Follow-up of Prof. Honeyman’s lecture, by Galina Schwartz U of M Business School My comments are in italics, and underlined. They are at the end of almost every Prof. Honeyman’s slide…

electronic payments — and — emerging technologies peter honeyman center for information technology integration

problem statement u risk management u elevate trustworthiness of electronic payments to “card present” status u simple, practical, inexpensive u Sounds like real Finance?

emerging technologies u computing: moore’s law dictating faster and smaller computers at a constant price u smartcards are the ultimate mobile computer u communications u ubiquitous internet u wireless data communications u biometric identification Question: how to alter your fingerprints?

smartcards u tamper resistant u secure key storage and management u “personal cryptography assistant”

how can smartcards be applied? u secure identification u trust platform u to do: solve the infrastructure problem Is the infrastructure a big problem? Related question: How to make reverse engineering more difficult?

what is this? u  u a mobile phone? NO! u portable, disposable smartcard reader u solves the infrastructure problem

emerging communications technologies u gsm u europe now, n. america coming on line u europe: gprs, umts u japan: i-mode u cdpd u n. america now, will fade from the scene u n.a. telecoms don’t “get it” u wap u and other futile efforts to occupy this space

the convergence u pda + mobile phone + bluetooth + smartcard u offers opportunity for secure, authenticated payments Why Eurore is so advanced in cellular phones??? [catch-up] Supply and demand sides: Supply: technologically possible Demand: Is it really there?

biometrics u goal: personal identification u fingerprint u faceprint u retina or iris scan u voice recognition u questionable technical foundation to date u secrecy abounds Compare this reasoning with the reasons behind the disclosure requirements (still, see slide 12 : OPEN! is important) [pros and cons are both there]

biometrics? u revocation is difficult u fingerprints and other durable identifiers u spoofing is easy u fingerprint u voice recognition u compare to present biometric identification u signature on paper u demeanor of customer

multi-factor identification u combination of methods u secure crypto platform u biometrics, possibly more than one u can this offer risk management comparable to “card present” transaction? u maybe u “data collection yields to pattern recognition” -- m. mcluhan

promoting (and preventing) competition u the wap re-intermediators u wap must die u internet protocol will be the instrument of its death! u open systems u has huge advantages in risk management u gsm protocols u french bank card u aes (des replacement)

next steps u explosive growth in internet deployment application space will continue unabated u it will continue to accelerate! u this provides fertile ground for innovation, development, and deployment  Subject: MAKE MONEY FAST u €omputing + €ommuni€ation$ It is a great logo. Is not it? It is clear, elegant and greedy, but convinsing: exactly as the markets are!

thank you for your attention

Relating technology to International Finance u Volatility – we expect to grow  UP. u Specifically, Financial Industry will be MORE risky business u Also: Telecoms: huge risks u Real risks will be very much dependant on regulations u Who `wins` is any scenario? u [Computer security specialists]