Security Threats to E-Business

Module 3

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Types of Threats in E-Commerce Environment

Malicious access

hacking and cracking - gain unauthorized access to computer systems Spoofing - Misrepresenting oneself by using fake e-mail addresses or masquerading as someone else Denial of service flood Web site with useless traffic to inundate and overwhelm network Sniffing - eavesdropping program that monitors information traveling over a network
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Credit Card Frauds

Fear that credit card information will be stolen deters on line purchases Hackers target credit card files and other customer information files on merchant servers; use stolen data to establish credit under false identity One solution: New identity verification mechanisms

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Tools Available to Achieve Site Security

Internal Security Controls Firewalls Encryption

Network Security Protocols

Security Management

Authentication

Virtual Private Network

Integrity

Intrusion Detection

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Internal Security Controls

Application controls Development controls Physical controls Personnel controls

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Internal Security Controls

Application controls ensure security of system applications

Input controls prevent users from entering incomplete, erroneous, unauthorized, inappropriate data

Access privileges on user-by-user basis Input authorization passwords Data validation value bounds, data format, missing values
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Internal Security Controls

Application Controls

Process controls policies and procedures to ensure reliable data by educating users, backups, anti virus sw Output controls ensure accurate output to right people Storage controls ensure safety of storage devices from disasters, unauthorized access and manipulations

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Internal Security Controls

Development controls

Documentation detailed record keeping of system at all stages Data security and reliability Authorization Separation of duties to reduce conflicts of interest

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Internal Security Controls

Physical facilities to be protected from theft, access, vandalism and disasters Personnel controls through social engineering

Training Establish and Communicate security policies

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Network Security - Firewalls

Monitors traffic between local network and outside world Located at a gateway point Functions include

Filter packets Log traffic Proxy service

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Firewalls Packet Screening Routers

Screening rules can be

Target interface to which packet is addressed Incoming packet protocol Rules are difficult to specify Routers are fairly inflexible and are bound by vendor's programming If a hacker can bypass router, local network is exposed
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Difficulties with rules are

Firewalls Proxy Application Gateways

Allow browser to ignore complex networking code that supports firewall protocol Can manage network functions such as audit trials of client transactions Help eliminate security concerns by

Filter dangerous URLs Enforce client/server access to designated hosts Implement access control for network services Check protocols forNoida well-formed commands BIT
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Firewalls Hardened Firewall Hosts

Protect against unauthorized log-in from external world Provides greater level of audit and security Advantages include

Concentration of security Information hiding from outside hosts Centralized and simplified network services management
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Firewalls Hardened Firewall Hosts

Problems with firewalls include

Certain network accesses blocked for some users Compromise of firewall can be disastrous

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Management Issues before Installing Firewalls

Security policy to deny services or to provide audited method or regulated access to users Define realistic policies Level of monitoring, redundancy and control Understand benefits and limitations

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Protection from Firewalls

Remote login Application back doors SMTP session hijacking OS bugs Denial of service Email bombs Viruses and Spam Source routing
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What Firewalls can not Protect

Attacks that bypass firewall Threats emanating from internal users Integrity of data Confidentiality of data Attacks from malicious software

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External Security Concerns

Client/server security ensure use by authorized people. Problems can be due to

Physical security holes Software security holes Inconsistent usage holes

Data and transaction security ensure privacy, confidentiality and authorization of remote users

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Ensuring Confidentiality 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 and transmitted information Provides:

Message integrity Authentication Confidentiality

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Ensuring Confidentiality Encryption

Encryption

Block Cipher Secret key encryption

(DES, IDEA, AES)

Stream cipher
(RC4)

Public key encryption

(RSA)

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Breaking Encrypted Messages

Brute force try all possible keys until meaningful plain text appears Frequency analysis exploits the statistics and features of language such as certain alphabet and words are more frequently used than others Meat-in-the-middle attack - can exponentially reduce the number of brute force permutations required to decrypt text that has been encrypted by more than one key. Crypt analysis analyze cipher text or combination of cipher and plain text to guess the plain text and/or key

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Secret Key Encryption

Security depends on how powerful the algorithm is for encryption and decryption Large number of dynamic group can not use these methods Revelation of key forces group to change key

Shared secret key Plain text P Encryption Algorithm Cipher text C C = EK(P) EK = encryption function DK = decryption function
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Decryption Algorithm

Plain text P

P = DK(C) = DK(EK(P))

Some Traditional Secret Key Algorithms

Caesar cipher substitutes each letter of message by another that is 3 letters down the set of alphabet Captain Midnight Secret Decoder Rings same as Caesar cipher except the substituting letter is n letters down the alphabet set Mono-alphabetic cipher uses arbitrary mapping of alphabet into another set of letters

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Secret Key Encryption

Data Encryption Standard (DES)

Developed by IBM for NIST, USA Works on 64-bit data blocks Uses 64-bit key since 8 bits are for parity, effective key is 56-bits Data undergoes initial permutation, 16 Fiestel rounds and a final permutation to yield 64-bit cipher Efficient in hardware but slow in software Decryption uses same steps in reverse order
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DES Operation
64-bit Plain text Initial permutation 32 bit right half Mangler function + 32 bit left half
15 more rounds of above operation

32 bit left half

32 bit right half

Key generation

56-bit cipher key

Final permutation 64-bit cipher text

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48 bit round keys

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DES Key Generation

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DES Variations

Double DES encrypts message using DES twice with two keys. Effective key is 56x2 bits long Triple DES encrypts message using DES thrice, using two or three keys. Effective key is 56x3 bits long DES-X uses an extra 64-bit key before and after applying DES. Effective key length is 56+64+64 bits. Less expensive than 3T-DES GDES proposed to increase speed of operation, but found to be less secure
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Secret Key Encryption IDEA

Designed to be efficient in software in 1991 Works on 64 bits of data block Uses 128 bit key Yields 64 bit cipher text Same operations used for encryption and decryption, but for the generation of round keys Attempts to break successful only up to 5 rounds BIT Noida

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IDEA Operation

128-bit key is expanded to generate 52 16-bit keys, K1 K52 Process involves 17 rounds of operations Odd and even round operations are different 64-bit data is broken into 4 16-bit chunks Each chunk in each round undergoes math operation along with a 16-bit key Odd rounds use 4 keys and even rounds use 2 keys
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IDEA Round Operations Odd Round

xa xb xc xd Kb X + Kc +

Ka

Kd X

xa

xb

xc

xd

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xa +

IDEA Round Operation Even Round x x

b c

xd

+ Yin Yout =( Ke X Yin) X Kf Zout = ( Ke X Yin) X Yout Yout Zout + Zin

xa

xb

xc

xd

In odd round in decryption Xa = new Xa x mod 216 + 1 Xb = new Xc + additive inverse of Kb Xc = new Xb + additive inverse of Kc Xd =new Xd x mod 216 +1

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Secret Key Encryption

Advanced Encryption Standard

Based on Rijndael algorithm in 2001 Works on 128-bit data block Uses 128- 192- or 256-bit key Fast both in hardware and software Easy to implement and requires less memory Not broken so far Theoretically, some flaws are published in 2010 that may lead to breaking code
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AES Operation

Expands key to generate 10 round-keys Data and key are arranged as a 4x4 byte matrix. Data block undergoes 10 rounds of operation

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AES Operation

Each round, except 10th, has 4 sub operations

Substitute bytes of data with bytes from Sbox Shift rows each row is shifted by a fixed number of times Mix columns is what adds to secrecy of algorithm Add round-key XOR key with data

Decryption uses inverse S-box for substitution and uses keys in reverse order
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AES Operation

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Public Key Encryption

Uses two keys private key and public key Provides both confidentiality and authentication RSA is popular public key encryption algorithm A user generates a private key and a public key Keeps private secret with self, distributes public key Message encrypted with private key can be decrypted by others using public key Message encrypted with public key by others can be decrypted by user
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Public Key Encryption

Sender A Plain text PKE for encryption Cipher text Receiver B

encryption

decryption

B's public key Sender A Plain text Cipher text

B's private key Receiver B

encryption
PKE for authentication
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decryption

A's private key

A's public key

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Public Key Encryption - RSA

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Comparison of Private and Public Key Encryption

Private Key Encryption to work Same key and algorithm for encryption and decryption Public Key Encryption Different keys and algorithms for encryption and decryption Sender and receiver share the algorithm Sender and receiver each hold one and key the matched pair of keys To ensure security Key must be secret Decipher a message without other key must be impossible Algorithm know-how and samples of cipher text must not reveal the key Problems Secure key distribution Number of keys is more for a given group size
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Private key must be secret Decipher message without matching key must be impossible Algorithm know-how and samples of cipher text must not lead to finding other key Slow to operate Vulnerable to chosen-plain text attack

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Encrypting Larger Messages

Electronic Code Block the worst method. Break message into chunks. Encrypt each chunk Cipher Block Chaining somewhat better. Break message into chunks. Add an initialization vector to each chunk and encrypt K-bit Cipher Feedback Mode initialization vector of k bits added to each chunk and encrypt. K-bit Output Feedback Mode add initialization vector of k bits to first chunk and encrypt. add k bits out of it to next chunk and encrypt and so on Counter Mode - initialization vector of k bits added to first chunk and encrypt. Increment vector for next chunk and encrypt and so on
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Comparison of Private and Public Key Encryption

Private Key Encryption to work Same key and algorithm for encryption and decryption Public Key Encryption Different keys and algorithms for encryption and decryption Sender and receiver share the algorithm Sender and receiver each hold one and key the matched pair of keys To ensure security Key must be secret Decipher a message without other key must be impossible Algorithm know-how and samples of cipher text must not reveal the key Problems Secure key distribution Number of keys is more for a given group size Process Reversible
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Private key must be secret Decipher message without matching key must be impossible Algorithm know-how and samples of cipher text must not lead to finding other key Slow to operate Vulnerable to chosen-plain text attack Irreversible , same key does not work for decryption
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Stream Cipher - RC4

Key length is 40 to 256 bits Generates a pseudo random stream of bits for key using

a permutation of 256 bytes Two 8-bit index pointers

Key is XORed with plain text as the text comes in Not very secure as per cryptography standards
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Location of Encryption System

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End-to-End Encryption

Encryption done at ends of system Data in encrypted form crosses network unaltered Destination shares key with source to decrypt Host can only encrypt user data Otherwise switching nodes could not read header or route packet Traffic pattern not secure Use both link and end to end

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Link Encryption

Each communication link equipped at both ends All traffic secure High level of security Requires lots of encryption devices Message must be decrypted at each switch to read address (virtual circuit number) Security vulnerable at switches

Particularly on public switched network

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Key Distribution

Key selected by A and delivered to B Third party selects key and delivers to A and B Use old key to encrypt and transmit new key from A to B Use old key to transmit new key from third party to A and B

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Automatic Key Distribution

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Disadvantages of authentication with encryption

Encryption is slow Encryption hardware expensive Encryption hardware optimized to large data Algorithms covered by patents Algorithms subject to export controls (from USA)

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Integrity and Authenticity with Hash Functions

Authentication tag generated and appended to each message Message not encrypted Useful for:

Messages broadcast to multiple destinations

Have one destination responsible for authentication Encryption adds to workload Can authenticate random messages

One side heavily loaded

Programs authenticated without encryption can be executed without decoding

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Authentication using MAC

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Message Authentication Code

Generate authentication code based on shared key and message Common key shared between A and B If only sender and receiver know key and code matches:

Receiver is assured message has not altered Receiver is assured message is from alleged sender If message has sequence number, receiver assured of proper sequence
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Using Hash Function

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Secure Hash Functions

Accept data of any length, compute fixed-length hash code and append it to data Hash function must have following properties:

Can be applied to any size data block Produce fixed length output Easy to compute Not feasible to reverse Not feasible to find two message that give the same hash
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Popular hash functions are SHA and MD

Secure Hash Algorithm (SHA)

SHA are five cryptographic hash functions

SHA 1 SHA 2

SHA 224 SHA 256 SHA 384 SHA 512

SHA 1 produces 160-bit hash code Other produce as many bits as their number suggest
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SHA 1

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MD 5

Announced in 1991 Accepts a message of arbitrary number of bytes and produces 128-bit message digest. Widely used to check integrity of downloaded files on Internet and passwords Algorithm uses only one pass over the data Size of hash is small and vulnerable to attacks Flaws found in 1996, collisions created in 2004
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Digital Signature Operation

A creates message A applies hash function resulting a hash code A encrypts message and hash code using B's public key A encrypts above result with its own private key A sends encrypted message and hash to B B uses A's public key to authenticate it B uses self private key to decrypt message B checks message and hash function match
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Electronic Signature

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Digital Envelopes

Public key encryption is slow for large message Private key encryption has key distribution issue Digital envelopes use both

Encrypt message with private key algorithm Encrypt private using recipient's public key Send both to recipient Thus there is a key within a key
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SHTTP

Adds security to HTTP at application level Protection includes

Digital signature Message authentication Message encryption

Supports many cryptographic formats, key distribution schemes Security can be negotiated between client and server Encapsulates browser-server interactions
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SHTTP Requests

SHTTP request contains two header lines

First identifies type of content in HTTP message Second identifies cryptographic implementation Data representation of enclosed data Transmit session keys and other info related to data MAC to authenticate and integrity check Content-privacy-domain for digital signatures, encryption, both or neither
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Request may contain optional headers for

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Secure Socket Layer (SSL)

A layer between TCP and IP in TCP/IP suite Developed by Netscape Communications Protects higher level protocols built of sockets

Ex: Telnet, HTTP, FTP

Once SSL session begins, communication is private, authenticated and reliable Used to transmit information such as payment

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SSL Operation
Client requests connection Server sends form to client Client fills form and submits Server sends form data with SSL

Client (Browser)

Web Server

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SSL Protocol Stack

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SSL Operation

Connection

Transport that provides suitable type of service Peer-to-peer Transient Every connection associated with one session Association between client and server Created by Handshake Protocol Define set of cryptographic security parameters Used to avoid negotiation of new security parameters for each connection

Session

Maybe multiple secure connections between parties May be multiple simultaneous sessions between parties
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SSL Handshake Protocol

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SSL Record Protocol

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Drawbacks of SSL

Being low level protocol, does little to protect the host, once it is compromised. Once a certificate is compromised, it remains compromised. There is no mechanism to consult the root of CA SSL uses public key encryption to exchange session key, which encrypts HTTP transactions. If short keys are used, it is easy to break the code
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Secure Electronic Transaction (SET)

A set of written standards to describe how to implement credit card transactions Designed by MasterCard and Visa, developed by Microsoft, CyberCash, IBM, Netscape etc Specific to bank card payments

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SET Services

Strong protection for cardholder's account details from both eavesdroppers and fraudulent merchants Non-repudiation for both the merchant and the cardholder on transaction agreement Assurance to merchant that the payment will be honored

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SET Operation

Customer opens a MasterCard or Visa account Customer receives digital certificate and private signing key Third party merchants also receive certificates from the bank with their public key and bank's public key Customer places order over a web page Customer receives merchant's certificate and validates it
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SET Operation contd

Customer sends order and payment information Merchant verifies the customer, by checking the digital signature on the certificate, may be by bank or third party Merchant sends order message to bank Bank verifies the merchant and message Bank digitally signs and sends authorization to the merchant, who can then fulfill the order
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