US5872844A — System and method for detecting fraudulent expend…

Claim 1

Independent Claim 77 words

An electronic asset system comprising: a plurality of electronic wallets; a plurality of transferable electronic assets stored on the electronic wallets, the electronic assets being transferred from payer electronic wallets to payee electronic wallets during transactions; and a fraud detection system to sample a subset of the transferred electronic assets to detect bad assets that have been used in a fraudulent manner, the fraud detection system further identifying the payer electronic wallets that transferred the bad assets.

Claim 2

Dependent Claim 77 words

An electronic asset system comprising: a plurality of electronic wallets; a plurality of transferable electronic assets stored on the electronic wallets, the electronic assets being transferred from payer electronic wallets to payee electronic wallets during transactions; and a fraud detection system to sample a subset of the transferred electronic assets to detect bad assets that have been used in a fraudulent manner, the fraud detection system further identifying the payer electronic wallets that transferred the bad assets.

Claim 3

Dependent Claim 15 words

An electronic asset system as recited in claim 1, wherein the electronic wallets are tamper-resistant.

Claim 4

Dependent Claim 27 words

An electronic asset system as recited in claim 1, wherein the transferable electronic assets contain identification of all payer electronic wallets that have transferred the electronic assets.

Claim 5

Dependent Claim 21 words

An electronic asset system as recited in claim 1, wherein the payer electronic wallets digitally sign the electronic assets when transferred.

Claim 6

Dependent Claim 29 words

An electronic asset system as recited in claim 1, wherein each electronic wallet stores a representation of every electronic asset that the electronic wallet receives until the representation expires.

Claim 7

Dependent Claim 89 words

An electronic asset system as recited in claim 1, wherein during a transfer of a particular electronic asset from a particular payer electronic wallet to a particular payee electronic wallet, the payer electronic wallet generates a new version of the electronic asset, T new , for transfer to the payee electronic wallet, the new version T new being a concatenation of a previous version of the electronic asset, T old , originally received by the payer electronic wallet and a signed representation of the previous version T old .

Claim 8

Dependent Claim 96 words

An electronic asset system as recited in claim 6, wherein the new version of the electronic asset is as follows: T.sub.new =T.sub.old, S.sub.Kpayer Hash(Payer ID, T.sub.old, time, Payee ID)! wherein "S Kpayer " is a signing function using a cryptographic key of the payer electronic wallet and "Hash" is a hashing function used to compute a hash digest of data including an identification of the payer electronic wallet ("Payer ID"), the previous version of the electronic asset T old , a time of the transfer ("time"), and an identification of the payee electronic wallet ("Payee ID").

Claim 9

Dependent Claim 30 words

An electronic asset system as recited in claim 1, wherein the electronic wallets comprise a transmitter to transmit the transferred electronic assets over a network to the fraud detection system.

Claim 10

Dependent Claim 27 words

An electronic asset system as recited in claim 1, wherein the fraud detection system compiles a list of the payer electronic wallets identified as transferring bad assets.

Claim 11

Dependent Claim 32 words

An electronic asset system as recited in claim 9, wherein the fraud detection system distributes the list of the payer electronic wallets identified as transferring bad assets to warn other electronic wallets.

Claim 12

Dependent Claim 28 words

An electronic asset system as recited in claim 9, wherein the list of the payer electronic wallets identified as transferring bad assets is stored on the electronic wallets.

Claim 13

Dependent Claim 20 words

An electronic asset system as recited in claim 9, wherein the fraud detection system transmits the list over a network.

Claim 14

Dependent Claim 25 words

An electronic asset system as recited in claim 12, wherein the payee electronic wallets are equipped with a receiver to receive transmission of the list.

Claim 15

Dependent Claim 62 words

An electronic asset system as recited in claim 1, wherein the fraud detection system compares a newly transferred asset to the assets in the sampled subset to determine whether the newly transferred asset has been transferred from a single payer electronic wallet to multiple payee electronic wallet, the multiple transfers being indicative of fraudulent use on part of the payer electronic wallet.

Claim 16

Dependent Claim 48 words

An electronic asset system as recited in claim 1, wherein: the electronic wallets are associated with particular users and are traceable to those users; and the fraud detection system further identifies the users associated with the payer electronic wallets that have been identified as transferring the bad assets.

Claim 17

Dependent Claim 24 words

An electronic asset system as recited in claim 1, wherein the electronic wallets are issued with temporary certificates that expire on an expiration date.

Claim 18

Dependent Claim 44 words

An electronic asset system as recited in claim 1, wherein the payee electronic wallets accumulate the bad assets and when the bad assets on a particular payee electronic wallet reach a bad credit limit, the fraud detection system revokes the particular payee electronic wallet.

Claim 19

Dependent Claim 109 words

An early detection and warning system for detecting fraudulent transactions involving transferable electronic assets, individual electronic assets being transferable from a payer electronic wallet to a payee electronic wallet during a transaction, the early detection and warning system comprising: a sample database; and a computer programmed to perform the following steps: store a sample of transferred electronic assets in the sample database; mark an electronic asset as a bad electronic asset in an event that the electronic asset has been transferred from a single payer wallet to multiple payee wallets; and identify the payer electronic wallet from which the electronic asset was transferred multiple times as a bad wallet.

Claim 20

Dependent Claim 109 words

An early detection and warning system for detecting fraudulent transactions involving transferable electronic assets, individual electronic assets being transferable from a payer electronic wallet to a payee electronic wallet during a transaction, the early detection and warning system comprising: a sample database; and a computer programmed to perform the following steps: store a sample of transferred electronic assets in the sample database; mark an electronic asset as a bad electronic asset in an event that the electronic asset has been transferred from a single payer wallet to multiple payee wallets; and identify the payer electronic wallet from which the electronic asset was transferred multiple times as a bad wallet.

Claim 21

Dependent Claim 50 words

An early detection and warning system as recited in claim 18, wherein the computer is further programmed to compare the electronic asset with the transferred electronic assets stored in the sample database to discover whether the electronic asset was transferred from the single payer wallet to the multiple payee wallets.

Claim 22

Dependent Claim 24 words

An early detection and warning system as recited in claim 18, wherein the computer is further programmed to compile a list of bad wallets.

Claim 23

Dependent Claim 43 words

An early detection and warning system as recited in claim 18, further comprising a network connection to an electronic data network, the computer being further programmed to transmit an identity of the bad wallet via the network connection over the electronic data network.

Claim 24

Dependent Claim 28 words

An early detection and warning system as recited in claim 18, further comprising a transmitter to broadcast an identity of the bad wallet over a broadcast communication network.

Claim 25

Dependent Claim 77 words

An electronic fraud detection system for detecting fraudulent transactions involving electronic assets, the electronic fraud detection system comprising: an asset issuing unit to issue transferable electronic assets to asset holders, the electronic assets being subsequently transferred from payer asset holders to payee asset holders; and a fraud sampling unit to evaluate a sampled subset of the electronic assets received by the payee asset holders to detect if the electronic assets have been used in a fraudulent manner.

Claim 26

Dependent Claim 77 words

An electronic fraud detection system for detecting fraudulent transactions involving electronic assets, the electronic fraud detection system comprising: an asset issuing unit to issue transferable electronic assets to asset holders, the electronic assets being subsequently transferred from payer asset holders to payee asset holders; and a fraud sampling unit to evaluate a sampled subset of the electronic assets received by the payee asset holders to detect if the electronic assets have been used in a fraudulent manner.

Claim 27

Dependent Claim 58 words

An electronic fraud detection system as recited in claim 23, wherein the issuing unit issues a stick of multiple electronic assets that is digitally signed once by the issuing unit, the asset holders being able to transfer individual ones of the electronic assets to distinct payee asset holders from the stick without transferring the stick as a whole.

Claim 28

Dependent Claim 36 words

An electronic fraud detection system as recited in claim 23, wherein the fraud sampling unit identifies the asset holders responsible for fraudulent use of the electronic assets and compiles a list of the identified asset holders.

Claim 29

Dependent Claim 37 words

An electronic fraud detection system as recited in claim 25, wherein the fraud sampling unit distributes the list of the asset holders to warn that the identified asset holders have used electronic assets in a fraudulent manner.

Claim 30

Dependent Claim 38 words

An electronic fraud detection system as recited in claim 23, wherein the fraud sampling unit evaluates each sampled transferred electronic asset to determine whether the transferred electronic asset has been transferred multiple times from a single asset holder.

Claim 31

Dependent Claim 50 words

An electronic fraud detection system as recited in claim 23, wherein: the asset holders are associated with particular users and are traceable to those users; and the fraud sampling unit identifies the users associated with the asset holders that are identified as responsible for fraudulent use of the electronic assets.

Claim 32

Dependent Claim 51 words

An electronic fraud detection system as recited in claim 23, wherein: the certificates of asset holders are configured to expire on an expiration date; and the asset issuing unit issues a new expiration date to an expiring asset holder to permit the asset holder to continue operation after the expiration date.

Claim 33

Dependent Claim 40 words

An electronic fraud detection system as recited in claim 29, wherein the asset issuing unit issues the new expiration date for the asset holders' certificates during a time period in which the asset issuing unit is not issuing electronic assets.

Claim 34

Dependent Claim 47 words

An electronic fraud detection system as recited in claim 23, wherein the certificates of the asset holders accumulate the count of fraudulently used electronic assets and the fraud sampling unit revokes the asset holders when a number of fraudulently used electronic assets exceeds a bad credit limit.

Claim 35

Dependent Claim 186 words

An electronic asset system, comprising: an asset issuing unit to issue transferable electronic assets, the electronic assets being digitally signed by the asset issuing unit; a plurality of asset holders to store the signed electronic assets, each asset holder having an identification certificate containing a cryptographic public key, the certificate being digitally signed by a certifying authority, the asset holders including payer asset holders and payee asset holders wherein the payer asset holders use their corresponding signing keys to digitally sign the electronic assets when the electronic assets are transferred to the payee asset holders; a fraud sampling unit to evaluate a sampled subset of the electronic assets received by the payee asset holders to detect if the electronic assets have been used in a fraudulent manner, and in an event of detection, the fraud sampling unit using the payer asset holders' signatures on the fraudulently used electronic assets to identify bad payer asset holders that are responsible for the fraudulent use from among said plurality of asset holders; and the fraud sampling unit being configured to compile a list of the bad payer asset holders.

Claim 36

Dependent Claim 186 words

An electronic asset system, comprising: an asset issuing unit to issue transferable electronic assets, the electronic assets being digitally signed by the asset issuing unit; a plurality of asset holders to store the signed electronic assets, each asset holder having an identification certificate containing a cryptographic public key, the certificate being digitally signed by a certifying authority, the asset holders including payer asset holders and payee asset holders wherein the payer asset holders use their corresponding signing keys to digitally sign the electronic assets when the electronic assets are transferred to the payee asset holders; a fraud sampling unit to evaluate a sampled subset of the electronic assets received by the payee asset holders to detect if the electronic assets have been used in a fraudulent manner, and in an event of detection, the fraud sampling unit using the payer asset holders' signatures on the fraudulently used electronic assets to identify bad payer asset holders that are responsible for the fraudulent use from among said plurality of asset holders; and the fraud sampling unit being configured to compile a list of the bad payer asset holders.

Claim 37

Dependent Claim 99 words

An electronic asset system as recited in claim 32, wherein during a transfer of a particular electronic asset from a particular payer asset holder to a particular payee asset holder, the payer asset holder generates a new version of the electronic asset, T new , for transfer to the payee asset holder, the new version T new being a concatenation of a previous version of the electronic asset, T old , originally received by the payer asset holder and a digitally signed representation of the previous version T old using the cryptographic signing key of the payer asset holder.

Claim 38

Dependent Claim 97 words

An electronic asset system as recited in claim 33, wherein the new version of the electronic asset is as follows: T.sub.new =T.sub.old, S.sub.Kpayer Hash(Payer ID, T.sub.old, time, Payee ID)! wherein "S Kpayer " is a signing function using the cryptographic signing key of the payer asset holder and "Hash" is a hashing function used to compute a hash digest of data including an identification of the payer asset holder ("Payer ID"), the previous version of the electronic asset T old , a time of the transfer ("time"), and an identification of the payee asset holder ("Payee ID").

Claim 39

Dependent Claim 38 words

An electronic asset system as recited in claim 32, wherein the payee the payee asset holders are equipped with a transmitter to transmit a received electronic asset for inclusion by the fraud sampling unit in the sampled subset.

Claim 40

Dependent Claim 41 words

An electronic asset system as recited in claim 32, wherein: the fraud sampling unit transmits the list of the bad payer asset holders over a network; and the payee asset holders are equipped with a receiver to receive the transmitted list.

Claim 41

Dependent Claim 45 words

An electronic asset system as recited in claim 32, wherein the fraud sampling unit broadcasts the list of the bad assets holders over a data communications network selected from a group comprising a wire-based public network, a cable-based entertainment network, and a wireless communications network.

Claim 42

Dependent Claim 33 words

An electronic asset system as recited in claim 32, wherein the payee asset holders store the list locally to prevent further use of the electronic assets stored on the bad payer asset holders.

Claim 43

Dependent Claim 55 words

An electronic asset system as recited in claim 32, wherein the fraud sampling unit evaluates the sampled subset to determine whether a single transferred electronic asset has been transferred from a single payer wallet to multiple payee electronic wallets, the multiple transfers being indicative of fraudulent use on part of the single payer electronic wallet.

Claim 44

Dependent Claim 76 words

An electronic asset system as recited in claim 32, wherein: each certificate is issued on an issue date for a selected time period, the certificate being configured to expire on an expiration date following the selected time period after the issue date; and the asset holders are updated with new certificates prior to the expiration date of the certificates, each new certificate containing a new cryptographic signing key and being digitally signed by the certifying authority.

Claim 45

Dependent Claim 27 words

An electronic asset system as recited in claim 32, wherein the asset issuing unit is the certifying authority that digitally signs the certificates for the asset holders.

Claim 46

Dependent Claim 26 words

An electronic asset system as recited in claim 32, wherein the certificates are blindly signed by the asset issuing unit without identity of the asset holders.

Claim 47

Dependent Claim 37 words

An electronic asset system as recited in claim 32, wherein the certificates issued to the payee asset holders include a bad credit count of the number of fraudulently used electronic assets received by the payee asset holders.

Claim 48

Dependent Claim 33 words

An electronic asset system as recited in claim 43, wherein the certificates expire and the payee asset holders update their certificates, the updated certificates continuing the bad credit count of the expired certificates.

Claim 49

Dependent Claim 33 words

An electronic asset system as recited in claim 44, wherein the asset issuing unit blindly signs the updated certificates and employs zero knowledge proof to ensure that the bad credit count is continued.

Claim 50

Independent Claim 104 words

A method for detecting fraudulent transactions involving electronic assets, the method comprising the following steps: issuing transferable electronic assets; storing the electronic assets in electronic wallets; spending at least some of the electronic assets contained on the electronic wallets by transferring the electronic assets from payer electronic wallets to payee electronic wallets; extracting a sample of the spent electronic assets; detecting from the sample of spent electronic assets whether there is one or more bad electronic assets that have been spent in a fraudulent manner; and upon detecting a bad electronic asset, identifying an electronic wallet from which the bad electronic asset was spent.

Claim 51

Independent Claim 104 words

A method for detecting fraudulent transactions involving electronic assets, the method comprising the following steps: issuing transferable electronic assets; storing the electronic assets in electronic wallets; spending at least some of the electronic assets contained on the electronic wallets by transferring the electronic assets from payer electronic wallets to payee electronic wallets; extracting a sample of the spent electronic assets; detecting from the sample of spent electronic assets whether there is one or more bad electronic assets that have been spent in a fraudulent manner; and upon detecting a bad electronic asset, identifying an electronic wallet from which the bad electronic asset was spent.

Claim 52

Dependent Claim 29 words

A method as recited in claim 46, wherein the issuing step comprises the step of blindly issuing the transferable electronic assets without knowledge of identities of the electronic wallets.

Claim 53

Dependent Claim 65 words

A method as recited in claim 46 further comprising the following steps: digitally signing the electronic assets with an initial signature during said issuing step; and digitally signing the electronic assets with signatures of the payer electronic wallets that transfer the electronic assets to produce a registry of signatures for each electronic asset which evidences the payer electronic wallets that have transferred the electronic assets.

Claim 54

Dependent Claim 50 words

A method as recited in claim 46, wherein the issuing step comprises the step of issuing a digitally signed stick of multiple electronic assets in which the electronic wallets can transfer individual ones to distinct payees of the electronic assets from the stick without transferring the stick as a whole.

Claim 55

Dependent Claim 76 words

A method as recited in claim 46, wherein the spending step comprises the additional step of generating at the payer electronic wallet a new version of an electronic asset, T new , for transfer to the payee electronic wallet, the new version T new being a concatenation of a previous version of the electronic asset, T old , originally received by the payer electronic wallet and a signed representation of the previous version T old .

Claim 56

Dependent Claim 98 words

A method as recited in claim 50, wherein the generating step comprises generating the new version of the electronic asset as follows: T.sub.new =T.sub.old, S.sub.Kpayer Hash(Payer ID, T.sub.old, time, Payee ID)! wherein "S Kpayer " is a signing function using a cryptographic key of the payer electronic wallet and "Hash" is a hashing function used to compute a hash digest of data including an identification of the payer electronic wallet ("Payer ID"), the previous version of the electronic asset T old , a time of the transfer ("time"), and an identification of the payee electronic wallet ("Payee ID").

Claim 57

Dependent Claim 33 words

A method as recited in claim 46, further comprising the step of transmitting transferred electronic assets from the payee electronic wallets to a fraud sampling unit for possible inclusion in the sampled subset.

Claim 58

Dependent Claim 56 words

A method as recited in claim 46, wherein the detecting step comprises the additional step of evaluating the sampled subset to determine whether a single electronic asset has been transferred from a single payer wallet to multiple payee electronic wallets, the multiple transfers being indicative of fraudulent use on part of the single payer electronic wallet.

Claim 59

Dependent Claim 49 words

A method as recited in claim 46, further comprising the following steps: assigning certificates to corresponding ones of the electronic wallets, the certificates having an expiration date whereupon expiration, the electronic wallets are prohibited from spending the electronic assets stored thereon; and updating the certificates before the expiration date.

Claim 60

Dependent Claim 30 words

A method as recited in claim 54, further comprising the additional step of ceasing to issue electronic assets or certificates during a time period in which the certificates are updated.

Claim 61

Dependent Claim 45 words

A method as recited in claim 46, further comprising the following steps: assigning certificates to the electronic wallets; and accumulating within the certificates of the payee electronic wallets bad credit counts of the number of fraudulently used electronic assets accumulated by the payee electronic wallets.

Claim 62

Dependent Claim 27 words

A method as recited in claim 56, further comprising the step of continuing the bad credit count in new certificates issued at the expiration of old certificates.

Claim 63

Dependent Claim 69 words

A method as recited in claim 46, further comprising the following steps: assigning certificates to the electronic wallets; accumulating within the certificate of each payee electronic wallet a bad credit count of a number of fraudulently used electronic assets accumulated by the payee electronic wallet; detecting when the bad credit count exceeds a bad credit limit; and revoking the payee electronic wallet when the bad credit limit is exceeded.

Claim 64

Dependent Claim 97 words

A computer-implemented method for detecting fraudulent transactions involving transferable electronic assets used by electronic wallets, the electronic assets being transferred from payer electronic wallets to payee electronic wallets, the computer-implemented method comprising the following steps: extracting a sample of the transferred electronic assets; marking a transferred electronic asset as a bad electronic asset when the transferred electronic asset is transferred from a single payer electronic wallet to multiple payee electronic wallets; identifying a payee electronic wallet from which the bad electronic asset was transferred as a bad electronic wallet; and compiling a list of bad electronic wallets.

Claim 65

Dependent Claim 97 words

A computer-implemented method for detecting fraudulent transactions involving transferable electronic assets used by electronic wallets, the electronic assets being transferred from payer electronic wallets to payee electronic wallets, the computer-implemented method comprising the following steps: extracting a sample of the transferred electronic assets; marking a transferred electronic asset as a bad electronic asset when the transferred electronic asset is transferred from a single payer electronic wallet to multiple payee electronic wallets; identifying a payee electronic wallet from which the bad electronic asset was transferred as a bad electronic wallet; and compiling a list of bad electronic wallets.

Claim 66

Dependent Claim 29 words

A computer-implemented method as recited in claim 59, wherein the electronic wallets have associated certificates, the method further comprising broadcasting a list of certificates for the bad electronic wallets.

Claim 67

Dependent Claim 22 words

A computer-readable medium having computer-executable instructions which direct a computer to perform the steps of the method as recited in claim 59.

Claim 68

Dependent Claim 15 words

A computer programmed to perform the steps of the method as recited in claim 59.

Claim 69

Dependent Claim 26 words

A computer-readable data structure for holding the list of bad electronic wallets that is generated by the steps of the method as recited in claim 59.

Claim 70

Independent Claim 62 words

A method for transferring an electronic asset T i from a payer to a payee, comprising the step of generating, at the payer, a next version of the electronic asset T i+1 for transfer to the payee which is a concatenation of the electronic asset T i received by the payer and a signed representation of the previous version T i .

Claim 71

Independent Claim 62 words

A method for transferring an electronic asset T i from a payer to a payee, comprising the step of generating, at the payer, a next version of the electronic asset T i+1 for transfer to the payee which is a concatenation of the electronic asset T i received by the payer and a signed representation of the previous version T i .

Claim 72

Dependent Claim 94 words

A method as recited in claim 64, wherein the generating step comprises generating the next version of the electronic asset as follows: T.sub.i+1 =T.sub.i, S.sub.Kpayer Hash(Payer ID, T.sub.i, time, Payee ID)! wherein "S Kpayer " is a signing function using a cryptographic key of the payer electronic wallet and "Hash" is a hashing function used to compute a hash digest of data including an identification of the payer electronic wallet ("Payer ID"), the electronic asset T i , a time of the transfer ("time"), and an identification of the payee electronic wallet ("Payee ID").

Claim 73

Dependent Claim 15 words

A computer programmed to perform the steps of the method as recited in claim 64.

Claim 74

Dependent Claim 22 words

A computer-readable medium having computer-executable instructions which direct a computer to perform the steps of the method as recited in claim 64.

Annuity Stage	Window Opens	Payment Deadline	Surcharge Period Until	Estimated Fee	Status
3.5 Years (Year 4)	2002-02-15	2002-08-17	2003-02-16	$2000.00	Window Closed / Lapsed
7.5 Years (Year 8)	2006-02-15	2006-08-17	2007-02-16	$3760.00	Window Closed / Lapsed
11.5 Years (Year 12)	2010-02-15	2010-08-17	2011-02-16	$7700.00	Window Closed / Lapsed

System and method for detecting fraudulent expenditure of transferable electronic assets

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