Security of e-payments

Security components of e-payments

• Availability

• Authenticity and authorization

• Integrity

• Non-repudiation

• Confidentiality

Technologies Aspect

• Symmetric encryption

– problem of key distribution in large networks not suitable for mass-use

• Asymmetric encryption

– addresses the problem of key distribution

– requires an infrastructure with co-operation on organizational aspects of key management

• Legal backing and interoperability open issues

• Organizational challenges of PKI

• Compared to traditional payment systems, the use of the open

network has allowed more convenient financial services but has

also made the nature of risks more complex

• There is an increasing demand for security services by banking

customers, above all by firms, confirmed by the vast economic

literature and surveys on e-commerce and e-business

• Financial institutions are requested to supply on-line payments on

open networks with the same security levels as traditional payment

instruments.

To win the challenge of the new technological environment, e-signature must be regarded as an enabling platform, or an essential device, to offer a complete set of trust services. These might be grouped in three levels

A  basic services related to validation of identity and issuance of

certificates

B  complementary services to e-signature, typically developed by the

banking community, such as electronic documents management

systems, attribute management, "Quality of Service" (QoS) dynamic

warranty systems, secure&certified mail

C  value added services, tailored to individual customers, like "escrow

services" in business-to-business environment