Methods and systems for negotiable-instrument fraud prevention

Abstract

An authentication value is provided in a magnetic-ink field of a negotiable instrument. The authentication value is derived from application of an encryption algorithm defined by a secure key. The authentication value may be used to authenticate the instrument through reapplication of the encryption algorithm and comparing the result with the authentication value. The instrument is authenticated if there is a match between the two.

1 . A document for conducting a financial transaction, the document comprising: 
 information fields for providing written information to qualify the document as a negotiable instrument; and    a field having characters on the document, the field including; 
 routing information that identifies a financial institution and an account maintained at the financial institution;  
 an authentication value derived through application of one of a plurality of predetermined secure-key encryption algorithms to information also printed on the document, each of the plurality of secure-key encryption algorithms being defined by a secret encryption key that is not itself subject to the each of the plurality of secure-key encryption algorithms; and  
 an encryption-marker value that defines which of the plurality of secure-key encryption algorithms is the one of the plurality of secure-key encryption algorithms.  
   
   
   
       2 . (canceled)  
   
   
       3 . The document recited in  claim 1  wherein the one of the plurality of secure-key encryption algorithms comprises a stream cipher.  
   
   
       4 . The document recited in  claim 1  wherein the one of the plurality of secure-key encryption algorithm comprises a block cipher.  
   
   
       5 . The document recited in  claim 1  wherein the authentication value is further derived through application of a cryptographic hashing.  
   
   
       6 . The document recited in  claim 5  wherein the cryptographic hashing is based on a cyclic redundancy code.  
   
   
       7 . The document recited in  claim 1  wherein the negotiable instrument comprises a draft.  
   
   
       8 . The document recited in  claim 7  wherein the negotiable instrument comprises a check.  
   
   
       9 . The document recited in  claim 1  wherein the negotiable instrument comprises a note.  
   
   
       10 . A method for producing a document, the method comprising: 
 receiving preparation information for the document;    selecting portions of the preparation information;    selecting one of a plurality of predetermined secure-key encryption algorithms each of the plurality of secure-key encryption algorithms being defined by a secret encryption key that is not itself subject to the each of the plurality of secure-key encryption algorithms;    encrypting the selected portions of the preparation information by applying the one of the plurality of secure-key encryption algorithms to derive an authentication value;    producing the document with information fields for providing written information to qualify the document as a negotiable instrument and with    a field aving: 
 routing information that identifies a financial institution and an account maintained at the financial institution;  
 the authentication value; and  
 an encryption-marker value that defines which of the plurality of secure-key encryption algorithms is the one of the plurality of secure-key encryption algorithms.  
   
   
   
       11 . (canceled)  
   
   
       12 . The method recited in  claim 10  wherein the one of the plurality of secure-key encryption algorithms comprises a stream cipher.  
   
   
       13 . The method recited in  claim 10  wherein the one of the plurality of secure-key encryption algorithms comprises a block cipher.  
   
   
       14 . The method recited in  claim 10  further comprising applying a cryptographic hashing to derive the authentication value.  
   
   
       15 . The method recited in  claim 14  wherein the cryptographic hashing is based on a cyclic redundancy code.  
   
   
       16 . A method for authenticating a negotiable instrument, the method comprising: 
 receiving information read from the negotiable instruments;    receiving field information read from a field of the negotiable instrument, the field information including: 
 routing information that identifies a financial institution and an account maintained at the financial institution;  
 an authentication value; and  
 an encryotion-marker value that defines one of a plurality of predetermined secure-key encryption algorithms, each of the plurality of secure-key encryption algorithms being defined by a secret encryption key that is not itself subject to the each of the plurality of secure-key encryption algorithms;  
   identifying the one of the plurality of secure-key encryption algorithms from the encryption-marker value; and    applying the one of the plurality of secure-key encryption algorithms to selected portions of the information read from the negotiable instrument to derive a result for comparison with the authentication value.    
   
   
       17 . (canceled)  
   
   
       18 . The method recited in  claim 16  wherein the one of the plurality of secure-key encryption algorithms comprises a stream cipher.  
   
   
       19 . The method recited in  claim 16  wherein one of the plurality of secure-key the encryption algorithms comprises a block cipher.  
   
   
       20 . The method recited in  claim 16  further comprising applying a cryptographic hashing to derive the result.  
   
   
       21 . The method recited in  claim 20  wherein the cryptographic hashing is based on a cyclic redundancy code.  
   
   
       22 .- 27 . (canceled)  
   
   
       28 . A method for processing a negotiable instrument, the method comprising: 
 receiving an electronic package from a presenter, wherein the electronic package defines information read from the negotiable instrument and field information read from a field of the negotiable instrument, the field information including: 
 routing information that identifies a financial institution and an account maintained at the financial institution;  
 an authentication value; and  
 an encryption-marker value that defines one of a plurality of predetermined secure-key encryption algorithms, each of the plurality of secure-key encryption algorithms being defined by a secret encryption key that is not itself subject to the each of the plurality of secure-key encryption algorithms;  
   identifying the one of the plurality of secure-key encryption algorithms from the encryption-marker value;    applying the one of the plurality of secure-key encryption algorithms to selected portions of the information read from the negotiable instrument to derive a result; and    crediting the presenter for funds in accordance with the information if the result is consistent with the authentication value.    
   
   
       29 . The method recited in  claim 28  wherein the information further includes an image of the negotiable instrument.  
   
   
       30 . The method recited in  claim 28  further comprising transmitting the electronic package to the financial institution with a request for recovery of the funds.  
   
   
       31 . The method recited in  claim 28  wherein the one of the plurality of secure-key encryption algorithms comprises a stream cipher.  
   
   
       32 . The method recited in  claim 28  wherein the one of the plurality of secure-key encryption algorithms comprises a block cipher.  
   
   
       33 . The method recited in  claim 28  further comprising applying a cryptographic hashing to derive the result.