“CRYPTOGRAPHY FOR BANKING TRANSACTION”

CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION:
The rise of digital banking has transformed the financial sector, making transactions faster,
more efficient, and accessible from anywhere in the world. However, this digital
transformation also brings significant security challenges, as cybercriminals constantly seek
new ways to exploit vulnerabilities in banking systems. Cryptography, a fundamental aspect
of cybersecurity, serves as the backbone of secure banking transactions. It ensures that
sensitive financial data remains protected against unauthorized access, fraud, and cyber
threats. By leveraging cryptographic techniques, banks and financial institutions can
safeguard customer transactions, maintain confidentiality, and build trust in digital banking
services. Cryptography involves encoding information in a way that only authorized parties
can access or interpret it. In banking, encryption methods such as symmetric-key and
asymmetric-key encryption are widely used to secure communication and financial
transactions. Symmetric encryption uses a single key for both encryption and decryption,
making it fast and efficient for securing real-time transactions. However, its key distribution
mechanism poses a challenge. Asymmetric encryption, on the other hand, uses a pair of
public and private keys, ensuring higher security by eliminating the risks associated with key
sharing. These encryption techniques help prevent data breaches and unauthorized access to
banking systems.
Apart from encryption, cryptographic authentication mechanisms such as digital signatures
and certificates play a crucial role in verifying the legitimacy of transactions. Digital
signatures ensure that a transaction originates from an authenticated source and has not been
tampered with during transmission. This prevents fraudulent activities such as identity theft
and man-in-the-middle attacks. Additionally, secure socket layer (SSL) and transport layer
security (TLS) protocols use cryptographic techniques to establish encrypted connections
between banks and customers, ensuring secure online transactions.
Another essential cryptographic technique in banking is hashing, which converts data into a
fixed-length unique string. Hashing is widely used for securing passwords, verifying
transaction integrity, and preventing unauthorized modifications in financial records. Once a

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

transaction is hashed, it cannot be reversed or altered, making it a reliable method for data
protection. Cryptographic hash functions such as SHA-256 are commonly used in banking
applications to enhance security and data integrity.
Blockchain technology is another revolutionary application of cryptography in banking. By
leveraging decentralized and immutable ledger technology, blockchain enhances security,
transparency, and trust in financial transactions. Each transaction in a blockchain is encrypted
and linked to previous transactions, creating a secure and tamper-proof system. This
eliminates the need for intermediaries and reduces fraud risks. Cryptographic consensus
mechanisms such as proof-of-work (PoW) and proof-of-stake (PoS) ensure that transactions
are verified and recorded securely. Moreover, cryptography plays a vital role in securing
mobile banking applications and digital wallets. Mobile banking apps use end-to-end
encryption to protect user data from interception by hackers. Secure authentication methods,
such as biometric verification (fingerprint and facial recognition) and one-time passwords
(OTPs), rely on cryptographic protocols to ensure that only authorized users can access their
banking accounts. Tokenization, another cryptographic method, replaces sensitive payment
information with unique tokens, minimizing the risk of card fraud in online transactions.
Despite its benefits, cryptography also faces several challenges in banking applications. The
increasing sophistication of cyber threats, including phishing, ransomware, and quantum
computing attacks, requires banks to continuously update their cryptographic techniques.
While current encryption standards provide strong security, the emergence of quantum
computers could potentially break traditional encryption algorithms. To counter this threat,
researchers are developing quantum-resistant cryptographic algorithms, such as lattice-based
and hash-based cryptography, to future-proof banking security.
Regulatory compliance is another crucial aspect of cryptographic implementation in banking.
Financial institutions must adhere to global security standards such as the Payment Card
Industry Data Security Standard (PCI DSS), General Data Protection Regulation (GDPR),
and banking security frameworks established by central banks. These regulations mandate the
use of strong encryption, secure authentication methods, and periodic security audits to
protect customer data and financial transactions. Non-compliance with these standards can
lead to severe legal and financial consequences for banks.

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

Additionally, cryptography aids in fraud detection and prevention by enabling real-time

monitoring of suspicious activities. Machine learning algorithms, combined with
cryptographic security measures, help financial institutions identify and prevent fraudulent
transactions before they occur. By analyzing transaction patterns and using encryption to
secure sensitive data, banks can enhance their ability to detect anomalies and unauthorized
access attempts. As digital banking continues to evolve, the integration of artificial
intelligence (AI) and cryptography is becoming increasingly significant. AI-driven
cryptographic models can automate security processes, optimize encryption techniques, and
enhance threat detection capabilities. Advanced AI-powered fraud detection systems use
cryptographic hashing to anonymize data while analyzing transaction behaviors, ensuring
privacy and security without compromising efficiency. Another emerging trend in banking
cryptography is homomorphic encryption, which allows computations on encrypted data
without decrypting it. This innovation enables secure cloud-based banking operations, where
sensitive financial data remains encrypted even during processing. Homomorphic encryption
has the potential to revolutionize secure data sharing and financial analytics while preserving
data privacy. Furthermore, the integration of multi-party computation (MPC) in banking
cryptography enhances security by allowing multiple parties to collaboratively compute a
function without revealing their individual inputs. MPC is particularly useful for secure
transactions, fraud prevention, and confidential data processing in the financial industry. This
technology ensures that customer information is protected, even in multi-party transactions
involving different financial institutions.
Cyber resilience is another key aspect of cryptographic security in banking. Banks must
implement robust encryption key management systems to prevent unauthorized access and
key leaks. Secure key storage methods, such as hardware security modules (HSMs) and
cryptographic key vaults, are essential for maintaining the confidentiality and integrity of
banking transactions. Effective key rotation policies and secure cryptographic protocols help
prevent security vulnerabilities in financial systems.
The role of cryptography extends beyond individual transactions to secure financial data
storage and backup systems. Encrypted databases ensure that sensitive customer information
remains protected from internal and external threats. Cloud-based banking services also rely
on encryption to secure data at rest and in transit, reducing the risk of data breaches.

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Encrypted backups further protect financial institutions from ransomware attacks and data
loss incidents.
Additionally, digital identity verification systems leverage cryptographic techniques to
enhance security in banking transactions. Technologies such as decentralized identity (DID)
and self-sovereign identity (SSI) use blockchain and encryption to enable secure, privacy-
preserving digital identity management. These systems reduce the risk of identity theft and
improve user authentication processes in banking services.
To ensure the continued effectiveness of cryptographic security in banking, ongoing research
and development are essential. Cryptographers, financial institutions, and cybersecurity
experts must collaborate to develop new encryption algorithms, enhance authentication
mechanisms, and improve fraud detection capabilities. Investment in cybersecurity training
and awareness programs is also crucial to ensure that banking employees and customers
understand the importance of cryptographic security in financial transactions.
In conclusion, cryptography is a cornerstone of secure banking transactions, providing
encryption, authentication, and integrity verification mechanisms that protect sensitive
financial data. From traditional encryption techniques to emerging technologies such as
blockchain, AI-driven cryptography, and homomorphic encryption, cryptographic security
continues to evolve in response to emerging cyber threats. While challenges such as quantum
computing and regulatory compliance remain, continuous advancements in cryptographic
security are essential to maintaining trust and reliability in the digital banking ecosystem. As
banking services increasingly shift towards digital platforms, cryptography will continue to
play a crucial role in ensuring secure, efficient, and fraud-resistant financial transactions.

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

1.2 PROBLEM DEFINATION:

With the rapid digitization of banking services, financial transactions are increasingly
conducted online, exposing sensitive customer data to cyber threats such as hacking, identity
theft, phishing, and fraud. Traditional security measures are often insufficient to counter
evolving cyber-attacks, leading to unauthorized access, data breaches, and financial losses.
The lack of robust encryption and authentication mechanisms in banking systems creates
vulnerabilities that malicious actors can exploit. Therefore, there is a critical need for
advanced cryptographic techniques to ensure secure, tamper-proof, and authenticated banking
transactions. Implementing strong encryption, digital signatures, and blockchain technology
can help mitigate risks, enhance transaction security, and build trust in digital banking
systems.

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

CHAPTER 2
LITERATURE SURVEY
Paper 1: Security and Privacy of QR Code Applications: A Comprehensive Study, General
Guidelines, and Solutions
Authors: Heider A. M. Wahsheh and Flaminia L. Luccio
Summary: This paper conducts a comprehensive security and privacy analysis of 100
barcode scanning applications. It identifies weaknesses in user privacy and app security
claims, provides a set of recommendations for developers, and introduces BarSec Droid, a
proof-of-concept secure barcode scanner. A comparative user experience test with DroidLa
highlights BarSec Droid’s security and usability advantages.

Paper 2: Digital Watermark Extraction Using Support Vector Machine with Principal
Component Analysis-Based Feature Reduction
Authors: Vivek Singh Verma, Rajib Kumar Jha, Aparajita Ojha
Summary: This paper presents a robust watermark extraction method that combines Support
Vector Machine (SVM) with Principal Component Analysis (PCA) for feature reduction. The
technique uses Lifting Wavelet Transform (LWT) to decompose the cover image and embeds
a binary watermark into low-pass subbands. The use of SVM ensures accurate classification
during extraction, and PCA minimizes redundant features. The proposed method improves
robustness and security, particularly under various attacks, outperforming conventional
wavelet-based methods.

Paper 3: Visual Cryptography Scheme with Meaningful Shares Based on QR Codes

Authors: Zhengxin Fu, Yuqiao Cheng, Bin Yu
Summary: This paper presents a (k, n)-Visual Cryptography Scheme (VCS) that integrates
QR codes to address the challenge of meaningless shares in traditional VCS. A probabilistic
sharing model is utilized to expand the maximum size of secret images. Shares are embedded
into meaningful QR codes while retaining their error correction capacity, making them

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readable by standard QR code readers. The scheme enhances practical applicability and
security authentication of QR codes from uncertain sources. Experimental comparisons
demonstrate its advantages over existing methods.

Paper 4: Contrast-Improved Visual Cryptography for General Access Structure

Authors: Xuehu Yan, Yuliang Lu, Lintao Liu, Song Wan, Wanmeng Ding, Hanlin Liu
Summary: This paper introduces a progressive visual secret sharing (PVSS) scheme based
on random grids (RG) tailored for general access structures (GAS). The method improves
visual quality while avoiding pixel expansion and codebook design. By classifying image
regions and random bits into three parts, the scheme progressively reveals the secret with
enhanced clarity. Experimental results confirm its efficiency and applicability for broader use
cases.

Paper 5: Research on an Advanced Novel Watermarking Technology with Higher

Robustness
Authors: Gengming Zhu
Summary: This paper proposes a dual-watermarking technology designed for enhanced
protection and robustness. A PN sequence is embedded in the wavelet domain of a primary
watermark before being incorporated into the host image. Experiments using the Lena and
Cameraman images demonstrate high robustness against common noise types, including
luminance changes, compression, low-pass filtering, and salt-and-pepper noise. The system
achieves a high Signal-to-Noise Ratio (SNR) of 44 dB, ensuring both clarity and durability of
the watermark.

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

CHAPTER 3
SCOPE OF THE PROJECT
3.1 Research and Awareness:

The project focuses on enhancing the security of banking transactions through advanced
cryptographic techniques, aiming to ensure the confidentiality, integrity, and authenticity of
financial data. It involves evaluating various cryptographic algorithms and protocols,
developing a robust encryption framework, integrating modern methods like Elliptic Curve
Cryptography (ECC) and Post-Quantum Cryptography, and assessing their performance
impacts. Key deliverables include a secure cryptographic framework, performance reports, an
integration plan, and comprehensive documentation. Functional requirements involve data
encryption, hashing, digital signatures, and robust authentication, while non-functional
requirements emphasize performance, scalability, security, and usability. The project will
proceed through phases of research, design, development, testing, deployment, and
maintenance, while addressing constraints such as regulatory compliance, integration
challenges, and budget constraints.

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3.2 Support Services:

[Link] Management Services
 Key Generation: Securely generate cryptographic keys for encryption,
decryption, signing, and verification.
 Key Distribution: Ensure secure distribution of keys among authorized parties.
 Key Storage: Use Hardware Security Modules (HSMs) or secure key vaults.
 Key Rotation: Periodically rotate keys to reduce risks of compromise.
 Key Revocation: Safely revoke compromised or expired keys.
2. Encryption and Decryption Support
 Data Encryption: Secure sensitive banking data using symmetric and asymmetric
encryption algorithms (e.g., AES, RSA).
 Secure Communication: Implement Transport Layer Security (TLS) for
encrypted communication channels.
 End-to-End Encryption: Protect data throughout its lifecycle, from transmission
to storage.
3. Authentication and Authorization
 Two-Factor Authentication (2FA): Strengthen user access security with a
combination of passwords and additional factors like OTPs or biometrics.
 Role-Based Access Control (RBAC): Ensure only authorized personnel access
specific data or systems.
 Digital Signatures: Authenticate transactions and verify integrity using
cryptographic signatures.
4. Fraud Detection and Monitoring
 Anomaly Detection: Use AI/ML algorithms to monitor unusual transaction
patterns.
 Real-Time Alerts: Notify stakeholders of suspicious activities.
 Audit Trails: Maintain secure logs of all transactions for future investigation.

5. Secure APIs and Interfaces

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

 API Security: Use encryption and tokenization to secure APIs used for banking
services.
 Zero Trust Architecture: Implement stringent validation for every user and
system interaction.
6. Compliance and Legal Support
 Regulatory Compliance: Ensure adherence to standards like GDPR, PCI DSS,
and ISO 27001.
 Regular Audits: Conduct security audits to identify vulnerabilities.
 Incident Response Plan: Have a clear strategy for dealing with breaches.
7. Disaster Recovery and Backup
 Data Backup: Regularly back up encrypted data to secure locations.
 Recovery Plans: Ensure business continuity with well-defined disaster recovery
protocols.

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

CHAPTER 4
METHODOLOGY

The methodology “CRYPTOGRAPHY FOR BANKING TRANSACTION” is

developed under waterfall model architecture as shown in the below figure 1.

Fig 1: Water fall model Architecture

The sequence phases in water fall model according to our project are mentioned below.
4.1 Requirement Analysis:
– Here requirement analysis are done based on following points
 Base paper for Weed classification
 Studying on Convolution Neural Networks
 Frame Extraction through camera

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4.2 System Design:

Hardware Specification:
 Processor: Intel I3/I5/I7
 RAM: 2 GB minimum
 Speed: 1.1 GHz minimum
 Hard Disk: 40 GB
 Keyboard: Standard Windows Keyboard
 Mouse: Two or Three Button Mouse
 Monitor: SVGA
 LAN Connection, Net Connection
Software Specification:
 Operating System: Windows XP/2007/2008
• Platform: JDK 1.8
• Application Server: Tomcat 5.0
• Front End: HTML, Java, JSP
• Scripts: JavaScript
• Server-side Script: Java Server Pages
• Editor: Eclipse IDE
• Database: MySQL
• Database Connectivity: JDBC
 Database Requirements
• MySQL Server

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4.3 Implementation:
1. Define Security Requirements
 Identify sensitive data (e.g., account details, transaction history).
 Establish compliance standards (e.g., GDPR, PCI DSS).
 Determine encryption goals: confidentiality, integrity, and
authentication.
2. Select Cryptographic Algorithms
 Symmetric Encryption: Use AES (256-bit) for data encryption and
decryption.
 Asymmetric Encryption: Implement RSA (2048-bit or higher) for key
exchange.
 Hashing: Use SHA-256 or SHA-3 for data integrity verification.
 Digital Signatures: Employ ECDSA or RSA for transaction authenticity.
 Key Derivation: Use PBKDF2 or Argon2 for secure key generation from
passwords.
3. Design a Secure Key Management System
 Generate keys using a secure random number generator (e.g., OpenSSL,
BouncyCastle).
 Store keys securely in a key vault (e.g., HashiCorp Vault, AWS KMS).
 Implement key lifecycle management: generation, rotation, and
revocation.
4. Implement Data Encryption
 Encrypt sensitive data before storing it in the database.
 Use AES-GCM for authenticated encryption to ensure both
confidentiality and integrity.
 Apply tokenization for sensitive fields (e.g., account numbers).
5. Secure Communication Channels
 Enforce TLS 1.3 for all communications between clients and servers.
 Use HSTS (HTTP Strict Transport Security) to prevent protocol
downgrade attacks.
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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

 Apply mutual TLS for server and client authentication.

6. Develop Authentication and Access Control
 Integrate multi-factor authentication (MFA) for user accounts.
 Use OAuth 2.0 or OpenID Connect (OIDC) for secure session
management.
 Implement role-based access control (RBAC) for system users.
7. Implement Digital Signatures
 Generate digital signatures for transactions using private keys.
 Verify signatures on the server to confirm transaction authenticity.
 Use libraries like OpenSSL or PyCryptodome for signing and
verification.
8. Data Integrity Verification
 Hash transaction data using SHA-256 before transmission.
 Compare hashes at both ends to verify data integrity.

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

CHAPTER 5
DETAILS OF DESIGN, WORKING AND PROCESSES
5.1 UML Diagrams
5.1.1 Data Flow Diagrams
[Link] DFD level 0

Fig 2: DFD level 0

A data flow diagram (DFD) is a graphical representation of the “flow” of data through
an information system, modeling its process aspects. A DFD is often used as a preliminary
step to create an overview of the system, which can later be elaborated. DFDs can also be
used for the visualization of data processing.

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

[Link] DFD level 1

Fig 3: DFD level 1

A data flow diagram (DFD) is a graphical representation of the “flow” of data
through an information system, modeling its process aspects. A DFD is often used as
a preliminary step to create an overview of the system, which can later be elaborated.
DFDs can also be used for the visualization of data processing.

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

[Link] DFD level 2

Fig 4 : DFD level 2

A Level 2 Data Flow Diagram (DFD) provides a detailed breakdown of specific

processes, data flows, and data stores within a system, elaborating on the components
outlined in the Level 1 DFD. It identifies sub-processes, showing how data enters from
external entities, is processed within the system, and flows out to other entities, processes,
or data stores. Using numbered processes, labeled data flows, and defined data stores, it
offers
a granular view of data handling and system functionality. The purpose of a Level 2
DFD is to provide a clear understanding of intricate system operations, help identify
inefficiencies or errors, and act as a detailed blueprint for developers to implement
components. For example, in a phishing detection system, it can detail processes like URL
validation, data storage, machine learning analysis, and alert generation, ensuring a
comprehensive and precise representation of system operations.

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[Link] Activity Diagram

Activity diagram focuses on flow of control from activity to activity. It shows work
flow of our model. Below figure shows activity states, transitions, loops, decision nodes
and concurrent activities use by our proposed system.

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Fig 5: Activity Diagram

[Link] Use case Diagram

Fig 6: Use case Diagram

The Use case Diagram depicts the various use cases that are performed by the user the
proposed model. The use cases for the user which feeds the dataset, then trains the system
after which the user feeds the test images and then views the results

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[Link] Sequence Diagram

Fig 7: Sequence Diagram

Sequence diagrams provide a graphical representation of object interactions over time.
These typically show a user or actor, and the objects and components they interact with in the
execution of a use case. One sequence diagram typically represents a single Use Case
‘scenario’ or own of events. Sequence diagrams are an excellent way of documenting usage
scenarios and both capturing required objects early in analysis and verifying object use

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later in design. The diagrams show the own of messages from one object to another, and as
such correspond to the methods and events supported by a class/object.

[Link] Class Diagram

Fig 8: Class Diagram

Class diagram represents the static view of application and it shows a collection of classes,
interfaces, associations, collaborations, and constraints. In this diagram different classes
shows interfacing of different modules.

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[Link] Deployment Diagram

Fig 9: Deployment Diagram

A Deployment Diagram is a type of UML diagram that illustrates the physical deployment of
software components on hardware nodes. It represents how software is distributed across the system
architecture and how components communicate with each other in the physical environment.
In general, a Deployment Diagram typically includes the following elements:
1. Nodes: These represent physical hardware devices or execution environments where software
components run. Examples of nodes are servers, clients, databases, and network devices.
2. Components: These are the software modules or packages that run on the nodes. Components
can include applications, services, databases, or any software that needs to be deployed.

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[Link] Package Diagram

Fig 10: Package Diagram

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[Link] State Transition Diagram

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Fig 11: State Transition Diagram

A State Transition Diagram (STD), also known as a State Machine Diagram, depicts
the various states that an object can be in and the transitions between those states based on
events. Figure 11 shows an example of an STD for a simple system. The diagram consists
of circles representing states and arrows representing transitions. Each transition is labeled

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

with the event that triggers it, and optionally, actions or conditions associated with the
transition may be included. In this example, the system starts in the "Idle" state. When the
"Start" event occurs, the system transitions to the "Processing" state, where it remains until
the "Stop" event occurs, transitioning it back to the "Idle" state. State Transition Diagrams
are useful for visualizing the behavior of systems that have a finite number of states and
transition between them based on events. They are commonly used in software engineering
to design and understand the behavior of software systems.

5.1.2 Action Plan

Fig 12: Action Plan

5.2 WORKING AND PROCESSES

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

Figure 13: Proposed work

The encryption process for the banking transaction system begins when the user logs into the
system and authenticates their identity. After logging in, the user initiates a transaction
through the bank's interface. The system then generates a secret image related to the
transaction. This image is processed using a visual cryptography technique, which splits the
image into two parts: Share1 and Share2. These two shares are meaningless on their own and
do not reveal any sensitive information. The shares are securely stored in the database,
ensuring that only the encrypted parts are saved, not the original secret image.
For the decryption process, when verification is required, both Share1 and Share2 are
retrieved from the database. The system then reconstructs the original secret image by
combining the two shares. This reconstructed image is uploaded for verification purposes. If
the reconstructed image matches the expected result, the transaction is considered valid, and
the system confirms the transaction as successful.

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The key security advantage of this system is that the individual shares are meaningless
without the other. The combination of both shares is necessary to reconstruct the original
image, providing an additional layer of security to the banking transactions. Furthermore, the
database stores only the encrypted shares, not the original image, ensuring that sensitive data
remains protected throughout the process. This approach enhances the overall security of the
banking system by using visual cryptography to safeguard critical information during
transactions.
Encryption Process:
 User Login: User authenticates into the banking system.
 Transaction Initiation: User initiates a transaction.
 Secret Image Creation: System generates a secret image for the transaction.
 Visual Cryptography: Image is split into two parts: Share1 and Share2.
 Store Shares: Both shares are stored in the database.
Decryption Process:
 Retrieve Shares: Share1 and Share2 are fetched from the database.
 Reconstruct Image: Shares are combined to reconstruct the secret image.
 Image Verification: Reconstructed image is verified for match.
 Transaction Success: If image matches, transaction is confirmed.
Security Benefit:
 Shares Alone Are Meaningless: Single shares do not reveal the original image.
 Both Shares Required: Both shares needed to reconstruct the image and complete
the transaction.

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

CHAPTER 6

RESULT AND APPLICATIONS

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6.1 Applications
1. Enhanced Security for Financial Transactions: Visual cryptography ensures that sensitive
information, such as transaction data or account details, remains confidential by splitting it
into two or more shares, which cannot be decrypted without all parts.
2. Secure Authentication and Authorization: Used for user verification, visual cryptography
can be implemented to store encrypted authentication data that requires both parties (e.g., user
and bank server) to reconstruct and verify before granting access.
3. Protection of Sensitive Documents: In banking, visual cryptography can be applied to protect
financial documents, such as contracts, bank statements, or loan approvals. Only authorized
parties who possess the correct shares can view the full document.
4. Secure Transaction Confirmation: For confirming high-value or sensitive transactions, the
visual cryptography technique can be used to ensure that no single party can tamper with or
gain access to the original transaction data.
5. Data Integrity Verification: Used in verifying that transaction data has not been altered
during transmission. Both shares must be combined to ensure the data's integrity, adding a
layer of protection against man-in-the-middle attacks.
6. Two-Factor or Multi-Factor Authentication (2FA/MFA): Visual cryptography can be
integrated into multi-factor authentication methods. One share could be stored on the server
and another on a user's device, requiring both parts for authentication.
7. Digital Voting Systems: Can be used in digital voting systems to ensure vote confidentiality
and integrity. Only authorized parties with the correct shares can reconstruct the original vote.
8. Secure Communication: Useful in sending confidential messages where parts of the message
are encrypted into shares. Only recipients who possess the necessary shares can decrypt and
view the original message.

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6.2 TEST CASES

1. Unit Testing:
 Purpose: Test individual cryptographic functions (e.g., encryption, decryption,
hashing).
 Examples:
o Test encryption function (correctly encrypts data).
o Test decryption function (correctly decrypts data back to original).
o Test hashing algorithm (consistent output for same input).
o Test key generation (proper cryptographic key generation).
 Tools: JUnit, PyTest, NUnit.
 Example: Encrypt and then decrypt data, ensuring it matches the original.
2. Integration Testing:
 Purpose: Test how different cryptographic modules and system components work
together.
 Examples:
o Test encryption and database integration (store and retrieve encrypted data).
o Verify interaction between authentication and encryption modules.
o Ensure transaction integrity through the system (encrypted data correctly
processed).
 Tools: Postman, Selenium, JUnit.
 Example: Encrypt transaction data, save to database, and retrieve it for further
processing.
3. Validation Testing:
 Purpose: Ensure the system meets business and security requirements.
 Examples:
o Validate correctness of visual cryptography (split and reconstruct image
properly).

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o Ensure encryption standards comply with industry security regulations.

o Verify end-to-end transaction security (from login to completion).
 Tools: Manual testing, penetration testing, OWASP ZAP.
 Example: Test end-to-end transaction security, ensuring encryption standards are
met.
In summary:
 Unit Testing: Verifies individual cryptographic functions (encryption,
decryption, hashing, etc.) work as expected.
 Integration Testing: Ensures that cryptographic modules interact correctly
with other system components (e.g., database, transaction processing).
 Validation Testing: Confirms that the cryptographic system meets security
standards and business requirements (e.g., correctness of visual cryptography,
compliance with encryption regulations).

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6.2.1 Testing:

Sr. Test Case User Input Expected Result Actual

No Result
1 Test Encryption Enter sensitive Data is encrypted and returns a Pass
Function transaction data ciphertext
2 Test Decryption Enter encrypted Data is correctly decrypted and Pass
Function transaction data matches the original input
3 Test Hashing Enter transaction ID Correct hash of transaction ID is Pass
Algorithm generated
4 Test Key Generation Enter key size (e.g., Cryptographic keys are Pass
2048 bits) generated correctly
5 Test Share1 Storage Upload Share1 Share1 is stored securely in the Pass
(Database) database
6 Test Share2 Storage Upload Share2 Share2 is stored securely in the Pass
(Database) database
7 Test Transaction User initiates Transaction data is encrypted Pass
Initiation transaction and stored correctly
8 Test Share Retrieval Retrieve Share1 and Both shares are retrieved Pass
Share2 correctly from the database
9 Test Reconstructed Combine Share1 and Reconstructed image matches Pass
Image Share2 the original transaction data
10 Test Transaction Verify reconstructed If images match, transaction is Pass
Success image confirmed as successful

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

CHAPTER 7
CONCLUSION AND FUTURE SCOPE

The implementation of Visual Cryptography for Banking Transactions provides a

robust security mechanism to safeguard sensitive financial data. By splitting the
original transaction information into two or more encrypted shares, this system ensures
that no single party can access or decrypt the sensitive data on its own. Only
authorized entities possessing both shares can reconstruct the original data, adding a
crucial layer of security to online banking systems.
Through rigorous unit testing, integration testing, and validation testing, the system’s
encryption, decryption, and transaction processing functions can be validated for
correctness, performance, and compliance with security standards. The cryptographic
techniques ensure that the data remains secure during transmission and storage,
providing users and banks with confidence in their digital transactions.
Overall, this system significantly enhances the privacy and integrity of financial
transactions, making it highly beneficial for preventing fraud, unauthorized access, and
data breaches.

Future Scope:
1. Scalability and Optimization:
 As transaction volumes grow, optimization of encryption algorithms for performance
and scalability will be crucial to maintain system efficiency. Future implementations
can focus on improving the speed of encryption and decryption processes.
[Link] with Blockchain:

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

 Visual cryptography could be integrated with blockchain technology to further

enhance data integrity and transparency. Blockchain can be used to store encrypted
shares securely and provide an immutable audit trail of transactions.
3. Use of Advanced Cryptographic Algorithms:
 Future systems can incorporate newer cryptographic algorithms like quantum-
resistant encryption to make the system more future-proof against advancements in
quantum computing, ensuring data remains secure against potential threats.
4. Multifactor Authentication (MFA):
 Adding multiple layers of security such as biometric authentication (fingerprint, face
recognition) combined with visual cryptography will further bolster the security of
online banking platforms.
[Link]-Platform and Mobile Integration:
 Expanding the visual cryptography technique to mobile banking apps, allowing
seamless and secure transactions across various platforms, will increase accessibility
while maintaining high security.
[Link]-time Fraud Detection:
 Implementing machine learning algorithms alongside visual cryptography for real-
time fraud detection could help identify suspicious transactions and unauthorized
activities during encryption or decryption processes.
[Link] Compliance:
 Future versions of the system can adapt to meet international compliance standards
(e.g., GDPR, PCI DSS) to ensure that the cryptographic techniques are legally
compliant in different regions.

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

CHAPTER 8
APPENDIX

The Appendix provides additional technical details and references supporting the Visual
Cryptography for Banking Transactions system. It covers key cryptographic concepts such as
encryption, decryption, and hashing, as well as the visual cryptography process involving
splitting and reconstructing shares. It also outlines the cryptographic algorithms used (e.g.,
AES, RSA, SHA-256) and lists essential system requirements for implementation. The
system complies with industry standards like FIPS 140-2, PCI DSS, and GDPR to ensure data
security. Additionally, test cases and references are provided to validate and support the
cryptographic methods employed.

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

CHAPTER 9
REFERNCES & BIBLIOGRAPHY

1. Menezes, A. J., Van Oorschot, P. C., & Vanstone, S. A. (1996). Handbook of Applied
Cryptography. Available at: [Link]

2. Stallings, W. (2016). Cryptography and Network Security: Principles and Practice (7th
ed.). Available at: [Link]
principles-and-practice/P100000274699

3. Schneier, B. (1996). Applied Cryptography: Protocols, Algorithms, and Source Code in C

(2nd ed.). Available at: [Link]
%3A+Protocols%2C+Algorithms%2C+and+Source+Code+in+C%2C+2nd+Edition-p-
9781119096726

4. Katz, J., & Lindell, Y. (2014). Introduction to Modern Cryptography (2nd ed.). Available
at: [Link]
book/9780367331584

5. Ferguson, N., Schneier, B., & Kohno, T. (2010). Cryptography Engineering: Design
Principles and Practical Applications. Available at:
[Link]
%3A+Design+Principles+and+Practical+Applications-p-9780470474242

6. Diffie, W., & Hellman, M. E. (1976). New Directions in Cryptography. Available at:
[Link]

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7. Rivest, R. L., Shamir, A., & Adleman, L. (1978). A Method for Obtaining Digital
Signatures and Public-Key Cryptosystems. Available at:
[Link]

8. Ellison, C. M., & Schneier, B. (2000). Ten Risks of PKI: What You're Not Being Told
about Public Key Infrastructure. Available at:
[Link]

9. Boneh, D., & Franklin, M. (2001). Identity-Based Encryption from the Weil Pairing.
Available at: [Link]

10. Matsumoto, T., & Imai, H. (1986). Public Quadratic Polynomial-Tuples for Efficient
Signature-Verification and Message-Encryption. Available at:
[Link]

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“CRYPTOGRAPHY FOR BANKING TRANSACTION”

 Certificates:

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