System for authenticating users and devices in on- line...

G - Physics – 06 – F

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354/41

G06F 3/02 (2006.01) G06F 15/02 (2006.01) G06Q 20/00 (2006.01) G07F 7/10 (2006.01) H04L 9/00 (2006.01)

Patent

CA 1156761

A System for Authenticating Users and Devices in On-Line Transaction Networks Abstract A method for efficiently protecting transactions and providing authentication of users and devices in on-line systems that transfer funds electronically, dispense cash, or provide a good or permit a service to be utilized is provided. The transaction may be initiated by a magnetic-striped plastic card at an attended or unattended terminal (10, 11, 12) and requires the entry of a preassigned Personal Identification Number through a keyboard (20). The Personal Identifi- cation Number is encrypted (23) more than once at the terminal and other means are used in order to prevent the utilization of certain tapped-line data. The data required to validate and authorize the transaction is transmitted securely to a centralized computer (14) which accesses from its stored data base (15) the data that is required to decrypt and validate the trans- action, including the encrypted Personal Identification Number corresponding to the received transaction data. A secret Terminal Master Key must be maintained securely at each terminal and may differ at each terminal. A list of such Terminal Master Keys and other secret data must be securely maintained at the- centralized computer. Means for multiple-encryptions and decryptions in a predetermined way must also be maintained at each terminal and at the centralized computer. Means (34) are provided for securely returning a response to the terminal at which the trans- action was initiated to authorize or reject the requested transaction. These functions are accomplished in a way that permits efficient utilization of data communications lines and reduces or eliminate perpe- tration of fraud by any of various means.

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