issa boston - pci and beyond: a cost effective approach to data protection

01

Ulf MattssonChief Technology OfficerProtegrity Corporation

Ulf . mattsson at protegrity . com

http://www.knowpci.com

Source of Information about PCI Research

http://www.knowpci.com/

http://www.knowpci.com/

PCI Requirements and Data Protection Options

Advanced Attacks on Cardholder Data

PCI Requirements

Data Protection Options

Data Protection Use Cases

A Risks Adjusted Data Protection Approach

Appendix: PCI Research and Resources

Enterprise Data Flow – Cardholder Data• ‘Information in the wild’

- Short lifecycle / High risk

• Temporary information - Short lifecycle / High risk

• Operating information- Typically 1 or more year lifecycle- Broad and diverse computing and database environment

• Decision making information- Typically multi-year lifecycle- Homogeneous computing environment- High volume database analysis

• Archive -Typically multi-year lifecycle -Preserving the ability to retrieve the data in the future is important

POS e-commerce Branch

Aggregation

Operations

Analysis

Archive

Collection

07

NW

DMZ

Web Apps

TRUSTED SEGMENT

Server

Inte

rnet Load

Balancing

ProxyFW

ProxyFW

EnterpriseApps

NetworkDevices

Server

SAN,NAS,Tape

InternalUsers

DB Server

ProxyFW

TRANSACTIONS

IDS/IPS

End-point

Wire-less

DBA ATTACK

MALWARE /TROJAN

OS ADMINFILE ATTACK

SQL INJECTION

MEDIA ATTACK

SNIFFER ATTACK

Data Level Attacks on the Enterprise Data Flow

Data Protection Challenges

Actual protection is not the challengeManagement of solutions

• Key management• Reporting• Policy

Minimizing impact on business operations• Performance v. security

Minimizing impact (and costs)• Changes to applications• Impact on downstream systems

Time

8

Addressing Data Protection Challenges

Full mapping of sensitive data flow• Where is the data• Where does it need to be

Identify what data is needed for processing in which applications

• What are the performance SLAsUnderstand the impact of changing/removing data

• Will it break legacy systemsAddress PCI, strategize for the larger security issue

The Goal: Good, Cost Effective Security

The goal is to deliver a solution that is a balance between security, cost, and impact on the current business processes and user community

Security plan - short term, long term, ongoingHow much is ‘good enough’Security versus compliance

• Good Security = Compliance• Compliance ≠ Good Security

010

PCI DSS 1.2 Applicability Information & PII Aspects

11

Discussion of Data Protection for PCI DSSBuild and maintain a secure network.

1. Install and maintain a firewall configuration to protect data

2. Do not use vendor-supplied defaults for system passwords and other security parameters

Protect cardholder data. 3. Protect stored data4. Encrypt transmission of cardholder data

and sensitive information across public networks

Maintain a vulnerability management program.

5. Use and regularly update anti-virus software

6. Develop and maintain secure systems and applications

Implement strong access control measures.

7. Restrict access to data by business need-to-know

8. Assign a unique ID to each person with computer access

9. Restrict physical access to cardholder data

Regularly monitor and test networks.

10. Track and monitor all access to network resources and cardholder data

11. Regularly test security systems and processes

Maintain an information security policy.

12. Maintain a policy that addresses information security

12

PCI – Compensating Controls

13

Data Protection Layers

Data Protection - Wrapping• How sensitive data is rendered unreadable

Data Access Control - Path• How the data is presented to the end user and/or

application

014

Data Protection Options

Data Stored As• Clear – actual value is readable• Hash – unreadable, not reversible• Encrypted – unreadable, reversible, binary/text• Replacement value (tokens) – unreadable, reversible

Partial encryption/replacement – unreadable, reversible

015

Data in the ClearControl the Access Path

• Reporting and alerting• Display masking• Data usage control

Advantages• Low impact on existing applications• Performance• Time to deploy

Considerations• Underlying data exposed• Discover breach after the fact• PCI aspects

016

HashNon – reversible

• Strong protection if …• Keyed hash (HMAC) or salt

Advantages• None really for PCI and PII data

Considerations• Size and type• Transparency• Key rotation for keyed hash

017

Traditional Strong EncryptionIndustry Standard

• Algorithms & modes - AES CBC, 3DES CBC …• Approved by NIST (National Institute of

Standards and Technology) Advantages

• Widely deployed• Compatibility• Performance

Considerations• Storage and type• Transparency to applications• Key rotation

018

Format Controlling Encryption (FCE)

Newer Data Protection Options

Application Databases(e.g. Marketing, Loss Prevention, POS)

FCE Security Model

Example of Formatted Encryption

1234 1234 1234 4560

Key ManagerOriginal Credit Card Number

What Is FCE?Where did it come from?• Before 2000 – Different approaches, some are based

on block ciphers (AES, 3DES …)• Before 2005 – Used to protect data in transit within

enterprises What exactly is it?• Secret key encryption algorithm operating in a new

mode• Cipher text output can be restricted to same as input

code page – some only supports numeric data• The new modes are not approved by NIST

FCE Selling Points

Ease of deployment -- limits the database schema changes that are required. Reduces changes to downstream systemsApplicability to data in transit – provides a strict/known data format that can be used for interchangeStorage space – does not require expanded storageTest data – partial protectionOutsourced environments & virtual servers

FCE Considerations

Unproven level of security – makes significant alterations to the standard AES algorithmEncryption overhead – significant CPU consumption is required to execute the cipherKey management – is not able to attach a key ID, making key rotation more complex - SSNSome implementations only support certain data (based on data size, type, etc.)Support for “big iron” systems – is not portable across encodings (ASCII, EBCDIC)Transparency – some applications need full clear text

FCE Use CasesSuitable for lower risk dataCompliance to NIST standard not neededDistributed environmentsProtection of the data flowAdded performance overhead can be accepted Key rollover not needed – transient dataSupport available for data size, type, etc.Point to point protection if “big iron” mixed with Unix or WindowsPossible to modify applications that need full clear text – or database plug-in available

025

Text Data

Applications are Sensitive to the Data Format

Binary (Hash) -

Binary (Encryption) -

Alphanum (FCE, Token) -

Numeric (FCE, Token) -

Numeric (Clear Text) -

DataField

Length

Data Type

IOriginal

ILonger

All Applications

Most Applications

Many Applications

Few Applications

No Applications

This is a generalized example

Increased intrusiveness:

- Application changes- Limitations in functionality- Limitations in data search- Performance issues

BinData

Tokenization

Newer Data Protection Options

Token Server

$%.>/$&#Cipher TextToken

Key Manager

Tokenization Data Security Model

Example of Token format:1234 1234 1234 4560

ApplicationDatabases

(e.g. Marketing, Loss Prevention, POS)

Original Credit Card Number

What Is Data Tokenization?

Where did it come from?• Found in Vatican archives dating from the 1300s• In 1988 IBM introduced the Application System/400 with

shadow files to preserve data length • In 2005 vendors introduced tokenization of account

numbersWhat exactly is it?• It IS NOT an encryption algorithm or logarithm. • It generates a random replacement value which can be

used to retrieve the actual data later (via a lookup)• Still requires strong encryption to protect the lookup

table(s)

Tokenization Selling PointsProvides an alternative to masking – in production, test and outsourced environmentsLimits schema changes that are required. Reduces impact on downstream systemsCan be optimized to preserve pieces of the actual data in-place – smart tokens Greatly simplifies key management and key rotation tasksCentrally managed, protected – reduced exposureEnables strong separation of dutiesRenders data out of scope for PCI

Tokenization ConsiderationsTransparency – not transparent to downstream systems that require the original dataPerformance & availability – imposes significant overhead from the initial tokenization operation and from subsequent lookupsPerformance & availability – imposes significant overhead if token server is remote or outsourced Security vulnerabilities of the tokens themselves – randomness and possibility of collisionsSecurity vulnerabilities typical in in-house developed systems – exposing patterns and attack surfaces

Suitable for high risk data – payment card dataWhen compliance to NIST standard neededLong life-cycle dataKey rollover – easy to manageCentralized environmentsSuitable data size, type, etc.Support for “big iron” mixed with Unix or WindowsPossible to modify the few applications that need full clear text – or database plug-in available

Tokenization Use Cases

Evaluation CriteriaPerformance

• Impact on operations - end users, data processing windows

Storage• Impact on data storage requirements

Security• How secure Is the data at rest• Impact on data access – separation of duties

Transparency• Changes to application(s)• Impact on supporting utilities and processes

032

Evaluating Data Protection Options

Storage Performance Storage Security Transparency

Clear

Strong Encryption

Format Controlling Encryption

Token

Hash

033

Best Worst

Enterprise View of Different Protection Options

Evaluation Criteria Strong Encryption

Formatted Encryption

Token

Disconnected environments

Distributed environments

Performance impact when loading data

Transparent to applications

Expanded storage size

Transparent to databases schema

Long life-cycle data

Unix or Windows mixed with “big iron” (EBCDIC)

Easy re-keying of data in a data flow

High risk data

Security - compliance to PCI, NIST

034

Application Transparency – Encryption, Tokens & Hashing

High

Low

Database

Operation

Transparency level

Hashing

Smart Tokens

Database Encryption

I

Look-up

I

Range

Search

I

Process

Clear-values

Data Protection Options-

Use Cases

036

Token Server$%.>/

$&#Cipher TextToken

Key Manager

Data Protection Options in the EnterpriseApplication Databases

(CCN, SSN …)

Strong EncryptionKjh3409)(*&@$%^&

Formatted Encryption1234 1234 1234 4560

Token1234 1234 1234 4560

037

Partial Encryption/Tokenizing - Example

Application

Application

ApplicationApplicationApplicationApplicationApplication

ApplicationApplicationApplicationApplicationApplicationApplicationApplicationApplicationApplication

Few applications• Full clear data

Many applications/tools • Moving data aroundSome applications

• Partial clear data

Decryption

123456 777777 1234

Data Protection Options – 3 Use Cases

Application 3

Application 2

Application 1

Can use stored protected value:

1234 1234 1234 4560Or

Kjh3409)(*&@$%^&

Need partial Informationin clear:

1234 1234 1234 4560

Need full Informationin clear:

55 49 9437 0789 4560

039

Token Server


Key Manager

ApplicationDatabases

(CCN, SSN …)

Application 3

Application 2

Application 1

Strong EncryptionKjh3409)(*&@$%^&

Formatted Encryption1234 1234 1234 4560

Token1234 1234 1234 4560


1234 1234 1234 4560Or

Kjh3409)(*&@$%^&


1234 1234 1234 4560


55 49 9437 0789 4560

Token Cipher 040

How will different Protection Options Impact Applications?

Type of Application Strong Encryption


Token

Can operate on the stored protected value (few)

Need partial information in clear (many)

Need full clear text information (few)

041

Application Impact with Different Protection OptionsTransparency



Token




Security



Token




042

Application Impact with Different Protection Options

Performance and scalability



Token




Availability

Token Server


Key Manager

Data Protection in the Enterprise – Implementation Example


1234 1234 1234 4560


1234 1234 1234 4560


55 49 9437 0789 4560

POS e-commerce Branch

Aggregation

Operations

Analysis

Archive

Collection

Token Cipher

043

Data Protection Implementation Layers

Data Protection Options are not mutually exclusiveData Protection Layers

• Application • Database• File System

Data Protection Topologies• Remote services• Local service

Data Security Management• Central management of keys, policy and

reporting044

045

File System

Application

Network

Backup (Tape)

Storage (Disk)

Protected sensitive information

Unprotected sensitive information:

123456 123456 1234

123456 123456 1234

DataEntry

File System

@$%$^D&^YTOIUO*^

Database Database

Backup (Tape)

Storage (Disk)

Data Protection Implementation - Enforcement Points

Application Application Application

Generalization: Encryption at Different System Layers

EncryptionLayer

Ease of Deployment

(Transparency)

IApplication

Layer

High

LowI

Database Layer

IFile System

Layer

Separation of Duties

(Security Level)

IStorage Layer

SAN/NAS…

Topology Performance Scalability Security

Local Service

Remote Service

047

Data Protection Implementation Layers

System Layer Performance Transparency Security

Application

Database

File System

Best Worst

Data Loading (Batch)

10 000 000 –

1 000 000 –

100 000 –

10 000 –

1 000 –EncryptionTopology

Rows Per Second

Data WarehousePlatforms

MainframePlatforms

Unix Platforms

Windows Platforms

Queries (Data Warehouse & OLTP)

Column Encryption Performance - Different Topologies

INetwork Attached

Encryption (SW/HW)

ILocal

Encryption (SW/HW)

A Few Comments on PCI Compliance

Formatted encryption is NOT for PCI• When PCI refers to encryption, it must be

“strong”• PCI provides high-level examples of what

constitutes strong encryption, then refers to NIST for more details

• NIST publishes a list of acceptable ciphers and operating modes

• NIST has been considering new operating modes related to formatted encryption since 2000

Tokenization• PCI refers to this as an “index pad”• The pad needs to be protected with strong

encryption

Main Takeaways

Formatted encryption and tokenization are two very different techniquesThey are good solutions for particular use casesEnterprises should carefully evaluate these techniques against their use cases, adjusting for factors such as risk, cost, and compliance

050

Central Key Manager

Data Protection and Encryption in the Enterprise

HardwareSecurity Module

RACFApplications

DB2

Files

ICSFEncryptionSolution

Mainframe z/OS

DB2 UDB

Informix

System i

Oracle…


Integrated Cryptographic Service Facility (ISCF) Resource Access Control Facility (RACF)

052

CPACF - CP Assist for Cryptographic Functions

CP = Central Processor

Vendors Providing Encryption on IBM Mainframe

Supported Feature Vendor A

Vendor B

Vendor C

Vendor D

Native

Column level encryption (fieldproc)

Row level encryption using (editproc)

Application API (VSAM and more)

Encryption utility for flat files

Direct CPACF hardware (not ICSF or LE)

Formatted encryption(FCE)

RACF security control

Local caching/storing of keys

Enterprise Key Management

Cross platform solution

053

Best Worst

Data Protection and Encryption on z/OS – PCI DSS


RACFApplications

DB2

Files

ICSF

EncryptionSolution

API

Fieldproc,Editproc,

UDF

Utility

Mainframe z/OS

Evaluation of Encryption Options for DB2 on z/OS

Encryption Interface

Performance PCI DSS Security Transparency

API

UDF DB2 V7 & V8

UDF DB2 V9

Fieldproc

Editproc

055

Best Worst

Central Key Manager

Application CryptoSolution

Mainframe z/OS DB2

File

CryptoSolutionApplication

File

File

Windows,Unix,Linux,iSeries

…

Field Encryption – Protecting the Data Flow

Encrypt

Decrypt

Application

Fields

Fields

Central Key Manager

Application

File

CryptoSolution

Mainframe z/OS

Utility

DB2

File

CryptoSolution

Application

Database

File

Windows,Unix,Linux,iSeries

…

Transparent Encryption – No Application ChangesEncrypt

Encrypt

Decrypt

Fields

Fields

Fields

Main Takeaways

DB2 for z/OS has good data protection options. Often data and use cases may require additional protection options, including better protection granularity

• Data protection approaches – transparency vs. security

• Different topologies for data protection solutions – performance, scalability and availability

• Enterprise management – keys, policy and reporting

Enterprises should carefully evaluate these techniques against their use cases, adjusting for factors such as risk, cost, and compliance

058

Vendors Providing Data Protection

Supported Feature Vendor A

Vendor B

Vendor C

Vendor D

IBM

WAF – SQL injection

Formatted encryption

Data tokenization

DB integrated tokenization

Database Activity Monitoring

059

Best Worst

Protecting Data in the Enterprise Data Flow

Passive Approaches +

Active Approaches =

End-To-End Protection

Protecting Data in the Enterprise Data Flow

Database Server

Database Activity Monitoring /

Data Loss Prevention

Web Application Firewall

TablespaceDatafiles

Database Log Files

Applications

DatabaseColumns

Database Activity

Monitoring

Passive ApproachesActive ApproachesPassive Approaches and Active Approaches = End-To-End Protection

Passive Data Protection Approaches

Web Application Firewall• Protects against malicious attacks by inspecting

application trafficData Loss Prevention

• Tags and monitors movement of sensitive assets• Protects against the unintentional outbound leakage of

sensitive assetsDatabase Activity Monitoring

• Inspects , monitors, and reports database traffic into and out of databases

• Can block malicious activity; seldom used due to false positives

Database Log Mining• Mines log files that are created by databases for good

or bad activity

Active Data Protection ApproachesApplication Protection

• Utilizes crypto APIs to protect sensitive assets in applications

• This approach helps you protect data as it enters your business systems

Column Level Protection• Protects data inside the database at the column

level• Can be deployed in a transparent approach to

minimizes changes to your environment• Considered to be the most secure approach to

protect sensitive assetsDatabase file protection

• Protects the data by encrypting the entire database file

Passive Database Protection Approaches

Database Protection Approach

Performance Storage Security Transparency Separation of Duties

Web Application Firewall

Data Loss Prevention

Database Activity Monitoring

Database Log Mining

Best Worst

Operational Impact Profile

Active Database Protection Approaches

Database Protection Approach

Performance Storage Security Transparency Separation of Duties

Application Protection - API

Column Level Encryption; FCE, AES, 3DES

Column Level Replacement; Tokens

Tablespace - Datafile Protection

Best Worst

Operational Impact Profile

Risk Adjusted Data Protection

066

Assign value to your dataAssess exposureDetermine riskUnderstand which Data Protection solutions are available to youEstimate costsChoose most cost effective method

Assign Value to Your Data

067

Identify sensitive data• If available, utilize data classification project• Rank what is sensitive on its own (think PCI)• Consider what is sensitive in combination (think

Privacy)How valuable is the data to (1) your company and (2) to a thief

• Corporate IP, Credit Card numbers, Personally Identifiable Information

Assign a numeric value: high=5, low=1

Assess Exposure and ProbabilityLocate the sensitive data

• Applications, databases, files, data transfers across internal and external networks

Location on network• Segmented• External or partner facing application

Access• How many users have access to the sensitive data?• Who is accessing sensitive data?• How much and how frequently data is being

accessed?Assign a numeric value: high=5, low=1

068

Determine “Risk” – A Simplified Model

Data Security Risk=Data Value * Exposure

069

Data Field Value Exposure Risk LevelCredit Card Number 5 5 25Social Security Number 5 4 20CVV 5 4 20Customer Name 3 4 12Secret Formula 5 2 10Employee Name 3 3 9Employee Health Record 3 2 6Zip Code 1 3 3

Enables prioritizationGroups data for potential solutions

Matching Data Protection Solutions with Risk Level

070

Risk Solutions

Monitor

Monitor, mask, access control limits, format control encryptionReplacement, strong encryption

Low Risk (1-5)

At Risk (6-15)

High Risk (16-25)

Data Field Risk LevelCredit Card Number 25Social Security Number 20CVV 20Customer Name 12Secret Formula 10Employee Name 9Employee Health Record 6Zip Code 3

Select risk-adjusted solutions for costing

Estimate Costs

Cost = Solution Cost + Operations CostSolution Cost = cost to license or develop, install and maintainOperations Cost = cost to change applications, impact on downstream systems, meeting SLAs, user experience

071

Operation Cost Factors

Performance• Impact on operations - end users, data

processing windowsStorage

• Impact on data storage requirementsSecurity

• How secure Is the data at rest• Impact on data access – separation of duties

Transparency• Changes to application(s)• Impact on supporting utilities and processes

072

Operation Cost Factors

Solution should be able to change with the environment

• Progress from less to more secure solution, or the reverse

• Add new defenses for future threats• Plug into existing infrastructure, integrate with

other systems

073

How to Protect the Weak Links in your Data Flow

074

Review Risk & Determine Protection Approach

• Analyze the Data Flow• Identify Assets and Assign Business Value to each• Identify Vulnerabilities for each Asset• Identify potential Attack Vectors & Attackers• Assess the Risk• Compliance Aspects• Select Data Protection Points & Protection Methods

Assess Total Impact• Functionality Limitations• Performance & Scalability• Application Transparency• Platform Support & Development Life Cycle Support• Key Management, Administration & Reporting• Deployment Cost, Time & Risk

Adjust

Cost Effective Data Protection

Uses Risk as an adjusting factor for determining a Data Protection strategyRisk=Data Value*ExposureDetermines solutions that fit the risk level, then determines costCost=Solution Cost + Operational CostPrepare for the future

075

Use of production data in a test systemProduction data is in many cases needed to ensure quality in system testing Key data fields that can be used to identify an individual or corporation need to be cleansed to depersonalize the informationCleansed data needs to be easily restored (for downstream systems and feeding systems), at least in the early stages of implementation

• This requires two-way processing. The restoration process should be limited to situations for which there is no alternative to using production data (interface testing with a third party or for firefighting situations, for example).Authorization to use this process must be limited and controlled. In some situations, business rules must be maintained during any cleansing operation (addresses for processing, dates of birth for age processing, names for gender distinction). There should also be the ability to set parameters, or to select or identify fields to be scrambled, based on a combination of business rules. A solution must be based on secure encryption, robust key management, separation of duties, and auditing.076

077

Data Masking – One-way vs. Two-way

InformationLife Cycle

I I I I I I IDevelopment Testing Staging Production Operational Analytics Archive

High –

Low –

Data Quality & Exposed Details



PartnerInterface

Data Entry3rd PartyInterfaceTesting

FireFighting

Two-WayMaskingTwo-Way

Masking

One-WayMasking

One-WayMasking

Business Value vs. Ease of Compliance

I I I I Deleting Data Masking One-way Masking-Two-Way Clear Data

Ease of Compliance

High

Low

BusinessValue

Lost Data Reusable Data

SimpleMasking

Hashing

Tokenizing

Encryption

Data Security Management

An integral part of technical and business processSecurity Policy

• Centralized control of security policy• Consistent enforcement of protection• Separation of duties

Reporting and Auditing• Compliance reports• Organization wide security event reporting• Alerting• Integration with SIM/SEM

Key Management079

Central Management of Security Policy,

Reporting,Encryption Keys, And Data Tokens

Managing Data Security in the Enterprise

Mainframe z/OS

DB2 UDB

Informix

iSeries

Oracle,SQL Server

…

How about Native Database Encryption?Advantages

• Available from most database vendors • Enables you to get started quickly

Disadvantages• Mostly non-transparent solutions • Some vendors do not protect the Data Encryption

Keys well enough• Lack of secure interoperability between instances

of the same vendor• No secure interoperability with databases from

other vendors• No centralization of policy, key management, and

audit reporting

http://www.net-security.org/dl/insecure/INSECURE-Mag-2.pdf

Protecting the Data Flow:Case Studies

083

WebApps

Polling Server

Partners(Financial

Institutions)

Data Protection in the Enterprise Data Flow

Archive

HQ

Branches/Stores

Store Back OfficePoints of collection

T-Logs,Journals

Store Back Office

ApplicationsStoreDB

RetailLocales

Multiplexing Platform

ERP

`

Manager

$%&# $%&#$%&# $%&#

$%&#

$%&#

Policy

$%^& *@K$

7ks##@

PolicyPolicyPolicyPolicyPolicyPolicy

Log

Log Log

Log

Reports

Collection

Aggregation

Operations

Tactical

Detailed Analytical

Focused / Summary Analytical

Active Access / Alerting

Analytics

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1144290

Case StudiesOne of the most widely recognized credit and debit card brands in the world

• Their volume of data is in the multiple billions of rows and needed a solution that would not degrade performance.

Major financial institution • Protecting high-worth clients financial information.• Central key management and separation of duties were of the utmost

importance. One of the world largest retailers

• Protecting the flow of sensitive credit card information from the store, through to back office systems and into the data warehouse and storage.

• The central key management and ability to support thousands of stores was critical for this success.

• Transparent to exiting applications. • Protect sensitive information in their Teradata data warehouse. iSeries

(AS/400), zSeries (mainframe), Oracle and MS SQL Server, and to protect files that reside across platforms including Unix and z/Series.

087

Case 1: Goal – PCI Compliance & Application Transparency

FileEncryptionWindows

DatabaseEncryption:

DB2 (zOS, iSeries),Oracle,

SQL Server

Application

LocalStore Location

(Branch)

Application

FTP

FileEncryption

Central HQ Location

FileEncryption:Windows,

UNIX,Linux,zOS

FinancialInstitution

CreditCardEntry

SettlementBatch

089

Case 1: File Encryption & FTP

File System (Memory)

POS Application

FTPApplication

Network

Backup (Tape)

Storage (Disk)



@$%$^D&^YTOIUO*^

123456 123456 1234

@$%$^D&^YTOIUO*^

123456 123456 1234

Attacker

CreditCardEntry

Attacker

090

Case 1: From Encrypted File to Encrypted Database

Database

Application

FTP Application

Network



123456 123456 1234

Attacker

Attacker

@$%$^D&^YTOIUO*^

@$%$^D&^YTOIUO*^

123456 123456 1234

FileFile

Case 2a: Goal – Addressing Advanced Attacks & PCI

Application

LocalStore Location

(Branch)

Application FTP

Central HQ Location


CreditCardEntry

SettlementFTP

ApplicationEncryption

Decryption

Continuously encrypted computing:

protection of sensitive data fields

FileEncryptionWindows

DatabaseEncryption:

DB2Oracle

SQL Server

FileEncryption:Windows,

UNIX,Linux,zOS

092

Case 2a: Application Encryption to Encrypted DatabasePoint

Of DataAcquisition

File System

Database

POSApplication Application

Network

Backup (Tape)

Storage (Disk)



123456 777777 1234

123456 123456 1234

Case 2b: Goal – Addressing Advanced Attacks & PCI

Application

LocalStore Location

Application

FTP

Central HQ Location

CreditCardEntry



DatabaseEncryption:

DB2 zOS

DatabaseEncryption:SQL Server

094

Case 2b: From Encrypted Database to File & FTP

File

ExtractionApplication FTP Application

Backup (Tape)

Storage (Disk)



PointOf Data

Acquisition

OrderApplication

aVdSaH 1F4hJ5 1D3a

123456 123456 1234

Database aVdSaH 1F4hJ5 1D3a

aVdSaH 1F4hJ5 1D3a

095

Case 2b: From Selectively Encrypted File to Encrypted Database

File

Database

Application

FTP Application

Network

Backup (Tape)

Storage (Disk)



123456 123456 1234

aVdSaH 1F4hJ5 1D3aaVdSaH 1F4hJ5 1D3a

Case 3: Goal – Addressing Advanced Attacks & PCI

Application

LocalStore Location

(Branch)

CentralHQ Location


CreditCardEntry

AuthorizationTransaction Online

DecryptingGateway



EncryptingGateway Application

DatabasesFiles

097

Case 3: Gateway Encryption

File System

Database

Encrypting Gateway

Applications

Network

Backup (Tape)

Storage (Disk)



123456 777777 1234

123456 123456 1234

123456 777777 1234

123456 123456 1234

Attacker

Decrypting Gateway

Attacker

098 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=940287

Different ‘Tokenizing’ Approaches & Topologies

ASPCentralTokenizer

On-siteLocalTokenizer

Token&

EncryptedCCN

Token&

EncryptedCCN

Home Office / HQ

Branch Office / Stores

Outsourced / ASP

On-siteCentralTokenizer

Token&

EncryptedCCN

AlgorithmicTokenizer

‘Encryption’Algorithm

Application

Token

CCN

123456 123456 1234

ABCDEF GHIJKL 1234

Network

Network

`

Token

How to Protect the Data Flow Against Advanced Attacks

0100

Point Of Data Acquisition

PaymentAuthorizatio

n

Settlement &Charge-back

123456 777777 1234

123456 123456 1234

Continuously protected data flow

Encrypt

123456 123456 1234

123456 777777 1234

Decrypt

123456 123456 1234

123456 777777 1234

Decrypt



How to Protect the Data Flow Against Advanced Attacks

0101

Point Of Data Acquisition

PaymentAuthorizatio

n

Settlement &Charge-back

123456 777777 1234

123456 123456 1234

Continuously protected data flow

Encrypt

123456 123456 1234

123456 777777 1234

Decrypt

123456 123456 1234

123456 777777 1234

Decrypt



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Protegrity Solutions

0105

Protecting dataProtecting web

applicationsManaging data security

Data Security ManagementAn integral part of technical and business processSecurity Policy

• Centralized control of security policy• Consistent enforcement of protection• Separation of duties

Reporting and Auditing• Compliance reports• Organization wide security event reporting• Alerting• Integration with SIM/SEM

Key Management

0106

The Protegrity Defiance© Suite

Data Protection System (DPS)• Encryption, monitoring, masking• Database, file and application level

Threat Management System (TMS)• Web application firewall

Enterprise Security Administrator• Security policy• Key management• Alerting, reporting, and auditing

107

Questions?

If you would like a copy of the slides, please email

[email protected]

0109

APPENDIX

Current Discussion of Data Protection for PCI DSS

110

PCI SSC is currently studying the effect on the standard by different technologies (i.e. End to end encryption, tokenization, chip and pin etc.)

• Bob Russo (GM) & PCI SSC is currently are working in Europe with the European Payment Council (EPC) .

Protegrity:Participating Organization

https://www.pcisecuritystandards.org

PCI Security Standards Council about Data in TransitThe PCI Security Standards Council (https://www.pcisecuritystandards.org/) manages the PCI DSS standards

• End-to-end encryption is likely to be a central focus as the council seeks input on how this might best be achieved in the payment-card environment through different technologies.

• If that is accomplished, it might result in a decidedly new PCI standard in the future for card-data protection, PCI Security Standards Council says in http://www.networkworld.com/news/2008/100108-pci-credit-card.html?page=2 .

• "Today we say if you're going outside the network, you need to be encrypted, but it doesn't need to be encrypted internally," PCI Security Standards Council says.

"But as an example, if you add end-to-end encryption, it might negate some requirements we have today, such as protecting data with monitoring and logging.

• Maybe you wouldn’t have to do that. So we'll be looking at that in 2009." 0111

http://www.networkworld.com/news/2008/100108-pci-credit-card.html?page=2

http://www.networkworld.com/news/2008/100108-pci-credit-card.html?page=2

the PCI Knowledge Base (www.KnowPCI.com)

-Based on Over 450 Hours of 100% Anonymous Interviews

– Not a Survey

The Major Features of the PCI Knowledge Base (www.KnowPCI.com)

YOU WON’T SEE THE “KNOWLEDGE BASE” UNTIL YOU ARE LOGGED IN

WE HOST A WEEKLY PCI RESEACH WEBINAR SERIES

LATEST PCI NEWS FEEDS

IT IS FREE TO REGISTER

SEARCH OUR DATABASE OF OVER 3000 BEST PRACTICES FROM MERCHANTS, PCI ASSESSORS, BANKS, CARD PROCESSORS AND MANY OTHERS.

ASK QUESTIONS OF PEERS AND ASSESSORS IN OUR FREE PCI DISCUSSION FORUMS

INTERACT WITH OUR PANEL OF 85+ PCI EXPERTS

PURCHASE OUR LATEST RESEARCH REPORTS & TREND ANALYSIS

WE’VE CONDUCTED 300 HOURS OF ANONYMOUS INTERVIEWS AND HAVE 1800+ MEMBERS

Based on Over 450 Hours of 100% Anonymous Interviews – Not a Survey

F1000 Retailers

SME Retailers

QSAs

Payment Processors

Banks

Retail Consultants

IT Providers

E-Comm Retailers

Hospitality

Other Merchants

Interviews with retailers focus on best practices, experiences, QSA and vendor feedback, budgets and priorities.

Interviews with QSAs, consultants and IT providers focused on vulnerabilities, risks and technology adoption trends.

Source: PCI Knowledge Base, July 2009

450+Hours

Why is Tokenization Such a Hot Issue for PCI Compliance?Lowers Security Cost – Tokenization reduces or eliminates “sensitive” data from your systems. The less data you have to protect, the less it costs to secure it.

Reduces Compliance Scope – Only systems that store, process or transmit cardholder data are in PCI scope. By eliminating card data from most or all of your systems, the number of systems that have to be assessed and secured is greatly reduced.

Lowers Breach Risk – Tokenization replaces data that has “black market” value with data that has no value. If thieves know that you have no valuable data, they have no reason to try to break into your systems.


Why is Tokenization Such a Hot Issue

for PCI Compliance?


Secure Data Storage, Mgmt & Retrieval

BUYER 1

ISO /Processor

AcquiringBank

Multi-Channel Issues: Is One Tokenization Solution Possible?

PaymentGateway

(Virtual)POS

CallCenter

ShoppingCart

BUYER 2 BUYER 3

FRONT OFFICE APPLICATIONS

GL / AR / AP LossPrevention

SalesAudit

BACK OFFICE APPLICATIONS

PAYMENT PROCESSING

“Real” Data “Fake” Data


Proving Tokenization Works: Is it Being Used Beyond Pilots / Trials?

3%10%15%

5%15%20% 20%

35%40% 45%

25%10%

27%15%15%

0%

20%

40%

60%

80%

100%

Enterprise POS Trial Considering No Plans Unaware

Jun-08 Dec-08 Jun-09

Since June 2008, our interview data has shown a major shift in how merchants, payment processors and PCI assessors view tokenization.

In our anonymous discussions, we find that more merchants are aware of tokenization, and most are now planning to implement it, or at least considering tokenization.


Cost: How to Compare Tokenization Costs vs PCI Compliance Costs?

Encryption

Source: PCI Knowledge Base, May 2009

PW Vaulting

Access Controls

Logging

PaymentTerminal

Encryption

PW Vaulting

Access Controls

Logging

POSServer

Encryption

PW Vaulting

Access Controls

Logging

PollingServer

E2E Encryption & Enterprise Key Management, A Needed, but Complex Dependency

Encryption

PW Vaulting

Access Controls

Logging

WebStore

Encryption

PW Vaulting

Access Controls

Logging

CallCenter

Encryption

PW Vaulting

Access Controls

Logging

FraudMgmt

ISSUE: The cost savings due to tokenization vs the cost of all PCI controls, not just encryption.

Temp FTP

ISSUE: E2E encryption will also reduce costs long term, but the up front costs are likely to be higher

Email

Token Options: How and When Can Tokens be Generated & Managed?


E-CommerceWeb Host

Call CenterApplications

In-StorePOS Apps

Most Webor POS

ApplicationsProcessor

Token Mgmt

Card #

Token

Card #

Token

OPTION #2

ERPApplication

HospitalityApplications

Card #

Token

IndustryToken Mgmt

OPTION #1

OPTION #3

Token

Token

The best token generation & management may vary depending on business needs. Hospitality has different transaction timeframes than most retail, for example.

Example: Homegrown tokenization

Vendor Decisions: How to Choose Among the Tokenization Options?

Source: PCI Knowledge Base, January 2009

ISSUE: How to best reduce the number of data repositories and ensure that “encrypt / decrypt / re-encrypt” cycles are eliminated, so the

vulnerabilities can be eliminated or reduced?

Payment Terminal

Card Swipe

POS Terminalw/Payment SW

Store Serverw/Payment SW

In-House PaymentGateway /

Switch

ISSUE: Who is best positioned to manage end-to-end encryption?

PED / POSVendors

(Encrypt from Swipe to Acquirer)

CorporationsHomegrown tokens (e.g.,

Hashes)

Processors(Outsourced

Payment MgmtSolutions)

Encryption SW

Encryption & Key Mgmt SW that generates

tokens

Getting the Most Value from Tokenization SolutionsScalability: The more data repositories and systems that store,

process or transmit cardholder (or other confidential) data, the more value you will receive from tokenization. Consider these examples:

E-CommerceWebsite

Call CenterApplications

In-StorePOS Apps

OperationsApplications

Fraud / LossPrevention

Sales AuditSystem

Single ChannelSingle App

POS + MOTO Sales Channels+ Some Tracking Apps

Multi-Channel Business + Internal Data Stores + Service Providers for Sales Analysis, etc.

Value added:1. Data Mgmt2. Reduce Risk3. Part of data outsourcing

Value added:1. Reduces data redundancy2. Reduces unauthorized access by employees3. May be homegrown

Value added:1. Major PCI scope and cost reductions2. Identifies risky data flows & processes3. Offered as a service by processors or other third parties

SMEs Mid-Tier Merchants F1000 Level Merchants

Source: PCI Knowledge Base, July 2009MOTO = Mail Order / Telephone Order

Integrating Tokenization: How to Make it “Part of” Applications?

ISSUE: The average Level 1 or large Level 2 merchant has 4-6 different encryption systems. Complete replacement is not an option for most of them, and enterprise-wide encryption can cost > $1M

ISSUE: The movement of card data among systems creates dozens of different intermediate processes & data stores, greatly increasing risk, and process re-design can take years.

ISSUE: The debit & credit settlement process often means that ERP, CRM and SCM apps are in PCI scope, and rewriting them is far more costly than PCI compliance.


Why Keep Card Data at All? When to Outsource Payment Processing

1%30%

85%

20%35%

15%

55%

34%

0%25%

15% 0%0%

20%

40%

60%

80%

100%

Now FullyOutsourced

Partial Outsourced ConsideringOutsourcing

No Plans toOutsource

F1000sSMEsE-Comms

One of the biggest changes we have seen in the last year is the growth in the consideration of outsourcing. Mostly, this is among firms that have been running their own payment gateway across their divisions.


Adopt “Secure Tokenization” to Remove Card Data But Retain Analytics

85%

15%

40%

10%0%

20%

40%

60%

80%

100%

F1000 SME

Potential AdoptionUse as of 4Q08

A few leading retailers are using secure tokenization systems. But some of the first generation tools and in-house projects are not sufficiently secure and will need to be replaced before they will pass.

Source: PCI Knowledge Base, January 2009

Current vs Potential Use of Secure Tokenization

Best Practice Description

Use “secure” tokenization tools or services to create a centralized, encrypted repository of card data and use surrogate and/or partially masked data to validate transaction records for sales audit and marketing analysis. How tokens are created and managed is key to this best practice.

Level of Investment

$5,000 – 40,000 in SW licensing and increased transaction costs.

Potential Savings

$10,000 – 100,000 in reduced assessment costs and security control cost avoidance costs.

Best forF1000 retailers who cannot segment networks and have card data throughout the enterprise.

Primary Dept Owner

IT Infrastructure, with support from CFO on switching processors.

PCI Reqmts Met

3, 4

The Bottom Line: Tokenization is an Enterprise Strategy1. Tokenization is a strategy when it is applied as a way to centralize

and improve the management of confidential data, enterprise-wide.

2. Tokenization’s value is not in the “substitution” process but in the management of confidential data.

3. Tokenization drives the discovery (and removal) of confidential data from potentially hundreds or thousands of files and DBs across the enterprise.

4. Tokenization has tactical value for PCI compliance, because it can greatly reduce the scope of PCI assessment as well as PCI compliance costs.

5. Tokenization, at an enterprise level, must not impact system and process performance by making “real” data retrieval impossible or cumbersome.

6. Tokenization as an enterprise strategy must be capable of supporting a multi-channel sales and service environment.

7. Tokenization does not necessarily require that confidential data be removed from all enterprise systems, but the fewer systems that contain this data, the lower the risk.

8. Tokenization providers must be thoroughly vetted, both technically and as service providers, as they become mission critical partners.

Data Breach Survey, Ponemon Institue, 2006


PCI Research

0130

Data Protection Formats

0140

0141

123456 777777 1234

123456 123456 1234

aVdSaH 1F4hJ5 1D3a

!@#$%a^&*B()_+!@4#$2%p^&*

Text Data

Preserving the Data Format

Hash -

Encryption -

Alphanumeric –

Encoding –

Partial Enc–

Clear Text - DataField

Length

Data Type

IOriginalLength

ILonger

!@#$%a^&*B()_+!@

This is a generalized example

666666 777777 8888 Token /Encoding

BinaryData

Numeric

Field Level Data Protection Methods vs. Time

Time

Plain Hash

(SHA-1 on CCN)

High

Medium

Tokenized Data

ProtectionLevel

Strong Encryption

(AES CBC)

Keyed Hash

(HMAC)

Format Controlling

Encryption

(AES FCE)

Key

Rotation

Format Controlling Encryption vs. Time

Time

High

Medium

Tokenized Data

ProtectionLevel

AES FCE

(numeric & IV)

AES FCE

(alphanumeric & fix IV)

Field Level Data Protection Methods vs. Time

Time

High

Medium

Tokenized Data

ProtectionLevel

AES ECB

AES CBC (rotating IV)

AES CBC (fix IV, short data)

AES CBC (fix IV, long data)

Application Transparency

High

Low

Security

Level

Transparency level

Plain Hash

(SHA-2)

Key basedHash

(HMAC)

Tokens

DatabaseFile Encryption

SmartTokens

3rd Party DatabaseColumn Encryption

Native DatabaseColumn Encryption

PCI DSS

Testing Procedures

PCI 3.1 Keep cardholder data storage to a minimum.

147

PCI 3.2 Do not store sensitive authentication data

148

PCI 3.3 Mask PAN when displayed

149

PCI 3.4 Render PAN unreadable anywhere it is stored

150

PCI 3.5 Protect cryptographic keys

151

PCI 3.6 Fully document and implement all key-managementprocesses and procedures

152

issa boston - pci and beyond: a cost effective approach to data protection

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