Limited-Use Keys for Secure Cloud-Based Payment Cryptograms
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Solution Overview
Problem
The use of secure elements in portable communication devices for secure transactions is cumbersome and costly, and without them, transaction security becomes a concern due to the lack of direct access and control by financial institutions.
Innovation Solution
Implementing cloud-based transactions that utilize limited-use account parameters managed through a communication device without relying on secure elements, using card emulation technology to emulate smartcards and manage account credentials with limited lifespans, which are replenished from the cloud.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If secure elements are used in portable communication devices, then transaction security is improved, but device cost and manufacturing complexity increase
Solution Approach 1:
The patent extracts the secure element from the portable communication device entirely, replacing it with cloud-based security infrastructure. The secure functionality is moved from device hardware to remote servers, eliminating the need for secure elements while maintaining security through distributed cloud-based authentication and encryption services
Solution Approach 2:
The patent introduces cloud-based servers as intermediaries between the portable communication device and the transaction processing system. These servers mediate authentication, key management, and security verification, replacing the direct secure element functionality with an intermediary cloud service layer that provides equivalent or enhanced security
2Reliability
If secure elements are used in portable communication devices, then transaction security is improved, but device cost increases
Solution Approach 1:
The secure element is extracted and replaced with software-based security solutions running on standard mobile device components. This eliminates the need for expensive specialized hardware while maintaining security through cloud-based authentication and encryption, significantly reducing device manufacturing costs
Solution Approach 2:
The patent uses virtual copies of secure element functionality implemented through software and cloud services rather than physical hardware. Virtual authentication credentials and encrypted data stored in standard mobile device memory replace the physical secure element, providing equivalent security at lower cost
3Device complexity
If secure elements are not used in portable communication devices, then device cost and complexity are reduced, but transaction security deteriorates
Solution Approach 1:
The patent moves security from the device dimension (local secure element) to the cloud dimension (remote servers). Security is no longer confined to the portable device but is distributed across cloud infrastructure, enabling standard devices to provide secure transactions through network-based authentication and encryption services
Solution Approach 2:
Cloud-based servers act as intermediaries that provide security services to portable communication devices without secure elements. These intermediaries handle key generation, credential verification, and transaction authentication, compensating for the absence of local secure hardware through remote security infrastructure
Data Source
AI summary
Techniques for enhancing the security of a communication device when conducting a transaction using the communication device may include encrypting account information with a first encryption key to generate a second encryption key, and encrypting key index information using the second key to generate a limited-use key (LUK). The key index information may include a key index having information pertaining to generation of the LUK. The LUK and the key index can be provided to the communication device to facilitate generation of a transaction cryptogram for a transaction conducted using the communication device, and the transaction can be authorized based on the transaction cryptogram generated from the LUK.