OnCard or OffCard encryption? - security

Because of security reason I should store encrypted data on Java card,
so the question is should I encrypt data with Offcard application and send it to Java card or send pure data to Java card and let Java card encrypt it by itself?
Anyway, I want to know the best way o store data on Java card and what is the best sequence diagram in order to consider security on data?
Thanks in advance

Basically it depends what you call the off-card application, and whether you consider it trusted (or to which extent you consider it trusted).
In a system involving a card application, a mobile phone application, and a back-end server, usually the server and the card application are trusted, anything inbetween isn't (which means communication has to be done ciphered). The card will want to authenticate any incoming data before processing it. In that case the mobile application is not very much trusted, for various reasons, including the shortcomings of mobile OS's security. You need to elaborate a bit more on your use case. What are the attacks you wish to prevent against, and what part of your system do you trust ?
Anyway to answer your question, the private data managed by the card application does not need to be encrypted before being stored, because the storage can be considered safe.

Related

How to make my API private but usable by mobile application?

Here is my requirements:
Usable by any mobile application I'm developing
I'm developing the mobile application, therefore I can implement any securing strategies.
Cacheable using classical HTTP Cache strategy
I'm using Varnish with a very basic configuration and it works well
Not publicly available
I don't want people be able to consume my API
Solutions I think of:
Use HTTPS, but it doesn't cover the last requirements because proxying request from the application will show the API KEY used.
Is there any possibility to do this? Using something like a private/public key for example?
Which fits well with HTTP, Apache, and Varnish.
There is no way to ensure that the other end of a network link is your application. This is not a solvable problem. You can obfuscate things with certificates, keys, secrets, whatever. But all of these can be reverse-engineered by the end user because they have access to the application. It's ok to use a little obfuscation like certificates or the like, but it cannot be made secure. Your server must assume that anyone connecting to it is hostile, and behave accordingly.
It is possible to authenticate users, since they can have accounts. So you can certainly ensure that only valid users may use your service. But you cannot ensure that they only use your application. If your current architecture requires that, you must redesign. It is not solvable, and most certainly not solvable on common mobile platforms.
If you can integrate a piece of secure hardware, such as a smartcard, then it is possible to improve security in that you can be more certain that the human at the other end is actually a customer, but even that does not guarantee that your application is the one connecting to the server, only that the smartcard is available to the application that is connecting.
For more on this subject, see Secure https encryption for iPhone app to webpage.
Even though it's true there's basically no way to guarantee your API is only consumed by your clients unless you use a Hardware secure element to store the secret (which would imply you making your own phone from scratch, any external device could be used by any non official client App as well) there are some fairly effective things you can do to obscure the API. To begin with, use HTTPS, that's a given. But the key here, is to do certificate pinning in your app. Certificate pining is a technique in which you store the valid public key certificate for the HTTPS server you are trying to connect. Then on every connection, you validate that it's an HTTPS connection (don't accept downgrade attacks), and more importantly, validate that it's exactly the same certificate. This way you prevent a network device in your path to perform a man in the middle attack, thus ensuring no one is listening in in your conversation with the server. By doing this, and being a bit clever about the way you store the API's parameters general design in your application (see code obfuscation, particularly how to obfuscate string constants), you can be fairly sure you are the only one talking to your server. Of course, security is only a function of how badly does someone want to break in your stuff. Doing this doesn't prevent a experienced reverse-engineer with time to spare to try (and possibly succeed) to decompile your source code and find what it is looking for. But doing all of this will force it to look at the binary, which is a couple of orders of magnitude more difficult to do than just performing a man in the middle attack. This is famously related to the latest snap chat flurrry of leaked images. Third party clients for snapchat exist, and they were created by reverse engineering the API, by means of a sniffer looking at the traffic during a man in the middle attack. If the snapchat app developers would have been smarter, they would've pinned their certificate into their app, absolutely guaranteeing it's snapchat's server who they're talking to, and the hackers would need to inspect the binary, a much more laborious task that perhaps given the effort involved, would not have been performed.
We use HTTPS and assign authorized users a key which is sent in and validated with each request.
We also use HMAC hashing.
Good read on this HMAC:
http://www.thebuzzmedia.com/designing-a-secure-rest-api-without-oauth-authentication/

Collecting Credit Card Information - not to collect payment

I am working in PHP on a Linux server with MySQL.
I have a requirement (that I have attempted to talk them out of) to collect credit card information from users so that our company can use the card numbers to hold hotel rooms for a conference. We will not be charging the cards ourselves at all, but instead just sending them to the hotel. I then need to be able to download a CSV file and each time someone signs up an email to go to the admin with all the information.
I tried to explain that this wasn't secure, but several other developers have done this for them in the past before I was working here.
My question is; is there anyway to make this secure? If not are there any third party options to make this happen?
EDIT:
I appreciate everyone who has posted so far, it has simply made me want to attempt to do this less and less. If you could add to your answers simple explanations, oriented at non-tech people, it would be greatly appreciated, in fact site source and links would help me a great deal. I haven't found any sites that would explain this in a non-tech way.
First of, I am not a lawyer. I have implemented CC-handling code several times previously, but I am only familiar with Danish laws and regulations, so your mileage may vary.
As far as I know, there are restrictions in place (law and regulations from the CC providers) that you need to be aware of. I don't know where you are in the world, but in many countries you need to be PCI certified to handle credit card data and that is an extremely onerous, expensive and on-going process.
Other countries, or states, may have notification rules in play that requires you to pay the cost of notifying the card holder if security is broken - and unless you are very careful, it is not unlikely.
In general, I would recommend against that procedure. You may risk being liable for any costs if it goes wrong.
It's really a bad idea to be storing card details. You're opening yourself up for a world of pain in the form of PCI-DSS audits. It is not as simple as 'use encryption', you need to have processes in place to securely manage the encryption keys, schedule key rotation, securely log access and so on and on... Storing card details is absolutely something you want to avoid.
If you have to have something in place, then the best option may be for you (as a company) to take payments from the credit cards to your own merchant account, then pay the hotels separately (from your bank account/whatever). You act as a proxy for the client making the payment to the hotel.
Most payment gateways allow you to store the card details securely, and charge at a later date (using a token id returned by the gateway), which will likely be useful here. But you wont be able to retrieve the card details to pass them through to the hotel in any way, which is why you would need to take payment, then organise a separate payment to the hotel.
Its still quite an undertaking though because a lot of areas of PCI-DSS will come into play even with this simplified solution.
You asked, so here is more information:
PCI-DSS is the Payment Card Industry Data Security Standard. It's a set of guidelines which basically apply to any company that 'touches' cardholder data, in particular the card number. Touching it literally means any handling of the data, even just having it pass through your network without it ever being persisted to disk is enough to mandate that you must comply, (though it is significantly easier if you don't persist the details to disk)
You didn't yet state which part of the world you're in, or how these card details are captured (internet/telephone/in person). These details are significant to how you can achieve compliance.
Start by taking a look at the PCI-DSS SAQ (Self Assessment Questionnaires). These SAQ's are the minimum requirements for companies that do not store cardholder details to disk, and should give a good impression of the security that needs to be in place across the network and policies that should be applied across the company.
As I said, if you're thinking of storing card details then things get more complicated, because as a general rule the SAQ is no longer good enough. You need to enrol the assistance of a QSA (Qualified Security Assessor) who will visit and advise on best practice for data storage and the various other points that come into play. For this level of compliance you're looking at yearly audits (carried out by the QSA), and quarterly network scans. Take a look at the audit procedures to get a detailed look at what is involved. In particular take a look at section 3 and do not underestimate the difficulty of implementing proper key management.
In summary, full PCI compliance will be very costly. Even for a company which already has pretty strong security policies the cost of bringing in a QSA and running quarterly scans and yearly audits alone will likely cost $thousands.
This is very insecure and I think you're correct for opposing it. That said...
Some ideas:
Can the hotel give you a rate/group code that you can disseminate to your users directly? Perhaps you could even give them a link that goes right to the hotel's reservation page, with the code already filled in.
Don't even think about implementing this unless you can do it on an SSL-enabled site.
Don't save the CC number anywhere,
just generate the email and toss the
number out. This alleviates you from having to worry about a ton of very difficult application / server security issues.
Encrypt the email with GPG or
equivalent so that it's protected in
transit and can only be read by the intended recipient.
I suggest you follow the Card Industry PCI compliance closely at least. Here is a PDF document.
As someone who has worked on a system like this, it is 100% illegal to store any credit card information in plain text. You must encrypt all of the data and you are not allowed to know any piece of the keys. It is quite the catch 22, the only way to validate data is to guess as sad as that sounds. This is the exact reason why accidental charges occur.
As others have said here, it's a fact that storing credit card information requires you to be certified. You can ask for information to process the transaction but keeping it on storage of any kind is a big no-no.
Fortunately sites like authorize.net, braintree.com, paypal.com, etc will let you interact with their APIs in such a way that you get a "Customer Vault ID" for each entity you'd like to make transactions for.
These 3rd parties store all the sensitive information in a 100% legit way. And whenever you would like to make a transaction using their saved information, you interact with the service using their "Vault ID".
I've used authorize.net, BrainTree and PayPal. Most recently it was BrainTree and had some good success with them. I would not recommend PayPal unless you need the brand recognition or you just want to do a direct transfer whereby you bypass asking them for account information of any kind (because they already entered it in PayPal).
Make sure your server is as secure as possible and prove that it isn't already compromised. None of this will really work well if you have a compromised server.
Use SSL to protect this information during transit.
Encrypt these details immediately upon receipt. This will help protect it at rest. If possible, encrypt it with a public key for a key pair where the private key (used for decryption) is not on your server. This could easily be that you place this information into the body of the email that you're required to send, then encrypt the body with public-key encryption where your client has the private key. (You could use PGP here). In this way, the data is help on your server as briefly as possible, then once off your server, is accessible only by your client. If you use a symmetric encryption algorithm, then your key will necessarily also be on your server somewhere (on disk, in memory, etc.), which could be obtained and used by an attacker to regain access to the details.
This isn't an endorsement, per se, but I have used this before in similar situations with good results: http://www.pgp.com/products/commandline/
Remember that there are always security holes, but you'll be raising a large barrier against attacks with these steps. I might also add that you look into a system integrity solution like Trip Wire from the immediate build of your server. And of course, ensure that all of your passwords are strong.
If you send the file via email, be sure to use secured connexions (HTTPS / IMAP or POP3 over SSL, SMTP over SSL) on both sending and receiving computers and have the file encrypted prior sending. You can encrypt your mail and attachment via OpenPGP, too. Also, ensure the security between the two mail servers (sending and receiving), or simply use the same domain for sending and receiving email addresses. Do not use the password-feature of a ZIP file or related comrpessing container, since they are usually cryptographically weak.
If you send it on a filesystem (ie. USB pendrive), be sure to use a crypted one (ie. TrueCrypt).
Be sure to have a secured computer where the download and upload takes part (encrypted partition where the download/upload takes place, no spywares on the system, passworded system, firewalled).

How can I use a USB key to secure my application?

Is using a USB key to secure an application the best option?
If it isn't, what is the best way to secure an application in the form of requiring a valid user before the application can be used?
The reason I ask this question is that a client recently asked me to make an application require a specific USB device be inserted into the system before the app can be used or run. Basically, the application is a medical software and the client sees this method of security more trusted, as the app contains sensitive data of his paients. In that case of loss, I can tell the user how to generate another security key using the app in command line mode.
Not necessarily an answer to the question, but a point to be considered in response to the question and comments so far...
A USB key by itself is not going to be more secure than password-based authentication. It's still one-factor, it can be lost/stolen/etc. What the client probably actually wants, and either doesn't know it or hasn't properly articulated it, is multi-factor authentication. Consider these:
Something you know (a password, answer to a question, etc.)
Something you have (a USB key, time-limited key generating fob, etc.)
Something you are (finger print, retina scan, etc.)
Most systems use only the first one. For added security, you add the second one. For Mission: Impossible style high-clearance security, throw in the third one. The idea is that any one factor can be forged, but adding new factors adds new dimensions of security which exponentially make it more difficult (rather than linearly more difficult when just replacing one factor with a "better" factor).
Your application could require a certificate, signed by you, to be present on a regular USB memory stick. The certificate could be locked with a password, that the user would have to enter. Certificates on stolen or lost thumbdrives could be revoked.
For a less homebrew solution, I'm sure there are commercial smart card based services you could use.

Client Server socket security

Assuming we have a server S and a few Clients (C) and whenever a client update a server, an internal database on the server is updated and replicated to the other clients. This is all done using sockets in an intranet environment.
I believe that an attacker can fairly easily sniff this plain text traffic. My colleagues believe I am overly paranoid because we are behind a firewall.
Am I being overly paranoid? Do you know of any exploit (link please) that took advantage of a situation such as this and what ca be done differently. Clients were rewritten in Java but server is still using C++.
Any thing in code can protect against an attack?
Inside your company's firewall, you're fairly safe from direct hack attacks from the outside. However, statistics that I won't trouble to dig out claim that most of the damage to a business' data is done from the INside. Most of that is simple accident, but there are various reasons for employees to be disgruntled and not found out; and if your data is sensitive they could hurt your company this way.
There are also boatloads of laws about how to handle personal ID data. If the data you're processing is of that sort, treating it carelessly within your company could also open your company up to litigation.
The solution is to use SSL connections. You want to use a pre-packaged library for this. You provide private/public keys for both ends and keep the private keys well hidden with the usual file access privileges, and the problem of sniffing is mostly taken care of.
SSL provides both encryption and authentication. Java has it built in and OpenSSL is a commonly used library for C/C++.
Your colleagues are naïve.
One high-profile attack occurred at Heartland Payment Systems, a credit card processor that one would expect to be extremely careful about security. Assuming that internal communications behind their firewall were safe, they failed to use something like SSL to ensure their privacy. Hackers were able to eavesdrop on that traffic, and extract sensitive data from the system.
Here is another story with a little more description of the attack itself:
Described by Baldwin as "quite a
sophisticated attack," he says it has
been challenging to discover exactly
how it happened. The forensic teams
found that hackers "were grabbing
numbers with sniffer malware as it
went over our processing platform,"
Baldwin says. "Unfortunately, we are
confident that card holder names and
numbers were exposed." Data, including
card transactions sent over
Heartland's internal processing
platform, is sent unencrypted, he
explains, "As the transaction is being
processed, it has to be in unencrypted
form to get the authorization request
out."
You can do many things to prevent a man in the middle attack. For most internal data, within a firewall/IDS protected network you really don't need to secure it. However, if you do wish to protect the data you can do the following:
Use PGP encryption to sign and encrypt messages
Encrypt sensitive messages
Use hash functions to verify that the message sent has not been modified.
It is a good standard operating proceedure to secure all data, however securing data has very large costs. With secure channels you need to have a certificate authority, and allow for extra processing on all machines that are involved in communication.
You're being paranoid. You're talking about data moving across an, ideally, secured internal network.
Can information be sniffed? Yea, it can. But it's sniffed by someone who has already breached network security and got within the firewall. That can be done in innumerable ways.
Basically, for the VAST majority of businesses, no reason to encrypt internal traffic. There are almost always far far easier ways of getting information, from inside the company, without even approaching "sniffing" the network. Most such "attacks" are from people who are simply authorized to see the data in the first place, and already have a credential.
The solution is not to encrypt all of your traffic, the solution is to monitor and limit access, so that if any data is compromised, it is easier to detect who did it, and what they had access to.
Finally, consider, the sys admins, and DBAs pretty much have carte blanche to the entire system anyway, as inevitably, someone always needs to have that kind of access. It's simply not practical to encrypt everything to keep it away from prying eyes.
Finally, you're making a big ado about something that is just as likely written on a sticky tacked on the bottom of someone's monitor anyway.
Do you have passwords on your databases? I certainly hope the answer to that is yes. Nobody would believe that password protecting a database is overly paranoid. Why wouldn't you have at least the same level of security* on the same data flowing over your network. Just like an unprotected DB, unprotected data flow over the network is vulnerable not only to sniffing but is also mutable by a malicious attacker. That is how I would frame the discussion.
*By same level of security I mean use SSL as some have suggested, or simply encrypt the data using one of the many available encryption libraries around if you must use raw sockets.
Just about every "important" application I've used relies on SSL or some other encryption methodology.
Just because you're on the intranet doesn't mean you may not have malicious code running on some server or client that may be trying to sniff traffic.
An attacker which has access to a device inside your network that offers him the possibility to sniff the entire traffic or the traffic between a client and a server is the minimum required.
Anyway, if the attacker is already inside, sniffing should be just one of the problems you'll have to take into consideration.
There are not many companies I know of which use secure sockets between clients and servers inside an intranet, mostly because of the higher costs and lower performance.

Security risk when store private data

I have to handle some sensitive data in my application, such as passwords, credit card information, etc.
What are possible security risks I could have and how can I avoid them?
Don't store Credit Card Information (in some jurisdictions, you might be breaking the law by doing so, or at least falling foul of a commercial agreement)
You don't say where your sensitive data is stored, but encypting it is the usual approach. There are two forms symmetric and asymmetric. Symmetric means you use the same key for encrypting and decrypting. Asymmetric consists of a public/private key pair.
Passwords: store only a salted hash (i.e. un-reversible) of your passwords, and compare with a similarly salted hash of an entered password.
Be aware that you really shouldn't store credit card info in any shape or form on a web server.
Bit of info on doing this in a web environment, which is my background:
If a website (or any application) needs to store card info, it should comply with the PCI DSS (Payment Cards Industry Data Security Standard). Amongst other things, it requires that the data be held encrypted on a separate server that isn't publicly accessible (IE: isn't hosting the site) and has a separate firewall between it and the webserver. Penalties for not complying are potentially very large in the event of any fraudulent activity following a security breach, and can include them ceasing working with you - it pretty much reserves the right for the them to chargeback any losses from the fraud to you (from my interpretation as a non legal person)
More on it here: https://www.pcisecuritystandards.org/security_standards/pci_dss.shtml
Obviously, this may be expensive compared to shared hosting, as you immediately need two servers and a load of networking gear. Which is why people don't often do this.
I would be inclined to perform some form of reversible encryption on the information as it's being stored, something like:
$card = myEncryptionFunction($input);
A little more information on the nature of your application wouldn't hurt though.
I'd be using reversible encryption on the database data. Make sure this data doesn't seep into log-files too, log derived information instead. Consider how yoǘ'll handle different environments - normally you want to not use production data in your test environments. So even though you may consider copying production data back to test systems, you should probably generate fake data for the sensitive parts.
It's been already said that you shouldn't store CC especially CVV2 information in your database, avoid where possible.
If you store CC + CVV2 then consider using asymmetric encryption and store your private key in another server. Otherwise an attacker who can access the data 99% can access the key and the whole encryption would be pointless.
Passwords should be stored as one way hashed.
After all these you need to ensure that your application is secure against vulnerabilities such as SQL Injeciton, remote code execution etc.
Don't forget Even when an attacker can't read previous data they can plant a backdoor for the next data.

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