Encryption, the key to secure Payment Methods
How can we achieve trust and security in Payment Methods?
Jesús Rodriguez, CEO, REALSEC
In this article we will review the new regulations developed in Mexico related to financial security and how encryption/cryptography is the only way to meet these needs and provide a secure payment environment.
We have all been witness to the increased and improved security within the financial sector in recent years. Banks are aware of the need to protect transactions and mitigate the risks of fraud while at the same time complying with laws established by local financial authorities (as is the case of the CNBV in Mexico as well as payment methods such as VISA, Mastercard etc.). More and more they must focus efforts on reinforcing their protection system to cover their needs and that of their customers.
The best ally to protecting financial transactions are crypto processors/HSM’s (Hardware Security Module), both to protect transactions and to comply with security requirements.
There will be breaks in security over time and the cryptographic algorithms used for years by the HSM devices become vulnerable making it necessary to discontinue their use due to insufficient security level and be replaced by more secure algorithms such as in the case of the DES algorithm and its replacement, the 3DES, which is infinitely more reliable.
Until the DES algorithm was discontinued once it was considered unsecure, the PIN code was used as a means of transportation and verification. However, the use of the new 3DES algorithm combined with the propagation of EMV cards has made financial transactions more secure. This comes from the technologies capability to carry out an exchange of cryptograms between the chip card and the issuing bank as well as use complex scripts for special operations such as changing the PIN code.
The use of the 3DES algorithm implemented in an HSM (Hardware Security Module) and with FIPS 140-2 Level 3 certification by NIST, as is the case of Cryptosec Banking from REALSEC, enables advanced cryptographic banking operations with maximum security guarantees and complies with the requirements established by payment systems and, as in the case of Mexico, the CNBV.
Cryptosec Banking includes all functions and banking commands required by the financial sector (EMV, PIN, RTGS) from the beginning and with no additional payments for the use of new commands or functions. This converts it into the cryptographic solution designed for the Banking sector with the best possible service for the best value on the market.
At the compliance level, we must take into account the key role played by the encryption of the cardholder data in the transfer, storage, and custody processes to which entities and businesses are obliged to comply with (PCI standards) according to the Payment Card Industry Data Security Standard, a regulation resulting from an agreement between the principal payment card brands (Visa, MasterCard, American Express) as a standard for the protection of cardholder data.
The PCI Standard establishes that encryption of transactions made using these payment methods must be carried out using cryptographic hardware to ensure acceptable security levels and minimize the possible risks of fraud in relation to the fraudulent use of cardholder data.
Cryptosec Banking is an HSM (Hardware Security Module) that contributes to the compliance of the PCI Standard.
Regardless whether the process of verification of financial transactions is carried out with bank cards from the entity (Issuer) or with cards from other entities within the network (Purchaser), it is essential to have an HSM (financial encryptor) which securely manages transactions at the POS and in the ATM network.
Cryptosec Banking not only includes all of the functions and cryptographic commands currently used in the financial sector, but also those that will be necessary in the future to comply with the requirements of Payment Methods and local regulations. All of this without additional cost to the client that has signed a maintenance contract, allowing access to any new functions and cryptographic commands incorporated into newer versions of the product.
It should be noted that a large number of banks around the world currently use REALSEC Cryptosec Banking to encrypt its financial operations. For more information, click HERE. You can contact us here and download our Datasheet.