Abstract:
Systems and methods are provided for enabling online entities to determine whether a user is truly the person who he says using a two-factor authentication technique and authenticating user&#39;s identity utilizing an authenticator.

Description:
RELATED APPLICATIONS 
       [0001]    This application is a continuation of U.S. patent application Ser. No. 13/606,538, filed Sep. 7, 2012, which is continuation of U.S. patent application Ser. No. 12/210,926, filed Sep. 15, 2008 (now U.S. Pat. No. 8,266,432), which is a continuation-in-part of U.S. patent application Ser. No. 11/239,046, filed Sep. 30, 2005 (now U.S. Pat. No. 7,444,676), which is a continuation-in-part of U.S. patent application Ser. No. 09/940,635, filed Aug. 29, 2001 (now U.S. Pat. No. 7,356,837), and claims benefit of U.S. Provisional Patent Application No. 60/615,603 Oct. 5, 2004. U.S. patent application Ser. No. 12/210,926 is a continuation-in-part of U.S. patent application Ser. No. 11/333,400, filed Jan. 18, 2006 (now U.S. Pat. No. 8,281,129), which is a continuation-in-part of U.S. patent application Ser. No. 09/940,635, filed Aug. 29, 2001 (now U.S. Pat. No. 7,356,837) and claims benefit of U.S. Provisional Patent Application No. 60/650,137. The contents of each of the above-identified applications is incorporated herein by reference in their entirety. 
     
    
     BACKGROUND OF THE INVENTION 
     1. Field of the Invention 
       [0002]    The present invention relates to a centralized identification and authentication system and method for identifying an individual over a communication network such as Internet, to increase security in e-commerce. More particularly a method and system for generation of a dynamic, non-predictable and time dependent SecureCode for the purpose of positively identifying an individual. 
       2. Description of the Related Art 
       [0003]    The increasing use of the Internet and the increase of businesses utilizing e-commerce have led to a dramatic increase in customers releasing confidential personal and financial information, in the form of social security numbers, names, addresses, credit card numbers and bank account numbers, to identify themselves. This will allow them to get access to the restricted web sites or electronically purchase desired goods or services. Unfortunately this type of identification is not only unsafe but also it is not fool proof that the user is really the person he says he is. The effect of these increases is reflected in the related art. 
         [0004]    U.S. Pat. No. 5,732,137 issued to Aziz outlines a system and method for providing remote user authentication in a public computer network such as the Internet. More specifically, the system and method provides for remote authentication using a one-time password scheme having a secure out-of-band channel for initial password delivery. 
         [0005]    U.S. Pat. No. 5,815,665 issued to Teper et al. outlines the use of a system and method for enabling consumers to anonymously, securely and conveniently purchase on-line services from multiple service providers over a distributed network, such as the Internet. Specifically, a trusted third-party broker provides billing and security services for registered service providers via an online brokering service, eliminating the need for the service providers to provide these services. 
         [0006]    U.S. Pat. No. 5,991,408 issued to Pearson, et al. outlines a system and method for using a biometric element to create a secure identification and verification system, and more specifically to an apparatus and a method for creating a hard problem which has a representation of a biometric element as its solution. 
         [0007]    Although each of the previous patents outline a valuable system and method, what is really needed is a system and method that offers digital identity to the users and allows them to participate in e-commerce without worrying about the privacy and security. In addition to offering security and privacy to the users, the new system has to be simple for businesses to adopt and also doesn&#39;t require the financial institutions to change their existing systems. Such a secure, flexible and scalable system and method would be of great value to the businesses that would like to participate in today&#39;s electronic commerce. 
         [0008]    None of the above inventions and patents, taken either singularly or in combination, is seen to describe the instant invention as claimed. Thus a centralized identification and authentication system and method solving the aforementioned problems is desired. 
         [0009]    For convenience, the term “user” is used throughout to represent both a typical person consuming goods and services as well as a business consuming goods and services. 
         [0010]    As used herein, a “Central-Entity” is any party that has user&#39;s personal and/or financial information, UserName, Password and generates dynamic, non-predictable and time dependent SecureCode for the user. Examples of Central-Entity are: banks, credit card issuing companies or any intermediary service companies. 
         [0011]    As also used herein, an “External-Entity” is any party offering goods or services that users utilize by directly providing their UserName and SecureCode as digital identity. Such entity could be a merchant, service provider or an online site. An “External-Entity” could also be an entity that receives the user&#39;s digital identity indirectly from the user through another External-Entity, in order to authenticate the user, such entity could be a bank or a credit card issuing company. 
         [0012]    The term “UserName” is used herein to denote any alphanumeric name, id, login name or other identification phrase, which may be used by the “Central-Entity” to identify the user. 
         [0013]    The term “Password” is used herein to denote any alphanumeric password, secret code, PIN, prose phrase or other code, which may be stored in the system to authenticate the user by the “Central-Entity”. 
         [0014]    The term “SecureCode” is used herein to denote any dynamic, non-predictable and time dependent alphanumeric code, secret code, PIN or other code, which may be broadcast to the user over a communication network, and may be used as part of a digital identity to identify a user as an authorized user. 
         [0015]    The term “digital identity” is used herein to denote a combination of user&#39;s “SecureCode” and user&#39;s information such as “UserName”, which may result in a dynamic, non-predictable and time dependent digital identity that could be used to identify a user as an authorized user. 
         [0016]    The term “financial information” is used herein to denote any credit card and banking account information such as debit cards, savings accounts and checking accounts. 
       SUMMARY OF THE INVENTION 
       [0017]    The invention relates to a system and method provided by a Central-Entity for centralized identification and authentication of users and their transactions to increase security in e-commerce. The system includes:
       A Central-Entity: This entity centralizes users personal and financial information in a secure environment in order to prevent the distribution of user&#39;s information in e-commerce. This information is then used to create digital identity for the users. The users may use their digital identity to identify themselves instead of providing their personal and financial information to the External-Entities;   A plurality of users: A user represents both a typical person consuming goods and services as well as a business consuming goods and services, who needs to be identified in order to make online purchases or to get access to the restricted web sites. The user registers at the Central-Entity to receive his digital identity, which is then provided to the External-Entity for identification;   A plurality of External-Entities: An External-Entity is any party offering goods or services in e-commerce and needs to authenticate the users based on digital identity.       
 
         [0021]    The user signs-up at the Central-Entity by providing his personal or financial information. The Central-Entity creates a new account with user&#39;s personal or financial information and issues a unique UserName and Password to the user. The user provides his Username and Password to the Central-Entity for identification and authentication purposes when accessing the services provided by the Central-Entity. The Central-Entity also generates dynamic, non-predictable and time dependent SecureCode for the user per user&#39;s request and issues the SecureCode to the user. The Central-Entity maintains a copy of the SecureCode for identification and authentication of the user&#39;s digital identity. The user presents his UserName and SecureCode as digital identity to the External-Entity for identification. When an External-Entity receives the user&#39;s digital identity (UserName and SecureCode), the External-Entity will forward this information to the Central-Entity to identify and authenticate the user. The Central-Entity will validate the information and sends an approval or denial response back to the External-Entity. 
         [0022]    There are also communications networks for the user, the Central-Entity and the External-Entity to give and receive information between each other. 
         [0023]    This invention also relates to a system and method provided by a Central-Entity for centralized identification and authentication of users to allow them access to restricted web sites using their digital identity, preferably without revealing confidential personal or financial information. 
         [0024]    This invention further relates to a system and method provided by a Central-Entity for centralized identification and authentication of users to allow them to purchase goods and services from an External-Entity using their digital identity, preferably without revealing confidential personal or financial information. 
         [0025]    Accordingly, it is a principal object of the invention to offer digital identity to the users for identification in e-commerce. 
         [0026]    It is another object of the invention to centralize user&#39;s personal and financial information in a secure environment. 
         [0027]    It is another object of the invention to prevent the user from distributing their personal and financial information. 
         [0028]    It is a further object of the invention to keep merchants, service providers, Internet sites and financial institutions satisfied by positively identifying and authenticating the users. 
         [0029]    It is another object of the invention to reduce fraud and increase security for e-commerce. 
         [0030]    It is another object of the invention to allow businesses to control visitor&#39;s access to their web sites. 
         [0031]    It is another object of the invention to protect the customer from getting bills for goods and services that were not ordered. 
         [0032]    It is another object of the invention to increase customers&#39; trust and reduce customers&#39; fear for e-commerce. 
         [0033]    It is another object to decrease damages to the customers, merchants and financial institutions. 
         [0034]    It is an object of the invention to provide improved elements and arrangements thereof for the purposes described which are inexpensive, dependable and fully effective in accomplishing its intended purposes. 
         [0035]    These and other objects of the present invention will become readily apparent upon further review of the following specification and drawings. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0036]      FIG. 1  is a high-level overview of a centralized identification and authentication system and method according to the present invention. 
           [0037]      FIG. 2  is a detailed overview of a centralized identification and authentication system and method according to the present invention. 
           [0038]      FIG. 3  is a block diagram of the registration of a customer utilizing a centralized identification and authentication system and method according to the present invention. 
           [0039]      FIG. 4  is a block diagram of the transaction of a customer utilizing a centralized identification and authentication system and method according to the present invention. 
           [0040]      FIG. 5  is a block diagram of a Central-Entity authorizing a user utilizing a centralized identification and authentication system and method according to the present invention. 
       
    
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS 
       [0041]    Detailed descriptions of the preferred embodiment are provided herein. It is to be understood, however, that the present invention may be embodied in various forms. Therefore, specific details disclosed herein are not to be interpreted as limiting, but rather as a basis for the claims and as a representative basis for teaching one skilled in the art to employ the present invention in virtually any appropriately detailed system, structure or manner. 
         [0042]    The invention relates to a system  1  and method  2  to identify and authenticate the users and their transactions to increase security in e-commerce.  FIG. 1  illustrates a system to positively identify the users  10  in e-commerce based on digital identity. 
         [0043]    The system  1  comprises a plurality of users  10 , a plurality of External-Entities  20  with goods and services that are desired by the users  10  and a Central-Entity  30  providing a unique UserName and Password to the users  10  and generating dynamic, non-predictable and time dependent SecureCode for the users  10  per user&#39;s request. There are also communication networks  50  for the user  10 , the Central-Entity  30  and the External-Entity  20  to give and receive information between each other. 
         [0044]    It would be desirable to develop a new system  1  and method  2  to centralize user&#39;s personal and financial information in a secure environment and to offer digital identity to the users  10  in order to provide privacy, increase security and reduce fraud in e-commerce. Ideally, a secure identification and authentication system  1  would identify legitimate users  10  and unauthorized users  10 . This would increase the user&#39;s trust, which leads to more sales and cash flow for the merchants/service providers. 
         [0045]    The present invention relates to a system  1  and method  2  to support this ideal identification and authentication system. For identification purpose, a digital identity (a unique UserName and a dynamic, non-predictable and time dependent SecureCode) is used by the user  10  at the time of ordering or at the time of accessing a restricted Internet site. A series of steps describing the overall method are conducted between the users  10 , the Central-Entity  30  and the External-Entity  20  and are outlined in  FIG. 3, 4, 5 . 
         [0046]    There are three distinct phases involved in using the centralized identification and authentication system  FIG. 2 , the first of which being the registration phase, which is depicted in  FIG. 3 . During the registration phase, the user  10  provides his personal or financial information to the Central-Entity  30 . The user  10  registers at the Central-Entity  30 ,  100 ,  104  and receives his account and login information such as UserName and Password  108 . User  10  can access his account at any time by accessing the Central-Entity&#39;s system using a communication network  50  and logging into the system. 
         [0047]    Next is the transaction phase, where the user  10  attempts to access a restricted web site or attempts to buy services or products  110 , as illustrated in  FIG. 4 , through a standard interface provided by the External-Entity  20 , similar to what exists today and selects digital identity as his identification and authorization or payment option. The External-Entity  20  displays the access or purchase authorization form requesting the user  10  to authenticate himself using his UserName and SecureCode as digital identity. The user  10  requests SecureCode from the Central-Entity  30  by accessing his account over the communication network  50 ,  114 . The Central-Entity  30  generates dynamic, non-predictable and time dependent SecureCode  118  for the user  10 . The Central-Entity  30  maintains a copy of the SecureCode for identification and authentication of the user  10  and issues the SecureCode to the user  10 . When the user  10  receives the SecureCode  120 , the user  10  provides his UserName and SecureCode as digital identity to the External-Entity  20 ,  124 ,  FIG. 4 . 
         [0048]    The third phase is identification and authorization phase. Once the user  10  provides his digital identity to the External-Entity  20 , the External-Entity  20  forwards user&#39;s digital identity along with the identification and authentication request to the Central-Entity  30 ,  130 , as illustrated in  FIG. 5 . When the Central-Entity  30  receives the request containing the user&#39;s digital identity, the Central-Entity  30  locates the user&#39;s digital identity (UserName and SecureCode) in the system  134  and compares it to the digital identity received from the External-Entity  20  to identify and validate the user  10 ,  138 . The Central-Entity  30  generates a reply back to the External-Entity  20  via a communication network  50  as a result of the comparison. If both digital identities match, the Central-Entity  30  will identify the user  10  and will send an approval of the identification and authorization request to the External-Entity  20 ,  140 , otherwise will send a denial of the identification and authorization request to the External-Entity  20 ,  150 . The External-Entity  20  receives the approval or denial response in a matter of seconds. The External-Entity  20  might also display the identification and authentication response to the user  10 . 
         [0049]    To use the digital identity feature, the Central-Entity  30  provides the authorized user  10  the capability to obtain a dynamic, non-predictable and time dependent SecureCode. The user  10  will provide his UserName and SecureCode as digital identity to the External-Entity  20  when this information is required by the External-Entity  20  to identify the user  10 . 
         [0050]    The Central-Entity  30  may add other information to the SecureCode before sending it to the user  10 , by algorithmically combining SecureCode with user&#39;s information such as UserName. The generated SecureCode will have all the information needed by the Central-Entity  30  to identify the user  10 . In this case the user will only need to provide his SecureCode as digital identity to the External-Entity  20  for identification. 
         [0051]    In the preferred embodiment, the user  10  uses the communication network  50  to receive the SecureCode from the Central-Entity  30 . The user  10  submits the SecureCode in response to External-Entity&#39;s request  124 . The SecureCode is preferably implemented through the use of an indicator. This indicator has two states: “on” for valid and “off” for invalid. When the user  10  receives the SecureCode, the SecureCode is in “on” or “valid” state. The Central-Entity  30  may improve the level of security by invalidating the SecureCode after its use. This may increase the level of difficulty for unauthorized user. Two events may cause a valid SecureCode to become invalid:
       1. Timer event: This event occurs when the predefined time passes. As mentioned above the SecureCode is time dependent.   2. Validation event: This event occurs when the SecureCode forwarded to the Central-Entity  30  (as part of digital identity) corresponds to the user&#39;s SecureCode held in the system. When this happens the Central-Entity  30  will invalidate the SecureCode to prevent future use and sends an approval identification and authorization message to the External-Entity  20 , 140 .       
 
         [0054]    A valid digital identity corresponds to a valid SecureCode. When the SecureCode becomes invalid, the digital identity will also become invalid. 
         [0055]    While the invention has been described in connection with a preferred embodiment, it is not intended to limit the scope of the invention to the particular form set forth, but on the contrary, it is intended to cover such alternatives, modifications, and equivalents as may be included within the spirit and scope of the invention as defined by the appended claims.