Patent ID: 7356837

Claim:
A Method for positively identifying and authenticating a user in e-commerce for a transaction based on a digital identity issued by a Central-Entity with whom the user has a pre-existing relationship, the method comprising the steps of: a. the user communicates with an External-Entity over a communication network and needs to perform a secure transaction with the External-Entity, wherein the user does not necessarily have a pre-existing relationship with the External-Entity; b. the External-Entity requires the user to authenticate himself by providing a valid digital identity before executing the transaction; c. the user establishes communication with the Central-Entity over a communication network and submits a request for a dynamic, non-predictable and time-dependent SecureCode in response to the Extemal-Entity's requirement; d. the Central-Entity: i. dynamically generates a dynamic, non-predictable and time-dependent SecureCode for the user in response to the user request; ii. algorithmically combines said generated SecureCode with user-specific information before providing the SecureCode to the user; iii. maintains a copy of said generated SecureCode in its system; and iv. provides said generated SecureCode to the user, e. the Extemal-Entity receives a digital identity from the user, wherein the digital identity comprises a UserName and said generated SecureCode, and forwards said digital identity to the Central-Entity for positive identification, and authentication of the user; f. the Central-Entity receives said digital identity, validates said digital identity based on said SecureCode maintained in its system and if valid: positively identifies and authenticates the user and sends an affirmation message to the Extemal-Entity; and g. upon receipt of an affirmation message from the Central-Entity, the Extemal-Entity executes the transaction.