Trusted Electronic Transactions

Why conduct transactions electronically?

Three Characteristics that ensure trust in electronic transactions

How we achieve trust in paper-based transactions

Problems with common electronic transactions

TOPICS COVERED

Achieving trust in electronic transactions with Digital Signature technology and an effective archiving scheme

• What are digital Signatures? An introduction to Public Key Infrastructure

• An introduction to Archiving digitally signed transactions using XML.

TOPICS COVERED

Applying Public Key Infrastructure to address security risks when granting public access to community-right-to-know data

Relevant Legislation regarding Digital Signatures and electronic government transactions

TOPICS COVERED

ELECTRONIC TRANSACTIONS

Streamline Reporting Process

• Reduce burden on regulated community

Efficient Record Retention

Timely and Accurate Data Retrieval and Access

• Emergency Response (24/7 access)

• Community-Right-to-Know

CAN ELECTRONIC DATA BE TRUSTED?

Accuracy and Authenticity• Decisions regarding Environmental Health and Impact

Security• Protection from unauthorized access• Tamper-resistant

Accidental – human errors Intentional - Fraud

Credibility in Judicial Proceedings• Effective Enforcement• Plaintiff/Defendant Subpoena

Evidence must be unambiguous to be admissible in court

Once admitted into Court, evidence must be persuasive to a jury

JUDICIAL CREDIBILITY is the Highest Standard for Trusted Data **

** National Governor’s Association (NGA) State Guide to Environmental Reporting

1. AUTHENTICATION: the ability to prove the sender’s identity

2. REPORT INTEGRITY: the ability to prove that there has been no change during transmission, storage, or retrieval

3. NON-REPUDIATION: the ability to prove that the originator of a report intended to be bound by the information contained in the report

WHAT DETERMINES A LEGALLY BINDING REPORT ?

NON-REPUDIATION

AUTHENTICATION

REPORT INTEGRITY

TRUST IN PAPER-BASED REPORTS

ELECTRONIC REPORTING

FROM PAPER TO ELECTRONIC: Repudiation Risks in Basic Electronic Transactions

“I did not send that report !”

“That report is not the one I sent !”

“I did not mean that !”

“I did not send that report !”

Identity of user is unknown

Possible Solutions:

Telephone call follow-up

Terms and Conditions Agreement (TCA) / Mailed Certification Agreement

Mail a Diskette Containing Electronic Data

“That report is not the one I sent !”

Electronic reports contain no evidence of tampering in transmission, storage or retrieval

Sources of possible loss of data integrity

• Human Error

• Data Corruption

• Fraud

Ensuring Authenticity and Report Integrity in Electronic Transactions

Digital Signatures

• Public Key Infrastructure

Public Key Infrastructure (PKI)

PKI is a combination of software, encryption technologies and facilities that can facilitate trusted electronic transactions.

PKI Components

•Key Pairs

•Certificate Authority

•Public Key Cryptography

Key Pairs

• A “key” is a unique digital identifier– Keys are produced using a random number

generator

• A “key pair” consists of two mathematically related keys– The private key is secret and under the

sole control of the individual– The public key is open and published

• A trusted authority

• Responsible for creating the key pair, distributing the private key, publishing the public key and revoking the keys as necessary

• The “Passport Office” of the Digital World

Certificate Authority

Digital Certificates

• A unique electronic signifier issued by a Certificate Authority that functions like a passport to verify a user’s identity.

• The certificate authority binds the unique key to the following

• Name of the Certificate Authority• Certificate Expiration Date• Certificate Identity Number

• Certificate Storage• software tokens• browser certificate stores• hardware tokens (Smart Cards, USB Tokens)

Public Key Cryptography

Complimentary Algorithms are used to encrypt and decrypt documents

@#@#@$$56455908283923542#$@$#%$%$^&

Encryption key

Decryption keyUnreadable Format

Public Key Infrastructure in Action

Public Key Private Key

Secure Transmission

Signatures

Decrypting

Encrypting

Encrypting

Decrypting

Report Encryption Algorithm Digitally Signed

An individual digitally signs a document using the private key component of his certificate.

Digital Signatures

Private key

Authentication and Verification

The individual’s public key, published by the CA decrypts and verifies the digital signature.

Digitally Signed

Public KeyDecryption Algorithm

Authentication and Verification

• Any changes made to the report will invalidate the signature

• Provides evidence of report integrity

• Provides proof of report originator’s identity - Authentication

Security in Transmission

• Secure Socket Layer (SSL)

• https

• Submission is encrypted by the sender with recipient’s public key

• After receipt, submission is decrypted with recipient’s private key

ACHIEVING TRUST IN ELECTRONIC REPORTS

What Should Be Signed ?

Balance between capturing the entire content of the transaction vs. ease of data integration

Data that is Machine readable but which separates user entry content from context: database, comma delimited, spreadsheet, etc

Data that records content and context but which are not easily integrated into databases: word, pdf, image, html, etc

Ensuring Non-repudiation in Electronic Transactions

Capturing Complete Transactions in Archive

• Signing the content and context of a transaction

• Storing the signed transaction in a data warehouse without manual intervention

eXtensible Markup Language

XML can be used to store both the questions on the form (context) and the data entered by the user (content).

The entire form can be stored as one object

Default Values Lookup values (ie chemical classifications) Questions Physical Characteristics

XML

XML Schema

From the W3C: http://www.w3.org/1999/05/06-xmlschema-1/

…define and describe a class of XML documents by using these constructs to constrain and document the meaning, usage and relationships of their constituent parts: datatypes, elements and their content, attributes and their values, entities and their contents and notations. Schema constructs may also provide for the specification of implicit information such as default values. Schemas are intended to document their own meaning, usage, and function through a common documentation vocabulary.

Business Plan Schema

INCORPORATING XML AND PKI

• XML Transaction Instance conforming to Schema• Public Key Cryptography via Web Browser plugin

Granting Public Access to paper reports

Public comes into agency office

Public provides driver’s license or other identification

Agency can monitor who is accessing data

Providing Trusted Electronic Access to Data

Identity of user is unknown

Access cannot be monitored

Relying on the Certificate Authority

Public Digital

Certificate

In order to obtain access to Community Right to Know Data, individuals first obtain digital Certificates.

Applying PKI to Public Access

Public

After contributing a certificate to gain access, The individual’s certificate can be cross-referenced with other security databases to monitor suspect individuals.

Digital

CertificatesAgency

TITLE 27, Part 2, Article 5

CA Title 2, Division 7, Ch.10 Digital Signatures

RELEVANT LEGISLATION

TITLE 27 – CUPA Legislation

California Digital Signature Regulations

• Definitions

• Digital Signatures Must Be Created By An Acceptable Technology- Criteria For Determining Acceptability

• List of Acceptable Technologies

• Provisions For Adding New Technologies to the List of Acceptable Technologies

• Issues to Be Addressed By Public Entities When Using Digital Signatures

California Code of Regulations Title 2. Administration DIVISION 7. CHAP 10. DIGITAL SIGNATUREShttp://www.ss.ca.gov/digsig/regulations.htm

The technology known as Public Key Cryptography is an acceptable technology for use by public entities in California, provided that the digital signature is created consistent with the provisions in Section 22003(a)1-5.

"Acceptable Certification Authorities" means a certification authority that meets the requirements of either Section 22003(a)6(C) or Section 22003(a)6(D).

"Approved List of Certification Authorities" means the list of Certification Authorities approved by the Secretary of State to issue certificates for digital signature transactions involving public entities in California.

California Digital Signature Regulations

Unsigned Web forms can be sent by anyone. They can be tampered in transmission and the sender can’t be legally verified

Unsigned Data in a database can be altered and does not provide adequate evidence in a court of law

Data on Diskette can be altered without visible evidence

Summary: Electronic Report Transactions are subject to fraud and easily repudiated:

Digitally signed reports can also be repudiated, if the signed data is stored independently of the form question data.

Summary, cont.

Conclusion: Ensuring Trusted Electronic Transactions

1. PKI supports trusted electronic report transactions:

Authentication- authenticates the sender of a report Report Integrity- invalidates a

report if it has been tampered. Non-repudiation- sender and document are authenticated- the sender cannot deny having sent the report

Conclusion, cont.

2. PKI supports trusted access to Public Data:

Agencies require individuals to contribute digital certificates in order to gain access.

Agencies can track who gains access at what time

The names of individuals who seek access can be cross-referenced with additional security databases to protect public safety

Conclusion, cont.

3. Complete Archiving ensures that a legal record of a transaction can be trusted :

Non-repudiation- Storing a copy of the entire data (including questions on the form) with the digital signature.

Resources:

• eCompliance, Inc. http://www.ecompliance.net

• White paper/ Electronic Transactions

• Copy of presentation

• Environmental Protection Agency

• Central Data Exchange http://www.epa.gov/cdx/cde

.html

• National Governor’s Association

• State Guide to Electronic Reporting of Environmental Data http://www.nga.org/center/divisions/1,1188,C_ISSUE_BRIEF%5ED_1139,00.html