WO2021009773A1

WO2021009773A1 - A system and method for securing a transaction card

Info

Publication number: WO2021009773A1
Application number: PCT/IN2020/050605
Authority: WO
Inventors: Deepak N Choodappanavar; Ashwini D Choodappanavar
Original assignee: Deepak N Choodappanavar; Ashwini D Choodappanavar
Priority date: 2019-07-13
Filing date: 2020-07-13
Publication date: 2021-01-21

Abstract

The invention provides a system and method for securing a transaction card (106) through a smart wallet (102) and a user device (110). When the transaction card (106) is taken out from a slot (104) inside the smart wallet 102, the transaction card (106) is enabled for making transactions. For a successful transaction, both the user device (110) and the smart wallet (102) have to be in vicinity and constantly paired with each other. In case a user has multiple devices, the paired user device (110) is authenticated during the transaction. The transaction card (106) is temporarily blocked in case the transaction is not completed within a pre-set threshold time and distance. Automatic unblocking of the transaction card (106) occurs when the transaction card (106) is returned to the allotted slot (104).

Description

A system and method for securing a transaction card

The present invention relates to a system and method for securing transaction cards. More specifically, the invention relates to a smart wallet for securing the transaction card through a paired smart user device.

Transaction cards offer great convenience to a cardholder by reducing the need to constantly carry physical cash. Transaction cards are widely used in shopping malls, business transactions, e-commerce, online money transfer, internet banking, etc. The primary problem with these cards is theft, namely card theft which sometimes also results in identity theft. Subsequent to the theft, a user of the card must immediately block the cards to ensure that it is not misused. Hence, a prominent concern with any transaction card (cashless system) is with maintaining security of the card and the user’s related accounts. However, transaction card theft is rapidly increasing around the world and is becoming difficult to prevent.

When a user’s wallet containing their card is lost, misplaced or stolen, the user must contact all the banks which issued the transaction cards to cancel or disable the stolen cards, in order to prevent fraudulent use of the cards by any third-party. Beyond contacting the card issuers, the user has to block or deactivate all the transaction related databases or services linked to the stolen transaction cards. The disadvantage here is that it takes considerable time to disable or deactivate the stolen transaction cards, which cannot be completed within a few short hours.

Banking sectors provide better security and convenience to their transaction cards by using authentication for secure transactions through secure PIN, one-time password, etc. However, no service providers of the transaction cards offer immediate security within seconds for securing the transaction card when it is stolen from the user’s wallet.

Thus, in light of the foregoing examination, there is a long-felt need to implement a system and method for establishing security and authentication measures to restrict access to various transaction cards when the transaction card is taken from the user’s wallet.

Object of Invention

The principal object of the invention is to provide a system and method for securing a transaction card using a smart wallet.

It is another object of the invention to provide a mobile application in a user’s smart device to communicate with a bank server.

It is yet another object of the invention to provide a method for temporarily blocking the transaction card when the transaction card is not used within a threshold distance and threshold time.

It is still another object of the invention to unblock the temporarily blocked transaction card through a bank server when the transaction card is returned to an allotted slot of the smart wallet.

It is a further object of the invention to provide a method of authenticating a paired user device from multiple user devices for a transaction.

It is another object of the invention to faciliate a transaction when the user device and the smart wallet are paired through Bluetooth within a threshold distance.

It is still another object of the invention to enable the transaction card for a transaction through the bank server when the transaction is initiated by the user.

It is a further object of the invention to disable any transactions when the transaction card is placed inside the allotted slot of the smart wallet.

The present invention discloses a system and method for providing security to a transaction card by using a smart wallet and a user device. The user device and the smart wallet are paired through one or more communication technologies such as Bluetooth technology.

A transaction is enabled only when the transaction card is taken out from an allotted slot in the smart wallet, as an application installed inside the user device communicates with a bank server to allow transactions. For the transaction to happen successfully, both the smart wallet and the user device need to be constantly paired.

In case the user has multiple user devices such as smart phone, laptop, computer etc., the user device which is paired with the smart wallet during the transaction is authenticated and a successful transaction is carried out. Further, temporary blocking of the transaction card is carried out automatically in cases such as when the transaction card is taken out from the allotted slot in the smart wallet and is not used within a threshold time, or when the smart wallet and the user device are not within a threshold distance.

Subsequently, an automatic unblocking of the temporarily blocked transaction card is made in case the transaction card is placed back in the allotted slot inside the smart wallet. In this case, the smart wallet sends a signal to the user device when the transaction card is placed back inside the allotted slot, and the user device communicates with the bank server to unblock the temporarily blocked transaction card.

Additionally, no transactions are enabled when the transaction card is inside the allotted slot of the smart wallet.

This invention is illustrated in the accompanying drawings, throughout which, like reference letters indicate corresponding parts in the various figures.

The embodiments herein will be better understood from the following description with reference to the drawings, in which:

Fig.1

depicts a card security system with a network of communication between devices with respect to various embodiments of the invention.

Fig. 2

illustrates communication between a smart wallet, a user device and a bank server during a transaction initiated by a user.

Fig. 3

illustrates a smart wallet and a user device paired through Bluetooth within a threshold distance during a transaction.

Fig. 4

illustrates temporary blocking a transaction card when the transaction card is not used within a pre-set threshold time, and when a user device and a smart wallet are not within a threshold distance.

Fig. 5

illustrates automatic unblocking a temporarily blocked transaction card, when the transaction card is placed back into a smart wallet.

Fig. 6

is a flowchart illustrating a method for card security by using a smart wallet and a smart device.

The embodiments herein and the various features and advantageous details thereof are explained more fully with reference to the non-limiting embodiments that are illustrated in the accompanying drawings and/or detailed in the following description. Descriptions of well-known components and processing techniques are omitted so as to not unnecessarily obscure the embodiments herein. The examples used herein are intended merely to facilitate an understanding of ways in which the embodiments herein may be practiced and to further enable those of skill in the art to practice the embodiments herein. Accordingly, the examples should not be construed as limiting the scope of the embodiments herein.

The present invention is being filed as a patent of addition for the Indian Patent application number: 201841028851.

The embodiments herein below provide the details of a system and method for securing a transaction card using a smart wallet and a user device. When the transaction card is inside the allotted slot of the smart wallet, an account related to the transaction card is in a disabled state, and no transactions can be completed by using the transaction card. For making a successful transaction, the smart wallet and the user device must always be paired and present within a threshold distance. In case the transaction card is removed from an allotted slot inside the smart wallet, a signal is sent from a communication unit of the smart wallet to the user device. An application installed inside the user device receives the signal and communicates the same with a bank server, indicating that a transaction can be possibly initiated. Subsequently, the bank server unblocks the temporarily blocked transaction card.

Additionally, the transaction card is temporarily blocked when the smart wallet and the user device are not within a threshold distance and the transaction card is not used within a threshold time after taking out from the allotted slot inside the smart wallet. An automatic unblocking of the temporarily blocked transaction card occurs when the transaction card is placed back inside the allotted slot of the smart wallet.

In case the user makes use of multiple user devices, the device which is paired with the smart wallet at the time of transaction is authenticated. The system automatically authenticates the paired user device and the smart wallet to carry out a successful transaction.

Referring now to the drawings, where similar reference characters denote corresponding features consistently throughout the figures, there are shown preferred embodiments.

Fig. 1 shows a network of communication 100 between devices with respect to various embodiments of the invention.

A smart wallet 102 comprises various slots 104 for holding various transaction cards 106. Each of the transaction cards 106 are placed inside particular allocated slots 104 inside the smart wallet 102. The smart wallet 102 is paired with a user device 110 through a communication unit (not shown in figure) through, for example, Bluetooth technology 122. The communication unit sends a trigger signal to the user device 110 in case a wallet event occurs. The wallet event includes one or more of: when the smart wallet 102 is opened, when the transaction card 106 is removed from the allotted slot 104 of the smart wallet 102, when the transaction card 106 is replaced into the allotted slot 104 of the smart wallet 102, when the smart wallet 102 is closed, the transaction card 106 is moved away from the smart wallet 102, and the transaction card 106 is moved away from the smart wallet 102 beyond a predetermined distance.

In an embodiment, the slot 104 may not be allotted for a particular transaction card 106.

The smart wallet 102 comprises slots 104 for holding transaction cards 106, and the slots 104 are lined with one or more connecting pins comprising sensors stitched with conductive threads. The presence of the transaction card 106 in a designated card slot results in breaking of a circuit between the connecting pins, indicating that the transaction card 106 is inside the smart wallet 102. The circuit closes on the removal of the transaction card 106 from the slot 104, which indicates that the transaction card 106 has been removed from the smart wallet 102. The closing of the circuit further results in triggering a notification to the user regarding the removal of the transaction card 106 from the card slot 104.

In an embodiment, the user device 110 may be one or more of a smart phone, a laptop 108/1 or a desktop 108/2 installed with an application to communicate with external devices. A timer 114/1 is embedded with the user device 110, and is used to calculate a pre-set threshold time from the moment the transaction card 106 is removed from the smart wallet 102. The user device 110 send one or more signals 116 to a bank server 118 and a processing unit 120 through a wireless network configuration such as LAN, WAN etc., or through mobile service provider (MSP) and internet service provider (ISP) having 2G/3G/4G/5G internet connection.

In an embodiment, the processing unit 120 may be embedded in hardware/software/firmware within the user device 110. In this case, the user device 110 communicates with the bank server 118 to determine when to temporarily block or unblock the transaction card 106.

The distance 112 between the smart wallet 102 and the user device 110 is calculated to determine whether the distance 112 exceeds a pre-set threshold distance when the transaction card 106 is taken out from the allotted slot 104.

In an embodiment, the communication unit (not shown in figure) is embedded within the smart wallet 102. When the transaction card 106 is taken out from the smart wallet 102, the communication unit sends the trigger signal to the paired user device 110. The communication unit may be a Bluetooth low energy based circuit.

Fig. 2 illustrates communications between the smart wallet 102, the user device 110 and the bank server 118 during a transaction initiated by a user. When the transaction card 106 is taken out from the smart wallet 102, the communication unit sends the trigger signal to the paired user device 110. The user device 110 sends a signal 116 to the bank server 118 about a possible transaction that may be initiated by the user. The communication 116 is carried out through the application installed in the user device 110. For a successful transaction, the smart wallet 102 has to be constantly paired with the user device 110 through, for example, the Bluetooth 122.

In a preferred embodiment, for making a transaction, the transaction card 106 has to be removed from the allotted slot 104 inside the smart wallet 102.

In a preferred embodiment, the smart wallet 102 only communicates directly with the user device 110, and not the laptop 108/1 or the desktop 108/2.

As an example, when the smart wallet 102 is opened and the transaction card 106 is removed, the smart wallet 1012 communicates to the user device 110 that the transaction card 106 was removed from its allocated slot 104. Subsequently, the user device 110 communicates the wallet event to the server 118. Thereafter, the timer 114/1 is initiated in order to measure the time elapsed since the occurrence of the wallet event.

Consider an example where a user uses their laptop 108/1, to conduct an online ecommerce transaction. The user uses a net banking website to complete their transaction. Once the user enters their card number into the net banking website, the net banking website communicates with the server 118 and verifies whether a card removal event or any other wallet event has occurred. In case the card removal had occurred, the wallet event would be recorded by the server 118. Hence, when the user tries to complete the net banking transaction, the server 118 verifies that the same card was previously removed from wallet from a specific geo location and that the timer has started. Subsequently, when the user enters their card number for verification, the server 118 verifies the same.

In another embodiment, the timer 114/2 is initiated by the application. Further, the server 118 only allows the net banking transaction to be completed if the transaction is initiated within a second threshold time as defined by any issuing bank. The issuing bank can decide the threshold time, such as 60 sec/120 sec/300 sec. In an embodiment, the maximum allowed second threshold time may be 300 seconds.

Thus, in an embodiment, the smart wallet 102 never directly communicates with the server 118. The advantage of the claimed invention is that it provides better data security as the financial data cannot be used by anybody unless the user of the data is present and has their user device 110 as well as the smart wallet 102 together in the same geo-location. Thus, the system 100 provides strong data security, reduces the chances of fraud, theft, card cloning, card data theft, etc.

In an embodiment, the user device 110 communicates with the server 118 whenever the transaction card 106 is removed, while the laptop 108/1 and the desktop 108/2 communicate with the server 118 to determine whether a wallet event such as a card removal has occurred. Subsequently, the transaction application in the laptop 108/1 verifies whether card removal has occurred before proceeding further.

The system 100 can be implemented in various applications to protect any type of data related to the user. As an example, a user’s Aadhar card is configured with the smart wallet 110, the server 118 can communicate with an Aadhar server. In this example, when the Aadhar card is removed from the smart wallet 110, the wallet event can be verified before using the Aadhar card as a valid verified KYC document for any official purpose.

The same implementation can be used for Personal Account Number (PAN) cards or a chip-based passport, among other identity cards. In each case, one or more suitable wallet events can be identified, in order to verify the removal of the user’s card.

Advantageously, this implementation provides exceptional data protection for citizens, community members, and organization members, among others. Further, in case a user’s passport details are stolen during an identity theft, since the system 100 authenticates the user based on a combination of the user’s card (their passport) as well as the smart wallet 102, the system 100 is foolproof in preventing identify theft of the user.

In another example, a user’s social media accounts can coordinate with the system 100 in order to prevent the hacking of the user’s accounts. In general, hackers can steal the user’s password and user id in order to access the user’s accounts. To prevent such hacking, the smart wallet 102 can be used along with the authentication server of the user’s social media account to authenticate the user. As an example, the user may be authenticated only in case a wallet event occurs. In case no wallet event has occurred, access to the user’s account may be denied.

Fig. 3 illustrates the smart wallet 102 and the user device 110 paired through the Bluetooth 122 being within the threshold distance during a transaction. In case the user wishes to make a transaction, the smart wallet 102 and the user device 110 have to be constantly paired through, for example, the bluetooth 122. For achieving a successful transaction, the smart wallet 102 and the user device 110 must be within a certain vicinity i.e., both the smart wallet 102 and the user device 110 need to be within a pre-set threshold distance during the transaction. Further, to determine whether the smart wallet 102 and the user device 110 are within a pre-set threshold distance, the distance 112 between both the smart wallet 102 and the user device 110 is measured from the moment when the transaction card 106 is removed from the allotted slot 104 until the transaction is completed.

In an embodiment, a value of the threshold distance is pre-fed in the processing unit 120. In another embodiment, the value of the threshold distance can be determined by the user through an application on the user device 110, for providing customization options to the user.

In case the user uses multiple devices during a transaction, the system automatically authenticates the user device 110 that is paired with the smart wallet 102 through the Bluetooth 122. In another embodiment, the smartphone 110 must be in constant communication with the smart wallet 102, even while using the laptop 108/1 or the desktop 108/2 for authenticating a transaction.

In an embodiment, the smart phone 110 is embedded with the timer 114/1, and the laptop 108/1 and the desktop 108/2 are embedded with the timer 114/2. The timer 114/1 is used to calculate the time from the moment the transaction card 106 is removed from the smart wallet 102, and to identify whether the threshold time is reached before the transaction is completed. The threshold time is pre-configured in the processing unit 120. The user device 110 communicates with one or more external devices such as the bank server 118 and the processing unit 120 through the embedded or stored application.

In another embodiment, the value of the threshold time can be determined by the user through an application on the user device 110, for providing customization options to the user.

Fig. 4 illustrates temporary blocking of the transaction card 102 in case the transaction card 106 is not used within the pre-set threshold time and in case the user device 110 and the smart wallet 102 are not within the threshold distance. When the transaction card 106 is removed from the allotted slot 104 inside the smart wallet 102, the trigger signal is sent from the smart wallet 102 to the user device 110. A first timer 114/1 embedded inside the user device 110 starts to calculate or monitor the time from that instant onwards. Subsequently, a second timer 114/2 is initiated when the transaction is initiated. In case the transaction did not take place within a pre-set threshold time, the user device 110 communicates a signal 116 to the processing unit 120, which temporarily blocks the transaction card 106.

Similarly, in case the transaction did not take place within the pre-set threshold distance 112, the user device 110 communicates a signal 116 to the processing unit 120, which temporarily blocks transaction through the card 106

Fig. 5 illustrates automatic unblocking of a temporarily blocked transaction card 106, in case the transaction card 106 is returned to the allotted slot 104 of the smart wallet 102. In case the temporarily blocked transaction card 106 is placed inside the allotted slot 104 of the smart wallet 102, the trigger signal is sent from the smart wallet 102 to the user device 110. The user device 110 sends the signal 116 to the bank server 118 through the application (not shown in figure) installed inside the user device 110 to communicate that the transaction card 106 has been returned to the allotted slot 104 of the smart wallet 102. The bank server 118, upon receiving the signal 116 from the user device 110, automatically unblocks transactions through the temporarily blocked transaction card 106.

Fig. 6 depicts a flowchart illustrating a system and method for securing a transaction card. The user can insert a card in each slot of a smart wallet. Further, one or more slots are paired with a user device, as depicted at 602. When the user wishes to make a transaction, they remove the transaction card from the smart wallet, which is detected as depicted at 604. Further, based on the detection, a signal is shared by a communicating unit on the smart to the user device, as depicted at 606. A first timer is initiated at the user device, as depicted at 608. Thereafter, a signal is communicated from the user device to a bank server to inform the bank server of possible transactions that may be completed by using the card, as depicted at 610. Subsequently, a second timer is initiated when the transaction is initiated, as depicted at 612. Thereafter, transactions made through the card are enabled by the bank server and the user device in case the transactions are made within a threshold time or a threshold distance, as depicted at 614. Subsequently, a signal is shared with the server in case the threshold time or threshold distance are exceeded, where the server blocks transactions using the transaction card, as depicted at 616. Further, it is detected whether the transaction card has been returned to the slot in the smart wallet, as depicted at 618. Subsequently, the user device communicates with a server to block transactions using the card after the return of the transaction card to the smart wallet, as depicted at 620.

In an embodiment, after the transaction card 106 is replaced into the allotted slot 104 of the smart wallet 102, transactions through online banking, net banking, digital banking, Point of Sale terminals, ATM withdrawals or the like are denied.

In an embodiment, each slot 104 inside the smart wallet 102 is set to hold the transaction card 106 of a particular bank, wherein the transaction cards 106 have to be returned to its respective slots 104 after making any transaction.

The foregoing description of the specific embodiments will so fully reveal the general nature of the embodiments herein that others can, by applying current knowledge, readily modify and/or adapt for various applications such specific embodiments without departing from the generic concept, and, therefore, such adaptations and modifications should and are intended to be comprehended within the meaning and range of equivalents of the disclosed embodiments. It is to be understood that the phraseology or terminology employed herein is for the purpose of description and not of limitation. Therefore, while the embodiments herein have been described in terms of preferred embodiments, those skilled in the art will recognize that the embodiments herein can be practiced with modification within the scope of the embodiments as described herein.

Claims

A system for securing at least one transaction card (106), wherein the system comprises:
a smart wallet (102) with one or more slots (104) for holding the at least one transaction card (106);
a user device (110) embedded with an application, wherein the user device (110) is in communication with the smart wallet (102); and
a processing unit (120) for determining when to temporarily block or unblock transactions using the at least one transaction card (106).
The system as claimed in claim 1, wherein the smart wallet (102) comprises a communication unit which communicates a trigger signal (108) to the user device (110) in case the at least one transaction card (106) is removed from the slot (104) in the smart wallet (102).
The system as claimed in claim 1, wherein the transaction using the at least one transaction card (106) is blocked, in case of at least one of:
a preset threshold time is exceeded without making the transaction, wherein the preset threshold time is compared to a timer in the user device (110), wherein the timer is activated upon removing the at least one transaction card (106) from the smart wallet (102);
a preset threshold distance between the user device (110) and the smart wallet (102) is exceeded, wherein a distance (112) between the smart wallet (102) and the user device (110) is continuously measured in case the at least one transaction card (106) is removed from the allotted slot (104); and
a pairing between the smart wallet (102) and the user device (110) is disconnected.
The system as claimed in claim 1, wherein at least one of the smart wallet (102) and the user device (110) communicates with a bank server (118) to block or unblock transactions through the transaction card (106).
The system as claimed in claim 4, wherein a temporarily blocked transaction card (106) is automatically unblocked by the bank server (118) upon receiving a communication (116) from the user device (110) when the transaction card (106) is returned to the allotted slot (104) of the smart wallet (102), wherein the communication unit sends a trigger signal (108) to the user device (110) regarding the return of the transaction card (106) into its allotted slot (104).
A method for securing at least one transaction card (106), said method comprising:
pairing one or more slots (104) inside a smart wallet (102) with a user device (110);
detecting a removal of the at least one transaction card (106) from one of the one or more slots (104) in the smart wallet (102);
communicating a signal based on the detection to a user device (110), by using a communication unit in the smart wallet (102);
communicating a signal from the user device (110) to a bank server (118), regarding a possible transaction; and
enabling transactions made through the at least one transaction card (106).
The method as claimed in claim 6, comprising authenticating the paired user device (110) to complete the transaction in case a user has multiple devices (110).
The method as claimed in claim 6, comprising temporarily blocking the transaction card (106) in case of at least one of:
exceeding a preset threshold time without making the transaction, wherein the preset threshold time is compared to a timer in the user device (110) wherein the timer is activated upon removing the at least one transaction card (106) from the smart wallet (102);
exceeding a preset threshold distance between the user device (110) and the smart wallet (102), wherein a distance (112) between the smart wallet (102) and the user device (110) is continuously measured, in case the at least one transaction card (106) is removed from the allotted slot (104); and
disconnecting the pairing between the smart wallet (102) and the user device (110).
The method as claimed in claim 6, comprising unblocking the temporarily blocked transaction card (106) in case the transaction card (106) is returned to the allotted slot (104) of the smart wallet (102).
The method as claimed in claim 6, comprising disabling the transaction card (106) for any transactions, in case the transaction card (106) is inside the allotted slot (104).