Multilevel security apparatus and method

The method of verifying the authority of an individual having an identifying code and of the authenticity of a transaction-controlling medium assigned thereto, where the medium has data and a unique code associated therewith, comprising the steps of:

• (a) sensing the unique code associated with the medium;
• (b) sensing the data associated with the medium;
• (c) encrypting the sensed data and sensed unique code in logical combination with a first encoding key to produce a medium offset code;
• (d) encrypting the data and the identifying code received from the individual in logical combination with said first encoding key to produce an individual offset code;
• (e) encrypting the medium offset code, the individual offset code and the data in logical combination with a second encoding key to produce a data-authorization code;
• and
• (f) initializing the medium by recording the data-authorization code thereon for subsequent sensing thereof and comparison with a data-authorization code produced according to steps (a), (b), (c), (d) and (e) above.

Apparatus for operating on a transaction-controlling medium having data and a unique code associated therewith, the apparatus comprising:

• first transducer means for sensing the unique code associated with the medium;
• second transducer means for sensing first and second portions of the data associated with the medium;
• first encryption means having an input for receiving a first encoding key and another input for receiving the sensed first portion of the data for encrypting the sensed unique code and sensed first portion of the data in logical combination with a first encoding key to produce a first offset code;
• and
• second encryption means having an input for receiving a second encoding key and having another input for receiving a selected combination of the first offset code and second portion of data for encrypting the first offset code and a sensed second portion of the data in logical combination with a second encoding key to produce a data-authorization code which is representative of the authenticity of said medium.

Apparatus for verifying the identity of an individual and the authenticity of a transaction-controlling medium which is assigned to the individual and which has data and a unique code associated therewith, the apparatus comprising:

• means operative with the medium for sensing the unique code and data associated therewith;
• first encryption means having an input for receiving a first encryption key and having another input for receiving a selected combination of the sensed unique code and data associated with the medium for encrypting the sensed data and sensed unique code in logical combination with a first encoding key to produce a medium offset code;
• second encryption means having an input for receiving a first encryption key and having another input for receiving a selected combination of the data and the identifying code from the individual for encrypting the data and the identifying code received from the individual in logical combination with said first encoding key to produce an individual offset code;
• third encryption means having an input for receiving a second encoding key and having another input for receiving a selected combination of the medium offset code, the data and the individual offset code for encrypting the medium offset code, the individual offset code and the data in logical combination with a second encoding key to produce a data-authorization code which is representative of the authenticity of the medium and of the authority of the individual to complete the transaction.