Transaction security apparatus and method

Abstract

A transaction security apparatus and method, including a receiver which receives a limitation or restriction on an account usage, wherein the limitation or restriction on an account usage is received in real-time from a communication device associated with an individual account holder, a memory device for storing the limitation or restriction on an account usage, and a processing device for processing a transaction on an account or an authorization request in conjunction with the limitation or restriction on an account usage. The processing device generates a signal, wherein the signal contains information for authorizing or disallowing the transaction.

Description

FIELD OF THE INVENTION [0001] The present invention pertains to a financial transaction and / or wireless communication device authorization, notification and / or security apparatus and method, and, in particular to a financial transaction and / or wireless communication device authorization, notification and / or security apparatus and method for use in providing authorization, notification and / or security in conjunction with credit card, charge card and / or debit card use, savings and / or checking account activity and / or cellular telephone use. BACKGROUND OF THE PRESENT INVENTION [0002] Millions of individuals enjoy the convenience of utilizing credit cards, charge cards, debit cards, and / or currency or “smart” cards as a convenient way in which to purchase goods and / or services. By utilizing credit cards, charge cards, debit cards, and / or currency or “smart” cards, an individual may enter into a transaction without having to have cash or currency in hand or otherwise. In the case of credi...

AI Technical Summary

Benefits of technology

[0042] The apparatus and method of the present invention provides for the real-time authorization, notification and / or security of financial transactions involving credit cards, charge cards, debit cards, and / or currency or “smart” cards, which enables a cardholder to monitor, in real-time, all activity involving his or her card(s) and the corresponding account numbers. The apparatus and method of the present invention also provides a means and a mechanism by which to inform a cardholder that his or her card(s) are lost, stolen and / or are or have been fraudulently used, and / or when his or her card number(s) are or have been fraudulently used, and provides an indication to the cardholder of where his or her card(s) are being or have been utilized in transactions. The cardholder may then report the card lost or stolen and / or cancel and / or de-activate the card.

[0043] The present invention also provides a means and a mechanism by which to monitor the number of transactions which are unauthorized by the cardholder and determine whether or not to authorize transactions and / or to cancel or to de-activate the card(s). In the above manner, the present invention provides an apparatus and a method to prevent and / or to drastically limit fraudulent and / or unauthorized use of credit cards, charge cards, debit cards, and / or currency or “smart” cards, and / or the account numbers corresponding thereto.

[0046] In this manner, the apparatus and method of the present invention may provide for the real-time notification of banking and / or financial transactions involving various bank and / or financial accounts and enable an account owner to monitor, in real-time, all activity involving his or her bank and / or financial accounts. The apparatus and method of the present invention also provides a means and a mechanism by which to inform an account owner that his or her account is overdrawn, has been charged against and / or that his or her ATM card(s) are lost, stolen, cancelled or de-activated and / or provides an indication to the account owner of when and / or where his or her accounts are being accessed in transactions and / or are being otherwise compromised. The account owner may then report the unauthorized activity, or the discovery of a lost or stolen ATM card, and / or cancel and / or de-activate the respective account(s) and / or ATM card(s).

[0049] The apparatus and method of the present invention provides for the real-time notification of cellular or mobile telephone usage which enables a cellular telephone owner and / or account holder to monitor, in real-time, all activity involving his or her cellular telephone. The apparatus and method of the present invention also provides a means and a mechanism by which to inform a cellular telephone owner and / or account holder that his or her cellular telephone is lost, stolen and / or is being fraudulently used, and / or that the telephone number is being used in an unauthorized manner, and provides an indication to the cellular telephone owner and / or account holder of how, when and where his or her cellular telephone, or the account number which corresponds thereto, is being utilized in cellular communication transactions. The cellular telephone owner and / or account holder may then report the cellular telephone lost or stolen and / or cancel and / or de-activate the cellular telephone and / or the corresponding account and / or the account number.

Problems solved by technology

Unfortunately, with the convenience of each of the above credit cards, charge cards, debit cards, and / or currency or “smart” cards, savings accounts, checking accounts, automated teller machine accounts, and cellular telephones or cellular communications devices, comes many disadvantages and the opportunity for theft and / or fraud.

Similarly, even in the absence of the physical card, an unauthorized individual may utilize the account number which corresponds to the card in order to make certain transactions.

While card holders are usually protected by various coverages which shield them from the liabilities associated with the fraudulent use of a card or the corresponding account number, the card issuers, credit, charge and / or debit card issuing companies and / or institutions, and / or their insurance companies, end up paying for the above described thefts and / or fraudulent and / or unauthorized uses.

Ultimately, the consumer also shoulders the burden of the costs associated with these thefts and / or fraudulent and / or unauthorized uses in the form of increased prices.

This current authorization practice fails to prevent the use of a lost or stolen card, or the unauthorized use of either the card or the account number corresponding thereof, if the card has not been reported, and / or discovered, to be lost, stolen or used without authorization and / or if the account credit limit has not yet been reached.

In the case of currency or “smart” cards, which typically may serve as bearer instruments, the monetary credit on these cards may be completely depleted before the card owner even discovers same to be lost or stolen.

In the case of cellular telephones, recent practices involving “cloning” cellular telephones, which entails intercepting telephone transmissions from a cellular telephone, which transmissions contain the phone number of the transmitting phone and / or the associated personal identification number (PIN), and utilizing the intercepted information to program a different cellular phone which by then be utilized in conjunction with the account of the “cloned” cellular telephone, has also resulted in widespread theft and fraudulent use of cellular telephones and / or cellular communications devices The “cloned” telephones are typically sold on the “black” market.

In these instances, the cellular telephone owner has no way of knowing whether, or when, his or her cellular transmissions are being intercepted and / or if and when a “cloned” cellular phone is created and / or is utilized on, or over, his or her cellular telephone account.

Typically, the cellular telephone owner first becomes aware of the unauthorized usage of his or her cellular telephone account when he or she receives their telephone account statement.

At present, there is no apparatus or method for providing notification to the cellular telephone owner as to when his or her cellular telephone and / or cellular telephone number is, or has been, utilized in an unauthorized manner.

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