Secure Web Transaction
- 2. Overview Electronic Commerce Underlying Technologies – Cryptography – Network Security Protocols Electronic Payment Systems – Credit card-based methods – Electronic Cheques – Anonymous payment – Micropayments – SmartCards
- 3. Commerce Commerce: Exchange of Goods / Services Contracting parties: Buyer and Seller Fundamental principles: Trust and Security Intermediaries: • Direct (Distributors, Retailers) • Indirect (Banks, Regulators) Money is a medium to facilitate transactions Attributes of money: – Acceptability, Portability, Divisibility – Security, Anonymity – Durability, Interoperability
- 4. E-Commerce Automation of commercial transactions using computer and communication technologies Facilitated by Internet and WWW Business-to-Business: EDI Business-to-Consumer: WWW retailing Some features: – Easy, global access, 24 hour availability – Customized products and services – Back Office integration – Additional revenue stream
- 5. E-Commerce Steps Attract prospects to your site – Positive online experience – Value over traditional retail Convert prospect to customer – Provide customized services – Online ordering, billing and payment Keep them coming back – Online customer service – Offer more products and conveniences Maximize revenue per sale
- 7. E-Commerce Problems Snooper Unknown customer Unreliable Merchant
- 8. E-Commerce risks Customer's risks – Stolen credentials or password – Dishonest merchant – Disputes over transaction – Inappropriate use of transaction details Merchant’s risk – Forged or copied instruments – Disputed charges – Insufficient funds in customer’s account – Unauthorized redistribution of purchased items Main issue: Secure payment scheme
- 9. Why is the Internet insecure? S S Host security – Client – Server (multi-user) C S Transmission C security Eavesdropping Denial of service – Passive sniffing A B A B – Active spoofing and C C masquerading Replay/fabrication – Denial of service A C B A B Active content Interception C – Java, Javascript, ActiveX, DCOM
- 10. E-Commerce Security Authorization, Access Control: – protect intranet from hordes: Firewalls Confidentiality, Data Integrity: – protect contents against snoopers: Encryption Authentication: – both parties prove identity before starting transaction: Digital certificates Non-repudiation: – proof that the document originated by you & you only: Digital signature
- 11. Encryption (shared key) m: message k: shared key - Sender and receiver agree on a key K - No one else knows K - K is used to derive encryption key EK & decryption key DK - Sender computes and sends EK(Message) - Receiver computes DK(EK(Message)) - Example: DES: Data Encryption Standard
- 12. Public key encryption m: message sk: private secret key pk: public key · Separate public key pk and private key sk · Private key is kept secret by receiver · Dsk(Epk(mesg)) = mesg and vice versa · Knowing Ke gives no clue about Kd
- 13. Digital signature Sign: sign(sk,m) = Dsk(m) Verify: Epk(sign(sk,m)) = m Sign on small hash function to reduce cost
- 14. Signed and secret messages pk2 m pk1 sign(sk1, m) Verify-sign Encrypt(pk1) Encrypt(pk2) Epk2(Dsk1(m) ) Decrypt(sk2) First sign, then encrypt: order is important.
- 15. Digital certificates How to establish authenticity of public key? Register public key Download public key
- 17. Electronic payments: Issues Secure transfer across internet High reliability: no single failure point Atomic transactions Anonymity of buyer Economic and computational efficiency: allow micropayments Flexiblility: across different methods Scalability in number of servers and users
- 18. E-Payments: Secure transfer SSL: Secure socket layer – below application layer S-HTTP: Secure HTTP: – On top of http
- 19. SSL: Secure Socket Layer Application protocol independent Provides connection security as: – Connection is private: Encryption is used after an initial handshake to define secret (symmetric) key – Peer's identity can be authenticated using public (asymmetric) key – Connection is reliable: Message transport includes a message integrity check (hash) SSL Handshake protocol: – Allows server and client to authenticate each other and negotiate a encryption key
- 20. SSL Handshake Protocol 1. Client "Hello": challenge data, cipher specs 2. Server "Hello": connection ID, public key certificate, cipher specs 3. Client "session-key": encrypted with server's public key 4. Client "finish": connection ID signed with client's private key 5. Server "verify": client's challenge data signed with server's private key 6. Server "finish": session ID signed with server's private key Session IDs and encryption options cached to avoid renegotiation for reconnection
- 21. S-HTTP: Secure HTTP Application level security (HTTP specific) "Content-Privacy-Domain" header: – Allows use of digital signatures &/ encryption – Various encryption options Server-Browser negotiate – Property: cryptographic scheme to be used – Value: specific algorithm to be used – Direction: One way/Two way security
- 22. Secure end to end protocols
- 23. E-Payments: Atomicity Money atomicity: no creation/destruction of money when transferred Goods atomicity: no payment w/o goods and viceversa. – Eg: pay on delivery of parcel Certified delivery: the goods delivered is what was promised: – Open the parcel in front of a trusted 3rd party
- 25. Payment system types Credit card-based methods – Credit card over SSL - First Virtual -SET Electronic Cheques – - NetCheque Anonymous payments – - Digicash - CAFE Micropayments SmartCards
- 26. Encrypted credit card payment Set secure communication channel between buyer and seller Send credit card number to merchant encrypted using merchant’s public key Problems: merchant fraud, no customer signature Ensures money but no goods atomicity Not suitable for microtransactions
- 27. First virtual Customer assigned virtual PIN by phone Customer uses PIN to make purchases Merchant contacts First virtual First virtual send email to customer If customer confirms, payment made to merchant Not goods atomic since customer can refuse to pay Not suitable for small transactions Flood customer’s mailbox, delay merchant
- 28. Cybercash Customer opens account with cybercash, gives credit card number and gets a PIN Special software on customer side sends PIN, signature, transaction amount to merchant Merchant forwards to cybercash server that completes credit card transaction Pros: credit card # not shown to server, fast Cons: not for microtransactions
- 29. SET:Secure Electronic Transactions Merge of STT, SEPP, iKP Secure credit card based protocol Common structure: – Customer digitally signs a purchase along with price and encrypts in bank’s public key – Merchant submits a sales request with price to bank. – Bank compares purchase and sales request. If price match, bank authorizes sales Avoids merchant fraud, ensures money but no goods atomicity
- 30. Electronic Cheques Leverages the check payments system, a core competency of the banking industry. Fits within current business practices Works like a paper check does but in pure electronic form, with fewer manual steps. Can be used by all bank customers who have checking accounts Different from Electronic fund transfers
- 31. How does echeck work? Exactly same way as paper Check writer "writes" the echeck using one of many types of electronic devices ”Gives" the echeck to the payee electronically. Payee "deposits" echeck, receives credit, Payee's bank "clears" the echeck to the paying bank. Paying bank validates the echeck and "charges" the check writer's account for the check.
- 32. Anonymous payments 5. Deposit token at bank. If double spent reveal identity and notify police 1. Withdraw money: cyrpographically encoded tokens merchant customer 3. Send token after adding merchant’s identity 4. Check validity and send goods 2. Transform so merchant can check validity but identity hidden
- 33. Problems with the protocol Not money atomic: if crash after 3, money lost – if money actually sent to merchant: returning to bank will alert police – if money not sent: not sending will lead to loss High cost of cryptographic transformations: not suitable for micropayments Examples: Digicash
- 34. Micropayments on hyperlinks HTML extended to have pricing details with each link: displayed when user around the link On clicking, browser talks to E-Wallet that initiates payment to webserver of the source site Payment for content providers Attempt to reduce overhead per transaction
- 35. Micropayments: NetBill Customer & merchant have account with NetBill server Protocol: – Customer request quote from merchant, gets quote and accepts – Merchant sends goods encrypted by key K – Customer prepares & signs Electronic Purchase Order having <price, crypto-checksum of goods> – Merchant countersigns EPO, signs K and sends both to NetBill server – NetBill verifies signatures and transfers funds, stores K and crypto-checksum and – NetBill sends receipt to merchant and K to customer
- 36. Recent micropayment systems Company Payment Unique system code Compaq Millicent mcent IBM IBM payment mpay system France Micrommerce microm Telecom
- 37. Smartcards 8-bit micro, < 5MHz, < 2k RAM, 20k ROM Download electronic money on a card: wallet on a card Efficient, secure, paperless, intuitive and speedy Real and virtual stores accept them Less susceptible to net attacks since disconnected Has other uses spanning many industries, from banking to health care
- 38. Mondex Smart card based sales and card to card transfers Money is secured through a password and transactions are logged on the card Other operation and features similar to traditional debit cards Card signs transaction: so no anonymity Need card reader everywhere Available only in prototypes
- 39. Summary Various protocols and software infrastructure for ecommerce Today: credit card over SSL or S-HTTP Getting there: – smart cards, – digital certificates Need: – legal base for the entire ecommerce business – global market place for ecommerce