Security in E-Commerce
Presented By
Akhand Pratap Singh
What is Security
• Security is an essential part of any transaction
that takes place over the internet. Customer
will loose his/her faith in e-business if its
security is compromised. Following are the
essential requirements for safe e-
payments/transactions
E-Commerce Security Enviorment
• Confidentiality
• Integrity
• Availability
• Authenticity
• Non-Repudiability
• Encryption
• Auditabilty
Measure to insure security
• Encryption
• Digital signature
• Security Certificates
Security Protocols in Internet
• SSL(Secure Socket Layer)
• It is the most commonly used protocol and is
widely used across the industry. It meets
following security requirements −
• Authentication
• Encryption
• Integrity
• Non-reputability
Secure Electronic Transaction
• Card Holder's Digital Wallet Software
• Merchant Software
• Payment Gateway Server Software
• Certificate Authority Software
The Tension Between Security and
Other Values
• Security vs. ease of use: The more security
measures that are added, the more difficult a
site is to use, and the slower it becomes
• Security vs. desire of individuals to act
anonymously
Security Threats in the E-commerce
Environment
• Three key points of vulnerability:
 Client
 Server
 Communications channel
• Most common threats:
 Malicious code
 Hacking
 Credit card fraud/theft
 Spoofing
 Denial of service attacks
 Sniffing
 Insider jobs
A Logical Design for a Simple Web Site
Vulnerable Points in an E-commerce
Environment
Malicious Code
• Viruses: computer program that as ability to replicate
and spread to other files; most also deliver a
“payload” of some sort (may be destructive or
benign); include macro viruses, file-infecting viruses
and script viruses
• Worms: designed to spread from computer to
computer
• Trojan horse: appears to be benign, but then does
something other than expected
• Bad applets (malicious mobile code): malicious Java
applets or ActiveX controls that may be downloaded
onto client and activated merely by surfing to a Web
site
Spoofing, DoS and dDoS Attacks,
Sniffing, Insider Jobs
• Spoofing: Misrepresenting oneself by using fake e-mail
addresses or masquerading as someone else
• Denial of service (DoS) attack: Hackers flood Web site with
useless traffic to inundate and overwhelm network
• Distributed denial of service (dDoS) attack: hackers use
numerous computers to attack target network from
numerous launch points
• Sniffing: type of eavesdropping program that monitors
information traveling over a network; enables hackers to
steal proprietary information from anywhere on a network
• Insider jobs: single largest financial threat
Fake mail example
Hacking and Cybervandalism
• Hacker: Individual who intends to gain unauthorized access to
a computer systems
• Cracker: Used to denote hacker with criminal intent (two
terms often used interchangeably)
• Cybervandalism: Intentionally disrupting, defacing or
destroying a Web site
• Types of hackers include:
 White hats – Members of “tiger teams” used by corporate
security departments to test their own security measures
 Black hats – Act with the intention of causing harm
 Grey hats – Believe they are pursuing some greater good
by breaking in and revealing system flaws
Technology Solutions
• Protecting Internet communications
(encryption)
• Securing channels of communication (SSL
secure sockets layer), S-HTTP, VPNs) URL
changes from HTTP to HTTPS
• SSL: Protocol that provides secure
communications between client and server
• Protecting networks (firewalls)
• Protecting servers and clients
Tools Available to Achieve Site Security
Protecting Internet Communications:
Encryption
• Encryption: The process of transforming plain text or data into
cipher text that cannot be read by anyone other than the
sender and receiver
• Purpose:
 Secure stored information
 Secure information transmission
• Provides:
 Message integrity:
 Nonrepudiation
 Authentication
 Confidentiality
Encryption ensures:
 Message integrity: provides assurance that
message has been altered
 Nonrepudiation: prevents the user from denying
he or she sent the message
 Authentication: provides verification of the
identity of the person or machine sending the
message
 Confidentiality: gives assurance that the message
was not read by others
Symmetric Key Encryption
• Also known as secret key encryption
• Both the sender and receiver use the same
digital key to encrypt and decrypt message
• Requires a different set of keys for each
transaction
• Data Encryption Standard (DES): Most
widely used symmetric key encryption
today; uses 56-bit encryption key; other
types use 128-bit keys up through 2048 bits
Public Key Encryption
• Public key cryptography solves symmetric key
encryption problem of having to exchange secret key
• Uses two mathematically related digital keys – public
key (widely disseminated) and private key (kept
secret by owner)
• Both keys are used to encrypt and decrypt message
• Once key is used to encrypt message, same key
cannot be used to decrypt message
• For example, sender uses recipient’s public key to
encrypt message; recipient uses his/her private key
to decrypt it
Public Key Cryptography – A Simple
Case
Digital Envelopes
• Addresses weaknesses of public key
encryption (computationally slow, decreases
transmission speed, increases processing
time) and symmetric key encryption (faster,
but more secure)
• Uses symmetric key encryption to encrypt
document but public key encryption to
encrypt and send symmetric key
Secure Negotiated Sessions Using SSL
Protecting Networks: Firewalls and
Proxy Servers
• Firewall: Software application that acts as a filter between a
company’s private network and the Internet
• Firewall methods include:
 Packet filters
 Application gateways
• Proxy servers: Software servers that handle all
communications originating from for being sent to the
Internet (act as “spokesperson” or “bodyguard” for the
organization)
Firewalls and Proxy Servers
Protecting Servers and Clients
• Operating system controls: Authentication and
access control mechanisms
• Anti-virus software: Easiest and least
expensive way to prevent threats to system
integrity

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Security in e commerce

  • 1. Security in E-Commerce Presented By Akhand Pratap Singh
  • 2. What is Security • Security is an essential part of any transaction that takes place over the internet. Customer will loose his/her faith in e-business if its security is compromised. Following are the essential requirements for safe e- payments/transactions
  • 4. • Confidentiality • Integrity • Availability • Authenticity • Non-Repudiability • Encryption • Auditabilty
  • 5. Measure to insure security • Encryption • Digital signature • Security Certificates
  • 6. Security Protocols in Internet • SSL(Secure Socket Layer) • It is the most commonly used protocol and is widely used across the industry. It meets following security requirements − • Authentication • Encryption • Integrity • Non-reputability
  • 7. Secure Electronic Transaction • Card Holder's Digital Wallet Software • Merchant Software • Payment Gateway Server Software • Certificate Authority Software
  • 8. The Tension Between Security and Other Values • Security vs. ease of use: The more security measures that are added, the more difficult a site is to use, and the slower it becomes • Security vs. desire of individuals to act anonymously
  • 9. Security Threats in the E-commerce Environment • Three key points of vulnerability:  Client  Server  Communications channel • Most common threats:  Malicious code  Hacking  Credit card fraud/theft  Spoofing  Denial of service attacks  Sniffing  Insider jobs
  • 10. A Logical Design for a Simple Web Site
  • 11. Vulnerable Points in an E-commerce Environment
  • 12. Malicious Code • Viruses: computer program that as ability to replicate and spread to other files; most also deliver a “payload” of some sort (may be destructive or benign); include macro viruses, file-infecting viruses and script viruses • Worms: designed to spread from computer to computer • Trojan horse: appears to be benign, but then does something other than expected • Bad applets (malicious mobile code): malicious Java applets or ActiveX controls that may be downloaded onto client and activated merely by surfing to a Web site
  • 13. Spoofing, DoS and dDoS Attacks, Sniffing, Insider Jobs • Spoofing: Misrepresenting oneself by using fake e-mail addresses or masquerading as someone else • Denial of service (DoS) attack: Hackers flood Web site with useless traffic to inundate and overwhelm network • Distributed denial of service (dDoS) attack: hackers use numerous computers to attack target network from numerous launch points • Sniffing: type of eavesdropping program that monitors information traveling over a network; enables hackers to steal proprietary information from anywhere on a network • Insider jobs: single largest financial threat
  • 15. Hacking and Cybervandalism • Hacker: Individual who intends to gain unauthorized access to a computer systems • Cracker: Used to denote hacker with criminal intent (two terms often used interchangeably) • Cybervandalism: Intentionally disrupting, defacing or destroying a Web site • Types of hackers include:  White hats – Members of “tiger teams” used by corporate security departments to test their own security measures  Black hats – Act with the intention of causing harm  Grey hats – Believe they are pursuing some greater good by breaking in and revealing system flaws
  • 16. Technology Solutions • Protecting Internet communications (encryption) • Securing channels of communication (SSL secure sockets layer), S-HTTP, VPNs) URL changes from HTTP to HTTPS • SSL: Protocol that provides secure communications between client and server • Protecting networks (firewalls) • Protecting servers and clients
  • 17. Tools Available to Achieve Site Security
  • 18. Protecting Internet Communications: Encryption • Encryption: The process of transforming plain text or data into cipher text that cannot be read by anyone other than the sender and receiver • Purpose:  Secure stored information  Secure information transmission • Provides:  Message integrity:  Nonrepudiation  Authentication  Confidentiality
  • 19. Encryption ensures:  Message integrity: provides assurance that message has been altered  Nonrepudiation: prevents the user from denying he or she sent the message  Authentication: provides verification of the identity of the person or machine sending the message  Confidentiality: gives assurance that the message was not read by others
  • 20. Symmetric Key Encryption • Also known as secret key encryption • Both the sender and receiver use the same digital key to encrypt and decrypt message • Requires a different set of keys for each transaction • Data Encryption Standard (DES): Most widely used symmetric key encryption today; uses 56-bit encryption key; other types use 128-bit keys up through 2048 bits
  • 21. Public Key Encryption • Public key cryptography solves symmetric key encryption problem of having to exchange secret key • Uses two mathematically related digital keys – public key (widely disseminated) and private key (kept secret by owner) • Both keys are used to encrypt and decrypt message • Once key is used to encrypt message, same key cannot be used to decrypt message • For example, sender uses recipient’s public key to encrypt message; recipient uses his/her private key to decrypt it
  • 22. Public Key Cryptography – A Simple Case
  • 23. Digital Envelopes • Addresses weaknesses of public key encryption (computationally slow, decreases transmission speed, increases processing time) and symmetric key encryption (faster, but more secure) • Uses symmetric key encryption to encrypt document but public key encryption to encrypt and send symmetric key
  • 25. Protecting Networks: Firewalls and Proxy Servers • Firewall: Software application that acts as a filter between a company’s private network and the Internet • Firewall methods include:  Packet filters  Application gateways • Proxy servers: Software servers that handle all communications originating from for being sent to the Internet (act as “spokesperson” or “bodyguard” for the organization)
  • 27. Protecting Servers and Clients • Operating system controls: Authentication and access control mechanisms • Anti-virus software: Easiest and least expensive way to prevent threats to system integrity