Archives for : privacy

    EFT Syetms and Device Considerations

    EFT devices and systems differ depending on hardware vendor, country and bank / payment aggregator.
    Below is a list of things you may like to consider. This list is off the top of my head so it is probably not complete.

    Looking at the products and relationships us usually a good start.

    Things to consider:

    • Card skimming methods
    • Some EFT POS devices restrict the connection of a skimmer
    • Review levels of associated fraud
    • Review devices and EFT methods
    • Review terminal identification (merchant and customer)
    • Manual processing. (internal and external)
    • eCommerce products
    • PC based software
    • Dedicated server services (Nobil, etc.)
    • Web based engine (Custom objects, Web pop-ups, etc)
    • Authorisation / identification methods (Merchant and customer)
    • TCPIP session hijacking / session spoofing
    • Direct Debit as well as Credit Cards.
    • Swift (methods and controls)
    • Telegraphic transfer (methods and controls)
    • Payment aggregator relationships (eg. Payment Tech, manual processing, cheque scanning, etc.)
    • Internet banking facilities (attack / penetration,  Certificate registration / management, ISP SLA’s, etc.)
    • Implementation of Smart Card and / or alternative customer recognition devices.
    • Outsourcing and associated risks / service level agreements
    • Payment processing
    • Payment clearance
    • Payment switching
    • Reporting (segregation of merchant / customers / aggregators / partners / local / international)
    • Fraud detection and reporting
    • 3rd party acquiring risks
    • Single merchant ID many businesses
    • Allows moneys to be laundered if the payment aggregator does not place appropriate controls on the merchant.
    • Encryption used
    • Internet / trusted partner / inter-bank / extranet
    • Private and / or public certificates
    • Single use certificates
    • Client side certificates
    • Remittance advice processes and controls.
    • EFT disaster recovery and manual fall back procedures (associated security and reconciliation risks)
    • Trusted partner relationships, SLA’s, liabilities and risks.
    • EFT regulatory / legal requirements (inter-bank and government)
    • Refund processing / authorisation. (policies, procedures, controls, etc.)
    • CVV, CVV-2 / CVC-2 processing and management. (
    • Fraud detection mechanism (neural networks, inter-bank / department customer checks, etc)
    • Supported card schemes (AMEX/Visa/Mastercard/Discover/etc )
    • Review EFT floor limits (corporate and SME merchants)
    • Review the ability to withhold merchant settlement until the presence of fraud has been determined.
    • Review customer identification details. Such as (This varies around the world depending on local regulations / privacy laws)
    • Review real-time and batched processing methods and controls (sequence numbers, access to raw data, etc.)
    • Review processing with and without expiry dates. (exception controls and policies)
    • Review exception / fraud reports.
    • Review payment store and forward policies and procedures.
    • Review Pre-Auth and Completion controls.
    • Token based payment (eCash, etc)
    • Merchant reconciliation, reporting methods and controls (paper, Internet, email, PDF, Fax, etc.) and associated security.
    • Real time gross settlement policies, procedures and controls. (IT and amounts)
    • Card issuing policies and procedures. (customer ID checks, etc)
    • Banking infrastructure (ingress / egress) controls and security. (Web, partner, payment switches, outsourced infrastructure, monitoring / reporting.)
    • Use of Internet technologies for inter-bank transfers and remote equipment.
    • Physical security and controls of devices, ATM,s, line encryptors, etc.

    Technology is always being challenged

    I read a very interesting paper created by the University of Massachusetts, RSA Laboratories and Innealta, Inc.<<

    This paper primarily relates to the compromise of contact less payment technologies (RFID) if the RFID and/or reader have not been implemented correctly or the solution provider has used an inappropriate type of RFID and discusses the challenges around Chip and Pin with respect to financial transactions e.g. EMV standards and compliance.

    Additionally, the paper describes a RFID relay method which is being discussed within many forums around the world and we have now begun to see equipment being produced for the RFID skimmers/clonners to use for malicious means.

    The overarching point of this paper is to use an appropriate RFID & Chip solutions which supports the security/privacy of the user and purpose of the transaction (financial or non financial)<<

    The paper can be found at

    In modern payment RFID & Chip solutions, newer devices can be used which possess a high degree of processing power and are therefore able to execute strong cryptographic methods (such as digital signatures) to protect the identification and payment information whilst the transaction is occurring.

    These systems often utilise bidirectional authentication between the RFID/Chip scanner and the RFID tag/Chip prior to performing the transaction. These methods and cryptographic algorithms are accepted and proven to work within the traditional payment markets.

    As mentioned in the paper, some solution store static digitally signed and/or encrypted data which is provided to the RFID/Chip reader when queried, but this data never changes from one transaction to another. This may allow a malicious individual to capture and re-inject the data into the reader at a later stage. The alternative to storing static digitally signed and/or encrypted data is to negotiate a key exchange at the time of the transaction in which the card/value information is encrypted and subsequently transmitted. With this method the transmitted data
    changes on every transaction and therefore even if a malicious individual was to capture the encrypted transaction data from one transaction, this would not be accepted by the reader if re-injected at a later stage.

    Although this is the case today, older RFID/Chip solutions often use technologies which are not appropriate for financial transactions and therefore may be compromised easily and in some cases without the knowledge of the card holder, merchant or acquirer.

    I find this interesting how some of these less secure solution have been approved for use by acquiring banks and the card schemes around the world (if they were told) in recent years, where it has been seen that these solutions have utilised techniques or deployment methods which can be compromised. These technologies and techniques would never be approved within the Point of Sale (PoS) or traditional banking markets.

    It can only be assumed that the need to get product to market quickly at the expense of proper testing, understanding and with due consideration to industry lessons learnt has succeeded again.

    Bluetooth – Security

    Redirected from Bluetooth



    1 Bluetooth
    2 Wireless- History
    3 Wireless- Technologies
    4 Bluetooth- Technical Introduction
    5 Bluetooth- Advantages
    6 Bluetooth- Applications
    7 Bluetooth- Security Issues
    7.1 The SNARF attack
    7.2 The BACKDOOR attack
    7.3 The BLUEBUG attack
    7.4 Bluejacking
    7.5 Warnibbling
    8 Future of Bluetooth
    9 See also:
    10 Reference List


    Bluetooth is a new technology that utilises radio frequency waves as a way to communicate wirelessly between digital devices. It sets up personal area networks that incorporate all of a persons digital devices into one system for both convergence and convenience.

    Wireless- History

    Many people put the invention of [wireless] radio down to Guglielmo Marconi, who in 1895 sent the first radio telegraph transmission across the English Channel. Only twelve years later radio began being used in the public sphere. [Mathias, p.2] Up until then however, many wireless pioneers conducted trials across lakes where the antenna used to transmit the signal was longer than the distance across the lake. [Brodsky, p. 3] After its introduction the main use of wireless radio was for military communications where its first use was for the Boer War. [Flichy, p. 103] The invention of broadcast radio ensured the feasibility of wireless technologies. [Morrow, p. 2] By the 1920s, radio had become a well-recognised mass medium. [Flichy, p. 111] From the 1980s until now, wireless communications have been through several stages, from 1G (analogue signal), 2G (digital signal) and 3G (always on, faster data rate). [Lightman and Rojas, p. 3] The history of Bluetooth is a much more recent one, with the first Bluetooth-enabled products coming into existence in 2000. Named after Harald Blatand the first, king of Denmark around twelve hundred years ago, who joined the Danish and Norwegian kingdoms, Bluetooth technology is founded on this same unifying principle of being able to unite the computer and telecommunication industr[ies]. [Ganguli, p. 5] In 1994 the Ericsson Company began looking into the idea of replacing cables connecting accessories to mobile phones and computers with wireless links, and this became the main inspiration behind Bluetooth. [Morrow, p. 10]

    Wireless- Technologies

    Bluetooth is not the only wireless technology currently being developed and utilised. Other wireless technologies, including 802.11b, otherwise known as Wi-Fi, Infrared Data Association (IrDA), Ultra- Wideband Radio (UWB), and Home RF are being applied to similar technologies that Bluetooth use with mixed results. 802.11 is the most well known technology, excluding Bluetooth, and uses the same radio frequency, meaning that they are not compatible as they cause interference with each other. 802.11 is being implemented into universities in the US, Japan and China, as well as food and beverage shops where they are being used to identify students and customers. Even airports have taken up the 802.11 technology, with airports all over America, and three of Americas most prominent airlines promoting the use of it. [Lightman and Rojas, p. 202-3] Infrared Data Association is extremely inferior to that of Bluetooth. Its limitations include only being able to communicate point-to-point, needing a line of sight, and it has a speed of fifty- six kilobytes per second, whereas Bluetooth is one megabyte per second. [Ganguli, p. 17] The Ultra- Wideband Radio is superior to that of Bluetooth in that it can transmit at greater lengths (up to 70 metres), with only half of the power that Bluetooth uses. [Ganguli, p.17] HomeRF is a technology that is not very well known. It is used for data and voice communication and targeted for the residential market segment and does not serve enterprise- class WLANs, public access systems or fixed wireless Internet access. [Ganguli, p.17-18]

    Bluetooth- Technical Introduction

    Bluetooth is a short- range radio device that replaces cables with low power radio waves to connect electronic devices, whether they are portable or fixed. The Bluetooth device also uses frequency hopping to ensure a secure, quality link, and it uses ad hoc networks, meaning that it connects peer-to-peer. It can be operated worldwide and without a network because it uses the unlicensed Industrial- Scientific Medical (ISM) band for transmission that varies with a change in location. [Ganguli, p. 25-6] The Bluetooth user has the choice of point-to-point or point-to-multipoint links whereby communication can be held between two devices, or up to eight. [Ganguli, p. 96] When devices are communicating with each other they are known as piconets, and each device is designated as a master unit or slave unit, usually depending on who initiates the connection. However, both devices have the potential to be either a master or a slave. [Swaminatha and Elden, p. 49]

    Bluetooth- Advantages

    There are many advantages to using Bluetooth wireless technologies including the use of a radio frequency, the inexpensive cost of the device, replacing tedious cable connections, the low power use and implemented security measures. The use of an unlicensed radio frequency ensures that users do not need to gain a license in order to use it. Unlike Infrared which needs to have a line of sight in order to work, Bluetooth radio waves are omnidirectional and do not need a clear path. The device itself is relatively cheap and easy to use, one can be bought for around ten American dollars, and this price is currently decreasing. Compare this to the expensive cost of implementing hundreds of cables and wires into an office and there is no competition. Of course, this is the main reason for the take -up in Bluetooth -enabled devices; it does away with cables. Another of Bluetooths advantages is its low power use, ensuring that battery operated devices such as mobile phones and personal digital assistants wont have their battery life drained with the use of it. This low power consumption also guarantees minimal interruption from other radio operated and wireless devices that operate at a higher power. Bluetooth has several enabled security measures that ensures a level of privacy and security, including frequency hopping, whereby the device changes radio frequency sixteen hundred times per second. Also within the security tools are encryption and authentification mechanisms that guarantee little interference by unauthorised hackers. [Ganguli, p. 330] One of the best advantages of Bluetooth devices, especially the hands free device that connects to a mobile phone, is that it removes radiation from the brain region. [Tsang, p.1]

    Bluetooth- Applications

    The applications that are in development or current use for the Bluetooth technology include such areas as automotive, medical, industrial equipment, output equipment, digital -still cameras, computers, and communications systems. [Lightman and Rojas, p. 201] Bluetooth is an ad hoc network user, and therefore it may be used for social networking, i.e. people can meet and share files or link their Bluetooth devices together to play games or other such activities. [Smyth, p. 70] Using Bluetooth, a mobile phone can become a three- way phone, where at home it connects to a landline for cheaper calls, on the move it acts as a mobile phone and when it comes in contact with another Bluetooth-enabled phone it acts as a walkie- talkie. This walkie- talkie option allows for free interaction and communication, as Bluetooth is not connected to any telecommunications network. [Gupta, p.1] Bluetooth also allows automatic synchronization of your desktop, mobile computer, notebook and your mobile phone for the user to have all of their data managed as one. [Gupta, p.1]

    Bluetooth- Security Issues

    Bluetooth has several threats which range in level of risk and how widespread the action is. These threats have the ability to provide criminals with sensitive information on both corporate and personal levels. The only way to avoid such threats is for manufacturers, distributors, and consumers to be provided with more information on how they are committed, current attack activity and how to combat them. This information can be used on a technical level for manufacturers, it can be used by distributors at retail levels to teach consumers the risks and it can be used directly by consumers to be aware of the threats. The outcome of such research will allow end users of Bluetooth products to have an upper hand in this wireless warfare. Bluetooth security is in early stages with regards to both the attackers, their techniques and consumers understanding of these attacks. Some research has been conducted into what the attackers are doing and how they do it. Adam Laurie of A.L Digital Ltd is leading the research race in Bluetooth security and is often linked to academic resources. Laurie’s research has uncovered the following capabilities of Bluetooth attacks:

    • Confidential data such as the entire phone book, calender and the phone’s IMEI.
    • Complete memory contents of some mobile phones can be accessed by a previously trusted (“paired”) device that has since been removed from the trusted list.
    • Access can be gained to the AT command set of the device, giving full access to the higher level commands and channels, such as data, voice and messaging.

    Attacks on Bluetooth devices at this stage are relatively new to consumers, and therefore are not widely seen as a real threat. Attacks such as the Bluejack attack are probably more recognised by consumers due to its perceived humorous and novelty nature as well as the ease to Bluejack someone. Users who allow their phone to be Bluejacked open the door to more serious attacks, such as the Backdoor attack which have a low level of awareness amongst consumers as attackers can attach to the device with out the users knowledge. Corporations are starting to understand the risks Bluetooth devices pose, Michael Ciarochi (in Brewin 2004) stated that ‘Bluetooth radios were included in laptop PCs that were being configured by an IT Engineer. It raises the possibility of opening a wireless back door into data stored on the PCs. Such a security weakness would be extremely attractive to hackers. Although Bluetooth invites hackers to such attacks; Bluetooth Venders are playing down the risks, Brewin (2004) said that ‘Bluetooth advocates last week dismissed growing security fears about the short-range wireless technology, saying any flaws are limited to a few mobile-phone models. They also detailed steps that users can take to secure Bluetooth devices’. There are many methods of Bluetooth attacks, the Snarf, the Backdoor, Bluebug, Bluejack and Warnibbling attack are the only recognised attacks at this early stage. Below are explanations of such attacks.

    The SNARF attack

    It is possible for attackers to connect to the device without alerting the user, once in the system sensitive data can be retrieved, such as the phone book, business cards, images, messages and voice messages.

    Local Copy: BlueSnarf_CeBIT2004.pdf

    The BACKDOOR attack

    The backdoor attack is a higher concern for Bluetooth users; it allows attackers to establishing a trust relationship through the “pairing” mechanism, but ensuring that the user can not see the target’s register of paired devices. In doing this attackers have access to all the data on the device, as well as access to use the modem or internet; WAP and GPRS gateways may be accessed without the owner’s knowledge or consent.

    The BLUEBUG attack

    This attack gives access to the AT command set, in other words it allows the attacker to make premium priced phone calls, allows the use of SMS, or connection the internet. Attackers can not only use the device for such fraudulent exercises it also allows identity theft to impersonate the user.


    Dibble (2004) explained that ‘Just as SMS was spawned, there’s a new craze that’s spreading across parts of Europe. Reportedly, it’s more prominent in the UK, but popular elsewhere too’. Bluejacking allows attackers to send messages to strangers in public via Bluetooth. When the phones ‘pair’ the attacked can write a message to the user. Although it may seem harmless at first, there is a downside. Once connected the attacker may then have access to any data on the users Bluetooth device, which has obvious concerns. Powell (2004: 22) explained that ‘Users can refuse any incoming message or data, so Bluejackers change their username to a short barb or compliment to beat you to the punch. For example, you might receive something along the lines of “Incoming message from: Dude, you’ve been Bluejacked.” Or, “Incoming message from: ROI is overrated.” Bluejacking is regarded as a smaller threat to Bluetooth as users being attacked are aware they have been Bluejacked. This does not mean however that they are aware that sensitive information is being accessed and used in a malicious manner.


    Warnibbling is a hacking technique using Redfang, or similar software that allows hackers to reveal corporate or personal sensitive information. Redfang allows hackers to find Bluetooth devices in the area, once found, the software takes you through the process of accessing any data that is stored on that device. Redfang also allows non-discoverable devices to be found. Whitehouse explains when testing Redfang ‘One of the first obstacles we had to overcome was the discovery of non-discoverable devices (it was surprising to see the number of devices that dont by default implement this security measure)’.

    Future of Bluetooth

    Further information, and somewhat speculation is required for consumers and Bluetooth stakeholders on the future of Bluetooth. Such information will provide a clearer understanding of why security of Bluetooth must be improved. Luo and Lee (2004) provide a short term prediction of where Bluetooth is heading, Europe and Asian countries already offer electronic newspapers, subway tickets, and car parking fees via wireless devices. Collins (2003) says that Bluetooth devices ‘appear to be more secure than 802.11 wireless LANs. However, this situation may not last, as the Bluetooth technology becomes more widespread and attracts greater interest from the hacking community’.

    See also:

    Reference List

    • Brodsky, I. (1995) Wireless: The Revolution in Personal Telecommunications, Massachussetts, USA: Artech House Inc, ISBN 0890067171 (Erin Watson)
    • Collins, G. (2003) Bluetooth Security. [Online], Available: Academic Search Elite, ISSN:0360-5280 [Accessed 6/9/04]. (Ben Henzell)
    • Dibble, T (2003) ‘Bluejack city: a new wireless craze is spreading through Europe’ [Online]. Available: [Accessed 4/8/04. (Ben Henzell)
    • Finn, E. (2004) Be carefull when you cut the cord. Popular Science [Online], vol. 264, issue. 5, p30. Available: Ebsco Host: Academic Search Elite, ISSN:0161-7370 [Accessed 6/9/04]. (Ben Henzell)
    • Flichy, P. (1995) Dynamics of Modern Communication, London: Sage Publications, ISBN 0803978502 (Erin Watson)
    • Ganguli, M. (2002) Getting Started with Bluetooth, Ohio: Premier Press, ISBN 1931841837 (Erin Watson)
    • Gupta, P. 1999. Bluetooth Technology: What are the Applications?. (accessed August 23, 2004). (Erin Watson)
    • Laurie, B & L (2003) Serious flaws in Bluetooth security lead to disclosure of personal data [Online]. Available: [Accessed 4th Aug 2004]. (Ben Henzell)
    • Lightman, A. and Rojas, W. (2002) Brave New Unwired World, New York, USA: John Wiley and Sons, Inc., ISBN 0471441104 (Erin Watson)
    • Luo, X. Lee, C. (2004). Micropayments in Wireless M-Commerce: Issues, Security, and Trend[Online]. Available: [Accessed 4/8/2004] (Ben Henzell)
    • Morrow, R. (2002) Bluetooth Operation and Use, New York, USA: The McGraw- Hill Companies, ISBN 007138779X (Erin Watson)
    • Powell, W. (2004) The Wild Wild Web T+D [Online], Vol. 58, issue. 1, p22. Available: Academic Search Elite, ISSN:1535-7740 [Accessed 6/9/04]. (Ben Henzell)
    • Smyth, P. (ed.)(2004) Mobile and Wireless Communications: Key Technologies and Future Applications, London, UK: The Institute of Electrical Engineers, ISBN 0863413684 (Erin Watson)
    • Swaminatha, T. and Elden, C. (2003) Wireless Security and Privacy: Best Practices and Design Techniques, Massachussetts, USA: Pearson Education, Inc., ISBN 0201760347 (Erin Watson)
    • Tsang, W. et al. Date unknown. Bluetooth Applications. (accessed August 23, 2004). (Erin Watson)
    • Whitehouse, O. (2003).’War Nibbling: Bluetooth Insecurity’ [Online]. Available: [Accessed 9/8/04] (Ben Henzell)

    Erin Watson 08:47, 8 Sep 2004 (EST) –nhenzell 12:30, 8 Sep 2004 (EST)