Abstract:
A trigger card and system for preventing credit and debit card fraud is disclosed. The trigger card is adapted to be indistinguishable from typical credit cards and other cards issued by financial institutions. The system is adapted to receive signals when a standard card reader reads the trigger card. The system is further adapted to initiate an automated procedure to reduce fraud upon receipt of the signal indicating that the trigger card has been read by the card reader.

Description:
BACKGROUND OF THE INVENTION 
   1. Field of the Invention 
   The present invention relates to devices for the prevention of credit card fraud. 
   2. Description of Related Art 
   It is well known that credit card fraud is a major problem in the credit card industry. Such fraud is achieved in many ways, one method being the theft of a cardholder&#39;s wallet or purse and the subsequent unauthorized usage of the credit cards and debit cards stored therein. Often, stolen credit cards are used within the first few hours of the theft. Most credit card fraud is detected before the cardholder knows there is a problem. Adding to this problem is the fact that most cardholders carry more than one credit card. Often, the cardholder does not even know how many or which cards he is carrying, and most cardholders do not keep a separate list of all of their credit and debit cards. Credit card companies often end up paying for the majority of unauthorized usage. This reduces the credit card companies&#39; profits and leads to increased fees for cardholders. 
   Because cardholders often carry more than one credit or debit card, even if one credit card company notices irregular purchases on the credit card and restricts the use of that particular credit or debit card, the fraud continues because the thief simply switches to another credit card in the wallet or purse. Because the cards are usually issued by different companies, it is unlikely that the fraudulent use of one card will be reported to the issuing companies of the other cards. Thus, even if the theft is noticed by the cardholder, it is very difficult and time consuming to contact every financial institution that has issued a credit or debit card to the cardholder. 
   These methods of restricting the use of credit cards are not without their problems. Computerized monitoring systems occasionally restrict the valid use of a credit card merely when the cardholder&#39;s purchasing habits change. For instance, it is possible for a generally frugal shopper to have their credit card locked by the issuing company when the cardholder goes on an unusual shopping spree or travels to an unusual location. The prospect of angering customers by such mistakes makes automated monitoring an undesirable alternative of fraud protection for most credit card companies. 
   One proposed solution is for the cardholder to register all of his credit, debit, and other financial institution cards under a single credit card fraud protection plan. This allows the plan administrator to contact the credit card issuers in the event a fraud or theft is reported to the plan administrator by the cardholder. Although such credit card fraud protection plans offer a valuable service to the cardholder, it is still incumbent upon the cardholder to realize that a theft or fraud has taken place and to notify the plan administrator. Unfortunately, the theft is usually not realized until several hours or days have passed. This is true for many different reasons, including: the theft occurs while the cardholder is sleeping; the cards are stolen from the cardholders home while the cardholder is away or out of town; the thief only steals the cards, and not the entire wallet or purse; the cards are not actually stolen, but the numbers, expiration dates, and code numbers are copied for use over the phone or the Internet; and a wide variety of other reasons. 
   Therefore, although there have been significant developments in the area of credit card fraud prevention, considerable shortcomings remain. 
   SUMMARY OF THE INVENTION 
   There is a need for credit card fraud prevention system that provides an immediate and reliable indication that theft, fraud, or unauthorized use has occurred. There is also a need for a system which increases the arrest rate for credit card theft. 
   Therefore, it is an object of the present invention to provide an apparatus and method for preventing and reducing credit card fraud that provides an immediate and reliable notification that theft, fraud, or unauthorized use of a credit, debit, or financial institution card has occurred, and that provides an immediate procedure for canceling and reordering credit cards. It is a further object to provide a system that provides an increase in the arrest rate for credit card theft. 
   These objects are achieved by providing a trigger card that looks and feels like a credit card and that is carried by a cardholder along with his other credit and debit cards. Although the trigger card looks and feels like a regular credit card, any attempted use of the trigger card immediately signals the theft, fraud, or unauthorized use of the card and sets a variety of systems into action. The first system triggered by use of the trigger card is one that immediately cancels all credit and debit cards stored on a list of cards provided by the cardholder. A second system, which is optional, that is triggered by the use of the trigger card is a law-enforcement system that gathers information about the unauthorized user. This second system may include having the clerk request further identification in the form of a state-issued identification card or biometric data, such as a fingerprint. A third system triggered by the use of the trigger card is one that notifies various agencies, personnel, or third parties who may need to know of the theft, fraud, or unauthorized use. For example, the notification might be sent to state and federal agencies, credit card issuers, banks, relatives, and to personal email or telephone numbers of the cardholder, among other possibilities. A fourth system that is triggered by the use of the trigger card is one that immediately orders and delivers new cards to the cardholder at a pre-designated address by expedited delivery. This pre-designated address can be the cardholder&#39;s home address, his business address, or a “safe” address, such as a bank or post office box, or to a temporary address if the cardholder is away from home. 
   The present invention provides significant advantages, including: (1) immediate response to fraud notification in the form of card cancellation, notification, and delivery of new cards; (2) increased reporting of credit card theft; (3) simplified “back-to-normal” status for cardholders; (4) increased collection of data about fraudulent users; (5) reduced false positive notifications of fraud or theft; and (6) significantly reduced losses to credit card issuers and retail entities due to credit card fraud. 
   Additional objectives, features, and advantages will be apparent in the written description that follows. 

   
     BRIEF DESCRIPTION OF THE DRAWINGS 
     The novel features believed characteristic of the invention are set forth in the appended claims. However, the invention itself, as well as, a preferred mode of use, and further objectives and advantages thereof, will best be understood by reference to the following detailed description when read in conjunction with the accompanying drawings, wherein: 
       FIG. 1  is a schematic of a wallet storing financial cards and a trigger card according to the present invention; 
       FIG. 2A  is a schematic of a front face of a trigger card according to the present invention; 
       FIG. 2B  is a schematic of a rear face of a trigger card according to the present invention; and 
       FIG. 3  is a diagram of a system triggered by the trigger card of  FIG. 2  according to the present invention. 
   

   DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT 
   The present invention represents the discovery that a trigger card that looks and feels like a credit card, but which is not a credit card, may be placed among actual credit and debit cards in a cardholders wallet or purse to prevent credit card fraud. The trigger card is stored with the cardholder&#39;s other financial cards, but not used by the cardholder. Any attempt to use the trigger card as a credit card is a clear indication of theft or fraud; thereby triggering a range of possible responses tailored to reduce fraud. The trigger card and associated system for use will result in more limited fraud exposure and act as a fraud deterrent. 
   Referring to  FIG. 1  in the drawings, a conventional wallet  11  is shown with financial cards  13 . It will be appreciated that wallet  11  also represents purses and other devices, including pouches, money clips, checkbook, pockets, drawers, file cabinet, furniture, automobiles, and safes, used by cardholders to carry and store credit, debit, and other financial institution cards. Financial cards  13  may be credit cards, debit cards, debit cards, automatic teller machine cards, cash value cards, voucher cards, or any card used for financial transactions. As is typical, financial cards  13  include graphical designs, logos of banks, logos of credit card institutions, such as VISA and MASTERCARD, identification names, identification numbers, code numbers, expiration dates, and one or more magnetic strips or other digital memory means for storing digital data. 
   In accordance with the present invention, a trigger card  15  is carried or stored randomly among financial cards  13 . Trigger card  15  looks and feels like a typical financial card, in that trigger card  15  preferably includes graphics, logos of banks, logos of popular credit card institutions, such as VISA and MASTERCARD, identification names, identification numbers, code numbers, expiration dates, and one or more magnetic strips or other digital memory means for storing digital data; however, trigger card  15  is not a financial card. Trigger card  15  is preferably manufactured by the same means as financial-cards  13 . 
   The purpose of trigger card  15  is to fool an unauthorized user into believing that trigger card  15  is a valid credit card. Thus, it is preferred that trigger card  15  not be identical to any other financial card  13  in wallet  11 , but should look as much like a regular credit card as every other financial card  13  in wallet  11 . The importance of this is two fold: first, the user should be able to easily avoid using trigger card  15 ; second, most cardholders do not have two identical cards from the same issuer, so the pair would stand out as a possible trigger card  15 . Also, many financial cards  13  offer varying levels of membership with varying issuer logos, card designs, and indicators, such as “Platinum Card,” “Gold Card,” or “Exclusive.” These options are available for trigger card  15  to further insure that the trigger card  15  is indistinguishable from a financial card  13  to anyone but the cardholder. Indeed, trigger card  15  may include features or indicia that entice a thief or an unauthorized user to attempt to use trigger card  15  before attempting to use any other financial card  13 . If a thief can be enticed into using trigger card  15  first, then, as explained below, as soon as trigger card  15  is used, the cardholder&#39;s valid financial cards  13  are cancelled. This prevents any unauthorized or fraudulent transactions on valid financial cards  13 . 
   Referring now to  FIGS. 2A and 2B  in the drawings, the front and back of a the preferred embodiment of trigger card  15  is shown. As shown in  FIG. 2A , the front of trigger card  15  preferably includes typical indicia of a credit or debit card, including a bank logo  17 , a 16-digit card number  19 , an expiration date  21 , a security label  23 , such as a hologram, the cardholder&#39;s name  25 , a credit card institution logo  27 , such as VISA or MASTERCARD, and other marketing images. It is important that these indicia look authentic. The back of trigger card  15  is shown in  FIG. 2B . Trigger card  15  preferably includes at least one magnetic strip  29  or other means for storing digital trigger data, a signature block  31 , and a security code  33 . In addition to the need for stealth, as more fully explained below, magnetic strip  29  and card number  19  are needed by trigger card  15  and the associated credit card fraud prevention system of the present invention to communicate that trigger card  15  has been used. For the foregoing reasons, it is preferred that trigger card  15  be manufactured with the same materials and in the same fashion as valid financial cards  13 . 
   It will be appreciated that trigger cards  15  for use in the present invention undergo the same security and usage upgrades over time that regular financial cards undergo. As such, trigger card  15  may include security features that are currently known but not widely used, or may include security or usage features that are not yet known. In other words, trigger card  15  is easily adaptable to keep up with the latest trends in credit card security and usability. 
   Referring now to  FIG. 3  in the drawings, a system  34  according to the present invention that utilizes trigger card  15  to prevent fraud is illustrated. System  34  includes conventional card readers  35  that are used to read, process, and display the status of financial transactions. Card readers  35  may be point of sale readers, as found at typical sales counters and cash registers, automatic teller machines, and Internet online sales computers. Card readers  35  serve as an interface between financial cards  13  and a system of approval and payment. Upon transfer of information from magnetic strip  29  of financial card  13  to card reader  35 , either by manual entry of card number  19 , expiration date  21 , and/or other data; or by swiping magnetic strip  29  through card reader  35 ; data about financial card  13  and the current transaction is transmitted to a network  37 . Network  37  may be a computer network, telephone network, or any other network suitable for transmitting data. Network  37  transmits the data to one or more issuing institutions  39 . Issuing institutions  39  may be banks, financial services companies, or other institutions or agencies. Issuing institutions  39  evaluate the requested transaction and reply through network  37  to card reader  35 , either approving or denying the transaction. For card readers  35  located at point of sale counters and cash registers, the approval or denial by issuing institution  39  may be appropriately displayed on a display of card reader  35 . 
   According to the present invention, if trigger card  15  is used instead of financial card  13 , card reader  35  transmits selected data stored on magnetic strip  29  over network  37  to a trigger computer  41 . Trigger computer  41  may be located at issuing institution  39  or may be located at a remote location. It will be appreciated that the data from trigger card  15  may be sent from card reader  35  through network  37  to trigger computer  41 , from issuing institution  39  through network  37  to trigger computer  41 , from institution  39  directly to trigger computer  41 , or directly from card reader  35  directly to trigger computer  41 . Variations in the order or direction of transmission of the data from trigger card  15  may be easily controlled by appropriate programming on system  34 . In the preferred embodiment, trigger computer  41  is programmed to initiate certain anti-fraud procedures based upon the receipt of data indicating an attempted use of trigger card  15 . 
   The procedures initiated by trigger computer  41  include a data acquisition procedure, a card cancellation procedure, a notification procedure, and a card ordering procedure. The cancellation procedure includes the immediate and automatic canceling of all financial cards  13  that have been previously chosen and listed by the cardholder to be cancelled by system  34  in the event trigger card  15  is ever used. Alternatively, the spending limits on the associated financial cards  13  may be severely reduced to allow tracing of the fraudulent use and to allow continued limited use in the event of an accidental use of the trigger card  15 . 
   The data acquisition procedure occurs immediately after trigger card  15  is swiped at a card reader  35  or after the data from trigger card  15  is submitted in an online transaction. In the preferred embodiment, the method and location of use is recorded and transmitted to trigger computer  41 , or other computers dedicated to the carrying out of the various procedures of the invention. The data acquisition procedure may be enhanced in several ways upon the use of trigger card  15 , such as by trigger computer  41  informing card reader  35  that an official identification card (ID) is required to continue with the transaction. Trigger card  15  and/or magnetic strip  29  may include certain biometric data about the cardholder, such as fingerprint, retinal scan, facial scan, palm print, etc. As such, trigger computer  41  may transmit a request that the user of trigger card  15  submit such information. As such requests for biometric data become more commonplace, such requests may not necessarily alarm a thief that trigger card  15  has been used. 
   It should be appreciated that in one embodiment of the invention the data acquisition procedure may allow for a transaction to occur at a low cost to increase the likelihood of capturing the thief. For instance, if trigger card  15  is used at a location with poor data acquisition characteristics, such as a remote automatic teller machine with a low quality camera, a withdrawal may be allowed so that the thief may use the trigger card  15 , or any of the associated financial cards  13 , at a location with better data acquisition equipment, such as at a store with a finger print scanner. Such options may be at the issuer&#39;s discretion depending on the importance of catching every thief, or may be an option selected by the cardholder as an extra protection feature. 
   Because of the common usage of financial cards  13 , in one embodiment of the invention, a disable code for canceling the mistaken usage of trigger card  15  by the cardholder may be provided. An example may be the entry of a code within a certain time limit after using the trigger card  15 , such as within thirty seconds after usage. This additional feature would not delay the response of the trigger computer  41  unduly, but would allow the cardholder some ability to recover from the mistaken use of trigger card  15 . 
   The notification procedure preferably requires that trigger computer  41  be connected to an external network  43  for automated communication to the cardholder and any other listed parties. For example, trigger computer  41  could send an email notification to the cardholder. Additionally, if the cardholder wishes to list other email addresses to be notified, an email may be sent to the card holder&#39;s spouse, children, attorney, company, security service, or any other entity that the card holder would want notified of the use of the trigger card  15 . Likewise, an automated telephone message may be sent to a list of numbers selected by the cardholder. The message may be computer generated, including the date, time, and location of the unauthorized use of trigger card  15 . Additionally, any automated communication may include a personal message pre-recorded by the card holder, such as an introduction to the email, or a voice message added to the telephone notification. Additionally, the notification may include notification of the proper authorities or an appropriate law-enforcement agency based upon the location of the unauthorized use. 
   The card ordering procedure includes immediate ordering and delivery of replacement financial cards  13  for all financial cards  13  that were cancelled by system  34  and issuance of a new trigger card  15 . Delivery may be automatic to a home address, a business address, or a “safe” address, such as a bank or post office box, or to a temporary address if the cardholder is away from home, or delivery of the replacement financial cards  13  may be deferred until the cardholder has replied to the notification. While home delivery tends to be safest, this may be of no help when the cardholder is traveling. Therefore, home delivery may be initiated immediately, or delivery may be delayed pending confirmation of the cardholder&#39;s location. This confirmation may be automated by email, text messaging, web page entry, or telephone, for example. Alternatively, the confirmation may be handled by personal communication, such as over the telephone or in person at a financial institution, to ensure that no continuing fraud is perpetrated by the theft of a communication device along with trigger card  15 . 
   In one embodiment of the present invention, one method for associating financial cards  13  with trigger card  15  is to provide a specially adapted card reader  35  inside a financial institution, such as a bank lobby. The cardholder simply swipes trigger card  15  in the special card reader  35  and initiates a signup menu instead of a transaction menu. The cardholder then swipes any financial cards  13  that need to be associated with the trigger card  15 . This procedure might require a code to prevent a thief from swiping various financial cards  13  in an attempt to find a trigger card  15 . 
   It is apparent that an invention with significant advantages has been described and illustrated. Although the present invention is shown in a limited number of forms, it is not limited to just these forms, but is amenable to various changes and modifications without departing from the spirit thereof.