Abstract:
The present invention is directed to a smartcard that enables a one-time pin code offline security authentication with a card reader. This is achieved by generating a one-time pin code when the user inputs their pin code. The inputted pin code is encrypted and matched with the encrypted user correct pin code. If there is a match the one-time pin code is stored in memory and the transaction can proceed.

Description:
FIELD OF THE INVENTION 
       [0001]    This invention relates to security authentication devices. In particular, the invention relates to smartcards, smart credit cards and a method for enabling offline security authentication with a card reader, and to a microprocessor program product for a smartcard. 
       BACKGROUND OF THE INVENTION 
       [0002]    Broadly, a smartcard is a pocket-sized card with embedded integrated circuits. The smartcard typically includes a microprocessor that is interfaced with peripheral microprocessor components such as memory, a contact data I/O terminal, and/or user interface components such as a key pad and a display. 
         [0003]    A smartcard that is used as a smart credit card can increase security authentication over traditional visual security authentication methods. For example, a smart credit card can store a PIN code. The smart credit card can then be inserted into a card reader which requires a user to enter the PIN code into the reader. The card reader then compares the entered PIN code with the stored PIN code on the smart credit card, and if they match a transaction is authorised. This method in which the card reader authenticates the smart credit card is also referred to as offline authentication. 
         [0004]    Keystroke logging however is still a security risk. A user&#39;s PIN can be obtained from a keypad of a card reader at a point of sale (POS) system, an ATM, or the like. There are numerous keystroke logging methods, ranging from hardware and software-based approaches to electromagnetic and acoustic analysis. 
       Object of the Invention 
       [0005]    It is an object of the present invention to provide an alternative smartcard that at least reduces security authentication risks that are associated with smartcards. 
       SUMMARY OF THE INVENTION 
       [0006]    In another aspect the invention provides a smartcard that enables security authentication prior to transfer of stored information, smartcard including: 
         [0007]    a microprocessor that is interfaced with memory, a user interface which includes code input keys and a display, and a proximity communication interface or input/output contact terminal for interfacing with a card reader; and 
         [0008]    an encrypted digest of a user PIN stored in memory, which encrypted digest has been generated with an encryption algorithm; 
         [0009]    the smartcard being configured for:
       receiving an input PIN code from the code input keys;   generating and displaying a command where there is a proximity communication interface or one-time PIN code where there is an input/output contact terminal on the display in response to receiving the input PIN code from the code input keys;   determining if the input PIN code matches the user PIN code by generating an encrypted digest of the input PIN code with the same encryption algorithm with which the stored digest has been created and by comparing the generated encrypted digest with the stored one-way encrypted digest; and   wherein if the generated encrypted digest matches the stored encrypted digest and there is a proximity communication interface, then activating the proximity communication interface to transfer the stored information to the card reader or if the generated encrypted digest matches the stored encrypted digest and there is an input/output contact terminal, then storing the one-time PIN code in the memory, which one-time PIN code is used to authenticate the smartcard with the card reader.       
 
         [0014]    In another aspect the invention provides a smartcard that enables one-time PIN code offline security authentication with a card reader, the smartcard including: 
         [0015]    a microprocessor that is interfaced with memory, a user interface which includes code input keys and a code display, and an input/output contact terminal for interfacing with the card reader; and 
         [0016]    an encrypted digest of a user PIN stored in memory, which encrypted digest has been generated with an encryption algorithm; 
         [0017]    the smartcard being configured for:
       receiving an input PIN code from the code input keys;   generating and displaying a one-time PIN code on the display in response to receiving the input PIN code from the code input keys;   determining if the input PIN code matches the user PIN code by generating an encrypted digest of the input PIN code with the same encryption algorithm with which the stored digest has been created and by comparing the generated encrypted digest with the stored encrypted digest; and   if the generated encrypted digest matches the stored encrypted digest, then storing the one-time PIN code in the memory, which one-time PIN code is used in the offline security authentication of the smartcard by the card reader.       
 
         [0022]    In another aspect the invention provides a smartcard that enables one-time PIN code offline security authentication with a card reader, the smartcard including: 
         [0023]    a microprocessor that is interfaced with memory, a user interface which includes code input keys and a code display, and an input/output contact terminal for interfacing with the card reader; and 
         [0024]    a one-way encrypted digest of a user PIN stored in memory, which one-way encrypted digest has been generated with an one-way encryption algorithm; 
         [0025]    the smartcard being configured for:
       receiving an input PIN code from the code input keys;   generating and displaying a one-time PIN code on the display in response to receiving the input PIN code from the code input keys;   determining if the input PIN code matches the user PIN code by   generating a one-way encrypted digest of the input PIN code with the same one-way encryption algorithm with which the stored one-way digest has been created and by comparing the generated one-way encrypted digest with the stored one-way encrypted digest; and   if the generated one-way encrypted digest matches the stored one-way encrypted digest, then storing the one-time PIN code in the memory, which one-time PIN code is used in the offline security authentication of the smartcard by the card reader.       
 
         [0031]    The smartcard is preferably configured to reset the stored one-time PIN code in memory to an invalid value after a predetermined condition is met. The predetermined condition preferable includes any one of lapsing of a predetermined time, deactivating of the display, and detecting with the microprocessor that the one-time PIN has been used in an authentication process. 
         [0032]    The smartcard is preferably configured to include a PIN failure counter in memory, so that if an invalid PIN is entered with the code input keys and the generated one-way encrypted digest does not match the stored one-way encrypted digest, the PIN failure counter is increased. In addition, the smartcard is preferably configured to reset the one-time PIN code in memory to an invalid value each time that an invalid PIN code is entered with the code input keys, for example to erase an one-time PIN code which is still resident in memory at such time. 
         [0033]    The smartcard is preferably configured to lock or deactivate at least some of its functionality if the PIN failure counter reaches a predetermined count. 
         [0034]    The smartcard preferably includes a PIN failure counter reset or smartcard unlock function, in which the smartcard is configured to receive an one-time unlock code from the code input keys, to process and validate the one-time unlock code, and to unlock or reactivate the locked or deactivated functions of the smartcard if the one-time unlock code is successfully processed and validated. 
         [0035]    The smartcard is also preferably configured to reset the PIN failure counter to zero each time a valid PIN code is entered prior to the PIN failure counter reaching its predetermined count. 
         [0036]    In one embodiment, the smartcard is preferably configured to include a stored PIN code replacement function, which when activated by entering an associated code, processes the associated code to generate a new one-way encrypted digest that is stored on the smartcard to replace the existing one-way encrypted digest. 
         [0037]    The smartcard is preferably a smart credit card. 
         [0038]    The smartcard is preferably configured to communicate with a card reader in accordance with the Europay, MasterCard and VISA (EMV) protocol. 
         [0039]    In a further aspect the invention provides a method for enabling one-time PIN code offline security authentication of a smartcard with a card reader, which smartcard includes a microprocessor that is interfaced with memory, a user interface which includes code input keys and a code display, and a input/output contact terminal, the method including: 
         [0040]    storing a one-way encrypted digest of a user PIN code in the memory, which one-way encrypted digest has been generated with an one-way encryption algorithm; 
         [0041]    receiving an input PIN code from the code input keys; 
         [0042]    generating and displaying a one-time PIN code on the display in response to receiving the input PIN code from the code input keys; 
         [0043]    determining if the input PIN code matches the user PIN code by generating a one-way encrypted digest of the input PIN code with the same one-way encryption algorithm with which the stored one-way digest has been created and by comparing the generated one-way encrypted digest with the stored one-way encrypted digest; and 
         [0044]    if the generated one-way encrypted digest matches the stored one-way encrypted digest, then storing the one-time PIN code in the memory, which one-time PIN code is used in the offline security authentication of the smartcard by the card reader. 
         [0045]    The method preferably includes resetting the one-time PIN code in memory to an invalid value after a predetermined time has lapsed, or when the display deactivates, or if the microprocessor detects that the one-time PIN has been used in an authentication process. 
         [0046]    The method preferably include increasing a PIN failure counter in memory if an invalid PIN is entered with the code input keys and the generated one-way encrypted digest does not match the stored one-way encrypted digest. 
         [0047]    The method preferably includes resetting the one-time PIN code in memory to an invalid value each time that an invalid PIN code is entered with the code input keys if an one-time PIN code was still resident in memory at such time. 
         [0048]    The method preferably includes deactivating at least some of its functionality if the PIN failure counter reaches a predetermined count. 
         [0049]    The method preferably includes resetting the PIN failure counter with a PIN failure reset function by receiving an one-time unlock code from the code input keys, processing and validating the one-time unlock code, and by reactivating the one-time pin generation function if the one-time unlock code is successfully processed and validated. 
         [0050]    The method preferably includes resetting the PIN failure counter to zero each time a valid PIN code is entered prior to the PIN failure counted reaching its predetermined count. 
         [0051]    The method preferably includes replacing the existing one-way encrypted digests with a stored PIN code replacement algorithm by receiving an associated code from the code key pad, processing the associated code to generate a new one-way encrypted digest, and overriding the existing one way encrypted digest. 
         [0052]    In another aspect of the invention there is provided a smartcard microprocessor program product which includes microprocessor readable instructions, which when executed, causes the smartcard to perform the method as defined according to the abovementioned method of the invention. 
         [0053]    In another aspect the invention provides a proximity smartcard that enables security authentication prior to transfer of stored information from the proximity smart card to the proximity card reader, the proximity smartcard including: 
         [0054]    a microprocessor that is interfaced with memory, a user interface which includes code input keys and a display, and an proximity communication interface; and 
         [0055]    an encrypted digest of a user PIN stored in memory, which encrypted digest has been generated with an encryption algorithm; 
         [0056]    the proximity smartcard being configured for:
       receiving an input PIN code from the code input keys;   generating and displaying a command on the display in response to receiving the input PIN code from the code input keys;   determining if the input PIN code matches the user PIN code by generating an encrypted digest of the input PIN code with the same encryption algorithm with which the stored digest has been created and by comparing the generated encrypted digest with the stored one-way encrypted digest; and   if the generated encrypted digest matches the stored encrypted digest, then activating the proximity communication interface to transfer the stored information to the proximity card reader.       
 
         [0061]    In another aspect the invention provides a proximity smartcard that enables security authentication prior to transfer of stored information from the proximity smart card to the proximity card reader, the proximity smartcard including: 
         [0062]    a microprocessor that is interfaced with memory, a user interface which includes code input keys and a display, and an proximity communication interface; and 
         [0063]    a one-way encrypted digest of a user PIN stored in memory, which one-way encrypted digest has been generated with an one-way encryption algorithm; 
         [0064]    the proximity smartcard being configured for:
       receiving an input PIN code from the code input keys;   generating and displaying a command on the display in response to receiving the input PIN code from the code input keys;   determining if the input PIN code matches the user PIN code by generating a one-way encrypted digest of the input PIN code with the same one-way encryption algorithm with which the stored one-way digest has been created and by comparing the generated one-way encrypted digest with the stored one-way encrypted digest; and   if the generated one-way encrypted digest matches the stored one-way encrypted digest, then activating the proximity communication interface to transfer the stored information to the proximity card reader.       
 
         [0069]    The proximity smartcard is preferably configured to deactivate the proximity communication interface after a predetermined condition is met. The predetermined condition preferable includes lapsing of a predetermined time. 
         [0070]    The proximity smartcard preferably includes a PIN failure counter in memory, so that if an invalid PIN is entered with the code input keys and the generated one-way encrypted digest does not match the stored one-way encrypted digest, the PIN failure counter is increased. 
         [0071]    The proximity smartcard is preferably configured to lock or deactivate at least some of its functionality if the PIN failure counter reaches a predetermined count, for example, to deactivate the proximity communication interface. 
         [0072]    The proximity smartcard is preferably includes a PIN failure counter reset or proximity smartcard unlock function, in which the proximity smartcard is configured to receive an one-time unlock code from the code input keys, to process and validate the one-time unlock code, and to unlock or reactivate the locked or deactivated functions of the proximity smartcard if the one-time unlock code is successfully processed and validated. 
         [0073]    The proximity smartcard is also preferably configured to reset the PIN failure counter to zero each time a valid PIN code is entered prior to the PIN failure counter reaching its predetermined count. 
         [0074]    In one embodiment, the proximity smartcard is preferably configured to include a stored PIN code replacement function, which when activated by entering an associated code, processes the associated code to generate a new one-way encrypted digest that is stored on the proximity smartcard to replace the existing one-way encrypted digest. 
         [0075]    The proximity smartcard is preferably a proximity smart credit card. 
         [0076]    The proximity smartcard is preferably configured to communicate with a card reader in accordance with the Visa PayWave and/or Mastercard PayPass protocol. 
         [0077]    In a second aspect the invention provides a method for enabling security authentication prior to transfer of stored information from the proximity smart card to a proximity card reader, which proximity smartcard includes a microprocessor that is interfaced with memory, a user interface which includes code input keys and a code display, and a proximity communication interface, the method including: 
         [0078]    storing a one-way encrypted digest of a user PIN code in the memory, which one-way encrypted digest has been generated with an one-way encryption algorithm; 
         [0079]    receiving an input PIN code from the code input keys; 
         [0080]    generating and displaying a command on the display in response to receiving the input PIN code from the code input keys; 
         [0081]    determining if the input PIN code matches the user PIN code by generating a one-way encrypted digest of the input PIN code with the same one-way encryption algorithm with which the stored one-way digest has been created and by comparing the generated one-way encrypted digest with the stored one-way encrypted digest; and 
         [0082]    if the generated one-way encrypted digest matches the stored one-way encrypted digest, then activating the proximity communication interface to transfer the stored information to the proximity card reader. 
         [0083]    The method preferably includes deactivating the proximity communication interface after a predetermined time has lapsed. 
         [0084]    The method preferably includes increasing a PIN failure counter in memory if an invalid PIN is entered with the code input keys and the generated one-way encrypted digest does not match the stored one-way encrypted digest. 
         [0085]    The method preferably includes deactivating at least some of the proximity smartcard functionality if the PIN failure counter reaches a predetermined count. 
         [0086]    The method preferably includes resetting the PIN failure counter with a PIN failure reset function by receiving an one-time unlock code from the code input keys, processing and validating the one-time unlock code, and by reactivating the deactivated smartcard functions if the one-time unlock code is successfully processed and validated. 
         [0087]    The method preferably includes resetting the PIN failure counter to zero each time a valid PIN code is entered prior to the PIN failure counted reaching its predetermined count. 
         [0088]    The method preferably includes replacing the existing one-way encrypted digests with a stored PIN code replacement algorithm by receiving an associated code from the code key pad, processing the associated code to generate a new one-way encrypted digest, and overriding the existing one way encrypted digest. 
         [0089]    In yet another aspect of the invention there is provided a proximity smartcard microprocessor program product which includes microprocessor readable instructions, which when executed, causes the proximity smartcard to perform the method as defined according to the second aspect of the invention. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0090]    In order that the present invention can be more readily understood reference will now be made to the accompanying drawings which illustrate a preferred embodiment of the invention and wherein: 
           [0091]      FIG. 1  is a diagrammatic plan view of a smartcard in accordance with the first preferred embodiment of the invention; 
           [0092]      FIG. 2  is a schematic functional block diagram showing some of the components of the smartcard shown in  FIG. 1 ; 
           [0093]      FIG. 3  is a schematic diagram of a data communication network which includes a terminal card reader; 
           [0094]      FIG. 4  shows a functional flow diagram of a microprocessor program product that forms part of the smartcard in the first preferred embodiment shown in  FIG. 1 ; 
           [0095]      FIG. 5  is a diagrammatic plan view of a proximity smartcard in accordance with the second preferred embodiment of the invention; 
           [0096]      FIG. 6  is a schematic functional block diagram showing some of the components of the proximity smartcard shown in  FIG. 5 ; 
           [0097]      FIG. 7  is a schematic diagram of a data communication network which includes a terminal proximity card reader; and 
           [0098]      FIG. 8  shows a functional flow diagram of a microprocessor program product that forms part of the proximity smartcard in the second preferred embodiment shown in  FIG. 5 . 
       
    
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS 
       [0099]    With reference to the  FIGS. 1 to 4 , there is shown the first preferred embodiment. Smartcard  10  enables one-time PIN code offline security authentication with a card reader  12 . 
         [0100]    Referring to  FIGS. 1 and 2 , the smartcard  10  in this embodiment is a smart credit card that includes a rectangular-shaped flat pocket-sized body and a magnetic strip  14  that extends across the body. 
         [0101]    The smart credit card  10  also includes embedded integrated circuits, which includes a microprocessor  16  that is interfaced with peripheral microprocessor components such as memory  18 , a data I/O terminal  20 , and user interface components which includes a key pad  22  and display  24 . 
         [0102]    A person skilled in the art will appreciate that the microprocessor can be any suitable central processing unit (CPU), and the memory can include read only memory (ROM) for carrying an operating system and built-in programs loaded at the time the card chip is manufactured and/or configured. The memory can also include non-volatile memory such as electrically erasable programmable read only Memory (EEPROM) used for storing data and/or a microprocessor program product  28  which is executed by the processor. The smart credit card  10  can further include volatile memory, such as random access memory (RAM) used for temporary storage of data. 
         [0103]    A card operating system can also reside in the processor and memory for controlling execution of the program products, reading and writing of data to memory, and general low-level functions, such as power on and power off. 
         [0104]    The smart credit card  10  also includes a data communication interface in the form of input/output contact terminals  20  in the form of flat metal electrodes to interface with contact terminals of the card reader  12 . 
         [0105]    Referring to  FIG. 4 , a functional flow diagram  40  is shown of the microprocessor program product (card application)  28  which includes microprocessor executable instructions and which is stored in memory  18 . When the card application  28  is executed it configures the smart credit card  10  in a way that enables one-time PIN code offline security authentication with the card reader  12 , as is explained in more detail below. 
         [0106]    The smart credit card  10  includes a one-way encrypted digest  26  that is stored in memory  18 . The one-way encrypted digests  26  was created from a user personal identification number (PIN) code. The one-way encrypted digest  26  is in the form of a hash value that has been generated with a hash encryption algorithm and stored in memory  18  when the smart credit card  10  was configured by the card issuer which in this case is a bank. It will be noted that the user PIN code is not stored on the smart credit card  10 , but rather a corresponding hash value of the user PIN code is stored on the smart credit card  10 . 
         [0107]    When a user wishes to make a purchase transaction with the smart credit card  10 , then the user enters an input PIN code with the key pad  22 . The smart credit card  10  receives, at  42 , the input PIN code. 
         [0108]    At  58 , the smart credit card  10  checks if the smartcard  10  is locked or open. If the smart credit card  10  is open, then, at  60 , a PIN failure counter is cleared. The locked and open function of the smart credit card  10  and the role of the PIN failure counter is explained in more detail below. 
         [0109]    If the smart credit card  10  is open, then it generates, at  44 , a one-time PIN code which is displayed, at  46 , on the display  24 . 
         [0110]    The card application then determines if the entered input PIN code is valid. That is it determines if the input PIN code is actually the user PIN code or if it is an invalid PIN code that was entered, by generating, at  48 , a one-way encrypted hash value of the input PIN code by using the same one-way hash algorithm that was used to generate the stored one-way hash value. 
         [0111]    At  50 , the generated one-way hash value is compared with the stored one-way hash value. 
         [0112]    If the generated one-way hash value matches the stored one-way value, then it indicates that the entered user PIN is the same as the user PIN code and therefore valid, and the displayed one-time PIN code is stored, at  52 , in the memory  18 . The now stored one-time PIN code  29  is the actual PIN code that is then used by the user and the card reader  12  for offline security authentication of the smart credit card  10  by the card reader  12 . When the card reader  12  authenticates the stored one-time PIN then the transaction proceeds from the point-of-sale system  30  over the data communication network  32  to the bank&#39;s computer system  34 . 
         [0113]    The one-time PIN code  29  is only temporarily stored and available on the smart credit card  10 , and a timer is activated, at  53 , which when it times out, erases the one-time PIN code, at  54 . In this embodiment a 30 second time is used after which the one-time PIN code is erased from memory  18 . However, other predetermined conditions can also be used for example when the display  22  deactivates, or if the microprocessor  16  detects that the one-time PIN code has been used in an authentication process. 
         [0114]    Each time a user wishes to use the smart credit card  10  with a card reader  12 , the user has to enter the user PIN to generate a new one-time PIN code that is used for security authentication by the card reader  12 . 
         [0115]    If the smart credit card  10  determines, at  50 , that an invalid user PIN is entered into the smart credit card  10 , then a PIN failure counter in memory is increased, at  56 . That is, if the generated hash value of the input PIN code does not match the stored hash value. At  62 , the counter is checked, and if the counter has not reached a predetermined cut-off count, then the smart credit card  10  proceeds and ensures that the one-time PIN value is reset, at  54 , to an invalid value, so that the smartcard can not be used with the card reader  12  to authenticate a transaction. This gives a user a couple of chances to enter the valid user PIN code. 
         [0116]    If the PIN failure counter, however, has reached its predetermined count, at  62 , then the smartcard is locked at  64 , for example the function that stores the one-time PIN code can be deactivated. 
         [0117]    If the smart credit card  10  determines, at  58 , that the smart credit card is actually locked when receiving an input PIN code, then another check can be performed, at  58 , to reset the PIN failure counter and unlock the smart credit card. That is to facilitate a function in which the user can unlock the smart credit card  10 . 
         [0118]    For example, a user or card holder can obtain an one-time unlock code from the card issuer, say from the bank, with a personal computer  36  over the Internet  32 , after an appropriate identification check, or by any other approved method of the bank. The one-time unlock code can be entered with the code input keys  22 . The one-time unlock code is then checked and processed, at  58 , and if the one-time unlock code is validated, then the PIN failure counter is reset, at  60 , so that normal functionally of the smart credit card  10  can resume. 
         [0119]    In another embodiment (not shown) a smart credit card can be configured to include a stored PIN code replacement algorithm, which when activated by entering an associated code, processes the associated code to generate a new one-way hash value for a new user PIN, which is then stored on the smartcard to replace the existing one-way encrypted digest. 
         [0120]    In this embodiment, the smart credit card  10  is configured to communicate with a card reader  12  in accordance with the Europay, MasterCard and VISA (EMV) protocol. 
         [0121]    With reference to the  FIGS. 5 to 8 , there is shown the second preferred embodiment, where a proximity smartcard  110  enables security authentication prior to transfer of stored information from the proximity smart card to the proximity card reader. 
         [0122]    Referring to  FIGS. 5 and 6 , the proximity smartcard  110  in this embodiment is a proximity smart credit card that includes a rectangular-shaped flat pocket-sized body and a magnetic strip  114  that extends across the body. 
         [0123]    The proximity smart credit card  110  also includes embedded integrated circuits, which includes a microprocessor  116  that is interfaced with peripheral microprocessor components such as memory  118 , a proximity data communication interface  120 , and user interface components which include a key pad  122  and display  124 . 
         [0124]    A person skilled in the art will appreciate that the microprocessor can be any suitable central processing unit (CPU), and the memory can include read only memory (ROM) for carrying an operating system and built-in programs loaded at the time the card chip is manufactured and/or configured. The memory can also include non-volatile memory such as electrically erasable programmable read only memory (EEPROM) used for storing data and/or a microprocessor program product  128  which is executed by the processor. The proximity smart credit card  110  can further include volatile memory, such as random access memory (RAM) used for temporary storage of data. 
         [0125]    A card operating system can also reside in the processor and memory for controlling execution of the program products, reading and writing of data to memory, and general low-level functions, such as power on and power off. 
         [0126]    The proximity smart credit card  110  also includes a proximity data communication interface  120  that includes a radio frequency transmitter for wireless communication with a receiver of the proximity card reader  112 . 
         [0127]    Referring to  FIG. 8 , a functional flow diagram  140  is shown of the microprocessor program product (card application)  128  which includes microprocessor executable instructions and which is stored in memory  118 . When the card application  128  is executed it configures the proximity smart credit card  110  in a way that enables security authentication prior to transfer of stored information from the proximity smart card to the proximity card reader. 
         [0128]    The proximity smart credit card  110  includes a one-way encrypted digest  126  that is stored in memory  118 . The one-way encrypted digests  126  was created from a user personal identification number (PIN) code. The one-way encrypted digest  126  is in the form of a one-way hash value that has been generated with a one-way hash encryption algorithm and stored in memory  118  when the proximity smart credit card  110  was configured by the card issuer which in this case is a bank. It will be noted that the user PIN code is not stored on the proximity smart credit card  110 , but rather a corresponding hash value of the user PIN code is stored on the proximity smart credit card  110 . 
         [0129]    When a user wishes to make a purchase transaction with the proximity smart credit card  110 , then the user enters an input PIN code with the key pad  122 . The proximity smart credit card  110  receives, at  142 , the input PIN code. 
         [0130]    At  158 , the proximity smart credit card  110  checks if the proximity smart credit card  110  is locked or open. If the proximity smart credit card  110  is open, then, at  160 , a PIN failure counter is cleared. The locked and open function of the proximity smart credit card  110  and the role of the PIN failure counter are explained in more detail below. 
         [0131]    If the proximity smart credit card  110  is open then it displays, at  144 , a command. The command can for example be the word ‘WAVE’ indicating to the use that the card should be waved past the proximity card reader. 
         [0132]    The card application then determines if the entered input PIN code is valid. That is it determines if the input PIN code is actually the user PIN code or if it is an invalid PIN code that was entered, by generating, at  146 , a one-way encrypted hash value of the input PIN code by using the same one-way hash algorithm that was used to generate the stored one-way hash value. 
         [0133]    At  149 , the generated one-way hash value is compared with the stored one-way hash value. 
         [0134]    If the generated one-way hash value matches the stored one-way hash value, the entered user PIN code is the same as the user PIN code and therefore valid, in response to which the proximity smart credit card activates, at  50 , the wireless interface. 
         [0135]    When the user PIN code is validated, a timer is triggered, at  152 , which when it times out, deactivates, at  154 , the proximity communication interface. 
         [0136]    Each time a user wishes to use the proximity smart credit card  110  with a proximity card reader  112 , the users has to enter the user PIN to activate the proximity communication interface of the proximity smart credit card  110 . 
         [0137]    If the proximity smart credit card  110  determines, at  149 , that an invalid user PIN is entered into the proximity smart credit card  110 , then a PIN failure counter in memory is increased, at  156 . That is, if the generated hash value of the input PIN code does not match the stored hash value. At  162 , the counter is checked, and if the counter has not reached a predetermined cut-off count, then the proximity smart credit card  110  deactivates, at  154 , the proximity communication interface of the proximity smart credit card  110 . 
         [0138]    If the PIN failure counter, however, has reached its predetermined count, at  162 , then the proximity smartcard is locked at  164 , for example the function that triggers the proximity communication interface is deactivated. 
         [0139]    If the proximity smart credit card  110  determines, at  158 , that the proximity smart credit card is actually locked when receiving an input PIN code, then another check can be performed, at  158 , to reset the PIN failure counter and unlock the proximity smart credit card. That is to facilitate a function in which the user can unlock the proximity smart credit card  110 . 
         [0140]    For example, a user or card holder can obtain an one-time unlock code from the card issuer, say from the bank, with a personal computer  136  over the Internet  132 , after an appropriate identification check, or by any other approved method of the bank. The one-time unlock code can be entered with the code input keys  122 . The one-time unlock code is then checked and processed, at  158 , and if the one-time unlock code is validated, then the PIN failure counter is reset so that normal functionally of the proximity smart credit card  110  can resume. 
         [0141]    In another embodiment (not shown) a proximity smart credit card can be configured to include a stored PIN code replacement algorithm, which when activated by entering an associated code, processes the associated code to generate a new one-way hash value for a new user PIN, which is then stored on the proximity smartcard to replace the existing one-way encrypted digest. 
         [0142]    In this embodiment, the proximity smart credit card  110  is configured to communicate with a proximity card reader  112  in accordance with the Visa PayWave and/or MasterCard PayPass protocol. 
       ADVANTAGES 
       [0143]    Advantageously, the smartcard  10  enables one-time PIN code offline security authentication with a card reader  12 , which resists the risks of keystroke logging attacks. 
         [0144]    Another advantage of the smartcard  10  is that it enables one-time PIN code security authentication independently. In other words, the one-time PIN code security authentication can be used with standard card readers  12  that are based on the EMV protocol. Therefore, the card readers  12  do not require technological changes or alterations. 
         [0145]    The proximity smartcard  110  enables user PIN code authentication offline, thereby reducing the risk of fraudulent use of proximity smart credit cards. 
       VARIATIONS 
       [0146]    It will of course be realised that white the foregoing has been given by way of illustrative example of this invention, all such and other modifications and variations thereto as would be apparent to persons skilled in the art are deemed to fall within the broad scope and ambit of this invention as is herein set forth. 
         [0147]    Throughout the description and claims this specification the word “comprise” and variations of that word such as “comprises” and “comprising”, are not intended to exclude other additives, components, integers or steps.