Patent Abstract:
A method for auditing postage dispensing transactions at a postal facility includes the steps of: receiving in a secure processor based device a request to dispense an amount of postage; updating, in response to the request, accounting data within the secure processor based device to account for the amount of postage; cryptographically securing the updated accounting data in the secure processor based device; dispensing the amount of postage by generating and applying the cryptographically, secured, updated accounting data to a mailpiece. The method further includes receiving cash value for the amount of postage dispensed; sending from the secure processor based device to an administrative computer a cryptographically secure message including the updated accounting data; obtaining and comparing, at the administrative computer, the updated accounting data from the secure message with the cash value received and previous updated accounting data received from a previous secure message from the secure processor based device, and determining if any inconsistencies exist based on the comparing; and obtaining and analyzing, at a funds management computer, the updated accounting data from the mailpiece and the updated accounting data from the secure message and determining if any inconsistencies exist based on the analyzing. An apparatus incorporates the method.

Full Description:
FIELD OF THE INVENTION 
   The instant invention relates to a method and apparatus for securely producing evidence of postage dispensed. More particularly, the instant invention is directed to a closed loop verification system of audit and control which enables the detection of fraud at postal facility counters and the collection of evidence to support a charge of such fraud against particular individual(s). 
   BACKGROUND OF THE INVENTION 
   In many countries there are post offices, under the physical control of a postal authority, where letters and packages can be mailed. An individual can walk into the post office and present their mailpiece to a postal clerk at the postal counter. The clerk will weigh the mailpiece to determine the appropriate postage required, collect the value from the individual (i.e. cash, credit card, etc.) to pay for the required postage, and print out and attach to the mailpiece evidence of postage paid. 
     FIG. 1  shows a traditional postal counter audit system  1  that is used to implement the procedure described above. The postal counter audit system  1  includes a personal computer (PC)  3 , a scale  5 , and a label printer  7  (which collectively form a postal counter system  8 ). The postal counter system  8  prints evidence of postage dispensed at the direction of the postal clerks. Each postal counter system  8  maintains a logfile in the PC  3  of all postage that it dispenses. The logfile data should match the value collected by the postal clerks for the postage dispensed. 
   As further shown in  FIG. 1 , several postal counter systems  8  are commonly networked together along with an administrative computer  9  at a postal facility  10 . The administrative computer  9  is controlled by a postal administrator responsible for the proper operation of the postal facility  10 , e.g., a local postmaster. The postal administrator collects the logfile from each postal counter system  8  (electronically via the administrative computer  9 ). These logfiles are compared with the cash receipts (cash, credit card transactions, etc.) collected at each postal counter system  8 . Any discrepancies between the cash receipts and the logfiles are an indicator of potential fraud by a postal clerk. Additionally, all logfiles, or at least a summary of logfile data from the postal facility  10 , and a summary of cash receipt data are transmitted (over existing communication networks  12 ) to a postal funds management computer  11 . The postal funds management computer  11  also compares the received logfile data with the cash receipt data to determine if any discrepancies exist which would be evidence of potential fraud. 
   Unfortunately, existing postal counter audit systems  1  are subject to several types of fraud which may go undetected. Since the PC  3  includes a processor which is not a secure device, the logfiles stored in PC  3  may be easily tampered with by postal clerks that have access to PC  3  and some basic computer knowledge. As a result, a clerk could simply modify the logfiles (perhaps by deleting entries) and pocket the funds from the cash drawer associated with the modified records. Since the tampered logfiles would match the cash receipts, it would be difficult for a postal administrator to determine that a clerk was stealing postal funds. Moreover, an administrator (working on his own or in conjunction with a clerk) could also falsify records (logfile summaries and cash receipts) prior to transmission to the postal funds management computer  11  and such fraudulent activity might go undetected. 
   The above potential fraudulent activities are largely attributable to the fact that there is no prepayment of postage at a postal counter system  8  as there is with a conventional prepayment postage meter. That is, in a postage meter since the value contained therein has already been paid for, the problems associated with a cash basis transaction for postage does not exist. Accordingly, the instant invention is directed toward the detection of fraud in a “pay for postage as you dispense” counter operation and the collection of collaborating evidence in support of such fraud detection. 
   Additionally, the postal counter audit system  1  does not have a source of data, separate from the data transmitted from the administrative computer  9  (or the postal counter system  8 ) to the funds management computer  11 , that can be used to independently verify the data transmitted from the administrative computer  9 . For example, if the logfiles are altered as discussed above, there is no data feedback based on the processing of the actual mailpieces passing through the mailstream that is used to detect such fraud. 
   Yet another problem occurs when several people operate a single postal counter system  8 . In this situation, even if fraud is detected, it may be difficult to identify only those individuals committing the fraud. 
   Finally, another potential problem may exist if a postal clerk delays the reporting of logfiles. That is, if a postal clerk lags behind in sending out up to date logfiles, some of the cash received could be pocketed. In this situation the cash sent to the administrator would still match the transmitted logfiles which lag behind. 
   SUMMARY OF THE INVENTION 
   A method for auditing postage dispensing transactions at a postal facility includes the steps of: receiving in a secure processor based device a request to dispense an amount of postage; updating, in response to the request, accounting data within the secure processor based device to account for the amount of postage; cryptographically securing the updated accounting data in the secure processor based device; dispensing the amount of postage by generating and applying the cryptographically, secured, updated accounting data to a mailpiece. The method further includes receiving cash value for the amount of postage dispensed; sending from the secure processor based device to an administrative computer a cryptographically secure message including the updated accounting data; obtaining and comparing, at the administrative computer, the updated accounting data from the secure message with the cash value received and previous updated accounting data received from a previous secure message from the secure processor based device, and determining if any inconsistencies exist based on the comparing; and obtaining and analyzing, at a funds management computer, the updated accounting data from the mailpiece and the updated accounting data from the secure message and determining if any inconsistencies exist based on the analyzing. An apparatus incorporates the method. 

   
     BRIEF DESCRIPTION OF THE DRAWINGS 
     The accompanying drawings, which are incorporated in and constitute a part of the specification, illustrate a presently preferred embodiment of the invention, and together with the general description given above and the detailed description of the preferred embodiment given below, serve to explain the principles of the invention. 
       FIG. 1  shows a prior art postal counter audit system; 
       FIG. 2  shows the inventive postal counter audit and control system; 
       FIG. 3  shows a representative example of a digital postage mark; 
       FIG. 4  describes the cryptographic elements used in the inventive a system of  FIG. 2 ; 
       FIG. 5  shows a verification procedure; and 
       FIG. 6  shows an audit procedure implemented in the invention of FIG.  2 . 
   

   DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT 
   The inventive postal counter audit and control system (PCACS)  13 , as shown in  FIG. 2 , employs a combination of smart card technology, public key cryptography, administrative audit and control, and physical security to manage the security of postage value dispensed by postal clerks at a postal counter. The PCACS  13  includes individual postage dispensing counters  15 , an administrative computer  17 , a funds management computer  19 , a postal verification system(s)  21  and a certificate authority (CA) computer  23 . 
   The postage dispensing counters  15  each include a PC  15   a , a smart card reader  15   b , a smart card  15   c , a scale  15   d  and a label/mailpiece printer  15   e . The purpose of the postage dispensing counters  15  are to provide a postal clerk the ability to create digital postage marks (DPM&#39;s  31 ) as evidence of postage dispensed by the postage dispensing counter  15 . That is, unlike existing postal counter systems  1  ( FIG. 1 ) that only print non-cryptographically secure evidence of postage dispensed, the postage dispensing counters  15  print cryptographically secure and verifiable DPMs  31 . 
   Referring to  FIG. 3 , a representative DPM  31  is shown on a sealed mailpiece or sealed package  33  containing thereon a recipient address field  35 . The DPM  31  contains a dollar amount  37 , a date  39  that the evidence of postage was affixed to the mailpiece  33 , a location  41  that the mailpiece  33  was mailed from, a meter serial number  43 , the class of mail  45 , a FIM code  47  and a 2D bar code  49 . Bar code  49  includes cryptographically secured information that is derived from address field  35  and other information (such as the date  39 , serial number  43 , value of postage dispensed  37 , piece count, descending and ascending register values) generated or contained in the meter that affixed DPM  31  to the mailpiece  33 . 
   The cryptographically secured information contained in the bar code  49  may include all or only some of the data elements discussed above. However, whichever data is included it is digitally signed with the private key of the meter. Upon receipt of the mailpiece  33 , the cognizant postal authority can obtain the public key that corresponds to the meter private key in order to verify the authenticity of the cryptographically secured information and the DPM  31 . 
   Returning to  FIG. 2 , the PC  15   a  provides both the postal clerk interface and the communication interface between the smart cards  15   c  and the administrative computer  17 . The smart cards  15   c  provide a secure, cost-effective mechanism to distribute the ability to create DPMs  31  to postage dispensing counters  15  and to individual postal clerks. That is, each postal clerk can be assigned a specific (uniquely identifiable such as through a unique serial no.) smart card  15   c  that provides the postal clerk with the ability to access the postal dispensing counters  15  via the card reader  15   b  and the PC  15   a  to create a DPM  31 . The smart card  15   c  maintains a log of the postage dispensed from that smart card  15   c  which log should be consistent with the cash received at the postage dispensing counters  15 . The DPM  31  is formatted for printing by the PC  15   a  and printed on a mailpiece or label by the printer  15   d  (preferably in machine-readable format such as the 2D barcode  49 ). As previously mentioned, each DPM  31  contains a digitally signed record (secret or public key infrastructures can be used) that indicates the smart card  15   c  that produced the DPM  31  and the postage amount dispensed. In a preferred embodiment, the DPM  31  also contains the date and an indication of register values of the smart card  15   c.    
   The use of a smart card or a similar portable processing device in conjunction with a PC to create a verifiable DPM  31  as evidence of postage dispensed and to securely account for postage in the smart card is well known in the art as reflected in U.S. Pat. No. 5,781,438 which is hereby incorporated by reference. Accordingly, while a detailed description of such devices is not considered necessary for an understanding of the instant invention, a brief overview is considered helpful. 
   The smart card  15   c  accounts for all of the evidence of postage value dispensed from it in an ascending register. Additionally, the amount of evidence of postage value at any given time that is permitted to be dispensed is reflected in the descending register. The sum of the ascending and descending registers is known as the control sum and will always reflect the total of authorized postage value that has been made available to the meter over its lifetime. Moreover, these registers together with the smart card&#39;s  15   c  dedicated processor are all protected from a security attack by both physical and logical measures. Accordingly, the ability of an attacker to alter the accounting registers within the smart card  15   c  is significantly reduced as compared to modifying the logfiles of the prior art postal counter systems  8  (FIG.  1 ). 
   Referring to  FIGS. 2-6 , the operation of the PCACS  13  will now be described. When the smart card  15   c  is in the reader  15   b  and a postal clerk requests postage to be dispensed via the PC  15   a , the smart card  15   c  accounts for the postage to be dispensed by adjusting the ascending and descending registers. Then, the smart card  15   c  signs the ascending and descending register data together with the smart card  15   c  serial number utilizing a private key V SC  stored therein. The signed data is transmitted to the PC  15   a  which forms the final DPM  31  image that includes the signed data. The PC  15   a  then drives the printer  15   e  to print the DPM  31  on a label or the mailpiece. Once the mailpiece is placed into the mailstream, the DPM  31  can be scanned and read at the verification system  21  for verification (in a known manner) and subsequent use in detecting fraudulent activity as discussed in more detail below. 
   In addition to the above, the PC  15   a  may also store transaction logfiles which account for every postage dispensing transaction that takes place. Since the data in the logfiles consists of data signed by the smart card  15   c , any modification of logfiles data can be detected. These logfiles therefore can be used as yet another source of data by the administrative computer  17  and/or the funds management computer  19  to help detect fraudulent activity. 
   The administrative computer  17  provides a central point of local audit and control over the postage dispensing counters  15  at each postal facility  18 . In addition, the administrative computer  17  provides a communication interface between postage dispensing counters  15  and the certificate authority computer  23 , the postal verification computer  21  and the funds management computer  19 . Each administrative computer  17  is capable of auditing the functions of each smart card  15   c , collecting data from each smart card  15   c  and its associated PC  15   a , enabling and disabling each smart card  15   c , and controlling the amount of postage each smart card  15   c  is able to dispense. Therefore, the administrative computer  17  provides the postal authority with local control of the individual postage dispensing counters  15  within the postal facility  18 . 
   The certificate authority computer  23  is responsible for certifying the “identity” of the administrative computer  17  and the smart cards  15   c . Each administrative computer  17  contains a unique private key V Admin  which is used to sign messages that enable, disable, or add funds to smart cards  15   c . Each smart card&#39;s  15   c  unique private key V SC  is used to sign messages from the smart card  15   c . The certificate authority computer  23  provides a certificate to each smart card  15   c  and each administrative computer  17 . Each certificate (Admin cert , SC cert ) is the respective public key (U Admin , U SC ) of the administrative computer  17  and the smart card  15   c , as the, case may be, signed with the private key V CA  of the certificate authority. 
   The postal verification system&#39;s  21  computer checks the validity of DPMs  31 , maintains a log of mail processed based on the scanned DPM&#39;s  31 , and transmits the data retrieved from the scanned DPMs  31  to the funds management computer  19 . The verification system  21  stores a copy of each smart card&#39;s  15   c  certificate SC cert  in order to verify DPMs  31  (alternatively the SC cert  can be included as part of the DPM  31 ). That is, in one embodiment, the DPM  31  includes a unique identifier that identifies the smart card  15   c  that produced the DPM  31 , the amount of postage dispensed and associated with the particular DPM  31 , and at least the ascending register value (and preferably the descending register value as well) of the smart card  15   c , all of which is signed using the private key V SC  of the smart card  15   c . As shown in  FIG. 5 , the verification computer  21  receives the cryptographically secure DPM  31  data which has been scanned off the mailpiece during the processing of the mailpiece in the mailstream (step S 100 ) and obtains the smart card  15   c  data (register readings, postage amount, date postage dispensed, smart card identification) contained therein (step S 102 ). The verification computer  21  then determines whether the specific smart card  15   c  has been flagged as being on a suspect list and whether it appears on a certificate revocation list (CRL) (step S 104 ). The suspect list identifies smart cards  15   c  that have been designated as having been potentially used in a fraudulent manner while the CRL identifies smart cards  15   c  having an expired certificate SC cert . If the particular smart card  15   c  appears on the suspect list or the CRL, an investigation is initiated (step  112 ). Assuming the particular smart card  15   c  does not appear on the suspect list or the CRL, the verification computer  21  uses a certificate authority root certificate CA cert  to obtain the public key U CA  of the certificate authority. The public key U CA  of the certificate authority is then used to obtain the public key of the smart card  15   c  from the smart card  15   c  certificate SC cert  so that the DPM  31  can be verified in a known manner (step S 106 ). If verification is not successful, an investigation is initiated at step S 112 . If verification is successful, the verified data is sent to the funds management computer  19  where it is used as data independent from data received from either the administrative computer  17 , the PC  15   a  or the smart cards  15   c . Accordingly, any inconsistencies detected between register, postage amount or date data obtained from the mailpiece and similar data received from the administrative computer  17 , PC  15   a  or the smart cards  15   c  provides an indication of potential fraudulent activity and ensures the robustness of the inventive PCACS  13  as compared to the prior art system  1 . For example, if the funds management computer  19  identifies an inconsistency in ascending register data (step S 108 ) it starts an investigation (step S 112 ). On the other hand, if the ascending register check is valid, the funds management computer  19  determines if this particular DPM  31  is redundant with that of a previously processed mailpiece  33  (step  110 ). If it is, an investigation is started (step S 112 ), however if it isn&#39;t, the funds management computer  19  just logs in the results of all of the checks at step S 114 . 
   Referring to the flowchart of  FIG. 6 , the flow of data between the smart card  15   c , administrative computer  17 , and funds management computer  19  will be discussed. The administrative computer  17  issues a challenge to a smart card  15   c  (step S 201 ). The smart card  15   c  prepares an audit message in response to the challenge by signing its internal data (e.g., register values, status, failure counts, identifier) and the challenge using V SC  (step S 203 ). The audit message, transaction logfiles from PC  15   a  and SC cert  are then sent, via the PC  15   a , to the administrative computer  17  (step S 205 ). The administrative computer  17  then verifies the audit message (step S 207 ). If verification is successful, the administrative computer  17  compares the internal data with previous internal data received from the smart card  15   c , the transaction logfiles, any funds transfer operations previously performed by that administrative computer  17  with respect to the particular smart card  15   c , and cash data (step S 209 ). In the event that all of the compared data is consistent (step S 211 ), the administrative computer  17  forwards the audit message, logfiles, and cash receipt data to the funds management computer  19  where similar consistency checks are performed (step S 213 ). On the other hand, if an inconsistency is found at step S 211  or verification fails at step S 207 , an investigation as to whether fraudulent activity has occurred is initiated at step S 115 . 
   In another embodiment, the funds management computer  19  also has the option of providing the challenge to the smart card  15   c  (via the administrative computer  17 ). This allows tampering with the administrative computer  17  to be detected (e.g., an administrator who collected a number of audit messages from a smart card  15   c  over the course of a day and sent them to the funds management computer  19  over a number of days to cover up that he was pocketing some of the cash received at the postal facility). 
   As previously discussed, each smart card  15   c  has a descending register having a value that limits the amount of evidence of postage that can be dispensed from the smart card  15   c . The administrative computer  17  is provided with the capability to authorize an increase in the value stored in the descending register. The administrative computer  17 , under control of an administrator, signs a message (including a transaction number to avoid replay attacks) using V Admin  indicating an amount of value to be added to the descending register of a particular smart card  15   c . The signed message is sent together with the Admin Cert  to the smart card  15   c  which verifies the command using Admin Cert . Upon successful verification of the message, the smart card  15   c  adds the amount of value to its existing balance in the descending register. The postage refill process described above should be preceded and followed by an audit of the smart card  15   c  register values. It should also be noted that in some systems there is not a requirement for a descending register value such that no limit is imposed on the amount of evidence of postage that can be dispensed. 
   Local control of the smart cards  15   c  by the administrative computer  17  is further provided by the administrative computer&#39;s  17  ability to enable and/or disable individual smart cards  15   c . That is, if a particular smart card  15   c  is designated as requiring activation (enable) or deactivation (disable) the administrative computer  17  signs a message (including a transaction number to avoid replay attacks) using V Admin  indicating that a particular smart card  15   c  should be enabled or disabled. The smart card  15   c  verifies the message, using Admin Cert  that has been provided by the administrative computer  17 . Upon successful verification, the smart card  15   c  either enables or disables itself. The smart card  15   c  enable/disable process should be preceded and followed by an audit of the smart card  15   c  registers. The result of all smart card  15   c  enable/disable attempts (including smart card register values) is sent by the administrative computer to the funds management computer  19 . U.S. Pat. No. 5,809,485 describes a system for disabling a smart card in a postage meter and is hereby incorporated by reference. 
   In order to increase the overall security of the PCACS  13 , each of the smart cards  15   c  and administrative computer  17 , on a periodic basis, must generate a new key pair (private and public key) and request a certificate from the CA computer  23 . This is accomplished by executing the following steps:
         A. The smart card  15   c  or administrative computer  17  generates a key pair (V new  and U new )   B. The smart card  15   c  or administrative computer  17  signs the new public key, U new , with the new private key, V new  (this ensures that the smart card  15   c  or administrative computer  17  knows the private key that corresponds to the public key   C. The smart card  15   c  or administrative computer  17  incorporates the result in a certificate request signed with the smart card  15   c  or administrative computer  17  existing private key, V existing      D. The smart card  15   c  or administrative computer  17  sends the certificate request and the smart card&#39;s  15   c  or administrative computer&#39;s  17  existing certificate to the CA (Due to a potential delay between a new certificate request actually receiving the certificate, smart cards  15   c  store both the old and new key pairs in nonvolatile memory until a valid certificate for the new key has been received)   E. The CA computer  23  verifies the request and signs a new certificate for the smart card  15   c  or administrative computer  17     F. The CA computer  23  sends the certificate to the smart card  15   c  or administrative computer  17     G. The smart card  15   c  or administrative computer  17  verifies the certificate and then begins using the new key pair and its associated certificate.       

   The PCACS  13  as described above provides improved fraud detection capabilities as compared to the prior art postal counter solutions. For example, if a smart card  15   c  is reported as lost, stolen, or as having produced DPM&#39;s  31  with inconsistent data from that scanned off the mailpiece, it can be placed on the suspect list. Subsequent mailpieces having DPMs  31  produced by that smart card  15   c  will be detected during the verification process as being on the suspect list. This allows the mail operator to suspend delivery of such mailpieces pending an investigation. 
   Additional advantages and modifications will readily occur to those skilled in the art. Therefore, the invention in its broader aspects is not limited to the specific details and representative devices, shown and described herein. Accordingly, various modifications may be made without departing from the spirit or scope of the general inventive concept as defined by the appended claims. For example, while the preferred embodiment shows an open metering system that uses a smart card  15   c , a PC  15   a , and a printer  15   e , a closed system metering device could be used as well. The closed metering device produces a DPM  31  as evidence of postage but typically includes in a single secure housing a processor, the accounting registers, and a dedicated printer as is known in the art. Furthermore, in another embodiment local control of the postage dispensing counters  15  can be relinquished by eliminating the administrative computer  17  and putting all of its functionality at the funds management computer  19 . Finally, smart cards  15   c  can be designed to be operative only with a single administrative computer  17  to preclude the use of different smart cards  15   c  at multiple postal facilities  18 .

Technology Classification (CPC): 6