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 $#%$%$^& Encryption key Decryption key Unreadable Format

Public Key Infrastructure in Action Public KeyPrivate Key Secure Transmission Signatures Decrypting 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 Key Decryption 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: …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 Certificates Agency

 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 SIGNATURES

 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. White paper/ Electronic Transactions Copy of presentation Environmental Protection Agency Central Data Exchange National Governor’s Association State Guide to Electronic Reporting of Environmental Data F%5ED_1139,00.html F%5ED_1139,00.html