Abstract: The present invention provides a method and apparatus for identifying and minimizing the use of cloned communicating devices which communicate with a host device. The method requires that the communicating devices send a transaction specific code and an identification code, along with each communication wherein the transaction specific code changes between each communication. One communicating device, either the authentic device or a fraudulent device might communicate with the host successfully any number of times. However, when a second devices attempts communication whether that device is the authorized device or fraudulent device, the host device will receive a transaction specific code which is inconsistent or out of sequence with that expected by the host.

Abstract: The present invention provides a method and apparatus for identifying and minimizing the use of cloned communicating devices which communicate with a host device. The method requires that the communicating devices send a transaction specific code and an identification code, along with each communication wherein the transaction specific code changes between each communication. One communicating device, either the authentic device or a fraudulent device might communicate with the host successfully any number of times. However, when a second devices attempts communication whether that device is the authorized device or fraudulent device, the host device will receive a transaction specific code which is inconsistent or out of sequence with that expected by the host.

Abstract: The invention relates to an encryption key management system and method of securely communicating data. First and second communicating devices are provided with a first and second identical sequences or databases of encryption keys. A pointer is set in both the first and second sequences at the same encryption key. Data from the first communicating device is encrypted using an encryption key adjacent the pointer in the first sequence of encryption keys. The encrypted data is then transmitted from the first communicating device and received by the second communicating device. The second communicating device decrypts the encrypted data received using an encryption key adjacent the pointer in the second sequence of encryption keys. After encrypting and/or decrypting data segments, the pointers in both the first and second sequences of encryption keys are incremented or moved in preparation for the next data segment or communication.