1. Security issues DT Fraud Conference 24 th March 2016 Andrew Churchill Technology Strategy

2. Current and emerging issues Threat Landscape Wider Regulatory Background –Secure Pay & PSD2 –General Data Protection Regulation –eIDAS –ENISA ‘Assumed compromise’ The need for standards –EBA ‘Request for information’ –BSI developments

3. Assume Compromise – Assumed Solution

4. EFFECTIVENESS OF TRADITIONAL, SIGNATURE-BASED ANTI-MALWARE SOLUTIONS Recent malware infection tactics: Drive-by download infection Fake security tool and free scanning services Social engineering – social networks, e.g. Facebook Embed malicious link in email – phishing, pharming and spear phishing type attacks Cracked PDF and document files – embedded link/payload Popular AV signature-based solutions detect on average less than 19% of new malware threats. That detection rate increases to only 61.7% after 30 days Malware Detection Rates for Leading AV Solutions: A Cyveillance Analysis 04/08/10

5. ‘Zero Day’ – not so zero New virus sent into wild – Day Zero ………. Spam botnet ……….. Destruction ………... ID Trojan ………… Creation Infection Payload Delivery 1 st Impact Signature Recognition 1 st Recognition of virus as such + circa 30 daysVirus sets to work ISP notices User notices Fraud investigators notice

6. Historic Zero Day – Red October

7. Historic Zero Day - Stuxnet

8. Hypothetical Zero Day – ‘Tim’

9. Legal basis – ‘Tim’

10. ‘Strong’ passwords? Dog’s dinner!

11. Regulations – now – (1 st August 2015) EBA 2014 SecuRe Pay ‘Strong Authentication’ - Mandates multi-factor authentication, but now brings in some interesting caveats, as one or both of these factors: 1) must be mutually independent, i.e. the breach of one does not compromise the other(s); 2) should be non-reusable and non-replicable (except for inherence); 3) designed in such a way as to protect the confidentiality of the authentication data; 4) not capable of being surreptitiously stolen via the internet.

12. Regulatory confusion General Data Protection Regulation Regulation, but with national exemptions Anonymous PETs 4 th Anti-Money Laundering Directive Protecting PII TPP not TTP “very cautious about giving out personal or financial information”

13. AML? DPR? eIDAS? PSD2?

14. Regulations – now – (14 th October ) PSD2 Ratification ‘For remote transactions, such as online payments, the security requirements go even further, requiring a dynamic link to the amount of the transaction and the account of the payee, to further protect the user by minimising the risks in case of mistakes or fraudulent attacks.’

15. Regulations – now – (14 th October ) PSD2 Ratification ‘For remote transactions, such as online payments, the security requirements go even further, requiring a dynamic link to the amount of the transaction and the account of the payee, to further protect the user by minimising the risks in case of mistakes or fraudulent attacks.’ WTF?!

16. Regulations – now – (14 th October ) PSD2 Ratification ‘For remote transactions, such as online payments, the security requirements go even further, requiring a dynamic link to the amount of the transaction and the account of the payee, to further protect the user by minimising the risks in case of mistakes or fraudulent attacks.’ What Techniques Fit?

17. What Techniques Fit?! Could use CAP reader to digitally sign every transaction!

18. Regulations – now – eIDAS Article 8 - Assurance levels of electronic identification schemes 1. An electronic identification scheme notified pursuant to Article 9(1) shall specify assurance levels low, substantial and/or high for electronic identification means issued under that scheme. 2. The assurance levels low, substantial and high shall meet respectively the following criteria: (a) assurance level low/b)substantial/c)high shall refer to an electronic identification means in the context of an electronic identification scheme, which provides a limited degree of confidence in the claimed or asserted identity of a person, and is characterised with reference to technical specifications, standards and procedures related thereto, including technical controls, the purpose of which is to decrease/b)decrease substantially/c) prevent … the risk of misuse or alteration of the identity; http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014R0910&from=EN

19. Regulations – eIDAS (cont.) Article 8 - Assurance levels of electronic identification schemes 3. By 18 September 2015, … set out minimum technical specifications, standards and procedures with reference to which assurance levels low, substantial and high are specified for electronic identification …. Those minimum technical specifications, standards and procedures shall be set out by reference to the reliability and quality of the following elements: (a) the procedure to prove and verify the identity of natural or legal persons applying for the issuance of electronic identification means; (b) the procedure for the issuance of the requested electronic identification means; (c) the authentication mechanism, through which the natural or legal person uses the electronic identification means to confirm its identity to a relying party; (d) the entity issuing the electronic identification means; (e) any other body involved in the application for the issuance of the electronic identification means; and (f) the technical and security specifications of the issued electronic identification means.

20. Need for Standards Adaptable Appropriate Agnostic

21. Need for Standards (cont.)

22. IDAP – Verify ‘Static’ Biometrics on Passports At Enrolment, but not used as a biometric for subsequent authentication

23. IDAP – Verify ‘Static’ Biometrics on Passports At Enrolment, but not used as a biometric for subsequent authentication

24. Implementing Biometrics – PAS92 Choice of Biometrics – Multi-Modality E.g. potential for 8 biometric samples from a short video

25. Implementing Biometrics

26. Real world Biometrics Use FBI Most Wanted

27. Unreal world Biometrics Use FBI Most Wanted