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Zeeshan Khalid
ENCRYPTION
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
• Advanced Encryption Standard (AES):
– Most widely used symmetric key encryption
today; offers 128-, 192-, and 256-bit encryption
keys; other standards use keys with up to 2,048
bits
PUBLIC KEY ENCRYPTION
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 used to encrypt and decrypt message
• Once key 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
PUBLIC KEY ENCRYPTION USING
DIGITAL SIGNATURES AND HASH DIGESTS
• Application of hash function (mathematical
algorithm) by sender prior to encryption
produces hash digest that recipient can use
to verify integrity of data
• Double encryption with sender’s private key
(digital signature) helps ensure authenticity
and nonrepudiation
LIMITS TO ENCRYPTION SOLUTIONS
• PKI applies mainly to protecting messages in
transit
• PKI is not effective against insiders
• Protection of private keys by individuals may
be haphazard
• No guarantee that verifying computer of
merchant is secure
• CAs are unregulated, self-selecting
organizations
SECURING CHANNELS OF COMMUNICATION
Secure Sockets Layer (SSL):
– Most common form of securing channels of
communication; used to
establish a secure negotiated session (client-server session
in which URL of requested document, along with
contents, is encrypted)
• S-HTTP:
– Alternative method; provides a secure message-oriented
communications protocol designed for use in conjunction
with HTTP
• Virtual Private Networks (VPNs):
– Allow remote users to securely access internal networks
via the Internet, using Point-to-Point Tunneling Protocol
(PPTP)
SECURE NEGOTIATED SESSIONS USING SSL
PROTECTING NETWORKS: FIREWALLS AND
PROXY SERVERS
• Firewall: Hardware or software filters
communications packets; prevents some
packets from entering the network based on a
security policy
• Firewall methods include:
– Packet filters
– Application gateways
• Proxy servers: Software servers that handle all
communications originating from or being sent
to the Internet
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
POLICIES, PROCEDURES & LAW:
DEVELOPING AN E-COMMERCE SECURITY PLAN

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Encryption

  • 2. 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 • Advanced Encryption Standard (AES): – Most widely used symmetric key encryption today; offers 128-, 192-, and 256-bit encryption keys; other standards use keys with up to 2,048 bits
  • 3. PUBLIC KEY ENCRYPTION 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 used to encrypt and decrypt message • Once key 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
  • 4. PUBLIC KEY CRYPTOGRAPHY – A SIMPLE CASE
  • 5. PUBLIC KEY ENCRYPTION USING DIGITAL SIGNATURES AND HASH DIGESTS • Application of hash function (mathematical algorithm) by sender prior to encryption produces hash digest that recipient can use to verify integrity of data • Double encryption with sender’s private key (digital signature) helps ensure authenticity and nonrepudiation
  • 6. LIMITS TO ENCRYPTION SOLUTIONS • PKI applies mainly to protecting messages in transit • PKI is not effective against insiders • Protection of private keys by individuals may be haphazard • No guarantee that verifying computer of merchant is secure • CAs are unregulated, self-selecting organizations
  • 7. SECURING CHANNELS OF COMMUNICATION Secure Sockets Layer (SSL): – Most common form of securing channels of communication; used to establish a secure negotiated session (client-server session in which URL of requested document, along with contents, is encrypted) • S-HTTP: – Alternative method; provides a secure message-oriented communications protocol designed for use in conjunction with HTTP • Virtual Private Networks (VPNs): – Allow remote users to securely access internal networks via the Internet, using Point-to-Point Tunneling Protocol (PPTP)
  • 9. PROTECTING NETWORKS: FIREWALLS AND PROXY SERVERS • Firewall: Hardware or software filters communications packets; prevents some packets from entering the network based on a security policy • Firewall methods include: – Packet filters – Application gateways • Proxy servers: Software servers that handle all communications originating from or being sent to the Internet
  • 11. 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
  • 12. POLICIES, PROCEDURES & LAW: DEVELOPING AN E-COMMERCE SECURITY PLAN