Systems and methods for authentication of electronic transactions

Abstract

An online transaction system configured to implement authentication methods that allow for strong multi-factor authentication in online environments. The authentication methods can be combined with strong security methods to further ensure that the authentication process is secure. Further, the strong multi-factor authentication can be implemented with zero adoption dependencies through the implementation of automated enrollment methods.

Description

RELATED APPLICATIONS INFORMATION [0001] This application claims priority under 35 U.S.C. §119 to U.S. Provisional Application Ser. No. 60 / 409,422, entitled “Authentication of Online Transactions,” filed Sep. 9, 2002, which is incorporated by reference in its entirety as if set forth herein. This application also claims priority as a continuation under 35 USC §120 to U.S. patent application Ser. No. ______ TBD (attorney docket No. 034260.0007.UTL1), entitled “Systems and Methods for Secure Authentication of Electronic Transactions,” filed Jan. 7, 2003. This application is also related to the following copending U.S. patent application Ser. No. ______ TBD (attorney docket No. 034260.0004.UTL1), entitled “Systems and Methods for Enrolling a Token in an Online Authentication Program,” filed Jan. 16, 2003, U.S. patent application Ser. No. ______ TBD (attorney docket No. 034260.0005.UTL1), entitled “A Token for Use in Electronic Transactions,” filed Jan. 16, 2003, U.S. patent application ...

AI Technical Summary

Benefits of technology

[0014] An electronic transaction authentication system allows for multi-factor authentication to reduce fraud and increase the reliability of identity verification. In one aspect, the presence of a card, or token, during an electronic transactio

Problems solved by technology

Unlike an off-line transaction, however, the merchant has no ability to verify the identifying information supplied in the electronic commerce scenario.

In other words, in an electronic commerce transaction, the merchant cannot verify that the user is who they say they are, or therefore that the charge account belongs to the user making the purchase.

With U.S. households predicted to spend $184 billion on-line by the year 2004, such losses clearly present a serious problem that is only going to get worse.

Fear of fraud, however, may prevent on-line sales from rising to predicted levels.

Further, fraud losses often fall on the merchant, even though the merchant currently has no way to verify the identity provided by the user.

While these mandates do not necessarily provide an increased ability t

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