Click here to close now.




















Welcome!

Cloud Security Authors: Pat Romanski, Liz McMillan, Elizabeth White, Cloud Best Practices Network, Ian Khan

Related Topics: Mobile IoT, Microservices Expo, Agile Computing, Wearables, Cloud Security

Mobile IoT: Article

Securing Mobile Payments

As the mobile payment industry continues to develop at lightning speed, best practices have yet to be solidified

As mobile phones become as indispensable as credit cards for purchasing goods and services, mobile payment developments are quickly gaining pace. Many different service providers are competing for their piece of the action. Within the last year, we have witnessed the arrival of mobile payment solutions such as MasterCard's PayPass, Google's Android-based eWallet scheme and Starbucks' emerging Quick Tap PayPass service.

A study from Juniper Research predicts that mobile contactless payment transactions are to reach nearly $50 billion worldwide in 2014 and NFC solutions will be used in 20 countries within the next 18 months.

However, with the widespread adoption of this technology, there is a need to debate which type of scheme works best and is the most robust.

Setting the Standard
As with traditional payments, standardization is vital. Several effective standards are already gaining momentum in delivering a secure mobile payments ecosystem:

  • Organizing Mobile NFC Services - The Trusted Service Manager (TSM) acts as an intermediary between Mobile Network Operators (MNOs) and third-party service providers that wish to offer additional services to subscribers. GlobalPlatform's ‘System Messaging Specification for Management of Mobile-NFC Services' defines the messaging between each of the three parties to guarantee secure ‘provisioning' of services to the device.
  • The SIM Alliance Open Mobile API - Applications utilizing the Secure Element (the cryptographically secured piece of hardware on newer mobile devices) to secure their critical operations, such as payments, banking or transport tickets, can have a component running within the device's operating system that ensures the user can securely interact with the keyboard/touch screen while enjoying a rich graphical user experience. The SIM Alliance Open Mobile API allows application developers to utilize additional security of the Secure Element more easily, be this in a UICC SIM, a dedicated Secure Element built into the device or a secure SD card, by providing a common means of interfacing with it.
  • Trusted Execution Environment (TEE) - The Secure Element cannot easily host apps with a highly developed or cutting edge user interface, but can look after critical data on the mobile handset. Applications that require complex user interactions must run on the device's primary processor. The TEE secures these apps; GlobalPlatform is leading the standardization and interoperability in this area to ensure that software and data are sufficiently protected. For example, payment apps that run their user interface in TEE and their transaction security in the Secure Element would have a particularly high level of security.

Such standards encourage the industry to work together and benchmark best practices, but they remain as fundamental elements of successful mobile payment security. It is also required that technology that makes the security of provisioning mobile payment applications is as safe as issuing cards, and designing the necessary infrastructure requires much needed consumer confidence.

Security Issues Prompt Consumer Fear
Consumer's perceived fear surrounding new mobile payments technology often looms around security. The lack in consumer confidence originates from the threat of information being intercepted during a transaction. Yet risks are prominent at every stage of the mobile payment life cycle, including how payment applications get onto a phone securely in the first place. Constructing the data needed to issue a payment application and generate the secure messages to personalize a handset can be a lengthy and inefficient process, and the various cryptographic functions pose the possibility that sensitive data is at risk of exposure.

This initial set-up process or ‘provisioning' usually takes place over-the-air (OTA). The process increases security risks due to the various parties involved - typically the payment application provider (usually a bank), a Trusted Service Manager, the Mobile Network Operator and the end user. A vital success factor is maintaining security throughout this procedure, ensuring that no data is compromised. Successful provisioning utilizes unique personalization keys to not only encrypt the loading of data onto a device, but also the succeeding transactions performed by the application.

Mobile Payment Security as Secure as Traditional Payment Cards
By implementing the newest cryptography methods, users can ensure that ‘provisioning' occurs securely with the same level of protection provided by traditional payment cards. Providers of physical cards tend to favor Hardware Security Modules (HSMs), which generate and secure the encryption keys crucial to managing issuance risk. This method is also relevant for provisioning services to a mobile phone and can significantly reduce the complexities associated with the process while simultaneously avoiding the weakness of keys stored in software. The primary benefit of an HSM is to secure encryption keys and sensitive data in a way that safeguards such data from exposure. With this method, service providers reduce risk.

While encryption is crucial to the security of mobile payments, it isn't the only answer. For a more comprehensive approach to optimize security, encryption and authentication must be combined to provide protection for data exchanges and authorizations.

Reducing Risk
As the mobile payment industry continues to develop at lightning speed, best practices have yet to be solidified. Operators and related parties are still unsure about who ultimately controls the mobile wallet. But one thing that is for sure is that security remains the primary hurdle most consumers can't get over.

Extinguishing this concern is no easy task; it requires a mixture of robust standards and best practices, accompanied with the right technical path to ensure the experience is safe from the second that a user opts to download a payment app. If businesses want to take advantage of the mobile payments, security needs to be at the forefront of their approach to mitigating risk and encourage comprehensive consumer adoption.

More Stories By Ian Hermon

Ian Hermon is Product Marketing Manager at Thales e-Security. He has more than 15 years’ experience in the payment industry, being responsible for the Thales portfolio of payment and transaction security products. He represents Thales on both the MasterCard Global Vendor Forum and Visa Europe Vendor Forum, is a member of the Smart Card Alliance Payments Council and the Smartex Smart Payments Forum Steering Committee. Ian also represents Thales as a participating organization on the PCI Security Standards Committee and is an EMV subscriber.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.