camera's output.

4. The computer overlays a sketch of where the finger should be placed on the image.

5. The computer waits and looks for a finger image to be placed over the sketch.

6. Once the computer detects the finger it takes a picture of the finger.

7. The picture is compressed and sent to the credit company or bank or clearing house.

8. The clearing house, credit company or bank validates the image or asks for another image.

9. If another image is asked for, the computer repeats steps 5,6 and 7.

10. Once the print has been validated the purchase goes through.

The output picture of the internet camera will be displayed on screen. A sketch of where the finger should be placed for the scan will be overlaid on the output. The user will place his finger in front of the camera moving it around until it is lined up with the sketch. The computer using a general shape recognition program will wait until the fingerprint is in the correct position and then take a photo of it, which it can send over the internet. Further software can be used in order to alter the picture into the required format for fingerprint identification.

Authentication of the fingerprint image may also be provided. The invention allows this to be effected in a number of different ways, including but not limited to;

transmission by the computer of a number or character string such as the serial number of the computer processor, a serial number associated with the operating system or a caller id number from the telephone line the personal computer may use for communications access.

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- 10Altematively, a number may need to be provided by the machine or user before a download from the Internet can occur.

VARIATIONS

It will be noted that any convenient means of capturing the image and transmitting it to a 5 personal computer can be used. The most convenient means is the internet camera discussed above. These are readily available. An alternative device that could be used is a scanner, as many personal computers are supplied today with a scanner as standard equipment. Another alternative would be to make use of an electronic still camera which captures a visual image, which can then be transferred to the personal computer.

It will be appreciated that any convenient means of electronically capturing an image of the user's fingerprint and transferring it to the personal computer can be used in conjunction with this invention.

Example 8

Existing electronic funds transaction networks or arrangements tend to use a remote terminal which communicates with a central database or router usually referred to as an ETS (Electronic Transaction Server) which then directs the transaction to the appropriate clearing house i.e. directs the transaction to the appropriate bank or other entity or organisation that issued the card or other identifying device which is used to facilitate the requested transaction.

Therefore, referring to figure 4, a remote terminal 100 is provided and this may be an EFTPOS terminal located at a merchant store or could alternatively comprise a user's personal computer for example. The remote terminal 100, when processing a transaction, will send information from the particular user by some route, for example the Internet or any other communications medium, referenced in figure 4 by a link 102 to the ETS 104.

In the example described, for the purposes of convenience and ease of illustration, reference will be made to the use of credit cards. However, it will be understood that any other form

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- 11 of electronic transaction processing may be applicable to the invention as described in the example.

The invention envisages that in the example of a credit card, such as that illustrated in figure 5, the only information on the card is the name of the entity or bank organisation that issued the card, which in figure 5 is AMERICAN EXPRESS for example. Also recorded on the card is the first series of digits which are present on nearly all credit cards, for example comprising four digits which identify the issuing bank or entity, or provide a geographical indication in relation to the issuing entity. Other information which may optionally be provided on the card includes an expiry date.

Turning again to figure 4, the use of the card will transmit the numbers on the card (either by a reading device on the terminal such as a magnetic strip reader or apparatus for reading the digits on the card, or by the user or merchant simply entering the digits by keying them into the terminal). This information will be provided to the ETS which will then be able to compare the digits on the card that have been provided by the user with its own stored information so that it may ascertain that the digits 3774 (as shown in figure 5) refer to an AMERICAN EXPRESS credit card account and may further alert the ETS that this is a United States based AMERICAN EXPRESS account. Therefore, as shown in figure 4, the ETS will know to direct the transaction to the AMERICAN EXPRESS host in Sydney referenced 106 then on through the AMERICAN EXPRESS network through

AMERICAN EXPRESS Asia referenced 108 and on to AMERICAN EXPRESS based in Phoenix USA referenced 110. The account information itself is not present on the card and is not provided on the card or by the card when the card is swiped, for example at a remote terminal. Instead, a unique biological identifier is used to identify the actual account details and identify the person (if the clearing house requires this) at the remote terminal who is making the transaction. Such biological identifiers and their use within financial transactions according to the present invention are described and illustrated in other parts of this document.

Thus, in the example described with reference to figure 4, the biological identifier information is provided to the AMERICAN EXPRESS clearing house in Phoenix represented in box 110 and the information is processed to return either an accepted or

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- 12declined message through the communications route already described back to the remote terminal. As mentioned previously, the clearing house 110 will process the transaction if it is acceptable and therefore the transaction becomes complete.

The transaction flow may be more complex. Again referring to figure 4, if the account happens to be a VISA account for example, then from the information printed on the card, the ETS may direct the transaction firstly to the acquiring bank in box 112 and if this bank indicates that a credit limit is exceeded for example, the transaction may be further forwarded onto an issuing bank for a further check in box 114. Again, if this shows that the limit is exceeded, the transaction may proceed to box 116 which may be another clearing house relating to all VISA cards for example. The issuing bank 114 may instead authorise the payment or transaction in which case an authorisation approval instruction is forwarded back to the acquiring bank in box 112 and then further forwarded on back to the ETS for notification to the customer at the remote terminal.

It will be seen that a very large number of different communication arrangements may be used, but the essence of the invention is that the credit card (if any card at all is used in the transaction) merely carries a number which corresponds to the card issuer or bank or other clearing house entity to facilitate direction of the unique biological identifier j*’j 20 information to that particular clearing house so that the transaction may be processed.

• · · • · • · ' • · • · · • · • · ;**: It will be seen that a very secure financial transaction system, particularly for use over the • · *·.· Internet or other electronic or optical communication mediums is provided, which has the significant advantage that processing speed and implementation with existing financial •**j 25 electronic transaction networks and processors is achieved by using a unique biological • · ···. identifier.

DISCUSSION

The following discussion concerns finger prints and how they can be used in this invention.

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- 13 About Fingerprints

In North America, one of the first successful uses of fingerprints for identification was by

E. Henry in 1901 to stop the railway workers from double collecting pay.

The Henry system derives from the pattern of ridges; concentrically patterning the hands, 5 toes, feet and in this case, fingers.

The classic method of inking and rolling fingers on a print card produces a pattern unique to each individual digit.

According to the Bundeskriminalamt (BKA); no two individuals have identical ridge patterns, ridge patterns are not inheritable, ridge patterns are formed in the embryo, ridge patterns never change in life, and after death may only change as a result of decomposition. In life, ridge patterns are only changed by accident, injury, bums, disease or other unnatural causes.

Identification from fingerprints requires the differentiation of uninterrupted papillary ridge contours followed by the mapping of anatomic marks or interruptions of the same ridges.

The FBI, list 7 papillary ridge patterns : LOOP, ARCH, WHORL, TENTED ARCH, DOUBLE LOOP, CENTRAL POCKET LOOP and ACCIDENTAL

All the above patterns can be discerned by the naked eye and can give a binning or indexing of the resulting databases. The computer can by vector analysis of the change of direction of the ridge lines, achieve what the trained eye naturally sees.

Anatomic characteristics occur because the papillary ridges are not continuous. Each change of direction, bifurcation, interruption or enclosure produces anatomic characteristics (minutia in law enforcement). These characteristics may not be readily available to the human eye but are easily tracked by the computer.

The Result

What this basically means is that a decent fingerprint scanner can identify an individual

100% reliably from his fingerprint. If you link the credit number to the fingerprint instead of a plastic card you have a nearly totally reliable method of credit transactions. It can't be lost or stolen, is always available even if nothing else is, eg after having been mugged or

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- 14swimming on a beach. In conjunction with a large credit firm, and alongside the normal system, you have a new tool of limitless usefulness.

Fingerprint Technology

Fingerprint imaging technology has been in existence for centuries. The use of 5 fingerprints as a unique human identifier date back to second century B.C. China, where the identity of the sender of an important document could be verified by his fingerprint impression in the wax seal (Ruggles, Τ. 1996 &lt;http://www.tech.purdue.edu/it/resources/aidc/BioWebPages/Biometrics Reference.html &gt;). During the 17th century, it was known that fingerprints were unique to each individual 10 and therefore could be used to accurately identify an individual. The 19th century introduced systematic approaches to matching fingerprints to certain individuals. One systematic approach, the Henry classification system, based on patterns such as loops and whorls, is still used today to organize fingerprint card files (Authentec, Inc., 1999 &lt;http://www.tech.purdue.edu/it/resources/aidc/BioWebPages/Biometrics Reference.html &gt;). It was developed by a British policeman during the British occupation of India in the

18OO's (Ruggles, T. 1996 &lt;http://www.tech.purdue.edu/it/resources/aidc/BioWebPages/Biometrics Reference.html &gt;). Today, the traditional inking of one's fingerprint and pressing it against a paper card is still the standardized way of capturing an individuals fingerprint.

The last several years have proved that fingerprint scanners are overwhelmingly the most successful biometric device (Davis, A. 1997 &lt;http://www.tech.purdue.edu/it/resources/aidc/BioWebPages/Biometrics Reference.html&gt;).

Fingerprint imaging devices/applications account for nearly 80 percent of the total worldwide biometrics market, according to Frost &amp; Sullivan.

The first country to adopt a national computerized form of fingerprint imaging was Australia in 1986. which implemented fingerprint imaging technology into its law enforcement system (Simon, D. G. 1994 &lt;http://www.tech.purdue.edu/it/resources/aidc/BioWebPages/Biometrics Reference.html &gt;Y

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- 15It has been estimated that the chance of two people, including twins, having the same fingerprint is less than one-in-a-billion (Industry Information: Biometrics, 1996 &lt;http://www.tech.purdue.edu/it/resources/aidc/BioWebPages/Biometrics Reference.html&gt;)

Fingerprint imaging technology looks to capture or read the unique pattern of lines on the tip of 5 one's finger. These unique pattern of lines can either be in a loop, whorl, or arch pattern. A loop pattern can be detected when the ridges start on one side of the finger, reach the center of the finger (core point) and then go or loop back to the same side. A whorl pattern can be identified as the concentric circles that are formed by the ridges in the center of one's finger. The remainder of these ridges shape themselves around this whorl pattern. Finally, the arch pattern is where the ridges start at one side of the finger and span themselves across the center of the finger to the other side (Randall, N. 1999 &lt;http://www.tech.purdue.edu/it/resources/aidc/BioWebPages/Biometrics Reference.html&gt;).

There are several methods in accomplishing the process of identifying one's fingerprint. The most common method involves recording and comparing the fingerprint's 'minutiae points'. Minutiae points are the points where print ridges come together or end. Minutiae points can be considered the 'uniqueness' of an individual's fingerprint (Computer Business Review, 1998 &lt;http://www.tech.purdue.edu/it/resources/aidc/BioWebPages/Biometrics_Reference.html&gt;).

Other methods of identifying a person's fingerprint include counting the number of ridges between points, processing the fingerprint image and recording the print's sound waves.

Fingerprint imaging technology is based on two electronic capturing methods: optical and capacitive. Optical fingerprint technologies require the user to place his or her finger on a glass substrate at which point an internal light source from the fingerprint device is projected onto the fingerprint. The image is then captured by a charge-coupled device (CCD).

Optical methods have been used extensively and have been in existence for the past decade. They are proven but are on the expensive side and are not always reliable due to environmental conditions. A build up of dirt, grime, and oil from one's finger can leave a ghost image which is referred to as a latent image (Randall, N. 1999 &lt;http://www.tech.purdue.edu/it/resources/aidc/BioWebPages/Biometrics_Reference.html &gt;). As a result, their employment has been confined to specific criminal justice and military installations.

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- 16On the other hand, capacitive imaging looks to make fingerprint imaging available to the masses by making fingerprint imaging devices (hardware) more compact in size, less expensive, and more reliable. Capacitive systems analyse one's fingerprint by detecting the electrical field around the fingerprint using a sensor chip and an array of circuits.

When a person's fingerprint is initially captured, a 'template' is constructed and stored in a data storage system or database. This 'template' is then used to compare against a person's fingerprint for each subsequent time he or she scans their finger. The fingerprint requires one of the largest data templates in the biometric field. The finger data template can range anywhere from several hundred bytes to over 1,000 bytes depending upon the level of security that is required and the method that is used to scan one's fingerprint.

The identifying power of fingerprint imaging systems seems to show that they tend to reject over three percent of authorized users while maintaining false accept rates of less than one in a million (Industry Information: Biometrics, 1996 &lt;http://www.tech.purdue.edu/it/resources/aidc/BioWebPages/Biometrics Reference.html&gt;).

A Practical Example

As an example let us consider a purchase of a magazine using this system. A person approaches the counter carrying a magazine he wishes to purchase. The store owner types in the amount into the 'EFTPOS' machine. He pulls out a fingerprint scanner and the customer places his finger on it. The scanner sends an image of the print to the credit card company. It matches the fingerprint to it's database, and adds the amount to his card account. It finishes the various financial transactions required and then sends a confirmation message back, perhaps with the customer's name on it. There are also multiple other possibilities. A pin to go with the fingerprint, increasing security and making it easier for the credit company. Multiple fingerprints corresponding to different credit cards. A Card selection menu once a person's fingerprint is scanned. The fingerprint as a bankcard or EFTPOS card.

CONCLUSIONS

It will be appreciated that a finger print reader (or possibly other present or future that is if a means for determining the unique biological identifier) could easily replace the card

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- 17reader used in automated teller machines or in standard EFTPOS terminals, although it is likely that this finger print credit card concept will be used along side the magnetically encoded plastic cards for some time to come, and as such it is envisaged that the finger print reader will form part of an automatic teller machine or EFTPOS terminal along side a magnetic card reader.

In the case of automatic teller machines, it is likely that the finger print reader will need to be covered, so that there is only limited finger access to the device, to thereby minimise the possibility of vandalism.

Finally, it will be appreciated that various alterations and modifications may be made to the foregoing without departing from the spirit or scope of this invention.

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WHAT