Method for Replacing Traditional Payment and Identity Management Systems and Components to Provide Additional Security and a System Implementing Said Method

Abstract

An electronic wallet system that protects payment accounts, identification and other personal information found within a typical wallet with a secure electronic vault (first) device that can be part of a physical wallet, insert to a wallet, or in other embodiments, wearable/portable devices. A unique biometrically enabled multi-factor authentication process ensures only owners of the information can copy the information to the device or retrieve it thereafter. Authenticated users may then select payment, identification, medical or virtually any private information via touch display or voice command on the vault or on another (second) device that operates in conjunction with the vault. The second device comprises, for example, a programmable card with dynamic magnetic stripe, cell phone, or other wearable technology, that initiates and processes a payment and/or transfer of private information.

Description

CROSS REFERENCE TO RELATED APPLICATIONS[0001]This patent application claims the benefit of the U.S. provisional patent application filed on Oct. 8, 2012 and assigned Application No. 61 / 710,826, which is incorporated herein.FIELD OF THE INVENTION[0002]The present invention relates to the field of digital and electronic wallets, specifically methods and related apparatuses for securing private information found within a typical wallet, such as payment accounts, payment cards, identification information, medical information and records, and virtually any private information desired to be carried by a person.BACKGROUND OF THE INVENTION[0003]Prior art digital wallets focus on financial transactions, attempting to replace current technologies of credit and debit cards and the like with mostly electronic commerce (e-commerce) and similar methods and devices. Likewise, security concerns for most digital wallet technologies are focused primarily on the transaction between the customer, merch...

AI Technical Summary

Benefits of technology

[0010]The present invention provides unique alternatives to reducing the number and variety of devices holding personal information within a wallet while increasing security of the user authentication process and the consumer transaction. To conform to current payment methods, rather than requiring any special software or equipment modifications by a merchant or bank, this invention reduces the number of payment devices and methods carried by a user and increases security while working within the paradigm of the current magnetic stripe readers, contactless NFC and EMV systems, and bar code payment methods that are so prevalent within society today. Further, this invention addresses chief security concerns not only with physical electronic wallets, but also digital wallets on mobile devices such as cell phones, which desperately need authentication and security solutions to overcome current mobile payment security deficiencies and user perceptions.

[0011]This invention improves security by requiring authentication between a user and two devices (i.e., the first and second devices) prior to any transaction taking place. The first device is an electronic vault device that can be physically part of a physical wallet, insert to a wallet, or in other embodiments, wearable / portable devices such as money clips, key chain accessories, watches, dongles, cell phone accessories, or any other device typically carried or worn by an individual. The first device requires unique user-configurable, biometrically enabled multi-factor authentication to ensure only owners and their private information can be copied into the secure vault wallet device. Authenticated users may then select payment information, identification information, medical information or virtually any private information via touch display or voice command on the first device, or alternatively on the second device after a successful authentication.

[0012]Encrypted information can be then sent from the first device to the second device, after successful authentication. The second device can comprise a programmable card having a dynamic magnetic stripe, a cell phone, or a display device displaying a payment barcode to replicate the selected private information stored on the first device. This method and attendant devices reduces the number of cards and other devices a user must carry. The second device may include mobile devices such as cell phone, tablets and laptops, or fixed devices such as desktop PCs and the like. The second device then acts as a conduit to provide private information via other communication methods such as NFC or dynamic magnetic stripe for financial transactions, and HIPPA controlled communication methods for private medical documents.

Problems solved by technology

However, many shortcomings have limited the use and acceptance of digital wallet software solutions as the technology migrates to mobile devices.

The chief issue with mass consumer acceptance of “mobile money” solutions involves securing private information on the devices as well as securing authentication information during the transaction itself.

As evident in recent reviews, digital wallet technologies on cell phones will be further challenged to fully secure mobile devices.

Security holes within operating systems and firewalls have caused numerous false starts to an already skeptical consumer market.

Even if security concerns can be overcome, the perception of the public to utilize cell phones that have open access via the internet is questionable.

Furthermore, a simple biometric key that authenticates with a server in the cloud does nothing to address hacking of the device and using the captured bio-key improperly “remotely” over the internet.

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