Securing Card-Not-Present Transactions through EMV

Authentication

Matthew Carter and Brienne DouglasDecember 18, 2015

Outline

• Problem

• Card-Not-Present (CNP) vs. PayPal

• EMV Technology

• EMV CNP Experiment

• Summary

• Questions

• Types of Payment CardsoDebitoCredit

• In 2014, over 13 million Americans were victims

Source: Aite Group, “EMV: Lessons Learned and the U.S. Outlook,” June 2014

Problem: Payment Card Fraud (1)

• U.K. was early adopter of EuroPay, MasterCard, and VISA (EMV) technology

• Counterfeit cards (Cloning) decrease

• Card-Not-Present (CNP) fraud has sharp increaseo Purchases over interneto Purchases over phone

Problem: Payment Card Fraud (2)

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Problem: Payment Card Fraud (3)

• “Secret” card data provides transaction authorizationo Card numbero Expiration Dateo Etc.

• Third party passively viewing can repeat transaction

Traditional CNP Transactions

• Man-in-the-middle-proxy (mitmproxy)

• Checkout Serviceo 127.0.0.1 GET

https://api.stripe.com/v1/tokens?email=testemail…&card[number]=4242+4242+4242+4242&card[cvc]=151&card[exp_month]=6&card[exp_year]=2016&card[name]=testemail…

CNP Attack

Existing CNP Alternatives

• PayPal• User card information

encrypted on PayPal Servers

• Payment transactions done via tokenization

• Sniffed SSL traffic reveals some user information leakedo Account details

encrypted prior to transmission

• Chip-and-PIN• EMV provides “Card Verification

Technologies”o Static Data Authentication (SDA)o Dynamic Data Authentication (DDA)o Combined DDA & Application cryptogram

(CDA)

EMV Technology

• Private RSA key used for signature generation

• Provides Public Certificates o Card Certificateo Issuer Certificate

Card Signature

Issuer Public

Certificate

Certificate Authority

Public Certificate

Verified By

Verified By

EMV Dynamic Data Authentication (1)

Card Terminal

Generate SignatureTransmits dynamic data to be included in signature

Dynamic Data

Responds with signature Verifies signature

Signature

EMV Dynamic Data Authentication (2)

• Force online transactions to run DDA for card verification

• Verify signature at remote location

• Verify payment card data is not susceptible to man-in-the-middle attack

EMV CNP Experiment

EMV CNP Components

Client Machine Running Software

Smart Card Reader

Payment Card with Integrated

Chip

Server Machine Running Software

Client and Server Machines

• Cliento Card Reader Softwareo Client HTTPS Software

• Servero XAMPP – Server Software• Apache• MySQL• Tomcat

o Java Servlets• Dynamic Data Generation• Card Signature Verification

EMV CNP Steps

• Read Card

• Generate Dynamic Data

• Card Signature Generation

• Verification of Signature

Read Card Step

------------------------------------------------

Send READ RECORD to read SFI 1 record 4

-------------------------------------

APDU: 00 b2 04 0c 00

Response Parsed:70 81 c3 -- Record Template

9f 46 81 b0 –ICC Public Key Certificate

55 ea 24 5f 3c da …

9f 47 01 –ICC Public Key Exponent

03

Dynamic Data Generation

Sample output from Server:

Card Signature Generation

77 73 -- Response Message Template Format 2

9f 4b 70 -- Signed Dynamic Application Data

46 f2 60 df …

Send INTERNAL AUTHENTICATE command

------------------------------------------------

Sending HTTPS request to url :https://mrc7d-pc/examples/getdyndata

Response Code : 200authenticationRelatedData = F69A603757096EC1B3

Command Bytes:

00 88 00 00 09 f6 9a 60 37 57 09 6e c1 b3 00

Card Signature Verification (1)

• Certificate Authority (CA) Public KeyoApplication Identifier (AID)oCA Public Key Index

• Issuer Public Key• Integrated Circuit Chip (ICC)

Public KeyoCard Public Key

Sample output from Server:

Card Signature Verification (2)

Sample output from Server:

Card Signature Verification (3)

Summary

• EMV deployment known to mitigate card-present fraud; does nothing for card-not-present (CNP) transactions

• Attempts to secure CNP payments with dynamic data authentication (DDA) using RSA key pair proved successful

Questions