Method of reducing fraud in on-line transactions

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.

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.