Magnetic debit card reader fraudulent use prevention

A method of preventing fraud in a transaction with a debit card having magnetic media on a face thereof, and utilizing a debit card reader having a magnetic read/write head, and a gate at the entrance to the reader, and wherein the debit card reader also has an LCD, comprising the steps of automatically:

• (a) with the magnetic head, reading a card inserted into a debit card reader to determine information from the magnetic media thereon;
• (b) generally simultaneously with step (a), closing the gate to positively prevent movement of the card out of the entrance to the reader until the transaction is completed;
• (c) writing a security code of the card;
• (d) after completion or termination of a transaction, opening the gate to provide for removal of the card from the reader, or trapping the card in the reader if it is determined to be an illegal card, without a security code, and
• (e) automatically, if in response to step (d) it is determined that the security code is not present, displaying a fraud indicating message on the LCD.

A method of preventing fraud in a transaction with a debit card having magnetic media on a face thereof, and utilizing a debit card reader having a magnetic read/write head, and a plurality of card position sensors, comprising the steps of automatically:

• (a) with the magnetic head, reading a card inserted into a debit card reader to determine information from the magnetic media thereon;
• (b) generally simultaneously with step (a), after the card has come to rest in a transaction position, enabling at least one of the sensors to sense the movement of the card from its rest position;
• (c) if in response to step (b) it is determined that the card has moved more than a predetermined amount from its rest position prior to completion of a transaction, invalidating the card in the reader with the read/write head, or precluding revalidation of the card;
• and
• (d) if in response to step (c) it is determined that the card has moved, also writing data, location, and/or other identifying data on the magnetic media of the card in the reader with the read/write head.

Apparatus for preventing fraud in the utilization in a transaction of debit cards having magnetic media on a face thereof, comprising:

• a debit card reader having a magnetic read/write head;
• and
• means for automatically electronically controlling operation of said magnetic read/write head;
• said means for controlling operation of said magnetic read/write head comprising means for writing a security code on the magnetic media of a card with the magnetic head generally simultaneously with reading of the card inserted into said debit card reader;
• means for reading the magnetic media, prior to completing a transaction with the card, to be sure that the security code is present;
• and means for invalidating the card in the reader with said read/write head, or precluding revalidation of the card, should it be determined that the security code is not present.

A method of preventing fraud in a transaction with a debit card having magnetic media on the face thereof, and utilizing a debit card reader having a magnetic read/write head and an LCD, and a plurality of card position sensors, comprising the steps of automatically:

• (a) with the magnetic head, reading a card inserted into a debit card reader to determine information from the magnetic media thereon;
• (b) generally simultaneously with step (a), after the card has come to rest in a transaction position, enabling at least one of the sensors to sense the movement of the card from its rest position;
• (c) if in response to step (b) it is determined that the card has moved more than a predetermined amount from its rest position prior to completion of a transaction, invalidating the card in the reader with the read/write head, or precluding revalidation of the card;
• and
• (d) if in response to step (c) it is determined that the card has moved more than a predetermined amount from its rest position prior to completion of a transaction, displaying a fraud indicating message on the LCD.