System and Method for Mitigating Transaction Fraud by Verifying Proximity

A system for mitigating transaction fraud by confirming a credit card that is separate and distinct from a mobile device is in proximity to the mobile device associated with the credit card, the system for mitigating transaction fraud comprising:

• a transaction device having an identification code associated with a bank account of a user that is operable to make purchase transaction requests initiated by the user;
• wherein said transaction device includes:
• a global position satellite (GPS) module situated on a front face and operable to determine in real time a geographic location of said transaction device and to generate location data;
• a transmitter in electronic communication with said GPS module and operable to transmit said location data;
• a software application executing on a mobile computing device associated with the user and which has a global position satellite (GPS) module operable to determine a geographic location of said mobile computing device, said software application being operable to:
• receive a request for verification of authenticity of a financial transaction associated with said transaction device;
• determine a GPS position of the mobile computing device;
• direct the mobile computing device to transmit a location signal to said GPS module on said transaction device;
• wait a predetermined time to receive a reply signal from said transaction device indicative of a GPS position of said transaction device;
• determine if said GPS position of said transaction device is less than a predetermined distance from said GPS position of the mobile computing device and, if so, recommend to said requester of verification of authenticity of the financial transaction that the financial transaction be allowed.