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Analyzing 3D Secure Risks: Phishing in Online Card Payments

Ross Anderson reports (via Bruce Schneier blog): Online transactions with credit cards or debit cards are increasingly verified using the 3D Secure system, which is branded as "Verified by VISA" and "MasterCard SecureCode". This is now the most widely-used single sign-on scheme ever, with over 200 million cardholders registered. It's getting hard to shop online without being forced to use it. . In a paper I'm presenting today at Financial Cryptography, Steven Murdoch and I analyse 3D Secure. From the engineering point of view, it does just about everything wrong, and it's becoming a fat target for phishing. So why did it succeed in the marketplace? Quite simply, it has strong incentives for adoption. Merchants who use it push liability for fraud back to banks, who in turn push it on to cardholders. Properly designed single sign-on systems, like OpenID and InfoCard, can't offer anything like this. So this is yet another case where security economics trumps security engineering, but in a predatory way that leaves cardholders less secure. We conclude with a suggestion on what bank regulators might do to fix the problem. The link for this article located at Bruce Schneier is no longer available. . 3D Secure aims to enhance online payment safety through user authentication, yet its flaws lead to user frustration, security inconsistencies, and phishing risks. 3D Secure, Phishing Attacks, Payment Security, Card Fraud, Financial Risks. . LinuxSecurity.com Team

Calendar 2 Feb 01, 2010 User Avatar LinuxSecurity.com Team Cryptography
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[{"id":483,"title":"Self-taught through trial and error","votes":545,"type":"x","order":1,"pct":78.42,"resources":[]},{"id":484,"title":"Formal training or courses","votes":30,"type":"x","order":2,"pct":4.32,"resources":[]},{"id":485,"title":"A job that required it","votes":34,"type":"x","order":3,"pct":4.89,"resources":[]},{"id":486,"title":"Other","votes":86,"type":"x","order":4,"pct":12.37,"resources":[]}] ["#ff5b00","#4ac0f2","#b80028","#eef66c","#60bb22","#b96a9a","#62c2cc"] ["rgba(255,91,0,0.7)","rgba(74,192,242,0.7)","rgba(184,0,40,0.7)","rgba(238,246,108,0.7)","rgba(96,187,34,0.7)","rgba(185,106,154,0.7)","rgba(98,194,204,0.7)"] 350
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