System and method for identity verification and management

Abstract

A system for verifying the identity of a user includes an identification score assignment module configured to receive at least one source of identification of the user and to assign an identification score to each of the at least one source of identification. The system includes a total identification score generation module, in communication with the identification score assignment module, configured to generate a total identification score of the user from the identification scores of each of the at least one source of identification and a predetermined function. The total identification score of the user is associated with a level of verification of the identity of the user, and compared to a minimum identification score associated with a transaction. The transaction is performed when the total identification score of the user is greater than or equal to the minimum identification score.

1 . A system for verifying an identity of a user during a transaction, the system comprising:
 an identity card, the identity card comprising a computer readable medium;
 wherein the computer readable medium has information associated with the user stored thereon; 
   an identification server operatively coupled to a processor and configured to generate an identification score for the user;
 wherein the identification score is associated with a level of verification of the identity of the user; 
 wherein the identification score is stored to an information database; 
   an identity management server communicatively coupled with a computer network and the information database;
 wherein the identity management system receives a query from a third party via the computer network for identification information; 
 wherein the identity management system receives the information from the identity card via the computer network; 
 wherein the identity management system processes the information from the identity card and queries the information database for the identification information and an identification score associated with the information from the identity card; 
 wherein the identity management system communicates the identification information and the identification score to the third party; 
 wherein the transaction is performed when
 (i) the identification score of the user is greater than or equal to a minimum threshold value, and 
 (ii) the transaction does not fall within a user-specified restriction. 
 
   
     
     
         2 . The system of  claim 1 , wherein said readable media comprises at least one of: (i) smart chip; (ii) magnetic strip; and (iii) RFID. 
     
     
         3 . The system of  claim 1 , wherein the identity card is a mobile phone or a PDA. 
     
     
         4 . The system of  claim 1 , wherein the information contained on the identity card includes at least one user-specified restriction. 
     
     
         5 . The system of  claim 1 , wherein the information stored on the card is encrypted. 
     
     
         6 . The system of  claim 5 , wherein the third party decrypts the information stored on the card as part of a transaction. 
     
     
         7 . The system of  claim 1 , wherein the information stored on the card includes an identity access authorization code. 
     
     
         8 . The system of  claim 1 , wherein the identification information comprises at least one of: (i) an identity risk factor; (ii) biometric data associated with the user; (iii) financial information associated with the user; and (iv) a total identification score for the user. 
     
     
         9 . The system of  claim 8 , wherein the financial information includes account information for one or more credit cards. 
     
     
         10 . The system of  claim 1 , wherein the one or more user-specified restrictions limit the transaction based at least one of: (i) geographic location; (ii) time of day; (iii) date; (iv) type of transaction; (v) value of transaction; and (vi) payment method. 
     
     
         11 . A method for reducing fraud in financial transactions, the method comprising:
 receiving a request from a point-of-sale for authorization of a transaction associated with an account;   communicating a message to a mobile device associated with the account soliciting authorization from the account holder, wherein the message provides the account holder with a option of approving or denying the transaction; and   authorizing the transaction when an approval response is communicated by the account holder and denying the transaction when a denial response is communicated by the account holder.   
     
     
         12 . The method of  claim 11 , wherein the transaction is denied when a response is not communicated by the account holder. 
     
     
         13 . The method of  claim 11 , wherein the transaction is approved without communicating a message to the account holder when the transaction is preapproved by the account holder. 
     
     
         14 . A system for facilitating transactions using a universal credit card, the system comprising:
 an identity card, the identity card comprising a computer readable medium;
 wherein the computer readable medium has account information associated with two or more credit cards stored thereon; 
 wherein each of said one or more credit cards is associated with a unique PIN; 
   an identity management server communicatively coupled with a computer network and a credit card processing server;
 wherein the identity management system receives a transaction authorization request from a third party through the computer network, the transaction authorization request including at least one of
 (i) the unique PIN selected by the user, and 
 (ii) account information associated with a selected credit card; 
 
 wherein the identity management system queries an information database for an issuing bank associated with the
 (i) the unique PIN selected by the user, or 
 (ii) account information associated with a selected credit card; 
 
 wherein the identity management system determines an availability of funds by communicating with the issuing bank through the card processing server; 
 wherein the identity management system transmits an authorization message to the third party when funds are available, and transmits an authorization declined message to the third party when funds are not available 
   
     
     
         15 . The system of  claim 14 , wherein a default credit card is automatically selected when the user does not select a unique PIN. 
     
     
         16 . The system of  claim 14 , wherein said readable media comprises as least one of: (i) smart chip; (ii) magnetic strip; and (iii) RFID. 
     
     
         17 . The system of  claim 14 , wherein the identity card is a mobile phone or a PDA. 
     
     
         18 . The system of  claim 14 , wherein the information stored on the card is encrypted. 
     
     
         19 . The system of  claim 14 , wherein the identity management system transmits an authorization declined message to the third party when the transaction fall within one or more user-specified restrictions. 
     
     
         20 . The system of  claim 19 , wherein the one or more user-specified restrictions limit the transaction based at least one of: (i) geographic location; (ii) time of day; (iii) date; (iv) type of transaction; (v) value of transaction; and (vi) payment method.