BACKGROUND OF THE INVENTION

Field Of The Inventiont

This invention relates to an apparatus and method for verifying transactions conducted over an electronic communication link to determine that the individual conducting the transaction is authorized.

Background Discussion;

A great many transactions are now conducted over the telephone or other electronic communication link. For example, it is common practice to make purchases over a telephone using a credit card. The individual conducting the transaction identifies him or herself and gives the person taking the order the credit card number. The individual placing the order, however, may not be authorized and the transaction may be fraudulent. Nevertheless, it is very desirable to conduct transactions of many different types by telephone, provided there is a reliable way to verify that the person conducting the transaction is authorized. For example, consumers could pay bills electronically over a telephonic communication network, thus avoiding the time and costs associated with writing cheques and waiting for mail delivery. This would also eliminate costs incurred by producers and banking institutions. Such costs include those associated with the depositing and clearing of cheques, including the cost of microfilming and returning cancelled cheques to consumers. A further benefit is instant verification of the availability of funds to cover the transaction, thus saving the expense of resubmitting for payment of a cheque that was rejected for insufficient funds.

In an effort to alleviate the expense and difficulties associated with paying bills via cheque and regular mail, various establishments have began offering consumers the option of having their bill automatically paid via automatic funds transfer. This has been proven to be useful for paying bills that are for the same monthly amount, but has been found to be undesirable for bills that vary based upon customer usage, or from period to period due to the consumer not being aware of the billing amount prior to the automatic payment thereof. In these situations, the consumer has no opportunity to review and approve the charges prior to the payment being made. These bill payment options are generally restrictive in that the consumer typically has no flexibility to pay the bill on a date other than that pre-specified at the time the automatic funds transfer is established.

Other establishments have developed bill paying schemes which require the consumer to subscribe to a special banking network or purchase special hardware and software in order to pay bills electronically. They also require the consumer to be proficient in the usage of a computer. Conventional systems require the consumer to input highly sensitive and personal information such as bank account numbers in order to effect bill payments. Consumers are often apprehensive to disclose such sensitive information due to the concerns that the bill payment system is not secure. Indeed, due to the susceptibility of the communications link to tapping and the vulnerability of the computer system to hackers, consumers are typically reluctant to make bill payments using electronic systems.

In addition to payment of bills, other transactions could be conducted using conventional communication links such as telephone networks, if they were secure. For example, transferring of funds between accounts, purchasing by phone, off-site wagering, arming and disarming security systems, 900 telephone number user verification, bulletin

board access , stock trading, voting electronically with voter verification, and verifying house arrest, telephone and computer usage , and deployment could all be accomplished electronically by telephone.

SUMMARY OF THE INVENTION

It is the objective of this invention to provide an apparatus and method which will automatically verify transactions conducted over an electronic communication link.

The transaction verification apparatus and method of this invention has several features, no single one of which is solely responsible for its desirable attributes. Without limiting the scope of this invention as expressed by the claims which follow, its more prominent features will now be discussed briefly. After considering this discussion, and particularly after reading the section entitled, "DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS," one will understand how the features of this invention provide its benefits, which include preventing unauthorized use of credit information and personal and confidential information, convenience and simplicity in conducting transactions involving transfer of sensitive or confidential data via conventional telephone equipment or other communications links such as computers and point of sale devices.

The first feature of this invention is that the transaction is conducted over an electronic communication link, including, but not limited to, telephone networks, both wire and wireless, cordless, digital or voice, carried by means of wire, fiber optics, radio link, network, satellite, optical link, inductive transfer, encoded or modulated. The second feature is that it encompasses a variety of transactional situations, especially situations that

require proof of identity when dealing with banks , governmental agencies , and other institutions . For example, it may involve paying bills , transferring of funds between accounts , purchasing by phone, off -site wagering, arming and disarming security systems , 900 telephone number user verif ication , bulletin board access , voting electronically with voter verification, and verifying house arrest, stock trading, telephone and on-line computer usage and software exchanging, purchasing a gun, or obtaining a license, calling card verification, and deployment.

The third feature is that it includes a storage device which stores an electronic image or images of a fingerprint or fingerprints of the individual authorized to conduct the transaction, and a comparator device which compares the stored electronic image with electronic data signals corresponding to an image or images of a fingerprint or fingerprints of a person conducting the transaction. A plurality of fingerprint images may be used to form a fingerprint code by arranging the fingerprints in a predetermined sequence . Thus , the authorized person conducting the transaction will enter his or her fingerprints in this sequence . Otherwise the transaction will not be authorized.

The fourth feature is a fingerprint reader which scans a finger/fingers of the person conducting the transaction to form electronic data signals corresponding to an image of the fingerprint or fingerprints of this finger or fingers . The fingerprint reader is employed with any instrument that can interface with the electronic communications link. Examples of such instruments are telephone devices , including radio and cellular telephones , modems , computers and peripherals , point of sale devices , like cash registers , gas pumps and credit card authorization reader mechanisms . Preferably, the telephone instrument includes a credit card reader mechanism that reads data on the credit card off the magnetic strip or

microchip. The fingerprint reader includes a platen on which the finger or fingers of the person conducting the transaction is placed, a frame grabber which captures a high resolution image or images of the fingerprint or fingerprints of this finger or fingers, and a digitizer device which converts this image or images into digitized electronic data signals corresponding to the fingerprint or fingerprints of the person conducting the transaction.

The fifth feature is a transmitter which transmits to comparator device, either remote or local, the electronic data signals or authorization signals corresponding to the image or images of the fingerprint or fingerprints of the person conducting the transaction. The transaction is only completed if the electronic data signals corresponding to the image or images of the fingerprint or fingerprints of the person conducting the transaction substantially correlate with the stored electronic image or images of the fingerprint or fingerprints of the individual authorized to conduct the transaction. The transmitter is preferably, and not limited to a telephone instrument or computer, and is adapted to transmit and receive voice signals, and to transmit the electronic data signals corresponding to the image or images of the fingerprint or fingerprints of the person conducting the transaction. The sixth feature is that the invention preferably includes an encoder device which is capable of encrypting the electronic data signals corresponding to the image or images of the fingerprint or fingerprints of the person conducting the transaction, or the amount of funds being transferred, or the identification of the authorized person, or authorization signal. There would also be a decoder employed to decrypt the message at the point of authorization.

The seventh feature is that the invention preferably includes a thermal test device which determines that the

fingerprint reader is scanning a finger or fingers that are scanned one at a time of a living person.

The eighth feature is that apparatus is provided for authorizing the payment of bills electronically. The apparatus includes a transaction data input device having a first selector, such as, for example, a keyboard, for selecting a creditor to whom a payment is to be made, a second selector, such as, for example, a keyboard, for selecting a payment source, and a numeric selector, such as, for example, a keyboard, for specifying a payment amount to the creditor. A transmitter transmits a transaction signal corresponding to the payment source and payment amount from the transaction data input device to the creditor. In accordance with this invention, a local or remote fingerprint data bank verification device is connected to the transaction data input device which has a reader for reading a fingerprint of an individual whose fingerprint or fingerprints is to be verified, a local or remote comparator for comparing the fingerprint or fingerprints to a stored fingerprint image or fingerprint code images and establishing a degree of correlation there between. An authorization signal output device transmits an authorization signal to the transaction data input device upon the occurrence of a predetermined degree of correlation between the fingerprint or fingerprints and the stored fingerprint image or fingerprint code images. The transmission of the authorization signal to the transaction data input device facilitates the establishment of a communication link between the transaction data input device and the selected creditor. The authorization signal enables the transaction signal to be transmitted to the creditor upon the establishment of the communication link.

The transaction data input device may include a keyboard for entering a personal identification number into this input device, and a second comparator which compares

the personal identification number to a stored identification number and establishes a correlation there between. The transmission of the authorization signal to the transaction data input device and the establishment of an exact correlation between the personal identification number and the stored identification number facilitates the establishment of the communication link between the input device and the selected creditor.

The ninth feature is that apparatus for authorizing the payment of bills electronically may set up for local or remote verification at the option of the person conducting the transaction. As an optional feature, a remote comparator for comparing the fingerprint image signal or fingerprint code image signals to a stored fingerprint image or fingerprint code images and establishing a degree of correlation there between is employed.

This invention also includes a method for verification of a transaction conducted over the communication link. This method includes the following steps: providing a storage device which has stored therein an electronic image of a fingerprint or fingerprints of an individual authorized to conduct the transaction, generating an image or images of a finger or fingers of a person conducting the transaction and forming electronic data signals corresponding to the image or images of a fingerprint or fingerprints of this finger or fingers, and comparing the stored electronic image or images with the electronic data signals corresponding to the image or images of the fingerprint or fingerprints of the person conducting the transaction, and authorizing the transaction only when the electronic data signals corresponding to the image or images of the fingerprint or fingerprints of the person conducting the transaction correlate substantially with the stored electronic image or images of the fingerprint or

fingerprints of the individual authorized to conduct the transaction. However, if the images of the fingerprint or fingerprint code does not have a substantial correlation, the invalid signal will be generated as a sound or light to inform the individual that the print or prints did not correlate with the stored image or images.

The method may include the step of transmitting the electronic data signals corresponding to the image or images of the fingerprint or fingerprints of the person conducting the transaction over the communication link to a remote comparator which compares the stored electronic image or images with the electronic data signals corresponding to the image or images of the fingerprint or fingerprints of the person conducting the transaction. These electronic data signals may be encrypted.

DESCRIPTION OF THE DRAWING

The preferred embodiments of this invention, illustrating all its features, will now be discussed in detail. This embodiment depicts the novel and non-obvious verification apparatus and method of this invention as shown in the accompanying drawing, which is for illustrative purposes only. This drawing includes the following figures (Fig.), with like numerals indicating like parts:

Fig. 1 is a plan view showing a conventional telephone handset equipped with this invention. Fig. 1A is a perspective view showing a conventional fingerprint reader which is connected to the handset shown in Fig. 1.

Fig. 2 is a schematic circuit diagram for the verification apparatus of this invention. Fig. 3 is schematic flow diagram illustrating local validation using the present invention.

Fig. 4 is a schematic flow diagram illustrating remote validation using the present invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

As illustrated in Fig. 1, a conventional telephone handset 10 is equipped with a fingerprint reader 12 (Figs. 1A and 2) such as one provided by Finger Matrix, Inc. of White Plains, New York. The handset 10 includes a conventional phone 14 which is an instrument capable of transmitting voice messages and receiving voice messages. The handset 10 may also be equipped with a conventional credit card reader 11 that allows a credit card to be verified in the conventional manner by passing the card through the reader to read the data on the card. Typically, there is a magnetic strip on the credit card that contains all the necessary data for conducting the transaction. The reader 11 enables the user to easily and quickly enter the data, particularly for one time transactions. When making credit card phone calls, the reader 11 enters the phone number to charge the call and the fingerprint reader 12 verifies that the transaction is authorized.

Figs. 1, 3 and 4 depict a system for paying bills although other transactions could also be conducted using this invention. In this embodiment, the hand set 10 also includes transaction keys identified A through C which are activated by the person using the phone 14. indicator lights D, E and F, such as light emitting diodes, show if the telephone is busy (light D), if the transaction is valid (light E), or if the transaction is invalid (light F).

In accordance with this invention, another set of special function keys G are employed which are assigned by the user various functions. For example, what bills are to be paid. As illustrated, these special function keys are

identified, for example, as Auto, Mortgage, Phone, Paper, Electric, Dues, Gas, Tuition, Cable, Water, Fuel, and Cards. Thus, these bills could all be paid electronically at the time the user wishes by simply making a telephone call. The account from which funds are to be withdrawn to pay the bills are identified by payment source keys H, for example, as American Express, Discover, MasterCard, VISA, and a bank account (ATM) . By activating one of the keys from this set of payment keys, the user would electronically transfer funds from, for example, an ATM account to pay an auto bill. When the send key F is depressed by the user, an electronic signal is transmitted resulting in the transfer of funds, provided the transaction is authorized by verifying the fingerprint of the person conducting the transaction.

As depicted in Figs. 1 and 2, the person conducting the transaction would simply pick the phone 14 up off it's cradle 16 and dial the phone number using conventional numerical keys 0 through 9 of the handset 10. At the same time this person would place on a transparent platen 18 (Fig. 2) one or more at a time of his or her fingers, for example, a thumb, placing it on the platen so that a fingerprint of the thumb can be read. This is a photographic method which may use either laser scanning or CCD capture techniques. As illustrated in Fig. 2, there is a light source 20 which projects light onto the finger or fingers in a sequence one at a time through the transparent platen 18, some of which is reflected and viewed by a video camera 22 which takes these visual light images and forwards them to a frame grabber 24. The output of the frame grabber 24 is connected to a video frame digitizer 28 which converts the visual image or images into electronic data bits or signals which are forwarded to a microprocessor 30. The digitized information is then transmitted to a comparator 32 for verification that the fingerprint or fingerprints of the person conducting the

transaction correlates substantially to a fingerprint or fingerprints in electronic, digitized format stored in a memory device 34. The comparator 32 and memory device 34 may be either in the telephone embodiment or at a remote data bank location.

Initially, the authorized user first switches the apparatus into a set up mode, the user will be signaled by digital voice or indicator screen when the authorized user would input his or her fingerprint image or fingerprints to form a fingerprint code image. A personal identification number may also be used as an optional feature. The digitized image of the authorized user is tagged and placed in a memory file for later retrieval when a comparison is to be made. Optionally, a prompter would notify the authorized user to test to see that the apparatus is functioning properly. During set up, the authorized user would also identify all creditors and their phone numbers.

Fig. 2 illustrates the photographic capture or laser scanning technique for capturing an image of the fingerprint. Alternate approaches could employ pressure sensitive readers or thermal readers or a laser scanner. Depending on the speed of the equipment used, the signals from imaging or scanning the finger or fingerprints could be digitized directly into electronic data signals, obviating the frame grabber 24, the output of the frame grabber 26, and the video frame digitizer 28. The pressure sensitive technique would entail using a pressure sensitive surface that would activate the fingerprint scanner only detect the raised area of the fingerprint or fingerprints by entering the prints in a sequence one at a time. The thermal technique would entail using a thermally sensitive surface that would be able to discern the difference between the higher and lower areas of the fingerprint or fingerprints. With newer equipment, the presence of the finger at the reader will activate the reader. Pressure is not required.

A first embodiment of this invention is illustrated in Fig. 3 where the transaction is validated locally in connection with the payment of bills. The user conducting the transaction first presses the transaction key identified as A, "Pay To". The user would then press one of the special function keys G, for example, "Gas" to pay the gas bill for payment of the creditor, the Gas Company. Next the user would press the transaction key identified as B, "From". This would then deduct the amount paid against, for example, the American Express card. This would be accomplished by pressing the key labeled "American Express," or be manually entered in by sending the individuals card through the credit card reader mechanism. The amount to be paid would then be entered by pressing the numeric keys corresponding to this amount and the star symbol is for the decimal point in the selected dollar figure amount. The individual entering in the amount dollar figure will be informed of the amount entered by either digital voice or by a viewing the amount in the liquid crystal screen I.

At this time the fingerprint or fingerprint code is entered in by activating the fingerprint reader 18 that has a pressure sensitive switch which activates when pressure is applied and is deactivated when a substantial image is scanned. The individual will be informed of a substantial fingerprint reading by digital voice or by a message in the liquid crystal viewing screen. If serval fingerprints are to be read, the same procedure is repeated to form a fingerprint code. At this junction the fingerprint or fingerprint code data is compared and the transaction is either authorized or is unauthorized. If the transaction is unauthorized, the invalid indicator (light F) is activated, and the transaction is terminated. Alternatively, the user can be allowed to repeat the fingerprint or fingerprints entry sequence. The "Send" key, labeled C, is pressed. If the

96/18169 transaction is authorized, the phone number of the creditor is automatically or manually dialed. If there is a busy signal, the light D is turned on and the transaction could be manually or automatically re attempted. If there is no busy signal and the call is completed, the data would be exchanged and the user would return the phone 14 to the cradle 16.

A second embodiment of this invention is illustrated in Fig. 4. In this embodiment, remote validation is conducted using essentially the same components as in local validation, except that the comparator 32 and memory 34 are at a remote location. The electronic data corresponding to the image of the user is exchanged and compared to an authorized fingerprint in memory 34 at the remote location. If the users fingerprint or fingerprints correlates substantially with the authorized fingerprint or fingerprint code, the information is encrypted and sent over the communication link to the point of authorization and the transaction is completed. If the fingerprint or fingerprints does not substantially correlate, then a encrypted rejection signal is forwarded to the point of authorization and the transaction will be denied.

SCOPE OF THE INVENTION

The above presents a description of the best mode contemplated of carrying out the present invention, and of the manner and process of making and using it, in such full, clear, concise, and exact terms as to enable any person skilled in the art to which it pertains to make and use this invention. This invention is, however, susceptible to modifications and alternate constructions from that discussed above which are fully equivalent. Consequently, it is not the intention to limit this invention to the particular embodiment disclosed. On the contrary, the invention is to cover all modifications and

alternate constructions coming within the spirit and scope of the invention as generally expressed by the following claims, which particularly point out and distinctly claim the subject matter of the invention: