The invention provides methods for determining whether a transaction has taken place in geographic proximity to a wireless device. Upon receiving a notification to authenticate the use of an identity at a transaction location, where the identity is associated with a wireless terminal, the method determines an approximate location of the wireless terminal based on cached position information, GPS location, cellular geo-location, and/or Wi-Fi geolocation, and determines whether one or more of these is in geographic proximity to the location of the transaction.