Cryptographic application for interbank verification

Abstract

In a data communication network which includes terminals interconnected via a central switch, a process for verifying the identity of a terminal user who is provided with secret data associated with his identity. In carrying out the verification process, the secret data is first encrypted at the terminal under a transfer-in key for transmission to an associated data processing system. When it is determined that the terminal user maintains an account at the associated data processing system, a first translate operation is performed to translate the data from encryption under the transfer-in key to encryption under an authentication key, both of which keys are protected under other keys which are different from each other, thereby providing an authentication parameter which may be used to verify the identity of the terminal user. When it is determined that the terminal user does not maintain an account at the associated data processing system, a second translate operation is performed to translate the data from encryption under the transfer-in key to encryption under a transfer-out key for transmission to the next associated host system, the switch or a remote host system. At each such node, except the switch, a determination is made as to whether a verification process can be performed otherwise, the encrypted data is translated for transmission to the next or a remote node of the network for such verification.