System for inhibiting fraud in relation to the use of negotiable instruments
AssigneeCraig M. Clay-Smith
InventorCraig Mark Clay-Smith
Life of this patent
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Abstract
The invention relates to a system for inhibiting fraud in relation to the use of negotiable instruments and, particularly, in relation to cheques and credit cards. The system requires the owners of cheques and credit cards to be registered with the system, as well as the presentees to whom cheques and credit cards are presented. Via an authorisation and verification procedure to be followed respectively by owners and presentees, particularly by communicating with a central communication and processing unit, fraud in relation to the presentation of cheques and credit cards can be largely eliminated. Communication with the central communication and processing unit will be via telephone lines, although adaptation to accommodate internet communication also is envisaged.
Claims15
A system for inhibiting fraud in relation to the use of negotiable instruments, which includes the steps of:
- owners of negotiable instruments communicating with a central communication and processing unit in order to register with the central communication and processing unit and thereby becoming a registered owner by providing information, including at least identification numbers, linked directly with the owners and information linked directly with the negotiable instruments in respect of which fraud is to be inhibited, the owners then being provided with an individual secret code by the central communication and processing unit;
- and
- presentees of negotiable instruments communicating with the central communication and processing unit in order to register with the central communication and processing unit by providing information, including at least identification numbers, linked directly with presentees, each presentee then being provided with an individual secret code by the central communication and processing unit, and which includes, in relation to each negotiable instrument to be issued or used by the registered owner, the steps of:
- the registered owner communicating with the central communication and processing unit in order to authorize the negotiable instrument, by identification via the identification number and the individual secret code linked with the registered owner and by providing sufficient details in respect of the negotiable instrument for subsequently permitting the instrument to be verified, the central communication and processing unit then issuing an authorization code to be linked with the instrument;
- and
- upon presentation of the authorized negotiable instrument by a presentor to the presentee, the presentee communicating with the central communication and processing unit in order to verify the negotiable instrument, by identification via the individual secret code linked with the presentee and providing the authorization code linked with the instrument, the central communication and processing unit in response communicating to the presentee the details for verifying the instrument provided by the registered owner of the instrument and thereby permitting the presentee to verify the instrument as the instrument authorized by the registered owner.
Dependencies are inferred from the claim text.