Smart Cards

1
Smart Cards

• By
• Sravanthi Karumanchi

2
Introduction

• The semiconductor revolution has advanced to the
  point where the computing power that once took up
  an entire room can now me lost among the spare
  change, house keys or candy wrappers in the
  average pocket.
• Smart cards have proven to be quite useful as a
  transaction/authorization/identification medium.
• As their capabilities grow, they could become the
  ultimate thin client, eventually replacing all of
  the things we carry around in our wallets,
  including credit cards, licenses, cash, and even
  family photographs.

3
History

• The roots of the current day smart card can be
  traced back to the US in the early 1950s when
  Diners Club produced the first all-plastic card
  to be used for payment applications.
• VISA and MasterCard then entered the market, but
  eventually the cost pressures of fraud,
  tampering, merchant handling, and bank charges
  made a machine-readable card necessary

4
What is a Smart card?

• A smart card is a credit card sized plastic card
  with an embedded computer chip.
• The chip can either be a microprocessor with
  internal memory or a memory chip with
  non-programmable logic.
• They can be programmed to accept, store and send
  data.

5
Need for a smart card

• An advanced security system is worthless if it is
  so inconvenient for the users that they always
  find a way around it. For example, many users
  have so many passwords to remember today that
  they often write them down in easily accessible
  places or choose simple easily guessed passwords.
  Smart cards can easily store large passwords.
• Being a computer in itself, smart cards can also
  perform advanced security functions like storage
  of cryptographic keys and ability to perform
  cryptographic algorithms.

6
Need for a smart card

• Smart cards provide tamper-resistant storage for
  protecting sensitive information like private
  keys, account numbers, passwords, and other forms
  of personal information.
• They can isolate security-critical computations
  that involve authentication, key exchange and
  digital signatures from other parts of the system
  that do not have a "need to know". Since
  computations can be done in the card itself, the
  keys need not exist anywhere other than the card
  itself. This prevents malicious sniffing programs
  from getting hold of the key.

7
Need for a smart card

• They provide a level of portability to securely
  move information from one system to another.
• They can run custom code and thus are
  programmable.

8
Smart card

• Difference between smart cards and magnetic smart
  card
• Magnetic stripe card does not have a chip
  embedded in them
• A smart card carries more information than can be
  accommodated on a magnetic stripe card. It can
  make a decision, as it has relatively powerful
  processing capabilities that allow it to do more
  than a magnetic stripe card (e.g., data
  encryption).

9
Electronic Module

• The information or application stored in the IC
  chip is transferred through an electronic module
  that interconnects with a terminal or a smart
  card reader.

10
Physical structure

• The International Standards Organization (
  ISO) 7810, 7816/1, 7816/2 specifies the physical
  structure of the smart card.
• A printed circuit and an integrated chip are
  embedded on the card

11
Physical Structure

• An integrated circuit chip consists of a
• Microprocessor
• Read only memory (ROM)
• Nonstatic random access memory (RAM)
• Electrically erasable programmable read only
  memory (EEPROM), which will retain its state when
  the power is removed.
• Programmable read only memory (PROM)
• Erasable programmable ROM (EPROM)
• The current circuit chip is made from silicon,
  which is not flexible and particularly easy to
  break. Therefore, in order to avoid breakage when
  the card is bent, the chip is restricted to only
  a few millimeters in size.
• This also limits the memory and processing
  resources that may be placed on the card. As a
  result, the smart card always has to incorporate
  with other external peripherals to operate.

12
Smart card architecture elements

• Central Processing Unit
• Traditionally there is a 8 bit controller, but
  nowadays 16 bit and 32 bit chips are also used.
• Smart Card CPUs execute machine instructions at a
  speed of approximately 1 MIPS. A coprocessor is
  often included to improve the speed of encryption
  computations.
• Memory System
• RAM. 1K. This is needed for fast computation and
  response. Only a tiny amount is available.
• EEPROM (Electrically Erasable PROM). Between 1 to
  24K. Unlike RAM, its contents are not lost when
  power is. Applications can run off and write to
  it, but it is very slow and one can only
  read/write to it so many (100 000) times.
• ROM. Between 8 to 24K. The Operating System and
  other basic software like encryption algorithms
  are stored here.

13
Smart card architecture elements

• Input /Output
• This is via a single I/O port that is controlled
  by the processor to ensure that communications
  are standardized, in the form of APDUs (A
  Protocol Data Unit).
• Interface Devices(IFDs)
• Smart Cards need power and a clock signal to run
  programs, but carry neither. Instead, these are
  supplied by the Interface Device - usually a
  Smart Card Reader - in contact with the card.
• In addition to providing the power and clock
  signals, the reader is responsible for opening a
  communication channel between application
  software on the computer and the operating system
  on the card
• The communication channel to a Smart Card is
  half-duplex.

14
Smart card architecture elements

• Interface Devices
• The receiver is required to sample the signal on
  the serial line at the same rate as the
  transmitter sends it in order for the correct
  data to be received. This rate is known as the
  bit rate or baud rate.
• Data received by and transmitted from a Smart
  Card is stored in a buffer in the Smart Card's
  RAM. As there isn't very much RAM, relatively
  small packets (10 - 100 bytes) of data are moved
  in each message.

15
Smart Card Dimensions

• Two physical dimensions are specified for smart
  cards. The most popular form is approximately the
  size of a credit card. Small enough to be
  conveniently portable, the card is large enough
  to display graphics and advertising on its side.
  The second, smaller smart card size, specified by
  the European Telecommunications Standards
  Institute (ETSI), is used specifically for Global
  System for Mobile Communications (GSM) phones,
  the predominant cellular phone technology system
  in Europe.

16
How does a smart card work?

• All smart cards have essentially the same
  physical interface to the outside world, the
  smart card reader. To use a smart card, an end
  user simply inserts it into a read / write device
  where it remains for the duration of a session or
  transaction.
• The user provides a PIN or password as they would
  at an ATM machine providing the added protection
  of two-factor authentication.

17
How does a smart card work?

• While still in the reader, the card interacts
  with security software on the local machine and
  the network as needed. It confines certain
  operations, such as those involving a users
  private key, to the card itself. That means the
  private key and any digital certificates never
  leave the card. All computations involving them
  happen internally and securely so only the
  cardholder can access the private key.
• When a session or workday is over, the user
  removes the card and keeps it in a safe place.
  Without the card, unauthorized individuals cant
  hack into protected resources.

18
How is authentication done

• Insert the smart card into a reader. The smart
  card contains the cryptographic keys and
  biometric fingerprint data.
• Enter PIN (or password), in order to unlock the
  digital representation of the fingerprint. In the
  trade, this is known as the minutia data.
• Place the finger on the scanner. The scanned
  fingerprint is compared to the fingerprint data
  on the smart card.
• If the data matches, the smart-card fingerprint
  data is converted into a number and combined with
  the smart-card secret PIN (retrieved in Step 2)
  and used as a symmetric cryptographic key to
  decrypt the private key.
• A nonce (random number) is passed from the
  computer application to the smart card.
• The private key on the smart card is used to
  encrypt the nonce and pass it back to the
  application.
• The application verifies that a certified public
  key obtained from the network-based directory
  service or from the card does, in fact, decrypt
  the encrypted message from the card and reveal
  the same nonce that was originally passed to the
  card.

19
Smart card Variations
20
Contact Smart Cards

• Contact smart cards must be inserted into a smart
  card reader device where pins attached to the
  reader make contact with pads on the surface of
  the card to read and store information in the
  chip.

21
Contactless Smart Cards

• Contactless smart cards contain an embedded
  antenna instead of contact pads attached to the
  chip for reading and writing information
  contained in the chip's memory.
• Contactless cards do not have to be inserted a
  smart card reader. Instead, they need only be
  passed within range of a radio frequency acceptor
  to read and store information in the chip.
• These cards have an antenna embedded inside the
  microchip that allow the card to communicate with
  an antenna coupler unit without physical contact.

22
Contactless Smart Cards

• The range of operation is typically from about
  2.5" to 3.9" (63.5mm to 99.06mm) depending on the
  acceptor.
• Student identification, electronic passport,
  vending, parking and tolls are common
  applications for contactless cards.

23
Proximity Cards

• Proximity cards or simply prox cards communicate
  through an antenna similar to contactless smart
  cards except that they are read-only devices that
  generally have a greater range of operation.
• The range of operation for prox cards is
  typically from 2.5" to 20" (63.5mm to 508mm)
• They are growing in popularity because of the
  convenience they offer markets such as
  walk-through access terminals in mass
  transportation, security, identification, and
  access control

24
Proximity Cards

• Prox cards are available from several sources in
  both ISO thickness cards from .027" to .033" and
  clamshell cards from .060" to over .070" thick
• They are used in security, identification, and
  access control applications, especially door
  access where fast, hands-free operation is
  preferred.

25
Hybrid Card

• There will be some period of time in which there
  will be some magnetic stripe-only cards, some
  chip-only cards, and many cards that will carry
  both a chip and a magnetic stripe as seen by the
  recent release of the America Express Blue card.
  A hybrid infrastructure is expected to
  accommodate the transition.
• A Hybrid card has two chips, each with its
  respective contact and contactless interface. The
  two chips are not connected, but for many
  applications, this Hybrid serves the needs of
  consumers and card issuers.

26
Hybrid Card

• Hybrid card is the term given to e-cards that
  contain two or more embedded chip technologies
  such as a contactless smart chip with its
  antenna, a contact smart chip with its contact
  pads, and/or a proximity chip with its antenna
  all in a single card.

27
Combi Card

• The combi card also known as a dual-interface
  card i.e., with a contact and contactless
  interface.
• It has one smart chip embedded in the card that
  can be accessed through either contact pads or an
  embedded antenna. It is now possible to access
  the same chip via a contact or contactless
  interface, with a very high level of security.

28
Combi Card

• In the mass transit application, a contact-type
  acceptor can be used to place a cash value in the
  chip's memory and the contactless interface can
  be used to deduct a fare from the card.

29
Difference between a Hybrid and a Combi card

• The main difference between a combi card and a
  hybrid card is that a combi card has only one
  chip and a hybrid card has two chips.

30
Cryptographic Smart cards

• Cryptographic cards or crypto cards are high-end
  microprocessor memory cards with additional
  support for cryptographic operations (digital
  signatures and encryption)
• Crypto cards are designed to allow secure storage
  of private keys (or other secret keys).
• These cards will also perform the actual
  cryptographic functions on the smart card itself.
  In this way, the private key need never leave the
  smart card.

31
Cryptographic Smart cards

• Since the EEPROM of these cards is designed to be
  tamper-resistant, unauthorized individuals are
  unable to hack the card secrets its virtually
  hacker-resistant. As a result, crypto cards play
  an essential part of any public/private key
  system

32
Vault Smart Cards

• These cards are activated upon user entry of a
  PIN (personal identification number) directly on
  the card.
• The card self verifies the PIN, and then
  activates the smart module. The card is then
  handed to the merchant to complete the
  transaction.
• After a transaction is completed, the card
  automatically returns to an inactive state and
  cannot be used again without reactivation PIN
  input.
• Entry and verification process is fast, simple,
  and secure. Card self-verification eliminates the
  need for an external PIN database and also
  eliminates transmission of a PIN, reducing the
  chance of interception and misuse.

33
Memory and Microprocessor Chips

• The chips used in all the cards mentioned above
  fall into three categories
• microprocessor chips
• memory chips.
• Optical memory cards

34
Memory Chip

• A memory chip can be viewed as small floppy disks
  with optional security
• Memory cards can hold from 103 bits to 16,000
  bits of data, but have no processor on the card
  with which to manipulate that data.
• They are less expensive than microprocessor
  cards but with a corresponding decrease in data
  management security.
• They are used for storage and retrieval only.

35
Memory Chip

• They depend on the security of the smart card
  reader for their processing and are ideal when
  security requirements permit use of cards with
  low to medium security.
• Smart-card memory chips are used for data storage
  and identification applications.

36
Classification of memory cards

• Memory chips are of three kinds
• Straight memory cards These cards just store
  data and have no data processing capabilities.
  They should be regarded as floppy disks of
  varying sizes without the lock mechanism.        
• Protected/Segmented memory cards These cards
  have built-in logic to control the access to the
  memory of the card. Sometimes referred to as
  intelligent memory cards these devices can be set
  to write protect some or the entire memory array.
  Some of these cards can be configured to restrict
  access to both reading and writing. This is
  usually done through a password or system key.
  Segmented memory cards can be divided into
  logical sections for planned multi-functionality.

37
Classification of memory cards

• Stored value memory cards These cards are
  designed for the specific purpose of storing
  value or tokens. The cards are either disposable
  or rechargeable. Most cards of this type
  incorporate permanent security measures at the
  point of manufacture. These measures can include
  password keys and logic that are hard-coded into
  the chip by the manufacturer. For simple
  applications such as a telephone card the chip
  has 60 or 12 memory cells, one for each telephone
  unit. A memory cell is cleared each time a
  telephone unit is used. Once all the memory units
  are used, the card becomes useless and is thrown
  away. This process can be reversed in the case of
  rechargeable cards.

38
Microprocessor Chips

• Microprocessor cards (also generally referred to
  by the industry as chip cards) offer greater
  memory storage and security of data.
• Chips that contain both memory and a
  microprocessor are also similar to a small floppy
  disk, except they contain an intelligent
  controller used to securely add, delete, change,
  and update information contained in memory.
• The more sophisticated microprocessor chips have
  state-of-the-art security features built in to
  protect the contents of memory from unauthorized
  access.

39
Microprocessor Chips

• A microprocessor chip can add, delete and
  otherwise manipulate information in its memory.
  It can be viewed as a miniature computer with an
  input/output port, operating system and hard
  disk.
• Microprocessor chips are available 8, 16, and 32
  bit architectures. Their data storage capacity
  ranges from 300 bytes to 32,000 bytes with larger
  sizes expected with semiconductor technology
  advances.
• The current generation of chip cards has an
  eight-bit processor, 16KB read-only memory, and
  512 bytes of random-access memory. This gives
  them the equivalent processing power of the
  original IBM-XT computer, albeit with slightly
  less memory capacity.

40
Optical Memory Cards

• Optical memory cards look like a card with a
  piece of a CD glued on top, which is basically
  what they are.
• Optical memory cards can store up to 4 MB of
  data.
• These cards can carry many megabytes of data, but
  the cards can only be written once and never
  erased with todays technology.
• Thus, this type of card is ideal for record
  keeping for example medical files, driving
  records, or travel histories.

41
Multi-application Smart Card

• Since the microprocessor cards have a reasonable
  amount of memory, one can have multiple
  applications residing in the card at the same
  time.
• Multifunction smart cards allocate card memory
  into independent sections assigned to a specific
  function or application.
• Within the card is a microprocessor or
  microcontroller chip that manages this memory
  allocation and file access.
• This type of chip is similar to those found
  inside all personal computers and when implanted
  in a smart card, manages data in organized file
  structures, via a card operating system (COS).

42
Multi-application Smart Card

• The technology permits information updates
  without replacement of the installed base of
  cards, greatly simplifying program changes and
  reducing costs.

43
Multi-application Smart Card

• A student uses the card as a basic ID, to check
  out books from the library, and to decrement
  value for the meal plan and campus vending
  machines. The student might also use it for
  secure access to certain buildings and to the
  universitys computer system.
• The figure shows a overview of uses of
  multi-application smart card

44
Chip Operating System

• The smart cards chip operating system, is a
  sequence of instructions, permanently embedded in
  the ROM of the smart card.
• The functional characteristics of the smart card
  are determined by its operating system
• The operating system receives outside commands
  and executes them provided that certain
  processing conditions are met.

45
Chip Operating System

• The baseline functions of the COS which are
  common across all smart card products include
• Management of interchanges between the card and
  the outside world, primarily in terms of the
  interchange protocol
• Management of the files and data held in memory
       
• Access control to information and functions (for
  example, select file, read, write, and update
  data.)
• Management of card security and cryptographic
  algorithm procedures.
• Maintaining reliability, particularly in terms of
  data consistency, sequence interrupts, and
  recovering from an error.
• Management of various phases of the cards life
  cycle (that is, microchip fabrication,
  personalization, active life, and end of life)

46
Communication Protocol

• Smart cards speak to the outside world using data
  packages called APDU( application protocol data
  units)
• APDU contains either command or response message
• Smart card always waits for command APDU from a
  terminal. It plays a passive role
• It then executes the action specified and replies
  to the terminal using a response APDU.

47
A Smart card transaction

• The steps in a typical smart card transaction are
  set out below
• Step 1 Connection
• In a smart card system for contact cards, the
  card is inserted in a reader device. Contactless
  cards need only be passed near a target.
• Step 2 Authentication of the card
• The card generates a message to the reader,
  which confirms that it is a valid card. The
  message may be encrypted for security purposes.
  The reader can also check the card against a list
  of stolen cards and if necessary lock it so that
  it can no longer be used.

48
A Smart card transaction

• Step 3 Authentication of the reader
• The reader sends a message to the card, which is
  checked against pre-programmed codes to establish
  if the reader is valid. If the card is not
  satisfied that the reader is valid, it can
  prevent the reader gaining access to the
  information held on the card.
• Step 4 Selecting an application
• A single smart card may support many different
  applications, which may be inter-related or quite
  distinct. The desired application can be selected
  by the cardholder, by a person with access to the
  reader, or chosen automatically by the reader or
  the card depending on the form of the initial
  authentication.

49
A Smart card transaction

• Step 5 Identifying security requirements
• The card is able to define the security
  requirements for the selected application. The
  card can enforce different levels of security for
  different purposes or for different persons or
  organizations.
• Step 6 Authenticating the card-holder
• This can be done by either requiring the
  cardholder to enter a PIN (personal
  identification number) or some sort of biometric
  information (for example fingerprints, retina
  scan or signature dynamics). The card keeps the
  relevant information to make a comparison in a
  secret area. It can make the comparison without
  divulging to the cardholder the data it holds for
  the authentication procedure.

50
A Smart card transaction

• Step 7 The transaction
• The transaction is generated by manual entry or
  by an automated process. The card or reader
  checks and authorizes the transaction.
• Step 8 Transaction record
• The card generates a record of the transaction
  and transmits it electronically to the reader.
  The record may be used in another part of the
  system (for example to allow the service
  provider to collect actual payment from a bank in
  a stored value application) by a third party to
  the transaction for other purposes (for example
  collecting statistics) or as back up data
  storage in case the card is lost or damaged.
• Step 9 Hard copy
• A paper record (such as a receipt) can be
  generated by the reader for the cardholder or the
  service provider.

51
Life cycle of a smart card

• There are five phases for a typical smart card
  life cycle
• Fabrication Phase The chip manufacturers carry
  out this phase. The silicon integrated circuit
  chip is created and tested in this phase. A
  fabrication key (KF) is added to protect the chip
  from fraudulent modification until it is
  assembled into the plastic card support. The KF
  of each chip is unique and is derived from a
  master manufacturer key. Other fabrication data
  will be written to the circuit chip at the end of
  this phase. Then the chip is ready to deliver to
  the card manufacturer with the protection of the
  key KF.

52
Life cycle of a smart card

• Pre-personalization Phase The card suppliers
  carry out this phase. In this phase, the chip
  will be mounted on the plastic card. The
  connection between the chip and the printed
  circuit will be made, and the whole unit can be
  tested. To allow secure delivery and for added
  security of the card to the card issuer, the
  fabrication key will be replaced by a
  personalization key (KP). After that, a
  personalization lock VPER will be written to
  prevent further modification of the KP. In
  addition, physical memory access instructions
  will be disabled. Access of the card can be
  achieved only by using logical memory addressing.
  This preserves the system and fabrication areas
  being accessed or modified.

53
Life cycle of a smart card

• Personalization Phase The card issuers conduct
  this phase. It completes the creation of logical
  data structures. Data files contents and
  application data are written to the card.
  Information of cardholder identity, PIN, and
  unblocking PIN will be stored as well. At the
  end, a utilization lock VUTIL will be written to
  indicate the card is in the utilization phase.
• Utilization Phase This is the phase for the
  normal use of the card by the cardholder. The
  application system, logical file access controls,
  and others are activated. Access of information
  on the card will be limited by the security
  policies set by the application.

54
Life cycle of a smart card

• End-of-Life Phase (Invalidation Phase) There are
  two ways to move the card into this phase. One is
  initiated by the application, which writes the
  invalidation lock to an individual file or the
  master file. All the operations including writing
  and updating will be disabled by the operating
  system. Only read instructions may remain active
  for analysis purposes. Another way to put the
  card into this phase is that, when the control
  system irreversibly blocks access because both
  the PIN and unblocking PIN are blocked, then all
  the operations will be blocked including reads.

55
Logical File Structure

• Files are organized in hierarchical form
• There is one master file (MF), which is like the
  root directory. Under the root, there can be
  different files, which are called elementary
  files (EFs). There can be various subdirectories
  called dedicated files (DFs). Under each
  subdirectory will be elementary files again. The
  root or MF is the peak of the hierarchy and it
  contains information and locations of files
  contained within it.
• Dedicated Files (DF) contains the actual data
  files.
• The elementary file is where the actual data is
  stored

56
Logical File Structure

• Elementary files are of four different types.
• Transparent File
• Transparent files are commonly just fixed byte
  files used for storing information.
• Linear, Variable Length Record File
• Linear Record Files contain subdivisions called
  records, which hold a certain amount of bytes
  each.
• Linear, Fixed Length Record File
• Cyclic, Fixed Length Record File
• They contain a cycle of information where
  records are written and read in a ring like
  manner.
• Each type is unique in how the data is stored and
  it's actual purpose.

57
Logical File Structure

• After the success of selection, the header of the
  file can be retrieved, which stores the
  information about the file such as identification
  number, description, types, size, and so on.
  Particularly, it stores the attribute of the
  file, which states the access conditions and
  current status. Access of the data in the file
  depends on whether those conditions can be
  fulfilled or not.
• In order to provide greater security control,
  adding accessing conditions and file status
  fields in the file header enhances the attribute
  of each file.
• Moreover, file lock is also provided to prevent
  the file being accessed. These security
  mechanisms and algorithms provide a logical
  protection of the smart card.

58
Access Control

• The smart card access control system covers file
  access mainly. Each file is attached by a header,
  which indicates the access conditions or
  requirements of the file and the current status
  as well.
• Levels of Access Conditions
• Always (ALW) Access of the file can be
  performed without any restriction.
• Cardholder verification 1 (CHV1) Access can only
  be possible when valid CHV1 value is presented.
• Cardholder verification 2 (CHV2) Access can only
  be possible when valid CHV2 value is presented.
• Administrative (ADM) Allocation of these levels
  and the respective requirements for their
  fulfillment are the responsibility of the
  appropriate administrative authority.
• Never (NEV) Access of the file is forbidden.

59
Access Control

• Two counters have to be implemented for each of
  the cardholder verification numbers (CHVs), There
  are three states in the management of the PIN,
  which are described below.
• PIN has been presented Files or functions, which
  have PIN presentation as a pre-requisite or
  condition, can be carried out. Every time the PIN
  is presented correctly, the PIN counter will be
  reset to the maximum number of tries, three for
  example.
• PIN has not been presented or was presented
  incorrectly The PIN counter will be decremented
  by one after each incorrect PIN was presented.
  All the operations or instructions, which require
  PIN presentation, will be invalidated. If the PIN
  counter reaches zero, then the PIN will be
  blocked.
• PIN is blocked In this state, all the operations
  require PIN presentation and even the PIN
  presentation instruction itself is blocked.
  Unblock PIN instruction has to be carried out. If
  correct unblocking PIN is presented, the PIN
  counter will be reset to the maximum number of
  tries and backed to the first state. However, if
  invalid unblocking PIN is presented, the unblock
  PIN counter will be decremented by one and when
  this counter reaches zero, the PIN can never be
  unblocked again.

60
Smart card Standards

• International Standards Organization
• American National Standards Institute
• International Airline and Transportation
  Association.
• It has formed a task force to develop
  interoperability standards for smart card
  ticketless travel.
• G-8 Health Standards
• The G-8 countries have come together to develop a
  standard format for populating data on a health
  card.
• GSM Standards
• The specifications tie a telephone number to
  smart card, called a Subscriber Identification
  Module (SIM) or User Identity Module (UIM),
  rather than to a telephone handset. The SIM is
  inserted into a telephone to activate it.

61
Smart card Standards

• EMV Specifications
• The EMV specification resolves the problem of
  disparate chip card systems across the European
  continent, thereby eliminating a major impediment
  to the widespread, cost effective implementation
  of a global credit and debit card system.
• PC/SC Workgroup Open Specifications
• This group has developed open specifications for
  integrating smart cards with personal computers.
• OpenCard Framework
• The OpenCard Framework is a set of guidelines
  announced by IBM, Netscape, NCI, and Sun
  Microsystems Inc. for integrating smart cards
  with network computers.
• Secure Electronic Transactions (SET).
• Secure Electronic Transactions (SET) is a
  protocol for secure payments across the Internet.
  Announced in 1996 by VISA and MasterCard, SET
  establishes a single technical protocol for
  protecting payment card purchases made over the
  Internet and other open networks. It is based on
  public key encryption and authentication
  technology.

62
ISO

• ISO 7816-1Physical characteristics
• ISO 7816-2Dimensions and location of the
  contacts
• ISO 7816-3Electronic signals and transmission
  protocols
• ISO 7816-4Industry commands for interchange
• ISO 7816-5 Number system and registration
  procedure for application identifiers
• ISO 7816-6 Interindustry data elements

63
Security related standards

• PKCS11Cryptographic Token Interface Standard
  This standard specifies an Application
  Programming Interface (API), called Cryptoki, to
  devices which hold cryptographic information and
  perform cryptographic functions.
• PKCS15 Cryptographic token information format
  standard PKCS15 is intended to standardize the
  use of cryptographic tokens to identify
  themselves to multiple, standard-aware
  applications regardless of the applications
  cryptographic token interface provider. The key
  issue in such cases is the interoperability.

64
Security related standards

• JavaCard The JavaCard API is a specification
  that enables the Write Once, Run Anywhere
  capabilities of Java on smart cards and other
  devices with limited memory.
• Common Data Security Architecture Developed by
  Intel, the Common Data Security Architecture
  (CDSA) provides an open, interoperable,
  extensible, and cross-platform software framework
  that makes computer platforms more secure for all
  applications including electronic commerce,
  communications, and digital content.
• Microsoft Cryptographic API The Microsoft
  Cryptographic API (CryptoAPI) provides services
  that enable application developers to add
  cryptography and certificate management
  functionality to their Win32 applications.

65
Principles of security standards

• Multi-platform
• Standard should be applicable to numerous modern
  day operating systems and computer architectures
• Open participation
• Standard should accept input and peer review from
  members of industry, academia, and government
• Interoperability
• Standard should be interoperable with other
  leading standards and protocols.
• Real, Functional
• Standard should apply to real world problems and
  markets and adequately address their
  requirements.
• Experience, Products
• Standard should be created by a group of people
  with experience in security-related products and
  standards.
• Extensibility
• Standard should facilitate expansion to new
  applications, protocols, and smart card
  capabilities that werent yet around when the
  standard was created.

66
Attack Technologies

• Attacks on smart cards are as follows
• Invasive attacks
• Noninvasive attacks
• Physical attacks
• Logical attacks
• Trojan Horse attacks
• Social Engineering attacks

67
Invasive attacks

• Microprobing techniques are usually used to
  access the chip surface directly, thus
  facilitating the observation and manipulation of
  the integrated circuit of the smart card.
• Depackaging Invasive attacks start with the
  removal of the chip package. The card plastic is
  heated until it becomes flexible. This softens
  the glue and the chip module can then be removed
  easily by bending the card.
• Layout reconstruction The next step is to
  reconstruct the layout of the new processor

68
Invasive attacks

• Manual microprobing Its major component is a
  special optical microscope
• Memory read out techniques It is usually not a
  practice to read out data from processor
  directly. Microprobing is used to observe the
  entire bus and record the values in the memory as
  they are accessed.

69
Non-Invasive attacks

• The attacked card is not physically harmed and
  the equipment used in the attack are usually
  disguised as smart card readers
• Software attacks use the normal communication
  interface of the processor and exploit security
  vulnerabilities found in the protocols,
  cryptographic algorithms, or their
  implementations
• Fault generation attacks use abnormal
  environmental conditions to generate malfunctions
  in the processor that provide additional access.
• Glitch attacks In a glitch attack, a
  malfunction is deliberately generated, which
  causes one or more flip-flops to adopt the wrong
  state.
• Eavesdropping Attacks These attacks take
  advantage of the analog characteristics of all
  supply and interface connections and any other
  electromagnetic radiation produced by the smart
  card processor during normal operation.

70
Physical attacks

• Physical attacks attempt to reverse engineering
  the card and determine the secret keys
• This involves techniques like
• Peeling off the LSI chip
• Analysis using operational test circuits
• Analysis using low-frequency clocks
• Introduce computational errors into the smart
  card can deduce the value of the cryptographic
  keys
• Voltage manipulation, temperature manipulation
• DPA(Differential Power Analysis) is a complicated
  attack that relies on statistical references
  drawn from power consumption data measured during
  smart card computation

71
Logical attacks

• Logical attacks occur when a smart card is
  operating under normal physical conditions, but
  sensitive information is gained by examining the
  bytes going to and from the smart card.
• In this attack, various byte patterns are sent to
  the card to be signed by the private key.
  Information such as the time required performing
  the operation and the number of zeroes and ones
  in the input bytes are used to eventually obtain
  the private key.

72
Trojan horse attacks

• Trojan horse attacks This attack involves a
  rogue, Trojan horse application that has been
  planted on an unsuspecting users workstation.
  The Trojan horse waits until the user submits a
  valid PIN from a trusted application, thus
  enabling usage of the private key, and then asks
  the smart card to digitally sign some rogue data.
  The operation completes but the user never knows
  that their private key was just used against
  their will.

73
Trojan horse attacks

• Prevention
• The countermeasure to prevent this attack is to
  use single-access device driver architecture.
  With this type of architecture, the operating
  system enforces that only one application can
  have access to the serial device (and thus the
  smart card) at any given time.
• Another way to prevent the attack is by using a
  smart card that enforces a "one private key usage
  per PIN entry" policy model. In this model, the
  user must enter their PIN every single time the
  private key is to be used and therefore the
  Trojan horse would not have access to the key.

74
Social Engineering attacks

• In computer security systems, this type of attack
  is usually the most successful, especially when
  the security technology is properly implemented
  and configured. Usually, these attacks rely on
  the faults in human beings. An example of a
  social engineering attack has a hacker
  impersonating a network service technician. The
  serviceman approaches a low-level employee and
  requests their password for network servicing
  purposes. With smart cards, this type of attack
  is a bit more difficult. Most people would not
  trust an impersonator wishing to have their smart
  card and PIN for service purposes.

75
Smart card features

• Two factor authentication
• Secure storage for private keys
• Non-repudiation
• cryptographic smart cards are designed to ensure
  that a users private key never leaves the smart
  card, it cannot be copied, replicated or misused
  by another individual. As a result, you can be
  extremely confident that the private key (which
  is the lynch pin to an entire PKI infrastructure)
  is always in the sole possession of the user.
  That means that one has undeniable evidence that
  connects a specific user to each transaction.
• Single sign-on
• The corporate user no longer has to remember
  multiple passwords to multiple applications. On
  the contrary, the user simply inserts his smart
  card, enters the PIN and the rest of the work is
  performed by the smart card.
• Mobility
• Multiple applications on a single card

76
Smart card features

• Personalization
• Personalization involves customizing smart cards
  for your business. Physical personalization and
  electronic personalization
• PKI
• The core of solutions based on the Public Key
  Infrastructure (PKI) consists of a pair of keys -
  the public key and the private key. Storing the
  private key of the key pair underlying the PKI
  system is an essential part of security and ease
  of use. The private key is stored in the chip of
  the smart card thus, only the cardholder can use
  his private key. The register of public keys is
  maintained and administered by a trusted third
  party.
• Economic benefits
• Smart cards reduce transaction costs by
  eliminating paper and paper handling costs in
  hospitals and government benefit payment
  programs. Contact and contactless toll payment
  cards streamline toll collection procedures,
  reducing labor costs as well as delays caused by
  manual systems.

77
Smart card features

• Customization
• A smart card contains all the data needed to
  personalize networking, Web connection, payments
  and other applications.
• Increase the security of password based systems
• One of the biggest problems in typical password
  systems is that users write down their password
  and attach it to their monitor or keyboard. They
  also tend to choose weak passwords and share
  their passwords with other people. If a smart
  card is used to store a users multiple
  passwords, they need only remember the PIN to the
  smart card in order to access all of the
  passwords.
• Portability of Keys and Certificates
• With smart cards the certificate and private key
  are portable, and can be used on multiple
  workstations, whether they are at work, at home,
  or on the road.
• Auto-disabling PINs Versus Dictionary Attacks

78
Smart card features

• Counting the Number of Private Key Usages
• Smart card based digital signatures provide
  benefits over handwritten signatures because they
  are much more difficult to forge and they can
  enforce the integrity of the document through
  technologies such as hashing.

79
Smart Card Readers

• Though commonly referred to as smart card
  readers, all smart card enabled terminals, by
  definition, have the ability to read and write as
  long as the smart card supports it and the proper
  access conditions have been fulfilled.
• Some examples include reader integrated into a
  vending machine, handheld battery-operated reader
  with a small LCD screen, reader integrated into a
  GSM mobile phone, and a reader attached to a
  personal computer.

80
Smart card applications

• Financial services - Financial institutions are
  looking to use Smart Cards to deliver higher
  value-added services to businesses and consumers
  at a lower cost per transaction.
• Electronic purse to replace coins for small
  purchases in vending machines and
  over-the-counter transactions
• Credit and/or Debit Accounts, replicating what is
  currently on the magnetic stripe bank card, but
  in a more secure environment.
• Securing payment across the Internet as part of
  Electronic Commerce.
• Affinity programs - Airlines want to use Smart
  Cards not only as a vehicle for issuing and
  carrying tickets - even though the single benefit
  of being able to securely order/provide a ticket
  directly to chip cards via the Internet is
  substantial. Airlines also want to use  the cards
  to provide tie-ins to their frequent-flyer
  programs and to cross-marketing deals with auto
  rentals and hotels, as well as to provide
  simplified access to private airline lounges.

81
Smart card applications

• Government Programs
• Electronic Benefits Transfer using smart cards to
  carry Food Stamp and WIC food benefits in lieu of
  paper coupons and vouchers.
• Agricultural producer smart marketing card to
  track quotas.
• Communication applications
• The secure initiation of calls and identification
  of caller (for billing purposes) on any Global
  System for Mobile Communications (GSM) phone.
• Subscriber activation of programming on Pay-TV.
• Information Security
• Employee access card with secured passwords and
  the potential to employ biometrics to protect
  access to computer systems

82
Smart card applications

• Secure network access
• Smart Cards can carry an individual's digital
  signature. With this ability, they  provide a
  special mechanism to secure access to computer
  networks within a corporation, they help ensure
  that only individuals with the proper authority
  can get access to specific network resources, and
  they reduce the likelihood that hackers can break
  into a system.
• Healthcare
• Banking
• Internet

83
Smart Card Applications

• Information Technology
• Businesses, the government and healthcare
  organizations continue to move towards storing
  and releasing information via networks,
  Intranets, extranets and the Internet. These
  organizations are turning to smart cards to make
  this information readily available to those who
  need it, while at the same time protecting the
  privacy of individuals and keeping their
  informational assets safe from hacking and other
  unwanted intrusions. In this capacity, smart
  cards enable
• Secure logon and authentication of users to PCs
  and networks
• Secure B2B and B2C e-commerce
• Storage of digital certificates, credentials and
  passwords
• Encryption of sensitive data

84
Smart Card Applications

• Mobile Telecommunications
• People using the Global System for Mobile
  communications (GSM) standard for mobile phones
  use smart card technology. The smart card is
  inserted or integrated into the mobile handset.
  The card stores personal subscriber information
  and preferences that can be PIN code protected
  and transported from phone to phone. The smart
  cards enable
• Secure subscriber authentication
• Roaming across networks
• Secure mobile value added services

85
Smart Card Applications

• Commercial Applications
• Smart cards also provide benefits for a host of
  commercial applications in both B2B and B2C
  environments. The smart cards portability and
  ability to be updated make it a technology well
  suited for connecting the virtual and physical
  worlds, as well as multi-partner card programs.
  The cards store information, money, and/or
  applications that can be used for
• Banking/payment
• Loyalty and promotions
• Access control
• Stored value
• Identification
• Ticketing
• Parking and toll collection

86
Smart card Applications

• Physical Access
• Employee access card with secured ID and the
  potential to employ biometrics to protect
  physical access to facilities
• Transportation
• Drivers Licenses.
• Mass Transit Fare Collection Systems.
• Electronic Toll Collection Systems.
• Retail and Loyalty
• Consumer reward/redemption tracking on a smart
  loyalty card, that is marketed to specific
  consumer profiles and linked to one or more
  specific retailers serving that profile set.
• Health Card
• Consumer health card containing insurance
  eligibility and emergency medical data.
• University Identification
• All-purpose student ID card (a/k/a/ campus card)
  , containing a variety of applications such as
  electronic purse (for vending and laundry
  machines), library card, and meal card.

87
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