Secure money transfer techniques using hierarchical arrangement of smart cards

Abstract

Systems and methods for providing secure smart card transactions are disclosed. Smart cards are arranged in a smart card hierarchy, the hierarchy including a first smart card at a first hierarchical level and a second smart card at a second hierarchical level higher than the first hierarchical level. A smart card reader is equipped to read smart cards and to accept personal identification (PIN) number inputs. According to one embodiment, a first PIN number is stored on the first smart card, the first PIN number corresponding to the first hierarchical level. A first security key is also stored on the first smart card. A second PIN number is stored on the second smart card, the second PIN number corresponding to the second hierarchical level. A second security key is stored on the second smart card. The PIN numbers and security keys are used to selectively lock and/or unlock a smart card.

What is claimed: 
     
       1. A method of providing secure smart card transactions in a system having a smart card hierarchy, the hierarchy including at least a first smart card at a first hierarchical level and a second smart card at a second hierarchical level higher than the first hierarchical level, and a smart card reader for reading smart cards and for accepting personal identification (PIN) number inputs, the method including the steps of: storing a first PIN number on the first smart card, the first PIN number corresponding to the first hierarchical level;   storing a first security key on the first smart card;   storing a second PIN number on the second smart card, the second PIN number corresponding to the second hierarchical level; and   storing a second security key on the second smart card.   
     
     
       2. The method of claim 1 further including the steps of: (a) comparing the PIN number stored on the first smart card with a PIN number entered into the smart card reader;   (b) comparing the first security key with the second security key; and   (c) enabling the first smart card if the PIN numbers compared in step (a) are an identical match and if the first and second security keys compared in step (b) are an identical match; otherwise, disabling the first smart card.   
     
     
       3. The method of claim 1 for use with a smart card reader equipped with a personal identification number input device, wherein the method further includes the following steps: (a) storing electronic representations of monetary values on a plurality of smart cards organized into the smart card hierarchy,   (b) equipping each of the first smart card and the second smart card with an electronic security lock for providing system security, the security lock having a locked state such that the smart card is disabled from participating in at least one financial transaction, and an unlocked state such that the smart card may participate in at least one financial transaction;   (c) equipping the first smart card with a first plurality of security keys and a personal identification (PIN) number, and equipping the second smart card with a second plurality of security keys;   (d) comparing the first plurality of security keys to the second plurality of security keys, and also comparing the PIN number to a number entered into the smart card reader, to generate a match signal only if both (i) at least one of the first plurality of security keys matches at least one of the second plurality of security keys and (ii) the PIN number matches the number entered into the smart card reader; and to generate a no-match signal otherwise; the electronic security lock being responsive to the match signal to enter the unlocked state, and the electronic security lock being responsive to the no-match signal to enter the locked state.   
     
     
       4. The method of claim 1 for use with a smart card reader equipped with a personal identification number input device, the method further including the following steps: (a) equipping each of the first smart card and the second smart card with an electronic security lock for providing system security, the security lock having a locked state such that the smart card is disabled from participating in at least one financial transaction, and an unlocked state such that the smart card may participate in at least one financial transaction;   (b) equipping the first smart card with a first plurality of security keys and a first personal identification (PIN) number, and equipping the second smart card with a second plurality of security keys and a second PIN number;   (c) comparing the first plurality of security keys to the second plurality of security keys, comparing the first PIN number to a number entered into the smart card reader and comparing the second PIN number to a number entered into the smart card reader, to generate a match signal if and only if (i) at least one of the first plurality of security keys matches at least one of the second plurality of security keys, (ii) the first PIN number matches a number entered into the smart card reader; and (iii) the second PIN number matches a number entered into the smart card reader; and to generate a no-match signal otherwise; the electronic security lock being responsive to the match signal to enter the unlocked state, and the electronic security lock being responsive to the no-match signal to enter the locked state.   
     
     
       5. A system for providing secure smart card transactions comprising a first smart card, a second smart card, and a smart card reader for reading smart cards and for accepting personal identification (PIN) number inputs; the system CHARACTERIZED BY: a smart card hierarchy, the hierarchy including at least a first smart card at a first hierarchical level and a second smart card at a second hierarchical level higher than the first hierarchical level;   a first PIN number stored on the first smart card; the first PIN number corresponding to the first hierarchical level;   a second PIN number stored on the second smart card; the second PIN number corresponding to the second hierarchical level;   a first security key stored on the first smart card; and   a second security key stored on the second smart card.   
     
     
       6. The system of claim 5 further CHARACTERIZED BY: (a) a comparison device for comparing the PIN number stored on the first smart card with a PIN number entered into the smart card reader; and also for comparing the first security key with the second security key; and   (b) an enabling device, coupled to the comparison device, for enabling the first smart card if and only if the comparison device determines (i) that the PIN number stored on the first smart card matches the PIN number entered into the smart card reader; and (ii) that the first and second security keys are an identical match.   
     
     
       7. The system of claim 5 for use with a smart card reader equipped with a personal identification number input device; wherein the first and second smart cards each include an electronic security lock for providing system security, the security lock having a locked state such that the smart card is disabled from participating in at least one financial transaction, and an unlocked state such that the smart card may participate in at least one financial transaction;   the first smart card memory means equipped to store a first plurality of security keys and a personal identification (PIN) number, and the second smart card memory means equipped to store a second plurality of security keys;   the smart card reader including comparison means for comparing the first plurality of security keys to the second plurality of security keys, and also for comparing the PIN number to a number entered into the smart card reader, to generate a match signal only if both (i) at least one of the first plurality of security keys matches at least one of the second plurality of security keys and (ii) the PIN number matches the number entered into the smart card reader; and to generate a no-match signal otherwise;   the electronic security lock of the first smart card being responsive to the match signal to enter the unlocked state, and the electronic security lock being responsive to the no-match signal to enter the locked state.   
     
     
       8. The system of claim 5 for use with a smart card reader equipped with a personal identification number input device, the system further including a plurality of smart cards each equipped to store electronic representations of monetary values, the first smart card and the second smart card each including an electronic security lock for providing system security, the security lock having a locked state such that the smart card is disabled from participating in at least one financial transaction, and an unlocked state such that the smart card may participate in at least one financial transaction;   the first smart card being equipped with a first plurality of security keys and a first personal identification (PIN) number, and the second smart card being equipped with a second plurality of security keys and a second PIN number;   the smart card reader including a comparison device for comparing the first plurality of security keys to the second plurality of security keys, for comparing the first PIN number to a number entered into the smart card reader, and for comparing the second PIN number to a number entered into the smart card reader, the comparison device being equipped to generate a match signal if and only if (i) at least one of the first plurality of security keys matches at least one of the second plurality of security keys, (ii) the first PIN number matches a number entered into the smart card reader; and (iii) the second PIN number matches a number entered into the smart card reader; and to generate a no-match signal otherwise; the electronic security lock being responsive to the match signal to enter the unlocked state, and the electronic security lock being responsive to the no-match signal to enter the locked state.