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07.14.05

What Is The Point Of Encryption If You Don't Know Who For?

By Dr. Colin Walter

Phishing is the fastest growing threat in the history of Internet and has gained immense popularity amongst Internet fraudsters and hackers as a simple yet effective way to gain unsolicited access to confidential user information.

Using social engineering tactics, fraudsters ensure that the trust relationship established by a company with its customers is exploited to maximum effect. It is for this reason that moving towards stronger identity assurance techniques is the only long term strategy that will maintain the stability of the Internet.

Identity and authentication are fundamental concepts in every marketplace. People and institutions establish trust before conducting business. Traditionally there has been a reliance on physical credentials such as a business license or a letter of intent. In the age of the Internet, e-business will only succeed if this ability to pass trust remains consistent. Authenticated SSL certificates have been proven to provide the critical online identity assurance necessary to establish trust between parties. In fact the future success of a multitude of e-commerce eco- systems rests directly upon the continual strengthening of that trust relationship.

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WHY DO WE NEED ENCRYPTION?

The Web presents a unique set of trust issues, which businesses must address at the outset to minimize risk. Consumers submit information and purchase goods or services via the Internet only when they are confident that their personal information, such as credit card numbers and financial data, is secure. The solution for businesses reliant upon e-commerce is to implement a complete e-commerce trust infrastructure based on encryption technology. Let us take a closer look at "encryption". The dictionary definition is:



1. To put into code or cipher.

2. Computer Science. To alter (a file, for example) using a secret code so as to be unintelligible to unauthorized parties.

3. The manipulation of data to prevent accurate interpretation by all but those for whom the data is intended. Financial institutions use encryption to increase the security of data transmitted via the Internet.


So in essence encryption is the process of transforming information to make it unintelligible to all unauthorized parties except the intended recipient and forms the basis of data integrity and privacy which is necessary for e-commerce. What this means is that the whole purpose of encryption is to make sure that the intended recipient is the only one who receives in intelligible form the information which has been encrypted.

Unless you have authenticated the "intended recipient" how do you know who that entity is? The answer is you don't! So it would be fair to say from the definitions above that, if you don't know who you are encrypting for, then encryption is potentially pointless.

"High Assurance" certificate authorities (CAs) perform that authentication for you with due diligence, and put their name to this in the SSL certificates which they sign. This is not done by "Low Assurance" CAs which issue SSL certificates providing encryption of dubious worth. Let's look more specifically at other legal, technical and commercial issues facing consumers and businesses where entity authentication is not performed.

Should consumers take the 60,000,000:1 gamble on privacy and confidentiality?

Today, new web site registrations are running at approximately 5 million new domains per quarter with a cumulative total of over 60 Million . Without a pre-existing trust relationship, consumers have no trusted method available to verify the ownership of a web site and therefore are completely reliant upon the entity authentication processes performed by Certification Authorities. If no authentication process is performed then this forces consumers to gamble with privacy and confidentiality.

Read the rest of the article.


About the Author:
Dr. Colin Walter has a formidable international reputation in the design of hardware and algorithms for the implementation of RSA cryptography. He is on the programme committee of several international conferences (e.g. CHES and ARITH) and has given invited lectures on many occasions. He obtained his doctorate in algebraic number theory from Cambridge University and he is a senior member of the IEEE.

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