Method of reducing fraud in on-line transactions
The invention provides a method for verifying the identity of an internet user, or for detecting the misuse of an identity, during an on-line transaction. The method involves comparing the geographic location of the transaction to the geographic location of the user's cell phone or other mobile device, and taking a geographically close location relationship between the two as a positive indication of identity. A reasonable travel time between the two locations can be taken into account so as to reduce the incidence of false negatives, and to improve the reliability of positive identifications.
1. A method for authentication of an electronic transaction at a first location using a cached location of a mobile phone associated with an Internet user, comprising the steps of:
(A) receiving the first location and a time stamp associated with the first location;
(B) obtaining the cached location and a time stamp associated with the cached location, wherein the cached location and the associated time stamp are stored within the mobile phone;
(C) calculating the difference in time (ΔT) between the time stamp associated with the cached location and the time stamp associated with the first location;
(D) determining a distance (ΔD) between the cached location and the first location;
(E) calculating the speed required to travel distance ΔD in elapsed time ΔT; and
(F) if the speed required to travel the distance ΔD in time ΔT is greater than a predetermined value, then either:
(i) declining to validate the Internet transaction; or
(ii) generating an alert.
2. The method of claim 1 further comprising, prior to step (B), the step of requesting and receiving, via the mobile phone, the Internet user's authorization to use the mobile phone location.
3. The method of claim 2 , further comprising the steps of:
(i) receiving inertial navigation information provided by an inertial navigation module within the mobile phone; and
(ii) determining an updated location of the mobile phone by using the inertial navigation information and the cached location.
4. The method of claim 2 , further comprising, prior to step (C), the step of determining if the cached location and the associated cached time stamp are stale; wherein the cached location and the associated cached time stamp are used in steps (C), (D), (E), and (F) only if they are not stale.
5. The method of claim 2 , further comprising the steps of:
(i) receiving inertial navigation information provided by an inertial navigation module within the mobile phone;
(ii) determining an updated location of the mobile phone by using the inertial navigation information and the cached location;
(iii) determining whether the updated location and the first location match in a geographical proximity; and
(iv) generating an alert if the updated location and the first location do not match in the geographical proximity.
6. The method of claim 1 , further comprising the step of validating the transaction if the speed required to travel the distance ΔD between the cached location and the first location in time ΔT is not greater than the predetermined value.
7. The method of claim 1 , further comprising the steps of:
(i) obtaining a second location of the mobile phone;
(ii) compering the first location and the second location of the mobile phone for a geographical proximity; and
(iii) generating an alert if the second location of the mobile phone and the first location do not match in the geographical proximity;
wherein said second location of the mobile phone, and a time stamp associated with the second location, are stored within the mobile phone.
8. The method of claim 1 , further comprising the steps of:
(i) receiving inertial navigation information provided by an inertial navigation module within the mobile phone;
(ii) determining an updated location of the mobile phone by using the inertial navigation information and the cached location;
(iii) determining whether the updated location and the first location match in geographical proximity; and
(iv) generating an alert if the updated location and the first location do not match in geographical proximity.
9. A method for authentication of an electronic transaction at a first location using a fresh location of a mobile phone associated with an Internet user, comprising the steps of:
(A) receiving the first location and a time stamp associated with the first location;
(B) obtaining a fresh location of the mobile phone and a time stamp associated with the fresh location, wherein the fresh location and the time stamp associated with the fresh location are stored within the mobile phone;
(C) calculating the difference in time (ΔT) between the time stamp associated with the fresh location and the time stamp associated with the first location;
(D) determining a distance (ΔD) between the fresh location and the first location;
(E) calculating the speed required to travel distance ΔD in elapsed time ΔT; and
(F) if the speed required to travel the distance ΔD in time ΔT is greater than a predetermined value, then either:
(i) declining to validate the transaction; or
(ii) generating an alert.
10. The method of claim 9 further comprising, prior to step (B), the step of requesting and receiving, via the mobile phone, the Internet user's authorization to use the mobile phone location.
11. The method of claim 9 further comprising the steps of:
(i) obtaining a cached location of the mobile phone, and inertial navigation information from an inertial navigation module within the mobile phone; and
(ii) determining an updated location of the mobile phone using the inertial navigation information and the cached location;
(iii) determining whether the updated location and the first location match in a geographical proximity; and
(iv) generating an alert if the updated location and the first location do not match in the geographical proximity;
wherein the cached location and the time stamp associated with the cached location are stored within the mobile phone.
12. The method of claim 9 , further comprising the steps of:
(i) prior to step (B), requesting and receiving, via the mobile phone, the Internet user's authorization to use the mobile phone location;
(ii) obtaining a cached location of the mobile phone, and inertial navigation information from an inertial navigation module within the mobile phone;
(iii) determining an updated location of the mobile phone using the inertial navigation information and the cached location;
(iv) determining whether the updated location and the first location match in a geographical proximity; and
(v) generating an alert if the updated location and the first location do not match in the geographical proximity;
wherein the mobile phone store said cached location and a time stamp associated with the cached location.
13. The method of claim 9 , further comprising the steps of:
prior to step (B), requesting and receiving, via the mobile phone, the Internet user's authorization to use the mobile phone location; and
(G) validating the transaction if the speed required to travel the distance ΔD between the fresh location and the first location in time ΔT is not greater than the predetermined value.
14. The method of claim 9 , wherein the alert comprises at least one of: a message to the user's cell phone, and a non-authorization message for blocking the transaction; and further comprising
(G) validating the transaction if the speed required to travel the distance ΔD between the fresh location and the first location in time ΔT is not greater than the predetermined value.
15. The method of claim 9 , further comprising the steps of:
(i) obtaining a second location of the mobile phone;
(ii) compering the second location of the mobile phone and the first location for a geographical proximity; and
(iii) generating an alert if the second location of the mobile phone and the first location do not match in the geographical proximity;
wherein the second location and the time stamp associated with the second location are stored within the mobile phone.
16. A method for authentication of an electronic transaction at a first location using a location of a mobile phone associated with an Internet user, comprising the steps of:
(A) receiving the first location and a time stamp associated with the first location;
(B) obtaining a first mobile phone location and a time stamp associated with the first mobile phone location, wherein the mobile phone store the first mobile phone location and the associated time stamp with the first mobile phone location;
(C) determining that the first mobile phone location is stale;
(D) obtaining a fresh location of the mobile phone and a time stamp associated with the fresh mobile phone location, wherein the mobile phone store the fresh mobile phone location and the associated time stamp with the fresh mobile phone location;
(E) calculating the difference in time (ΔT) between the time stamp associated with the first location received at step (A) and the time stamp associated with the fresh mobile phone location obtained at step (D);
(F) determining a distance (ΔD) between the fresh mobile phone location obtained at step (D) and the first location received at step (A);
(G) calculating the speed required to travel distance ΔD in elapsed time ΔT; and
(H) if the speed required to travel the distance ΔD in time ΔT is greater than a predetermined value, then either:
(i) declining to validate the Internet transaction; or
(ii) generating an alert.
17. The method of claim 16 , further comprising, prior to step (B), the step of requesting and receiving, via the mobile phone, the Internet user's authorization to use the mobile phone location.
18. The method of claim 17 , further comprising the step of:
(G) validating the transaction if the speed required to travel the distance ΔD between the fresh location obtained at step (D) and the first location received at step (A) in time ΔT is not greater than the predetermined value.
19. The method of claim 18 , wherein the alert comprises at least one of: a message to the user's cell phone, and a non-authorization message for blocking the transaction.