Smart Card

Smart Card

1. INTRODUCTION

Welcome to Smart Card Basics. This is a sponsored site brought to you by a number of leading manufacturers in the smart card industry. We have tried to make this site informative with out a single perspective or a marketing pitch. It is our belief that informed users make better choices, which in turn leads to a stronger market for all. Smart Card or Chip card technology is fast becoming commonplace in our culture and daily lives. We hope that this site will bring you a little closer in your understanding of this exciting technology and the benefits it can bring to your applications2. WHAT IS SMART CARD

If you have A smart card, a type of chip card, is a plastic card embedded with a computer chip that stores and transacts data between users. This data is associated with either value or information or both and is stored and processed within the cards chip, either a memory or microprocessor. The card data is transacted via a reader that is part of a computing system. Smart card-enhanced systems are in use today throughout several key applications, including healthcare, banking, entertainmAccording to Eurosmart, worldwide smart card shipments will grow 10% in 2010 to 5.455 billion cards. Markets that have been traditionally served by other machine readable card technologies such as bar-code and magnetic stripe are converting as the calculated return on investment is revisited by the each card issuer year after year. First introduced in Europe nearly three decades ago, smart cards debuted as a stored value tool for pay phones to reduce theft. As smart cards and other chip-based cards advanced, people found new ways to use them, including charge cards for credit purchases and for record keeping in place of paper.ent and transportation.specific questions regard. Why Smart Cards

Smart cards greatly the convenience and security of any transaction. They provide tamper-proof storage of user and account identity. Smart card systems have proven to be more reliable than other machine-readable cards, such as magnetic-stripe and bar-code, with many studies showing card read life and reader life improvements demonstrating much lower cost of system maintenance. Smart cards also provide vital components of system security for the exchange of data throughout virtually any type of network. They protect against a full range of security threats, from careless storage of user passwords to sophisticated system hacks. The costs to manage password resets for an organization or enterprise are very high, thus making smart cards a cost-effective solution

in these environments. Multifunction cards can also serve as network system access and store value and other data. Worldwide, people are now using smart cards for a wide variety of daily tasks. These include:ing a specific.Securing Digital Content and Physical Assets

In addition to information security, smart cards achieve greater security of services and equipment, because the card restricts access to all but the authorized user(s). Information and entertainment is being delivered via satellite or cable to the home DVR player or cable box or cable-enabled PC. Home delivery of service is encrypted and decrypted via the smart card per subscriber access. Digital video broadcast systems have already adopted smart cards as electronic keys for protection. Smart cards can also act as keys to machine settings for sensitive laboratory equipment and dispensers for drugs, tools, library cards, health club equipment etc. In some environments, smart card enabled- SD and microSD cards are protecting digital content as it is being delivered to the mobile hand-sets/ phones.

E-Commerce

Smart cards make it easy for consumers to securely store information and cash for purchasing. The advantages they offer consumers are:

The card can carry personal account, credit and buying preference information that can be accessed with a mouse click instead of filling out forms.

Cards can manage and control expenditures with automatic limits and reporting.

Internet loyalty programs can be deployed across multiple vendors with disparate POS systems and the card Act

Bank Issued Cards

Around the globe the bank controlled Co-ops (Visa, MasterCard, Discover, and American Express) have rolled out millions of smart cards under the EMV (Europay, MasterCard, VISA) standard. Often referred to as chip and PIN cards; these are the de facto type of cards for bank issuance in most countries except the U.S. As Canada has just recently started its regulatory shift of EMV cards the U.S. will be the sole island in North America that has not yet made the adoption. This adoption is being driven by the increased types of fraud for both credit nd debit cards.Smart cards have been proven to secure a transaction with regularity, so much so that the EMV standard has become the norm.

As banks enter competition in newly opened markets such as investment brokerages, they are securing transactions via smart cards at an increased rate. This means:

Smart cards increase trust through improved security. Two-Factor Authentication insures protection of data and value across the internet. Threats such as the Man in the middle and Trojan Horses that replay a user name and password are eliminated

This is improving customer service. Customers can use secure smart cards for fast, 24-hour electronic funds transfers over the internet

Costs are reduced: transactions that normally would require a bank employees time and paperwork can be managed electronically by the customer with a smart cards as a secure central depository for points or rewards.

Healthcare Informatics

The explosion of health care data brings up new challenges to the efficiency of patient care and privacy safeguards. Smart cards solve both challenges with secure, mobile storage and distribution of everything from emergency data to benefits status. Many socialized countries have already adopted smart cards as credentials for their health networks and as a means of carrying an immediately retrievable Electronic Health Record (EHR). Benefits include: Rapid, accurate identification of patients; improved treatment

Reduction of fraud with authentication of provider/patient visits and insurance eligibility

A convenient way to carry data between systems or to sites without systems

Reduction of records mPhysical Access

Businesses and universities of all types need simple identity cards for all employees and students. Most of these people are also granted access to certain data, equipment and departments according to their status. Multifunction, microprocessor-based smart cards incorporate identity with access privileges and can also store value for use in various locations, such as cafeterias and stores. Many hotels have also adopted ISO7816 type card readers into the hotel rooms for use by the staff.

All U.S. government and many corporations have now incorporated a contactless reader as an access point to their facilities. Some companies have incorporated a biometric component to this credential as well. The older systems deploy a simple proximity card system as the gate keeper. But as the security requirements have become stronger and the cost of ISO14443 standard systems have become cheaper, the world is rapidly adopting this new standard. This market shift is partially driven by the US governments adoption of the mandated Personal Identity Verification (PIV) standard. There is a rich ecosystem of suppliers and integrators for this standard.aintenance costs

3. TYPES OF CHIP CARDSSmart cards are defined according to 1). How the card data is read and written and 2). The type of chip implanted within the card and its capabilities. There is a wide range of options to choose from when designing your system.

Figure 3-1: TypES OF CHIPCard ConstructionMostly all chip cards are built from layers of differing materials, or substrates, that when brought together properly gives the card a specific life and functionality. The typical card today is made from PVC, Polyester or Polycarbonate.

The card layers are printed first and then laminated in a large press. The next step in construction is the blanking or die cutting. This is followed by embedding a chip and then adding data to the card. In all, there may be up to 30 steps in constructing a card. The total components, including software and plastics, may be as many as 12 separate items; all this in a unified package that appears to the user as a simple DEVICE.

Contact Cards

These are the most common type of smart card. Electrical contacts located on the outside of the card connect to a card reader when the card is inserted. This connector is bonded to the encapsulated chip in the card.Memory Cards

Memory cards cannot manage files and have no processing power for data management. All memory cards communicate to readers through synchronous protocols. In all memory cards you read and write to a fixed address on the card. There are three primary types of memory cards: 1). Straight, 2). Protected, and 3). Stored Value. Before designing in these cards into a proposed system the issuer should check to see if the readers and/or terminals support the communication protocols of the chip. Most contactless cards are variants on the protected memory/ segmented memory card idiom.1) Straight Memory Cards

These cards just store data and have no data processing capabilities. Often made with I2C or serial flash semiconductors, these cards were traditionally the lowest cost per bit for user memory. This has now changed with the larger quantities of processors being built for the GSM market. This has dramatically cut into the advantage of these types of devices. They should be regarded as floppy disks of varying sizes without the lock mechanism. These cards cannot identify themselves to the reader, so your host system has to know what type of card is being inserted into a reader. These cards are easily duplicated and cannot be tracked by on-card

Identifiers2) 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 multifunctionality. These cards are not easily duplicated but can possibly be impersonated by hackers. They typically can be tracked by an on-card identifier.3) 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. The memory arrays on these devices are set-up as decrements or counters. There is little or no memory left for any other function. 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.

4. CPU/MPU MICROPROCESSOR MULTIFUNCTION

CPU/MPU Microprocessor Multifunction Cards

These cards have on-card dynamic data processing capabilities. Multifunction smart cards allocate card memory into independent sections or files 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). Unlike other operating systems, this software controls access to the on-card user memory. This capability permits different and multiple functions and/or different applications to reside on the card, allowing businesses to issue and maintain a diversity of products through the card. One example of this is a debit card that also enables building access on a college campus. Multifunction cards benefit issuers by enabling them to market their products and services via state-of-the-art transaction and encryption technology. Specifically, the technology enables secure identification of users and permits information updates without replacement of the installed base of cards, simplifying program changes and reducing costs. For the card user, multifunction means greater convenience and security, and ultimately, consolidation of multiple cards down to a select few that serve many purposes.

Contactless Cards

These are smart cards that employ a radio frequency (RFID) between card and reader without physical insertion of the card. Instead, the card is passed along the exterior of the reader and read. Types include proximity cards which are implemented as a read-only technology for building access. These cards function with a very limited memory and communicate at 125 MHz. Another type of limited card is the Gen 2 UHF Card that operates at 860 MHz to 960 MHz True read and write contactless cards were first used in transportation for quick decrementing and reloading of fare values where their lower security was not an issue. They communicate at 13.56 MHz, and conform to the ISO14443 standard. These cards are often protected memory types. They are also gaining popularity in retail stored value, since they can speed-up transactions and not lower transaction processing revenues (i.e. VISA and MasterCard), like traditional smart cards.

Multi-mode Communication Cards

These cards have multiple methods of communications, including ISO7816, ISO14443 and UHF gen 2. How the card is made determines if it is a Hybrid or dual interface card.

The term can also include cards that have a magnetic-stripe and or bar-code as well.

Hybrid Cards

Hybrid cards have multiple chips in the same card. These are typically attached to each interface separately, such as a MIFARE chip and antenna with a contact 7816 chip in the same card.

Dual Interface Cards

These cards have one chip controlling the communication interfaces. The chip may be attached to the embedded antenna through a hard connection, inductive method or with a flexible bump mechanism.

Multi-component Cards

These types of cards are for a specific market solution. For example, there are cards where the fingerprint sensor is built on the card. Or one company has built a card that generates a one-time password and displays the data for use with an online banking application. Vault cards have rewriteable magnetic stripes. Each of these technologies is specific to a particular vendor and is typically patented.

Smart Card Form Factors

The expected shape for cards is often referred to as CR80. Banking and ID cards are governed by the ISO 7810 specification. But this shape is not the only form factor that cards are deployed in. Specialty shaped cutouts of cards with modules and/or antennas are being used around the world. The most common shapes are SIM. SD and MicroSD cards can now be deployed with the strength of smart card chips. USB flash drive tokens are also available that leverage the same technology of a card in a different form factor.

Smart Card Readers/Terminals

Readers and terminals operate with smart cards to obtain card information and perform a transaction.

Generally, a reader interfaces with a PC for the majority of its processing requirements. A terminal is a self-contained processing device. Both readers and terminals read and write to smart cards.

Readers

Contact

This type of reader requires a physical connection to the cards, made by inserting the card into the reader. This is the most common reader type for applications such as ID and Stored Value. The card-to-reader communications is often ISO 7816 T=0 only. This communication has the advantage of direct coupling to the reader and is considered more secure. The other advantage is speed. The typical PTS Protocal Type Selection (ISO7816-3) negotiated speed can be up to 115 kilo baud. This interface enables larger data transport without the overhead of anti-collision and wireless breakdown issues that are a result from the card moving in and out of the reader antenna range.

Contactless

This type of reader works with a radio frequency that communicates when the card comes close to the reader. Many contactless readers are designed specifically for Payment, Physical Access Control and Transportation applications. The dominant protocol under the ISO 14443 is MIFARE, followed by the EMV standards.

Interface

A contact reader is primarily defined by the method of its interface to a PC. These methods include RS232 serial ports, USB ports, PCMCIA slots, floppy disk slots, parallel ports, infrared IRDA ports and keyboards and keyboard wedge readers. Some readers support more than one type of card such as the tri mode insert readers from MagTek. These readers support magnetic stripe-contact and contactless read operations all in one device.

Reader & Terminal to Card Communication

All cards and readers that follow ISO 7816-3 standards have a standardized set of commands that enable communication for CPU cards.

These commands, called APDUs (Application Protocol Data Units) can be executed at a very low level, or they can be scripted into APIs which enable the user to send commands from an application to a reader.5. APPLICATIONS DEVELOPMENTThe development of PC applications for readers has been simplified by the Personal Computer/Smart Card (PC/ SC) standard. This standard is supported by all major operating systems. The problem with the PC/SC method is that it does not support all of the reader functions offered by each manufacturer, such as LED control and card latching/locking. When just using the drivers for each reader manufacturer, there is no connection to the functions of the card. The better choice is Application Programming Interfaces (APIs) that are part of readily available in Software Development Kits (SDKs) that support specific manufacturers card families.Smart Card Standards

Primarily, smart card standards govern physical properties, communication characteristics, and application identifiers of the embedded chip and data

Application-specific properties are being debated with many large organizations and groups proposing their standards. Open system card interoperability should apply at several levels: 1). To the card itself, 2). The cards access terminals (readers), 3). The networks and 4). The card issuers own systems. Open system card interoperability willonly be achieved by conformance to international standards.

Global System for Mobile Communication (GSM)

The GSM standard is dominant in the cell phone industry and uses smart cards called Subscriber Identification Modules (SIMs) that are configured with information essential to authenticating a GSM-compliant mobile phone, thus allowing a phone to receive service whenever the phone is within coverage of a suitable network. This standard is managed by the European Telecommunication Standards Institute. The two most common standards for cards are 11.11 and 11.14.

Common Criteria

Common Criteria (CC) is an internationally approved security evaluation framework providing a clear and reliable evaluation of the security capabilities of IT products, including secure ICs, smart card operating systems, and application software. CC provides an independent assessment of a products ability to meet security standards. Security-conscious customers, such as national governments, are increasingly requiring CC certification in making purchasing decisions. Since the requirements for certification are clearly established, vendors can target very specific security needs while providing broad product offerings.

System Planning & Deployment

Smart card system design requires advance planning to be successful and to avoid problems. It is highly recommended that you graphically diagram the flow of information for your new system. The first question to consider is will the card and system transact information, or value, or both? If it stores keys or value (i.e. gift certificates or sports tickets), greater design detail is required than in data-only systems. When you combine information types on a single card, other issues arise. The key to success is not to overrun the system with features that can confuse users and cause problems in management. It is recommended that you phase-in each feature set as each one is working. To properly implement a functional smart card system, you should be able to answer the following questions. NOTE: These are only general guidelines, provided as a basis for your individual planning. Many other steps may be involved and are not mentioned here. For more extensive planning information regarding identity management and national IDs, we recommend that you review the GSA Smart Card Handbook.

Smart Card Security (Section 1)

Smart cards provide computing and business systems the enormous benefit of portable and secure storage of data and value. At the same time, the integration of smart cards into your system introduces its own security management issues, as people access card data far and wide in a variety of applications.The following is a basic discussion of system security and smart cards, designed to familiarize you with the terminology and concepts you need in order to start your security planning. 6. WHAT IS SECURITYSecurity is basically the protection of something valuable to ensure that it is not stolen, lost, or altered. The term data security governs an extremely wide range of applications and touches everyones daily life. Concerns over data security are at an all-time high, due to the rapid advancement of technology into virtually every transaction, from parking meters to national defense. Data is created, updated, exchanged and stored via networks. A network is any computing system where users are highly interactive and interdependent and by definition, not all in the same physical place. In any network, diversity abounds, certainly in terms of types of data, but also types of users. For that reason, a system of security is essential to maintain computing and network functions, keep sensitive data secret, or simply maintain worker safety. Any one company might provide an example of these multiple security concerns: Take, for instance, a pharmaceutical manufacturer:

What is Information Security?

Information security is the application of measures to ensure the safety and privacy of data by managing its storage and distribution. Information security has both technical and social implications. The first simply deals with the how and how much question of applying secure measures at a reasonable cost. The second grapples with issues of individual freedom, public concerns, legal standards and how the need for privacy intersects them. This discussion covers a range of options open to business managers, system planners and programmers that will contribute to your ultimate security strategy. The eventual choice rests with the system designer and issuer.Smart Card Security (Section 2)

Data Integrity

This is the function that verifies the characteristics of a document and a transaction. Characteristics of both are inspected and confirmed for content and correct authorization. Data Integrity is achieved with electronic cryptography that assigns a unique identity to data like a fingerprint. Any attempt to change this identity signals the change and flags any tampering.

Authentication

This inspects, then confirms, the proper identity of people involved in a transaction of data or value. In authentication systems, authentication is measured by assessing the mechanisms strength and how many factors are used to confirm the identity. In a PKI system a Digital Signature verifies data at its origination by producing an identity that can be mutually verified by all parties involved in the transaction. A cryptographic hash algorithm produces a Digital Signature.a Security Conrn Type of Access

Card-Based System Security

These systems are typically microprocessor card-based. A card or token-based system treats a card as an active computing device. The interaction between the host and the card can be a series of steps to determine if the card is authorized to be used in the system. The process also checks if the user can be identified, authenticated and if the card will present the appropriate credentials to conduct a transaction. The card itself can also demand the same from the host before proceeding with a transaction. The access to specific information in the card is controlled by

A). The cards internal Operating System and B). The preset permissions set by the card issuer regarding the files condition. The card can be in a standard CR80 form factor or be in a USB dongle or it could be a GSM SIM Card.

7. ADVANTAGES It is generally safe and secure.

It is used for identity purposes.

It can be reconfigured and reusable, it allows secure transaction off-line.

8. APPLICATIONS

Smart Cards provide a secure, portable platform for "any time, anywhere" computing that can carry and manipulate substantial amounts of data, especially an individual's personal digital identity. It allows Smart Cards to become a general-purpose computing platform and creates a potentially huge market for application software and development. Whether this market will diversify in the way personal computing has remains to be seen. smart Cards and Java Card technology include: Government, Healthcare, Information Technology, Mobile Communication, Banking, Loyalty Programs, Mass Transit, Driving Licensing, Electronic Toll Collection, Telephone Cards, etc.9. FUTURE SCOPE

The future of Smart Cards is looking bright. The many existing and potential benefits smart card has to offer both the public and the private sectors of the industry Reducing fraud, reducing time to complete redundant paperwork, and having the potential to have one card to access diverse networks and applications.10. CONCLUSIONSmart cards can add convenience and safety to any transaction of value and data; but the choices facing todays managers can be daunting. We hope this site has adequately presented the options and given you enough information to make informed evaluations of performance, cost and security that will produce a smart card system that fits todays needs and those of tomorrow. It is our sincere belief that informed users make better choices, which leads to better business for everybody.

11. REFERENCE Articles about Smart Card Technology and Applications SCIA (SmartCard Industry Association) Knowledge Base Webpage Java Rings' ReferencesVijay College of Engineering for WomenPage 20

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