A Demonstration of Two-Factor Cryptographic Authentication with a Familiar User Experience

I have just published a GitHub repository demonstrating a method of two-factor cryptographic authentication with a fusion credential, which provides the same user experience as traditional authentication with username and password, but with strong security. Developers with an Amazon AWS account can use a script provided in the repository to install the demo on an EC2 instance of their own. A live demo running on a Pomcor server is also available at demo.pomcor.com.

Security benefits of credential fusion

By analogy with biometric fusion, where two biometric modalities are combined in a manner that provides higher accuracy than if they were used separately, credential fusion combines authentication factors in a manner that provides stronger security than if they where used independently of each other.

In the demo, a password is fused with a cryptographic credential comprising a key pair extended with a secret salt. To authenticate, the frontend of the relying party (RP) hashes the user’s password with the secret salt, signs a challenge with the private key, and sends the public key, the signature, and the salted password to the backend. The backend verifies the signature with the public key, then computes a hash of the salted password with the public key, called the fusion hash, and verifies it against a registered version of that hash. The public key and the secret salt are deleted after authentication, and only the fusion hash is stored in the backend.

If the password and the extended key pair were used separately, the password would provide protection against device theft and the key pair would provide protection against a man-in-the-middle (MITM) phishing attack where the phishing site would relay messages between the legitimate site and the user’s browser and capture the session cookie after the user logs in. This would be prevented because the frontend of the phishing site would not have access to the private key, which is protected by the same origin policy of the web enforced by the browser. But the password would be still be vulnerable to phishing attacks, reuse at malicious sites, and backend breaches.

In the fusion credential, on the other hand, the password and the cryptographic credential protect each other as follows:

  1. The password is protected against capture by a phishing site, because it is not sent in the clear.
  2. The password is protected against reuse at malicious sites that use traditional authentication by username and password because the password is not sent in the clear, and at malicious sites that use a fusion credential as in the present authentication method, because different such sites would use different secret salts.
  3. The password is protected against backend breaches because neither the password nor any value derived from the password that could be used in a dictionary attack are stored in the backend. In traditional authentication with username and password, by contrast, a salted password is stored in the password database, along with the salt itself. The salt prevents dictionary entries being tried against all salted passwords at once, but does not prevent dictionary entries being tried against the salted passwords one at a time. In the present authentication method the password is hashed with a salt, but like the private key, the salt is a secret that never leaves the user’s browser, and neither the salted password nor the salt are stored in the backend.
  4. The key pair is protected against cryptanalytic and postquantum attacks, because the public key is not stored in the backend. In traditional cryptograhic authentication with a key pair, the public key is registered with the RP and stored in the backend database. An attacker who breaches the backend might be able to derive the private key from the public key, either by exploiting a weakness of the signature cryptosystem, or, in a perhaps not so distant future, by using a quantum computer. But in the present authentication method, only the fusion hash is stored in the backend.
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Identity in a Zero Trust Architecture

In the previous post I said I was happy that the new CFO of Pomcor, Ken Cone, has experience with government contracting, as his experience may help us apply for and manage government funding for our reasearch on identity and authentication protocols. Identity is an essential element of cybersecurity, and Executive Order 14028 has recognized that cybersecurity is an essential element of national and economic security.

Here I want to add that identity is essential, more specifically, in modern “zero trust” cybersecurity architectures whose importance is recognized by the Federal Government. The White House has stated in the OMB memorandum M-22-09 that a zero trust approach to security is needed today to provide a “defensible architecture” in the current threat environment. The Department of Defense (DoD) has published a Zero Trust Reference Architecture, and M-22-09 directs Federal Agencies to move towards zero trust cybersecurity principles.

This has implications for identity. As stated in the Reference Architecture and cited in M-22-09, “The foundational tenet of the Zero Trust Model is that no actor, system, network, or service operating outside or within the security perimeter is trusted. Instead, we must verify anything and everything attempting to establish access.” This means that secure identification is an essential requirement of zero trust architecture.

To meet this requirement, M-22-09 calls for multi-factor authentication (MFA); not the usual MFA, however, but rather what the memorandum calls “phishing-resistant MFA”, where phishing resistance is achieved by using a secret that is not shared with the relying party. That means a private key.

Thus the memorandum is calling for cryptographic authentication, which is what Pomcor has been working on for years, and is working on right now. I look forward to Pomcor contributing to the transition towards zero trust in the Federal Government and to the adoption by the Government and the Private Sector of cryptographic authentication methods that provide strong security.

Identity Verification: A Coronavirus Challenge to the Financial World

Updated April 1st, 2020

This blog post has been coauthored with Karen Lewison

The coronavirus pandemic is causing unprecedented disruption throughout the business world. Businesses that are not able to cope with public health orders and new customer behaviors are going out of business, while businesses that are able to adapt are thriving and expanding their market share. Disruption will be temporary in sectors of the economy where face-to-face interaction adds value to the business-to-customer relationship and a physical presence on the street is an essential requirement of the business model; gyms, bars and conference centers will no doubt reopen once the pandemic has been controlled. But changes brought by the pandemic will be permanent in sectors of the economy where face-to-face interaction adds no value and a physical presence is a legacy of a traditional business model. One of those sectors is the financial world.

A challenge to financial institutions

Financial institutions have been less impacted than other businesses by the pandemic. In the US, the entire financial sector has been declared critical infrastructure by DHS and is thus protected against closure orders by states or counties. And most financial transactions are now conducted online using web browsers or mobile apps, without face-to-face interactions that would put employees and customers at risk of contagion. Nevertheless, coronavirus poses a challenge to financial institutions: how to verify the identity of new customers.

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Pomcor Granted Patent on Rich Credentials

Pomcor has been granted US Patent 10,567,377, Multifactor Privacy-Enhanced Remote Identification Using a Rich Credential. Karen Lewison is the lead inventor and I am a coinventor. Pomcor has so far been granted a total of eight patents, two of which we have sold. The remaining six patents that we own are listed in the Patents page of this web site.

This latest patent is special because it provides a solution to a major societal problem: how to identify people over the Internet with strong security. Techniques are available for authenticating repeat visitors to a web site or current users of a web application. But authentication techniques are only applicable once a relationship has been established. They are not applicable when somebody wants to establish a new relationship, e.g. by becoming a new customer of a bank, or signing up with a robo advisor, or applying for a mortgage, or renting an apartment, or switching to a different car insurance.

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A New Tool Against the Surge of Application Fraud

This blog post has been coauthored with Karen Lewison

In recent posts we have been concerned with online credit card fraud and how to fight it using cardholder authentication. In this post we are concerned with another kind of financial fraud, known as application fraud or new account fraud. Both kinds of fraud have been rising after the introduction of chip cards, for reasons mentioned by Elizabeth Lasher in her article The Surge of Application Fraud:

“Due to the high volume of data breaches, Social Security numbers, mailing addresses, passwords, health history, even the name of our first pet is all for sale on the Dark Web. When you combine this phenomenon with the economic pressure applied on fraudsters to find a new cash cow after chip and signature plugged a gap in card-present fraud in the US, there is a perfect storm.”

The term “application fraud” refers to the creation of a financial account, such as a bank account or a mortgage account, with the intention to commit fraud. Application fraud can be first-party fraud, where the account is opened under the fraudster’s own identity, or third-party fraud, where the fraudster uses a stolen identity. Here we are primarily concerned with the latter.

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Online Cardholder Authentication without Accessing the Card Issuer’s Site

One of the saddest failings of Internet technology is the lack of security for online credit card transactions. In in-store transactions, the cardholder authenticates by presenting the card, and card counterfeiting has been made much more difficult by the addition of a chip to the card. But in online transactions, the cardholder is still authenticated by his or her knowledge of credit card and cardholder data, a weak secret known by many.

Credit card networks have been trying to provide security for online transactions for a long time. In the nineties they proposed a complicated cryptographic protocol called SET (Secure Electronic Transactions) that was never deployed. Then they came up with a simpler protocol called 3-D Secure, where the merchant redirects the cardholder’ browser to the issuing bank, which asks the cardholder to authenticate with a password. 3-D Secure is rarely used in the US and unevenly used in other countries, due to the friction that it causes and the risk of transaction abandonment; lately some issuers have been asking for a second authentication factor, adding more friction. Now the networks have come up with version 2 of 3-D Secure, which removes friction for low risk transactions by introducing a “frictionless flow”. But the frictionless flow does not authenticate the cardholder. Instead, the merchant sends device and cardholder data to the issuer through a back channel, potentially violating the cardholder’s privacy.

Last August we wrote a blog post and a paper proposing a scheme for authenticating the cardholder without friction using a cryptographic payment credential consisting of a public key certificate and the associated private key. We have recently written a revised version of the paper with major improvements to the scheme. The paper will be presented next month at HCII 2019 in Orlando.

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Frictionless Secure Web Payments without Giving up on Cardholder Authentication

The 3-D Secure protocol version 1.0, marketed under different names by different payment networks (Verified by Visa, MasterCard SecureCode, American Express SafeKey, etc.) aims at reducing online credit card fraud by authenticating the cardholder. To that purpose, the merchant’s web site redirects the cardholder’s browser to the issuing bank, which typically authenticates the cardholder by asking for a static password and/or a one-time password delivered to a registered phone number. 3-D Secure was introduced by Visa in 1999, but it is still unevenly used in European countries and rarely used in the United States. One reason for the limited deployment of 3-D Secure is the friction caused by requiring users to remember and enter a password and/or retrieve and enter a one-time password. Consumers “hate” 3-D Secure 1.0, and merchants are wary of transaction abandonment. Another reason may be that it facilitates phishing attacks by asking for a password after redirection, as discussed here, here, and here.

3-D Secure 2.0 aims at reducing that friction. When 3-D Secure 2.0 is deployed, it will introduce a frictionless flow that will eliminate cardholder authentication friction for 95% of transactions deemed to be low risk. But it will do so by eliminating cardholder authentication altogether for those transactions. The merchant will send contextual information about the intended transaction to the issuer, including the cardholder’s payment history with the merchant. The issuer will use that information, plus its own information about the cardholder and the merchant, to assess the transaction’s risk, and will communicate the assessment to the merchant, who will redirect the browser to the issuer for high risk transactions but omit authentication for low risk ones.

This new version of 3-D Secure has serious drawbacks. It is privacy invasive for the cardholder. It puts the merchant in a bind, who has to keep customer information for the sake of 3D-Secure while minimizing and protecting such information to comply with privacy regulations. It is complex for the issuer, who has to set up an AI “self-learning” risk assessment system. It requires expensive infrastructure: the contextual information that the merchant sends to the issuer goes through no less than three intermediate servers—a 3DS Server, a Directory Server and an Access Control server. And it provides little or no security benefit for low risk transactions, as the cardholder is not authenticated and the 3-D Secure risk assessment that the issuer performs before the merchant submits the transaction to the payment network is redundant with the risk assessment that it performs later before authorizing or declining the submitted transaction forwarded by the payment network.

There is a better way. In a Pomcor technical report we propose a scheme for securing online credit card payments with two-factor authentication of the cardholder without adding friction.

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Pomcor Granted Patent on Multifactor Cryptographic Authentication

Pomcor has recently been granted US Patent 9,887,989 on a multifactor cryptographic authentication technique that uses a cryptographic key pair in conjunction with a password and/or a biometric key while protecting the password and biometric data against back-end security breaches. All our patents are available for licensing.

At the last Internet Identity Workshop we demonstrated single factor cryptographic authentication, not covered by the patent, where a key pair stored in browser local storage is used instead of a password for authentication to a web application. (A proof-of-concept implementation of a simple web app is available in the PJCL web page and described in the previous post.) Cryptographic authentication has huge advantages over password authentication, as passwords are vulnerable to back-end database breaches, phishing attacks, and password reuse at malicious or insecure sites. But when used in multifactor authentication, a password provides the unique benefit of being something that the user knows, independent of something that the user has (a device that contains a private key or is able to generate or receive one-time codes) and something that the user is (a biometric feature). Our latest patent discloses a novel multifactor authentication technique where a password can provide this benefit while being immune to the vulnerabilities of conventionally used passwords.

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Biometrics and Derived Credentials

This is Part 4 of a series discussing the public comments on Draft NIST SP 800-157, Guidelines for Derived Personal Identity Verification (PIV) Credentials and the final version of the publication. Links to all the posts in the series can be found here.

As reviewed in Part 3, a PIV card carries two fingerprint templates for off-card comparison, and may also carry one or two additional fingerprint templates for on-card comparison, one or two iris images, and an electronic facial image. These biometrics may be used in a variety of ways, by themselves or in combination with cryptographic credentials, for authentication to a Physical Access Control System (PACS) or a local workstation. The fingerprint templates for on-card comparison can also be used to activate private keys used for authentication, email signing, and email decryption.

By contrast, neither the draft version nor the final version of SP 800-157 consider the use of any biometrics analogous to those carried in a PIV card for activation or authentication. Actually, they “implicitly forbid” the storage of such biometrics by the Derived PIV Application that manages the Derived PIV Credential, according to NIST’s response to comment 30 by Precise Biometrics.

But several comments requested or suggested the use of biometrics by the Derived PIV Application. In this post I review those comments, and other comments expressing concern for biometric privacy. Then I draw attention to privacy-preserving biometric techniques that should be considered for possible use in activating derived credentials.
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Biometrics in PIV Cards

This is Part 3 of a series discussing the public comments on Draft NIST SP 800-157, Guidelines for Derived Personal Identity Verification (PIV) Credentials and the final version of the publication. Links to all the posts in the series can be found here.

After Part 1 and Part 2, in this Part 3 I intended to discuss comments received by NIST regarding possible uses of biometrics in connection with derived credentials. But that requires explaining the use of biometrics in PIV cards, and as I delved into the details, I realized that this deserves a blog post of its own, which may be of interest in its own right. So in this post I will begin by reviewing the security and privacy issues raised by the use of biometrics, then I will recap the biometrics carried in a PIV card and how they are used.

Biometric security

When used for user authentication, biometrics are sometimes characterized as “something you are“, while a password or PIN is “something you know” and a private key stored in a smart card or computing device is “something you have“, “you” being the cardholder. However this is only an accurate characterization when a biometric sample is known to come from the cardholder or device user, which in practice requires the sample to be taken by, or at least in the presence of, a human attendant. How easy it was to dupe the fingerprint sensors in Apple’s iPhone (as demonstrated in this video) and Samsung’s Galaxy S5 (as demonstrated in this video) with a spoofed fingerprint shows how difficult it is to verify that a biometric sample is live, Continue reading “Biometrics in PIV Cards”