EMV Secure Messaging - security

I am working on a project which requires Secure Messaging of an EMV card to protect data sent to/received from EMV cards.
According to the EMV Book 3, section 6.3.2:
For my understanding, we can use 'Secure Messaging' on every command/response pair.
For example, we can use CLA='8C', INS='CA' for Secure Messaging Format 1, and CLA='84', INS='CA' for Secure Messaging Format 2
However, when I tried on two of my cards I got error 6E 00 -- Class not supported.
What's wrong with my understanding about the 'Secure Messaging'?

None of the current EMV protocols seem to support secure messaging. Consequently, your card/EMV applet won't support secure messaging either.
Also, I'm not quite sure what exactly you would want to use secure messaging for ... Excahnged information is already authenticated (under the assumption that you perform a transaction and that you do CDA/SDA/DDA). So you probably aim for encrypting the information exchanged between the terminal and the card (specifically things like the amount charged, static card data, etc.) However, I doubt that this would make much sense based on the design of the current EMV infrastructure:
Terminals are currently not assumed to be trusted (at least with regard to the EMV protocol exchange between the terminal and the card). Consequently, you won't be able to implement any form of mutual authentication between the terminal and the card. Only the terminal could authenticate the card, the card could authenticate information received from the issuer (e.g. issuer scripts), but the card could never authenticate the terminal. As a result, impersonation of the terminal side would be possible despite encryption. Hence, an attacker in the middle would still be able to read and decrypt messages.
From a comment by Michal Gluchowski:
Maybe to extend what Michael has said, where next generation EMV is planning to go is to introduce channel confidentiality to eliminate passive eavesdropping. It will, however be possible to impersonate terminals (only card certificates will be authenticated). Current EMV uses secure messaging only for issuer scripts as it requires symmetric secret key that is known to issuer only. From the transaction perspective all the data terminal exchanges are plaintext (and issuer scripts are simply passed through without terminal analyzing or modifying them).
Source regarding next generation EMV & channel security: Next Generation Kernel System Architecture Overview, EMV 2nd Generation, Version 1.0, Sept. 2014

Related

With WebAuthN is it possible to deny certain types of authentication methods FIDO2)

When using WebAuthN (https://w3c.github.io/webauthn/) to authenticate, is it possible to hide certain authentication options?
For example, when testing on webauthn.io, my android device shows available authentication types like hardware keys, Bluetooth, and fingerprint. Is it possible for me to configure it somehow to not accept hardware keys and bluetooth.
Also, when selecting and using my fingerprint to login, if I force it to fail by using the wrong finger, it defaults to then asking for my unlock pattern and if I enter my unlock pattern, I still get a success. In my opinion an unlock pattern is not secure as a dirty screen leaves the pattern on the screen with a smudge mark. Also parents give the pin to children. Can I stop this behaviour and if the fingerprint fails error instead?
Not an expert but this is what I discovered when I recently implemented WebAuthn/FIDO2 support in our identity provider:
authenticatorSelection.authenticatorAttachment - When you create the request for navigator.credentials.create() you can specify whether it should use platform (i.e. built-in biometric/PIN) or cross-platform (e,g, an external USB/BT/NFC device). Note this just gives the user agent a hint about what you're after.
authenticatorSelection.userVerification - set this to required and it will require the user of an additional factor beyond mere verification of presence - i.e. a PIN or biometric challenge
Attestation - A FIDO2 compliant device can provide attestation information that can be verified via the Metadata Service. This will expose the capabilies of the device and you can base policy on that. E.g. you could insist that it must use tamperproof hardware to protect the private key.
Authentication result - can provide information about how the user was verified so you could build a policy around that. The spec for this extension is here: https://www.w3.org/TR/webauthn/#sctn-uvm-extension
The recommenation is not to specifically black/white-list devices yourself but the MDS does support revocation of certification and that should be respected by relying parties.

Using Paypal API from server side how can I protect the PAN? or do I just pass it in clear text?

I would like to use the paypal API to perform a payment from server side.
looking at their API https://developer.paypal.com/docs/rest/api/payments/#payment.create I willneed to send the credit card number. However this is not PCI compliant,
How can I protect the PAN when I pass it to paypal?
If you would like to process direct cards on your website, you will need to be PCI compliant.Look at this link.
Per the PCI DSS 3.1, requirement 4 details what strong cryptography and protocols should be used. Additionally, within requirement 4.1,
Sensitive information must be encrypted during
transmission over public networks, because it is
easy and common for a malicious individual to
intercept and/or divert data while in transit.
Therefore, since all SSL and TLS 1.0 implementation are not considered secure, I would suggest encrypting the data via TLS 1.2 when it goes over the intenet by accessing the REST interface via HTTPS and ensuring that TLS 1.2 is used.

What are the ways man in the middle attacks can be initiated?

I am creating a chat service program that follows the server/client paradigm. That chat program exists as both a chat server and a chat client, and a user can either host the chatroom(and it will connect his client to that server), or he can join an existing one.
Clients connect via a direct IP address that the other user will tell them, such as gained from whatismyip.com, and a specified port number.
During any time in this chat program, one user can send a file to another user. This is initiated by asking the server to set up a handshake between the two users, with user A passing his IP through the server to user B, and user B calling the new service that user A created for file transfer. This eliminates the original chat server, and the users are connected via a direct IP using nettcp protocol.
Over this file transfer, the files are encrypted with AES after initially sending the AES private key via RSA encryption.
I want to know what kind of ways somebody can initiate a man in the middle attack here. Obviously I see the flaw I have in passing the IP address through the server to the other user, but right now I don't see any other way as I cannot have the server retrieve the IPV4 of the sender.
Is the way a man in the middle attack works, is that he can see that these two users are transferring files, and somehow pull the data stream to himself from both ends? Can he do this on an already ongoing file transfer session?
I'm trying to understand the way MITM attacks work so I can see if I can protect my program from such attacks... but if the only way to reliably do so is to use a certificate authority(of which I'm still learning about), please go ahead and tell me that.
After doing more searching, I found this great link explaining the different types of MITM attacks and how they work and are executed in great detail.
http://www.windowsecurity.com/articles/Understanding-Man-in-the-Middle-Attacks-ARP-Part1.html
There are a total of four parts.
Is the way a man in the middle attack works, is that he can see that
these two users are transferring files, and somehow pull the data
stream to himself from both ends? Can he do this on an already ongoing
file transfer session?
You need to define a threat model. The usual suspects are message insertion, deletion, tampering and reordering. Sometimes the attacker only needs to tamper with a message so you do the wrong thing. For example, he/she may need to flip a bit so "transfer $100 from A to B" changes to "transfer $900 from A to B". In this case, the attacker did not need to be in the middle or decrypt the message.
I'm trying to understand the way MITM attacks work so I can see if I
can protect my program from such attacks... but if the only way to
reliably do so is to use a certificate authority(of which I'm still
learning about), please go ahead and tell me that.
Rather than attempting to design a hardened protocol, perhaps you could use a protocol that already exists that addresses your concerns.
That protocol would be Z-Real-time Transport Protocol (ZRTP). The protocol is specified in RFC 6189, ZRTP: Media Path Key Agreement for Unicast Secure RTP.
ZRTP is a key exchange protocol that includes Short Authentication Strings (SAS) to keep out the MitM. Essentially, the SAS is a voice authentication that only needs to be performed once. You can omit the SAS check, though its not recommended. If you omit the check and the bad guy is not attacking, then everything is OK for current and future sessions.
Once you establish your first secure channel without adversarial tampering, all future sessions will be secure because of the way key agreement for the current session depends on earlier sessions. And the earliest session (first session) is known to be secure.
ZRTP also provides forward secrecy, so a compromise of the current session does not affect security of past sessions.
ZRTP does not require certification authorities or other (un)trusted third parties.
Dr. Matthew Green has a blog about ZRTP on his Cryptography Engineering site at Let's talk about ZRTP.
To answer your question about MitM, there's too much for a Stack Overflow answer. A great free book is Peter Guttman's Engineering Security. MitM is sometimes a goal of an attacker, but it not his/her only vector. Guttman's book looks at a number of threats, how humans act and react, why the attackers succeed, and how to design around many of the problems.

Somebody is storing credit card data - how are they doing it?

Storing credit card information securely and legally is very difficult and should not be attempted. I have no intention of storing credit card data but I'm dying to figure out the following:
My credit card info is being stored on a server some where in the world. This data is (hopefully) not being stored on a merchant's server, but at some point it needs to be stored to verify and charge the account identified by merchant submitted data.
My question is this: if you were tasked with storing credit card data what encryption strategy would you use to secure the data on-disk? From what I can tell submitted credit card info is being checked more or less in real time. I doubt that any encryption key used to secure the data is being entered manually, so decryption is being done on the fly, which implies that the keys themselves are being stored on-disk. How would you secure your data and your keys in an automated system like this?
If I was storing the number, I would be a giant service provider with a massive database. That database is spread across a highly-redundant storage array consisting of multiple cabinets, in separate rooms or ideally in separate geographical locations, connected by a SAN. My biggest insider threat is the distributed physical plant, the constant stream of worn-out drives, and several daily shifts of technicians, administrators, and engineers. It's a huge threat.
Therefore I would encrypt the data on a physically-isolated computer that connects to the mass storage over a network. The software would be as simple as possible: encryption and number verification. The public interfaces and business logic goes elsewhere. Accesses would be logged to a separate SAN.
Encrypt with something like AES. The raw AES key is only ever stored in RAM. The key is wrapped in a PGP file for each administrator, who has their own passphrase to enable the server. Less-trusted personnel can be given partial passphrases to use in disaster recovery, or passphrases can be stored in a vault somewhere. For encryption, pick a unique initialization vector (IV) for each card number, AES-encrypt the number using that IV, and store the IV and encrypted number to the SAN. Decryption only occurs using a privileged client interface; normal client connections used for purchases can never get a decryption.
For vendors to process and store your credit card info, they generally have to get PCI certified. The requirements should be outlined here. Some of the requirements are very straightforward, and others are vague and open to interpretation. Going through the process is not fun, and a company having the certification doesn't mean your data is safe.
But it's better than nothing I suppose.
It's quite easy to store a salted hash of a credit card number rather than the number itself for secure lookups. For 99% of the scenarios out there, this would be sufficient credit card for storage -- fast and very secure.
If you really need reversible encryption of a credit card for some scenario (continued billing, for example), I would go with a symmetric key stored in a secure location other than the database. It's been a while since I looked at PCI specs, but I'm fairly certain that's PCI compliant.
If you need fast lookups along with reversible encryption, use both options: a hash and an encryption.
Edit:
There seems to be some controversy over my answer. I would like to point out the following very interesting essay from Integrity.com (PDF):
Hashing Credit Card Numbers: Unsafe Application Practices
It details many of the issues involved in storing a hash of credit card data, but its conclusion confirms my suggestion.
Yes, a raw hash of the card is not secure; that's why we salt our hashes! But a static salt is also not secure, they allow the creation of rainbow tables for known static salts. So it's best to make our salts vary in some way that is unpredictable. In the case of passwords, it's sufficient to use a separate, random hash for each password being checked; it can even reside in the same table/row as the hashed password. For the case of credit cards, this should be the same -- a random salt for each instance of the credit card being hashed. If the credit card number is stored per transaction, a separate salt for each transaction.
There are pros and cons to this approach, but it's sufficiently secure. The pros are the lack of key management; the salt and hash are right there, and don't need to change while still allowing for audit checks of the hash; e.g. does that credit card hash match this known credit card number?
The cons are in search; it's not possible to effectively search for a particular credit card number across many transactions.
Of course, you'll have this issue with external encryption anyway; unless the database is itself encrypted (something only some databases support), you won't be able to search very well. Even then, encrypting at the database or even the table level reduces search effectiveness significantly.
The last few times I worked with creditcard payments, you never really stored the actual CC info on your own servers. You let the Payment gateway handle that. What you ended up with was a transactionID that you could use to verify that the creditcard was still both valid and had the requested amount of cash available. Then once you actually packed the stuff they bought, you'd issue a capture-command to the Payment Gateway.
This approach greatly simplified the process of integrating CC payments on a site, since all you ever needed to know was the transactionID for a particular customer. This ofcourse didn't allow you do to the amazon-"trick" of keeping your CC info for 1-click shopping. If the transactionID got compromised, all it could be used for was collecting payment early, or cancelling the transaction altogether (in which case you'd find out about it when you verified that the authorization was still valid before shipping). The transaction couldn't be used to collect a bigger sum than what the customer had approved already, nor would it allow someone to collect to a different account than what the "shop" was configured for.
Maybe not the exact answer you were looking for, but perhaps it could solve your overall issue without having to spend a fortune on security vendors.
Your assumption that the merchant must store the card somehow is incorrect. Most likely, the merchant is storing a token that it received from the payment processing gateway the first time you used the card. The token uniquely identifies the combination of merchant and card. Subsequently, you can make purchases from that merchant without supplying your card number again. If the merchant's database is compromised, the tokens are of little value to the attacker. They're only valid for that merchant, and they can all be canceled at once when the breach is detected.
In some situations, encryption keys are stored not on disk but on some hardware device. Either a special encryption server is used to do the encrypt/decrypt or the decrypt is done using a key stored on, say, a hardware dongle. This way, a hacker cannot steal the decrypt keys without stealing the physical device containing them (since the key never leaves the device).
Another method I have seen is to store encrypted data in a database/datacenter that has no direct connection to the outside world (you can't hack what you can't access). An interface server sits between the "secure" part of the network and the "Internet-facing"/"insecure" part of the network as a proxy. Forcing secure traffic to funnel through this security choke point can make it more difficult for an intruder to access the secured data.
Neither of these mean your data is perfectly secure, of course.
As an merchant you can choose to store the CC data in your own database or outsource it to third party providers.
Third party providers like IPPayments or major banks like Westpac in Australia are level 1 PCI compliant. For web applications you can choose to use a payment acceptance web page (presented somewhere in your customer's workflow) from them branded for your company. For windows apps (e.g. you company's CRM app) and recurrent payments they generally have a gateway usable using their API that provide a tokenisation service, that is they accept a CC number, registers it and return an unique token that just looks like a CC number. The token can be safely be stored in your DB and used for any further transactions, batch payments, reconciliation etc with the bank. Of course they big issue is operational cost per transaction. For a utility that takes monthly credit card payment from a million customer the transaction cost can be substantial.
If you choose to store the CC number in your own DB triple DES encryption is sufficient. A better option is to you transparent encryption in DB as offered by Oracle advanced security or SQLServer where even the DBA cannot decrypt the CC number. Then there are onerous responsibility for key management, backup, physical security, network security, SSL transmission, changing default settings of all server equipments and firewall, anti virus, auditing, security cameras and on and on ...
First of all if you deal with credit card numbers, you will need to become PCI-DSS compliant, and once you store numbers all 12 sections of the PCI-DSS spec will apply to you. Thats a major cost to most organisations, and if you don't have the time, resources and financial means, you should not go down the path of storing credit card numbers.
We have gained PCI-DSS compliance on a Windows based e-commerce system that stores credit cards. It uses a 256 bit AES encryption. The key itself is encrypted using Windows DPAPI meaning it can only be decrypted by a process running under the same user account as the one that encrypted it. The encrypted key is stored in the registry.
The key is rotated every 12 months, and a backup key copy is stored broken into 3 parts A,B,C and spread over 3 USB drives, each held by a different person. Drive 1 has A+B, Drive 2 has B+C, Drive 3 has A+C. So any 2 drives are required to construct a full key (A+B+C). This scheme is tolerant to the loss of any 1 of the drives. Key parts themselves are encrypted with a password known only to the drive owner.
To answer your specific question, it is possible to store the credit card encryption key encrypted on disk. The key encrypting key can derived from a passphrase that must be entered when the server is started. Shamir's secret splitting scheme can be used so that k out of N shares are required to construct the secret that will be used as key encrypting key. The decrypted encryption key/secret is then stored in memory. If the server has to be restarted, then you need k shares. This is of course a big overhead and most merchants I know do not implement this. They do however usually store the key separately from the encrypted data for some intermediate security, so access to one does not automatically mean access to the other in entirety (still very bad though).
I deleted contents of my original post since that did not directly answer the question. Suffice it to say that key management and correct encryption are an important piece but still a small part of the story.
PCI auditors cannot possibly ensure that everything is done correctly.
If you want to eliminate any credit card stealing headaches, hash them using salt values not stored in the database (in addition to salt values stored in the database). Hashing them with any modern hashing algorithm will pretty much put to rest most issues with credit card theft but it does mean consumers must re-enter their credit card on each purchase. Having worked on a project that dealt with storage of credit card numbers, I found that hashing them cut security review costs by an order of magnitude (granted that project was before PII concerns).
If you are going to use symmetrical encryption, then you enter a new realm of complication that all comes down to management and control over the decryption keys. I will say that even if you hash the credit card numbers you will still need to deal with reversible encryption since all PII(Personally Identifiable Information) must be encrypted. SQL Server 2008 has a new Extensible Key Mangement plugin architecture which lets use third-party vendor programs to manage control over the decryption keys including split keys.
For more info:
Deploying SQL Server 2008 Based on Payment Card Industry Data Security Standards (PCI DSS) Version 1.2.
any automated system for decrypting encrypted information is going to be completly insecure. By automating the process you are defeating the encryption. Any encrypted data should only be decrypted by a user entered secret key.

Security review: client credit card# stored on server but with one time pad encryption stored in client cookie

I'm writing a system where, as usual, the client is asking for a convenience "remember your credit card details" option.
I've told them that this is in all likelihood a no-go. However, I did have a good idea (tm) just now, and seeing that Good Ideas in Encryption(tm) are actually Bad Ideas (tm), I thought I'd put it up for review here and see what holes can be punched through it.
Essentially, I'm thinking of xor'ing the credit card information plus some message signature using a one time pad that's generated per client. This pad is stored as a cookie variable on the client's browser.
Next time that user tries to place a purchase, the pad is sent to the server, and if the server can properly decode its encrypted data, it shows the credit card information as already being filled. (The cc info isn't actually transmitted back). The server will never store the pad in anything more than memory or page file. In fact, I intend to have the pad be sent twice: once upon arrival on the CC page (where the server checks if it should ask for CC information), and once on CC submission to get the actual information.
The user will also be instructed that their information is "partially stored" in their cookie cache, meaning that they will expect that if their cookies are flushed, their CC information is lost.
Let me know where you think this scheme is horribly failing.
Sounds sketchy, and I'm pretty sure you're misusing the term "one time pad."
Instead of going this route, look into using a service like Authorize.net's Customer Information Management. Basically, you give them the card info, and they give you back an ID that you can use to charge the card. The ID is linked to the website's merchant account, and can't be used to charge the card with any other merchant.
It's much, much safer, and should get you the same results.
Note: I'm not endorsing Auth.net or its CIM. It's just the example I'm most familiar with.
Storing the pad client-side leaves it vulnerable to XSS, I would think.
Technologically: flawed.
Legally: probably flawed. talk to a lawyer.
A one time pad only works if the pad is securely kept secret. Storing it in a cookie definitely doesn't count as secure or secret (it's sent to and from the server, it's dropped onto the user's machine, which might be a public terminal or shared machine). This is a really bad idea. It's a clever idea but ultimately very flawed. I suggest you read the PCI compliance documentation and do what other people do which is (generally speaking):
Don't do it.
Use a payment processor that will securely store the CC and handle billing (i.e. PayPal).
Setup a separate and strongly secured payment gateway, this machine only processes credit card transactions, and it in turn accesses a secured machine that stores the credit card data.
Remember that storing credit card numbers will basically violate PCI and will probably violate any merchant agreements and might even be illegal in your jurisdiction (privacy laws, etc.), consult a lawyer please.
Don't do it. Seriously. Find a payment processor who will handle this for you.
If the credit card is being stored client side then you're storing it with the key which means it's vulnerable.
If you are storing the credit card server side then you don't need a key of an encryption key stored on the client.
It sounds like a very dangerous situation if what you are describing is a case where the user is not only not being given the option whether or not they want to store their details but is also going to have them re-populated without having to authenticate in any way. I'd be pretty happy if I came along to an internet cafe and got the credit card details fields pre-populated for me!

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