On-line and off-line transaction security system using a code generated from a transaction parameter and a random number

Claim 2

A security method for use in a transaction system which includes a central processor and a portable transaction device both having an internal memory, said security method for use in both on-line and off-line modes and comprising the steps of: generating a sequence of transaction numbers; generating a list of random numbers each of which is assigned to one of said transaction number thereby defining a table; storing said table at both the central processor and in the portable transaction device; assigning one of said transaction numbers to each transaction; and thereafter, during a transaction, generating a security code, at either said central processor or said portable transaction device, said security code being derived by combining data representative of a transaction parameter and the random number listed in said table that is associated with the particular transaction number assigned to the present transaction; and supplying the transaction parameter, transaction number and associated security code to the central processor or portable transaction device which did not initally generate the security code and verifying the transaction utilizing the received transaction parameter, security code and the random number associated with the received transaction number.

Claim 3

A security method as recited in claim 1 wherein the security code is generated at the central processor and verified at the portable transaction device.

Claim 4

A security method as recited in claim 1 wherein the security code is generated at the portable transaction device and verified at the central processor.

Claim 5

A security method as recited in claim 3 wherein the transaction numbers are successive check numbers and further including the step of placing the security code generated by the portable transaction device on the check.

Claim 6

A security method as recited in claim 4 further including the steps, performed at the central processor, of: receiving the check having the transaction number and security code placed thereon; retrieving from said table the random number associated with the transaction number; generating a security code by combining data from the check representative of said transaction parameter and the retrieved random number; and comparing the security code generated at the central processor with the security code on the check.

Claim 7

A security method as recited in claim 5 further including the steps of: authorizing the transaction if the security code generated at the central processor and the security code on the check match.

Claim 8

A security method as recited in claim 1 wherein said transaction parameter is the transaction amount.

Claim 9

A security method as recited in claim 7 further including the steps of: storing an account balance; comparing the transaction amount to the account balance; and debiting the account balance if the account balance is sufficient, but if the account balance is insufficient, halting the transaction.

Claim 10

A security method as recited in claim 1 further including the steps of: establishing an on-line connection between the portable transaction device and the central processor; generating a random offset number at the central processor; supplying the offset number to the portable transaction device; and incrementing the list of available random numbers stored in the portable transaction device and the central processor based on said offset number thereby altering the assignment of random numbers to transaction numbers.

Claim 11

A method as recited in claim 9 further including the steps of: supplying the last used transaction number used by the portable transaction device to the central processor; and incrementing the list of random numbers stored in the central processor based on the last used transaction number.

Claim 12

A combination on-line and off-line transaction system including a central processor and a portable transaction device both having an internal memory, said system comprising: means at said central processor for generating a sequence of transaction numbers, said means also for generating a list of random numbers each of which is assigned to one of said transaction numbers thereby defining a table; means at said central processor for supplying said table to the portable transaction device for storage; means in both said portable transaction device and central processor for independently generating a security code for each transaction, said security code being derived by assigning a transaction number to each transaction and then combining data representative of a transaction parameter with the random number listed in the table that is associated with the particular transaction number assigned to the transaction; and means for receiving the transaction parameter, transaction number and associated security code generated at either said central processor or said portable transaction device and supplied to the other, said means for verifying the transaction by comparing the received security code with a security code locally generated utilizing the received transaction parameter and the random number associated with the received transaction number.

Claim 13

A combination on-line and off-line transaction system including a central processor and a portable transaction device both having an internal memory, said system comprising: means at said central processor for generating a sequence of transaction numbers, said means also for generating a list of random numbers each of which is assigned to one of said transaction numbers thereby defining a table; means at said central processor for supplying said table to the portable transaction device for storage; means in both said portable transaction device and central processor for independently generating a security code for each transaction, said security code being derived by assigning a transaction number to each transaction and then combining data representative of a transaction parameter with the random number listed in the table that is associated with the particular transaction number assigned to the transaction; and means for receiving the transaction parameter, transaction number and associated security code generated at either said central processor or said portable transaction device and supplied to the other, said means for verifying the transaction by comparing the received security code with a security code locally generated utilizing the received transaction parameter and the random number associated with the received transaction number.

Claim 14

A transaction system as recited in claim 11 wherein said comparison means in located at the portable transaction device.

Claim 15

A transaction device as recited in claim 11 wherein said comparison means is located at the central processor.

Claim 16

A transaction system as recited in claim 11 further including a means at the portable transaction device capable of placing the security code generated by the portable transaction device on a check.

Claim 17

A transaction system as recited in claim 11 further including a means at said central processor for generating a random offset number and supplying that random offset number directly to the portable transaction device when an on-line connection has been established therewith, such that the list of random numbers stored in both the portable transaction device and the central processor may be incremented based on the offset number thereby altering the assignment of random numbers to transaction numbers.

Claim 18

A transaction system as recited in claim 11 further including means at said portable transaction device for storing an account balance.

Claim 19

A transaction system as recited in claim 16 wherein the transaction parameter is the transaction amount and further including a means for comparing the transaction amount to the account balance and also for debiting the account balance if the funds therein are sufficient to cover the transaction, but if the account balance is insufficient, halting the transaction.