"Anders Rundgren" <[EMAIL PROTECTED]> writes:
> I don't believe in that model anymore.  3D offers so
> much more possibilities for integration in purchasing
> systems which the classic model cannot do.  Neither
> can AADS.  It is like "federation" for payments.

see later question about whether 3d is doubling the number of online
transactions ... and also possibly attempting to force fit a trusted
third party CA PKI business model (for providing trust between two
entities that have had no prior interaction and/or communication) as
redundant and superfluous business operation where there already
exists contractual existing relationship.
http://www.garlic.com/~lynn/2005l.html#12
http://www.garlic.com/~lynn/2005l.html#13
http://www.garlic.com/~lynn/2005l.html#14

as mentioned ... it is unlikely that 3D (going directly from the
merchant to the consumer financial institution) is actually replacing
the existing payment message transport ... unless it is actually
suggesting that the merchant financial institution is no longer
involved representing the merchant ... and that the consumer financial
institutions will be assuming all liability responsiblity for the
merchant.

futhermore if you study the existing infrastructure ... not only does
the federation of payments already exist ... but there are long term
contractual trust vehicles in place that support that support that
federaion of payments (between merchant, merchant financial
instituation, association, consumer financial institution, and
consumer).

if it isn't replacing the existing real-time, online, single
round-trip, straight-through processing ... that directly involves all
the financially responsible parties ... then presumably it is just
adding a second, online, real-time transaction to an existing online,
real-time transaction? (doubling the transaction and processing
overhead).

one of the things that kindergartern, security 101 usually teaches is
that if you bifurcate transaction operation in such a way ... you may
be opening up unnecessary security and fraud exposures ... in addition
to possibly doubling the transaction and processing overhead.

now, the design point for the stale, static, PKI model was for
establishing trust for a relying party that had no other recourse
about first time communication with a party where no previous
relationship existed. Supposedly 3d (assuming that it is just adding a
second realtime, online transaction to an already existing, realtime
online transaction) is doubling the number and overhead of online,
realtime transactions .... in addition to managing to craft in some
stale, static PKI processing.

the AADS model doesn't do anything about federation or non-federation
of payments. AADS simply provides for providing improved
authentication technology integrated with transaction.
http://www.garlic.com/~lynn/index.html#aads

There have been some significant protocols defined over the past
several years ... where authentication was done as an independent
operation ... totally separate from carrying authentication on the
transaction itself. In all such cases that I know of, it has been
possible to demonstrated man-in-the-middle (MITM) attacks
http://www.garlic.com/~lynn/subpubkey.html#mitm

where authentication is done separately from the actual transaction.

in the mid-90s the x9a10 financial standards working group was tasked
with preserving the integrity of the financial infrastructure for all
retail payments ... and came up with x9.59
http://www.garlic.com/~lynn/index.html#x959
http://www.garlic.com/~lynn/subpubkey.html#privacy

which simply states that transaction is directly authenticated.  some
recent posts (in totally different thread) going into some number of
infrastructure vulnerabilities and the x9.59 financial standard
countermeasures:
http://www.garlic.com/~lynn/aadsm19.htm#17 What happened with the session 
fixation bug?
http://www.garlic.com/~lynn/aadsm19.htm#32 Using Corporate Logos to Beat ID 
Theft
http://www.garlic.com/~lynn/aadsm19.htm#38 massive data theft at MasterCard 
processor
http://www.garlic.com/~lynn/aadsm19.htm#39 massive data theft at MasterCard 
processor
http://www.garlic.com/~lynn/aadsm19.htm#40 massive data theft at MasterCard 
processor
http://www.garlic.com/~lynn/aadsm19.htm#44 massive data theft at MasterCard 
processor

-- 
Anne & Lynn Wheeler | http://www.garlic.com/~lynn/
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