The invention relates to a communication and
payment device and method for preventing telecommunication fraud. If whether the caller and the electronic
payment operator are abroad or not can be identified, a large amount of fraud can be stopped, and even in China, the safety can be greatly improved by identifying the position. The position is indicated only by a conventional
smart phone, which is unreliable, and we must adopt a more reliable method. If the position is verified at a
fixed position, the
verification is relatively simple, and a device (a
chip for verifying the position is hereinafter referred to as a
transponder) with a
fixed position can be used for sending
verification information to the platform; to ensure security, the
transponder may indicate the location to the platform using a dynamic
authentication code. A key required for generating the
authentication code can be generated by a
transponder. If the position of a user is not fixed and is difficult to determine, a positioning
chip can encrypt coordinates, and an enemy cannot generate a correct
ciphertext, so that
cheating cannot be implemented, and the
chip is hereinafter referred to as a'secret bit chip '. The user activity track can well indicate the identity, hereinafter referred to as track
verification.