Trusted Electronic Transactions

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Trusted Electronic Transactions
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TOPICS COVERED

• Why conduct transactions electronically?
• Three Characteristics that ensure trust in
  electronic transactions
• How we achieve trust in paper-based transactions
• Problems with common electronic transactions

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TOPICS COVERED

• Achieving trust in electronic transactions with
  Digital Signature technology and an effective
  archiving scheme
• What are digital Signatures? An introduction to
  Public Key Infrastructure
• An introduction to Archiving digitally signed
  transactions using XML.

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TOPICS COVERED

• Applying Public Key Infrastructure to address
  security risks when granting public access to
  community-right-to-know data
• Relevant Legislation regarding Digital Signatures
  and electronic government transactions

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ELECTRONIC TRANSACTIONS

• Streamline Reporting Process
• Reduce burden on regulated community
• Efficient Record Retention
• Timely and Accurate Data Retrieval and Access
• Emergency Response (24/7 access)
• Community-Right-to-Know

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• Accuracy and Authenticity
• Decisions regarding Environmental Health and
  Impact
• Security
• Protection from unauthorized access
• Tamper-resistant
• Accidental human errors
• Intentional - Fraud
• Credibility in Judicial Proceedings
• Effective Enforcement
• Plaintiff/Defendant Subpoena

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JUDICIAL CREDIBILITY is the Highest Standard for
Trusted Data

• Evidence must be unambiguous to be admissible in
  court
• Once admitted into Court, evidence must be
  persuasive to a jury

National Governors Association (NGA) State
Guide to Environmental Reporting
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WHAT DETERMINES A LEGALLY BINDING REPORT ?

• AUTHENTICATION the ability to prove the senders
  identity
• 2. REPORT INTEGRITY the ability to prove that
  there has been no change during transmission,
  storage, or retrieval
• 3. NON-REPUDIATION the ability to prove that
  the originator of a report intended to be bound
  by the information contained in the report

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NON-REPUDIATION
REPORT INTEGRITY
AUTHENTICATION
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FROM PAPER TO ELECTRONIC Repudiation Risks in
Basic Electronic Transactions

• I did not send that report !
• That report is not the one I sent !
• I did not mean that !

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I did not send that report !

• Identity of user is unknown
• Possible Solutions
• Telephone call follow-up
• Terms and Conditions Agreement (TCA) / Mailed
  Certification Agreement
• Mail a Diskette Containing Electronic Data

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That report is not the one I sent !

• Electronic reports contain no evidence of
  tampering in transmission, storage or retrieval
• Sources of possible loss of data integrity
• Human Error
• Data Corruption
• Fraud

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Ensuring Authenticity and Report Integrity in
Electronic Transactions

• Digital Signatures
• Public Key Infrastructure

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Public Key Infrastructure (PKI)

• PKI is a combination of software, encryption
  technologies and facilities that can facilitate
  trusted electronic transactions.
• PKI Components
• Key Pairs
• Certificate Authority
• Public Key Cryptography

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Key Pairs

• A key is a unique digital identifier
• Keys are produced using a random number generator
• A key pair consists of two mathematically
  related keys
• The private key is secret and under the sole
  control of the individual
• The public key is open and published

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Certificate Authority

• A trusted authority
• Responsible for creating the key pair,
  distributing the private key, publishing the
  public key and revoking the keys as necessary
• The Passport Office of the Digital World

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Digital Certificates

• A unique electronic signifier issued by a
  Certificate Authority that functions like a
  passport to verify a users identity.
• The certificate authority binds the unique key
  to the following
• Name of the Certificate Authority
• Certificate Expiration Date
• Certificate Identity Number
• Certificate Storage
• software tokens
• browser certificate stores
• hardware tokens (Smart Cards, USB Tokens)

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Public Key Cryptography
Complimentary Algorithms are used to encrypt and
decrypt documents
Encryption key
_at__at__at_56455908283923542_at_
Decryption key
Unreadable Format
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Public Key Infrastructure in Action
Public Key
Private Key
Secure Transmission
Decrypting
Encrypting
Signatures
Encrypting
Decrypting
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Digital Signatures
Private key
Report Encryption Algorithm
Digitally Signed An individual digitally
signs a document using the private key component
of his certificate.
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Authentication and Verification
The individuals public key, published by the CA
decrypts and verifies the digital signature.
Public Key
Decryption Algorithm
Digitally Signed
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Authentication and Verification

• Any changes made to the report will invalidate
  the signature
• Provides evidence of report integrity
• Provides proof of report originators identity
  - Authentication

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Security in Transmission

• Secure Socket Layer (SSL)
• https
• Submission is encrypted by the sender with
  recipients public key
• After receipt, submission is decrypted with
  recipients private key

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What Should Be Signed ?

• Balance between capturing the entire content of
  the transaction vs. ease of data integration
• Data that is Machine readable but which
  separates user entry content from context
  database, comma delimited, spreadsheet, etc
• Data that records content and context but which
  are not easily integrated into databases word,
  pdf, image, html, etc

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Ensuring Non-repudiation in Electronic
Transactions

• Capturing Complete Transactions in Archive
• Signing the content and context of a transaction
• Storing the signed transaction in a data
  warehouse without manual intervention

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XML

• eXtensible Markup Language
• XML can be used to store both the questions on
  the form (context) and the data entered by the
  user (content).
• The entire form can be stored as one object
• Default Values
• Lookup values (ie chemical classifications)
• Questions
• Physical Characteristics

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XML Schema
From the W3C http//www.w3.org/1999/05/06-xmlsche
ma-1/ define and describe a class of XML
documents by using these constructs to constrain
and document the meaning, usage and relationships
of their constituent parts datatypes, elements
and their content, attributes and their values,
entities and their contents and notations. Schema
constructs may also provide for the specification
of implicit information such as default values.
Schemas are intended to document their own
meaning, usage, and function through a common
documentation vocabulary. Business Plan Schema
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• XML Transaction Instance conforming to Schema
• Public Key Cryptography via Web Browser plugin

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Granting Public Access to paper reports

• Public comes into agency office
• Public provides drivers license or other
  identification
• Agency can monitor who is accessing data

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Providing Trusted Electronic Access to Data

• Identity of user is unknown
• Access cannot be monitored
• Relying on the Certificate Authority

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Digital Certificate
Public
In order to obtain access to Community Right to
Know Data, individuals first obtain digital
Certificates.
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Digital Certificates
Public
Agency
After contributing a certificate to gain access,
The individuals certificate can be
cross-referenced with other security databases to
monitor suspect individuals.
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RELEVANT LEGISLATION

• TITLE 27, Part 2, Article 5
• CA Title 2, Division 7, Ch.10 Digital
  Signatures

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TITLE 27 CUPA Legislation
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California Digital Signature Regulations
California Code of Regulations Title 2.
Administration DIVISION 7. CHAP 10. DIGITAL
SIGNATUREShttp//www.ss.ca.gov/digsig/regulations
.htm

• Definitions
• Digital Signatures Must Be Created By An
  Acceptable Technology- Criteria For Determining
  Acceptability
• List of Acceptable Technologies
• Provisions For Adding New Technologies to the
  List of Acceptable Technologies
• Issues to Be Addressed By Public Entities When
  Using Digital Signatures

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California Digital Signature Regulations

• The technology known as Public Key Cryptography
  is an acceptable technology for use by public
  entities in California, provided that the digital
  signature is created consistent with the
  provisions in Section 22003(a)1-5.
• "Acceptable Certification Authorities" means a
  certification authority that meets the
  requirements of either Section 22003(a)6(C) or
  Section 22003(a)6(D).
• "Approved List of Certification Authorities"
  means the list of Certification Authorities
  approved by the Secretary of State to issue
  certificates for digital signature transactions
  involving public entities in California.

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Summary Electronic Report Transactions are
subject to fraud and easily repudiated

• Unsigned Web forms can be sent by anyone. They
  can be tampered in transmission and the sender
  cant be legally verified
• Unsigned Data in a database can be altered and
  does not provide adequate evidence in a court of
  law
• Data on Diskette can be altered without visible
  evidence

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Summary, cont.

• Digitally signed reports can also be repudiated,
  if the signed data is stored independently of the
  form question data.

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Conclusion Ensuring Trusted Electronic
Transactions

• 1. PKI supports trusted electronic report
  transactions
• Authentication- authenticates the
• sender of a report
• Report Integrity- invalidates a report if it
  has been tampered.
• Non-repudiation- sender and document
• are authenticated- the sender cannot
• deny having sent the report

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Conclusion, cont.

• 2. PKI supports trusted access to Public Data
• Agencies require individuals to contribute
  digital certificates in order to gain access.
• Agencies can track who gains access at what time
• The names of individuals who seek access can be
  cross-referenced with additional security
  databases to protect public safety

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Conclusion, cont.

• 3. Complete Archiving ensures that a legal record
  of a transaction can be trusted
• Non-repudiation- Storing a copy of the entire
  data (including questions on the form) with the
  digital signature.

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Resources

• eCompliance, Inc. http//www.ecompliance.net
• White paper/ Electronic Transactions
• Copy of presentation
• Environmental Protection Agency
• Central Data Exchange http//www.epa.gov/cdx/cde
  .html
• National Governors Association
• State Guide to Electronic Reporting of
  Environmental Data http//www.nga.org/center/divis
  ions/1,1188,C_ISSUE_BRIEF5ED_1139,00.html