Understanding the Role of Hardware Data Encryption in EMV and P2PE
- 1. Understanding the Role of Hardware Data Encryption in EMV and P2PE from the CEO’s Perspective
- 2. Futurex. An Innovative Leader in Encryption Solutions. • For over 30 years, more than 15,000 customers worldwide • Hardware-based solutions with integrated applications provide the highest levels of compliance and security • Entrepreneurial culture, fostering agility and innovation in the development of hardware encryption solutions • Results-oriented engineering team based in our U.S. Technology Campus, with significant experience delivering First-to-Market Customer Initiatives • Members of ANSI X9F and PCI Security Standards Council bodies, CTGA-certified Solutions Architects
- 3. Unique Perspective of Futurex As a hardware data encryption provider, Futurex has a unique perspective of security in card transactions. Issuers: data preparation, personalization, validation Device Manufacturers: Certificate Authority (CA) and key management Merchant Service Providers: key management and CA Merchants: transaction security and key management Acquirers: processing encrypted data in transactions Switches: processing encrypted data in transactions 3
- 4. Why Use Hardware Security Modules? • Prevents insider attack –Dual Control –Split Knowledge –Tamper Protection for Keys –Encryption Key Management • PCI Requirement (aka SCD) • Certifications (FIPS, PCI HSM) 4
- 5. PCI Requirements for HSMs PCI DSS Requirement HSM Coverage (*Summary) #3.4 Render PAN unreadable… Encryption, decryption, tokenization #3.5 Protect any keys… FIPS 140-2 Level 3 Secure Cryptographic Devices (SCDs) #3.6 Fully document and implement…key-management NIST approved pseudo random number generator (PRNG), use key encrypting keys, and protect all keys under the Master File Key. #4.1 Use strong cryptography to protect cardholder data Meet PCI requirements for strong cryptography. * Full details provided in separate white paper.
- 6. PCI Requirements for HSMs “In addition, it is important to note that in EMV environments the PAN is not kept confidential at any point in the transaction, indeed, it is necessary for the PAN to be processed by the point-of-sale terminal in the clear in order to complete critical steps in the EMV transaction process. The expiry date and other cardholder data are also transmitted in clear-text.” Ref: PCI DSS Applicability in an EMV Environment – A Guidance Document October 2010
- 7. Attack Vectors in a Card Transaction 1. Card cloning attacks and card theft Transaction Acquirer Payment Card Brand Point-of-Interaction Cardholder Card Issuer 2. Attacks internal to POI devices 3. Network level attacks 4. System level attacks (data breaches) A. Malware attacks B. Attacks on applications and databases C. Attacks on backups/storages media
- 8. Attack Vectors in a Card Transaction “P2PE technology is complementary to EMV chip technology, by providing an added layer of protection against the threat of data breaches...” Aug 2012 VISA Press Release on PR Newswire.
- 9. 9 Role of HSM in EMV Data Preparation and Card Personalization Online Card Validation During Transaction
- 10. Role of HSM in EMV Data Preparation and Card Personalization Data Preparation • Key/certificate management for authentication, data integrity and issuer scripting • Offline and online PIN block generation for user authentication • SDA / DDA / CDA signatures (for offline validation) Integrated Circuit Card (ICC) or Smart Card Issuer Personalization Data Preparation Personalization • Key management for confidentiality, authentication, and data integrity • Protection of sensitive personalization data HSM/SCD HSM/SCD
- 11. Role of HSM in EMV Online Card Validation During Transaction 1.Authentication request from POI to issuer Transaction Acquirer Payment Card Brand 3. Response Cryptogram 1. Request Cryptogram Card Issuer Point-of-Interaction Cardholder HSM/SCD Host 2 2. Issuer validates request 3. Response from issuer to POI
- 12. 12 Role of HSM in P2PE What is Point-to-Point Encryption? Protecting Data In Transit: Device Key Management Encryption, Decryption, Key Management, Tokens
- 13. What is Point-to-Point Encryption? Point-to-Point Encryption (P2PE) is encryption of sensitive data at the Point-of-Interaction for secure transmission to a secure boundary where it may be decrypted, re-encrypted or tokenized. Host Application HSM/SCD Point of Interaction
- 14. The Role of HSMs in P2PE Protecting Data in Transit: Device Key Management • HSM for compliant key generation HSM/SCD Secure Injection Facility HSM/SCD Datacenter Remote Device • Key lifecycle management • Remote or direct key injection Generate Distribute Track Usage Backup Revoke Terminate Archive
- 15. Role of HSM in P2PE Encryption, Decryption, Key Management & Tokens • Encryption and Decryption • Key Management = Encryption/Decryption = Data At Rest = Data In Transit Switch Host Merchant (POI) Acquirer Host DB HSM/SCD DB = Token • Tokens * Case Study available upon request
- 16. 16 Role of HSM in EMV and P2PE Environments Typical Architecture of HSMs Services to Look for in an HSM Provider What to Ask for when Selecting HSMs
- 17. Typical Architecture for HSMs • Remote Access • Centralized Administration • High Availability • Redundant • Compliant • Secured • Customizable Primary Site HSM #1 HSM #2 Secure Management Server Redundant Failover HSM #1 HSM #2 Secure Management Server Secondary Site Direct Load Balancing Automatic Synchronization* (All devices designated as Production within group) Remote Access Device
- 18. Exceptional Support TR-39-certified and PCI Subject Matter Experts 24x7x365 Business Critical support Exceptional Support Services • Training (virtual or onsite) • Customized consulting • Hosted solutions • Certificate authority • Hosted HSMs for development and testing • Customized solution development Services to Look For in an HSM Provider
- 19. In Summary… What to ask for when selecting HSMs • Is the solution comprehensive? • Is the solution manageable (i.e., will you be able to pass audits easily)? • Is the solution scalable? • Does the vendor’s support team have expertise in industry compliance requirements? 19
- 20. Thank You! 20 Greg Stone Sr. Solutions Architect gstone@futurex.com Ryan Smith Chief Solutions Architect rsmith@futurex.com Booth #708
Editor's Notes
- #2: About me20+ years in information systems, engineering and systems design10+ years in Payments & Security5+ years as Solutions Architect at Futurex
- #3: Don’t over elaborate on any one topic, keep this broad and quick
- #4: Futurex has a broad perspective of the industry as we supply hardware security solutions for nearly all aspects of a card transaction.Don’t just read line by line, provide a description of this adding experience.
- #5: Emphasize that a Secure Cryptographic Device as defined by PCI is an HSM with FIPS 140-2 Level 3 and PCI HSM certification.Accredited Standards Committee X9 (ASC) standards can be found at www.x9.org.Dual Control with Split Knowledge - Process of utilizing two or more separate entities (usually persons) or mechanisms operating in concert to protect sensitive functions or information such that no entity has knowledge of nor can derive the protected information as a whole. This information may be cryptographic keys or other information used to protect underlying cryptographic keys.
- #6: HSMs are SCDs, used to protect keys
- #7: HSMs are SCDs, used to protect keys
- #8: Understanding typical attack vectors in a card transaction helps us to understand the role of the HSM
- #9: Understanding typical attack vectors in a card transaction helps us to understand the role of the HSM
- #12: Issuer scripts can also be updated, and the HSM is used to mac (sign) these scripts and encrypt if they contain sensitive dataInsert into terminal - chip and terminal perform risk assessment - defined by EMV tags/profile by issuerDynamic cryptogram created passed to issuer through acquirer and brandsIssuer validates and may send response cryptogram to chip so chip can auth the issuerMA between chip and issuerARPC is generally not performed because card is removed by time response arrivesChanges to terminal, messaging and authorization process3 components on card - chip os, each card vendor sell os to issue (prop or open) Multos is openEMV is a broad set of standards with many optionsEach brand has slightly diff implementation for contactless and contactVISA paywave, VSDC for contact MC PayPassWhat form of verification - online or offline - stab at time of personalization of the chipThe terminal is like the chip - every terminal has own os, each vendor has implemented an EMV kernel - baseline logic required to accept EMV cards, each model of terminal has to be certified by EMVco.
- #15: Tactical Benefits of Remote KeySignificantly quicker replacement of keysDecreased cost for replacement of keysReduced cost of TR-39 audit preparationStrategic Benefits of Remote KeyOn-demand replacement for compromised keysEasier key management Increased security during key replacementCardholder data to be encrypted is PAN, cardholder name, service code, expiration date, which is defined by PCI DSS.Sensitive authentication data is full mag stripe, CAV2/CVC2/CVV2/CID, PIN, encrypted PIN blockBDK = Base Derivation KeyKSN = Key Serial NumberDIK = DUKPT Initial Key
- #18: Remote AccessHigh AvailabilityCentralized AdministrationHigh Capacity Secure StorageSecure Connections
- #21: Say my name again to encourage questions, invite them to the booth, tell them Ryan will be there to.