Why Storing Plaintext Passwords Is Bad

No matter what bad news we hear about passwords – leaks, security breaches, compromised security – passwords provide a very good protection when used properly. The real weak link here is the user. If users could remember long and random passwords, the “problem of passwords” would be much, much smaller. The hype would disappear and the real issue – how internet companies store passwords – would become much move visible.

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Online and Mobile Banking Fusion

Banks simplify access to our bank accounts. They keep relaxing security while hoping to replicate the boiling frog story. The trouble is that no-one dies and someone will figure out – sooner rather than later.

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I touch on a few things: using online banking to find valid card numbers, and date of birth, increasing chances for unauthorised access, lowering security of login credentials and changing role of debit cards.

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Tokenisation – Introduction

Tokenisation is a hot topic as it makes card processing cheaper and more secure. The goal is to replace your card number with a random number that is hard to use for unauthorised transactions – and it removes the need to encrypt databases.

What we are primarily looking at now are mobile payments but we are designing solutions for e-commerce as well. Payment processing involves re-encryption of PINs (PIN-blocks) for card-present transactions.

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Card Payments and The Cloud

We are now integrating encryption into a corporate infrastructure and it made me think about payments and PCI audits. PCI stands for Payment Card Industry. Anyone who got close enough to e-commerce, or card payments knows what a burden it is on running a business.

Sooo, I have spent some time this week thinking about architectures for “technical security systems”. I could say “cryptography” straight away, I guess. Thinking about protecting sensitive data that may be subject of independent audits.

The scope of PCI audits is given by storage and processing of credit card numbers and PINs (in case of Chip&PIN systems). Once you experience the pain, you definitely want to get “out of scope”. This is true for merchants just as banks.

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Finally Friday – a time to ponder with a pint of real ale

My company Enigma Bridge built a truly scalable (in all meanings of the word) hardware platform (with FIPS140-2 Level 3). OK, you have no idea what I talk about… that is one of our communication problems.

How can we explain to people what is the advantage of using tamper-resistant hardware. What is the advantage of hardware separation – something our platform provides even when packaged as a cloud service.

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Photo: SplitShire (yes, it’s 1/2 litre of one of the big brands – not a pint of a local real ale) 

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"Any sufficiently advanced technology is indistinguishable from magic." A. C. Clark