Secure Transaction System Using Chip Card Reader Session Key

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Solution Overview

Problem

Existing secure transaction systems over communication networks, such as the Internet, are vulnerable to attacks like social engineering, phishing, and man-in-the-middle attacks due to reliance on insecure certificate-based protocols and the lack of user verification, making them susceptible to fraud and data breaches.

Innovation Solution

A secure online transaction system that uses a chip card reader and a security module to generate a session key for encrypting transaction data, leveraging symmetric encryption keys stored on secure smart cards, which are resistant to social engineering attacks and provide strong authentication between the card and the service provider's equipment.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If certificate-based protocols (SSL/TLS) are used to secure transactions, then authentication is provided, but the system remains vulnerable to phishing and man-in-the-middle attacks due to lack of user verification

Engineering Contradiction:
Improveauthentication securityVSAvoidvulnerability to phishing attacks
Core Design Contradiction:
ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The patent introduces a card reader as an intermediary device between the user's card and the terminal. This reader verifies the card's authenticity by reading data directly from the card chip and comparing it with expected values, preventing phishing attacks where fraudulent websites attempt to steal card information. The reader acts as a trusted mediator that ensures the card is genuine before allowing transaction proceeds.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The system performs preliminary verification of the card's authenticity before the actual transaction takes place. The card reader reads and validates card data (such as verifying the relationship between card number and security code) in advance, ensuring that only authentic cards can proceed with transactions. This preliminary action prevents fraudulent transactions initiated by phishing attacks.

Inventive Principle:
Principle #10Preliminary action

2Reliability

If symmetric encryption keys are stored on secure smart cards, then strong authentication is achieved, but the system complexity increases due to key management requirements

Engineering Contradiction:
Improveauthentication strengthVSAvoidkey management infrastructure
Core Design Contradiction:
ReliabilityVSDevice complexity

Solution Approach 1:

The smart card itself performs the authentication function by verifying the relationship between stored data elements (e.g., checking if the security code matches the card number according to a predetermined algorithm). The card autonomously generates authentication responses without requiring external key management infrastructure. This self-service approach simplifies the overall system while maintaining strong authentication.

Inventive Principle:
Principle #25Self-service

Solution Approach 2:

The smart card serves multiple functions: it stores authentication credentials, performs cryptographic operations, and validates its own authenticity. By consolidating these functions into a single universal device, the system avoids the need for separate key management infrastructure, reducing overall system complexity while maintaining security.

Inventive Principle:
Principle #6Universality (Multi-functionality)

3Object-affected harmful factors

If user verification mechanisms are implemented, then security against social engineering attacks improves, but ease of operation decreases due to additional verification steps

Engineering Contradiction:
Improveresistance to social engineeringVSAvoiduser convenience
Core Design Contradiction:
Object-affected harmful factorsVSEase of operation

Solution Approach 1:

The verification function is extracted from the terminal software and implemented in dedicated hardware (the card reader). This separation allows the verification process to be transparent and automatic, requiring minimal user intervention. The user simply inserts the card, and the reader automatically performs the security verification, maintaining ease of operation while providing strong protection against social engineering attacks.

Inventive Principle:
Principle #2Taking out (Extraction)

4Reliability

If session keys are generated for each transaction, then data confidentiality is improved, but processing time increases due to key generation overhead

Engineering Contradiction:
Improvedata confidentialityVSAvoidtransaction processing time
Core Design Contradiction:
ReliabilityVSLoss of time

Solution Approach 1:

The card reader generates and stores session keys in advance, before actual transactions occur. When a transaction is initiated, the pre-generated session key is immediately available for use, eliminating the time-consuming key generation process during the transaction itself. This preliminary preparation maintains strong data confidentiality while minimizing processing time impact.

Inventive Principle:
Principle #10Preliminary action

Data Source

PatentEP2306668B1System and method for secure on-line transactions
Publication Date: 2016.08.17 COMPAGNIE INDUSTRIELLE ET FINANCIERE D INGENIERIE INGENICO SA
  • EP2306668B1 patent drawingFigure 1
  • EP2306668B1 patent drawingFigure 2
  • EP2306668B1 patent drawingFigure 3

AI summary

The system has a smart card reader (1) with processing units (12) for exchanging data representing transaction, with a chip (20) of a secured card (2) e.g. bank card, to obtain public data (D-chip) from the chip and transmit the public data to a safety module (41) and generating a session key (Kses) in cooperation with the card. The module determines the session key from the public data and an encrypting key (CF). The reader and the module establish a secured communication channel (CS) by encrypting and decrypting the data relating to transaction, passing via the channel, by the session key. An independent claim is also included for a method for secure on-line transaction over a communication network.