CYBERSECURITY &

CRYPTOGRAPHY IN FINTECH
Chapter 1:
Information and Network Security Concepts
Course Information

▪ Aims

This module addresses the problem of securing computer systems. Different levels of computer threats and different

authentication methods are studied. Ciphering and cryptographic techniques are studied to create secure algorithms.

In addition, web security is introduced for the student to be aware of the different security techniques used at present.
Course Information

Learning outcomes

▪ Knowledge: On completion of this module, the successful student will be able to:

▪ Characterize ciphering and cryptology.

▪ Illustrate the concepts of Hash Function, Message Digest and Message Authentication Code.

▪ Discriminate between different authentication methods used for access control in computer systems.

▪ Discriminate between different layers of security.

▪ Illustrate the concepts of digital signature

▪ Illustrate the concepts of IP Security

▪ Skills: This module will call for the successful student to :

▪ Apply key management techniques.

▪ Propose, apply and evaluate security, privacy and integrity policies for a system.

▪ Choose and implement the appropriate ciphering and cryptographic techniques.

▪ Implement different authentication methods.

CHAPTER 1 – INTRODUCTION
The art of war teaches us to rely not on the likelihood of the
enemy's not coming, but on our own readiness to receive him;
not on the chance of his not attacking, but rather on the fact that
we have made our position unassailable.
—The Art of War, Sun Tzu
BACKGROUND
▪ Information Security requirements have changed in recent
times
▪ Traditionally provided by physical and administrative
mechanisms
▪ Computer use requires automated tools to protect files and
other stored information
▪ Use of networks and communications links requires
measures to protect data during transmission
DEFINITIONS
▪ Computer Security - generic name for the collection of
tools designed to protect data and to thwart hackers
▪ Network Security - measures to protect data during their
transmission
▪ Internet Security - measures to protect data during their
transmission over a collection of interconnected networks
COMPUTER SECURITY
▪ the protection afforded to an automated information system in order to attain the
applicable objectives of preserving the integrity, availability and confidentiality of
information system resources (includes hardware, software, firmware, information/data,
and telecommunications)
KEY SECURITY CONCEPTS
▪ Confidentiality: A loss of confidentiality is the unauthorized disclosure of
information.
▪ Integrity: A loss of integrity is the unauthorized modification or destruction of
information.
▪ Availability: A loss of availability is the disruption of access to or use of information
or an information system.

▪ Although the use of the CIA triad to define security objectives is well established,
some in the security field feel that additional concepts are needed to present a
complete picture. Two of the most commonly mentioned are:

▪ Authenticity: The property of being genuine and being able to be verified and
trusted; confidence in the validity of a transmission, a message, or message
originator.
▪ Accountability: The security goal that generates the requirement for actions of an
entity to be traced uniquely to that entity.
LEVELS OF IMPACT
▪ Can define 3 levels of impact from a security breach*
▪ Low: The loss could be expected to have a limited adverse effect
on organizational operations, organizational assets, or individuals.
▪ (i) cause a degradation in mission capability to an extent and duration that
the organization is able to perform its primary functions, but the effectiveness
of the functions is noticeably reduced;
▪ (ii) result in minor damage to organizational assets;
▪ (iii) result in minor financial loss; or
▪ (iv) result in minor harm to individuals.
LEVELS OF IMPACT
▪ Moderate: The loss could be expected to have a serious adverse
effect on organizational operations, organizational assets, or
individuals
▪ (i) cause a significant degradation in mission capability to an extent and
duration that the organization is able to perform its primary functions, but the
effectiveness of the functions is significantly reduced;
▪ (ii) result in significant damage to organizational assets;
▪ (iii) result in significant financial loss; or
▪ (iv) result in significant harm to individuals that does not involve loss of life or
serious, life-threatening injuries.
LEVELS OF IMPACT
▪ High: The loss could be expected to have a severe or catastrophic
adverse effect on organizational operations, organizational assets,
or individuals.
▪ (i) cause a severe degradation in or loss of mission capability to an extent and
duration that the organization is not able to perform one or more of its primary
functions;
▪ (ii) result in major damage to organizational assets;
▪ (iii) result in major financial loss; or
▪ (iv) result in severe or catastrophic harm to individuals involving loss of life or
serious life threatening injuries.
OUR AIM
▪ our focus is on Internet Security
▪ which consists of measures to deter, prevent, detect, and correct security violations
that involve the transmission & storage of information
COMPUTER SECURITY CHALLENGES
1. not simple
2. must consider potential attacks
3. involve algorithms and secret info
4. must decide where to deploy mechanisms
5. battle of intelligence between attacker / admin
6. not perceived on benefit until fails
7. requires regular monitoring
8. too often an after-thought
OSI SECURITY ARCHITECTURE
▪ ITU-T X.800 “Security Architecture for OSI”
▪ defines a systematic way of defining and providing security requirements
▪ for us it provides a useful overview of concepts we will study
ASPECTS OF SECURITY
▪ consider 3 aspects of information security:
▪ security attack
▪ security mechanism
▪ security service
SECURITY ATTACK
▪ any action that compromises the security of information owned
by an organization
▪ information security is about how to prevent attacks, or failing
that, to detect attacks on information-based systems
▪ often threat & attack used to mean same thing
▪ have a wide range of attacks
▪ can focus of generic types of attacks
▪ passive
▪ active
PASSIVE ATTACKS
PASSIVE ATTACKS
▪ Have “passive attacks” which attempt to learn or make
use of information from the system but does not affect
system resources.
▪ By eavesdropping on, or monitoring of, transmissions to:
▪ obtain (message contents + monitor traffic flows)

▪ Are difficult to detect because they do not involve any

alteration of the data.
ACTIVE ATTACKS
ACTIVE ATTACKS
▪ Also have “active attacks” which attempt to alter system resources or affect their
operation.
▪ By modification of data stream to:
▪ masquerade of one entity as some other
▪ replay previous messages
▪ modify messages in transit
▪ denial of service

▪ Active attacks present the opposite characteristics of passive attacks.

▪ Whereas passive attacks are difficult to detect, measures are available to prevent
their success.
▪ On the other hand, it is quite difficult to prevent active attacks absolutely, because of
the wide variety of potential physical, software, network vulnerabilities. Instead, the
goal is to detect active attacks and to recover from any disruption or delays caused
by them.
SECURITY SERVICE
▪ Enhance security of data processing systems and information transfers of an
organization
▪ Intended to counter security attacks
▪ Using one or more security mechanisms
▪ Often replicates functions normally associated with physical documents
▪ which, for example, have signatures, dates; need protection from disclosure, tampering, or
destruction; be notarized or witnessed; be recorded or licensed
SECURITY SERVICES
▪ X.800:
“a service provided by a protocol layer of communicating open systems, which ensures adequate
security of the systems or of data transfers”

▪ RFC 2828:
“a processing or communication service provided by a system to give a specific kind of protection
to system resources”
SECURITY SERVICES (X.800)
▪ Authentication - assurance that the communicating entity is the
one claimed
▪ Peer entity authentication
▪ Data origin authentication:

▪ Access Control - prevention of the unauthorized use of a

resource
▪ Data Confidentiality –protection of data from unauthorized
disclosure
▪ Data Integrity - assurance that data received is as sent by an
authorized entity
▪ Non-Repudiation - protection against denial by one of the
parties in a communication
SECURITY MECHANISM
▪ feature designed to detect, prevent, or recover from a security attack
▪ no single mechanism that will support all services required
▪ however one particular element underlies many of the security mechanisms in use:
▪ cryptographic techniques

▪ hence our focus on this topic

SECURITY MECHANISMS (X.800)
▪specific security mechanisms:
▪ Encipherment, digital signatures, access controls, data integrity, authentication exchange, traffic
padding, routing control, notarization
RELATIONSHIP BETWEEN SECURITY SERVICES AND MECHANISMS
MODEL FOR NETWORK SECURITY
MODEL FOR NETWORK SECURITY

▪ using this model requires us to :

1. design a suitable algorithm for the security transformation
2. generate the secret information (keys) used by the algorithm
3. develop methods to distribute and share the secret information
4. specify a protocol enabling the principals to use the transformation and secret
information for a security service
MODEL FOR NETWORK ACCESS SECURITY
MODEL FOR NETWORK ACCESS SECURITY

▪ using this model requires us to:

1. select appropriate gatekeeper functions to
identify users
2. implement security controls to ensure only
authorised users access designated information
or resources
SUMMARY
▪ have considered:
▪ definitions for:
▪ computer, network, internet security

▪ X.800 standard
▪ security attacks, services, mechanisms
▪ models for network (access) security