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learned into parties, papers, conferences, and advanced degrees. |
--[ 1 - Introduction |
It's 1998. I am the fledgling director of the Center for Information |
Technology Integration, or CITI, a small research center at the University |
of Michigan focused on IT infrastructure. My senior staff and I are sitting |
in a small conference room across the table from three gentlemen in suits. |
My staff sits in silence throughout the meeting. I introduce my team and |
ask the visitors "Are any of you authorized to make arrests?" The head suit |
replies, "He is, and I am, but he is not." |
I make eye contact with my team. This is what we talked about last night. |
The suits are from the Electronic Crimes Branch of the United States Secret |
Service, charged with protecting the nation's financial infrastructure. |
They heard through the grapevine that we were messing with the currency. So |
po-po is in the house and it's Shut The Fuck Up Friday for my staff -- |
let's not get arrested today -- while I try to calm the waters. |
Let's back up, though. |
A couple years earlier, a former doctoral student had set CITI up with an |
industry research grant to develop smart card-based key management for |
their secure video conferencing project. That project taught us a lot about |
smart card innards and helped us build some useful tools for smart card |
hacking, e.g., card readers and card extenders that let us intercept and |
control communications between a smart card and a smart card reader. |
But let's back up some more: smart cards? |
--[ 2 - Smart cards |
Some folks might remember a time before the universal proliferation of |
credit cards. I am one of them! My mom carried some "coins" in her wallet |
when I was growing up in the '50s, dog tag style metal plates half the size |
of today's standard-size card, imprinted with account data tied to an |
individual merchant, such as J.L. Hudson's in Detroit or de Bijenkorf in |
Amsterdam. These were charge cards, which required the consumer to pay in |
full each month. |
Around this time, many merchants began accepting charge cards from |
companies like American Express and Diner's Club. BankAmericaCard (now |
VISA) and Master Charge (now MasterCard) transformed the field with credit |
cards, which allowed consumers to carry a balance from month to month, an |
instant personal loan that was a huge hit with consumers worldwide. |
With scale came great profit but also great opportunity ... for credit card |
fraud. Absent a way to validate a card at the time of a transaction, |
forgery is trivial. To combat fraud, US card issuers periodically |
distributed books containing page after page of lists of fraudulent and |
revoked card numbers. I remember these books being printed on the thinnest |
paper my young eyes had ever seen. This didn't work well, so US issuers |
induced merchants to install dial-up modems and check for card revocation |
on each transaction. This is a clumsy system that relies on consumers to |
report fraudulent use of their cards but is easy to deploy. |
European vendors also sought a way to thwart wholesale card forgery, but in |
contrast to the deregulated dial-up market in the US, the European digital |
network infrastructure was governed by a collection of stodgy national ITU |
entities that stymied online card verification. Smart cards offered an |
offline alternative: a trustworthy mobile computing platform. Pin-protected |
smart cards were issued to consumers and card readers were issued to |
merchants. The card issuers controlled the cards and the readers and they |
were able to prevent a lot of fraud. |
Chip cards quickly became a killer app for smart card proliferation in |
European pockets and purses. Across the Atlantic, though, there was no |
swell of smart card adoption. Issuers like VISA and American Express |
initiated pilot programs that provided cards and readers to consumers, but |
they didn't catch on, in part because consumers already had adequate fraud |
protection guarantees from issuers and had no incentive to make |
transactions more secure. Eventually, US issuers got on board and issued |
smart cards to consumers -- although without PIN protection -- and readers |
to merchants. It was oddly late in the game, though. |
--[ 3 - Smart card R&D |
Meanwhile, researchers in industry and academia were viewing with interest |
the potential of the smart card as a mobile trusted computing platform. |
Boiling it all down, every digital identity needs a secure place to store |
some keys and do a little cryptography. Today we use smartphones for all |
that, but 25 years ago, the smart card's peculiar hardware and barren API |
offered interesting possibilities. |
CITI was fortunate that one of its alumni was well situated at an |
industrial research lab, and in 1996 brought CITI in on some collaborative |
research. Bellcore cryptographers had cooked up some fast, scalable ciphers |
for videoconferencing that wanted a trusted computing base for key |
distribution, and it seemed like a smart card might fit the bill. At that |
moment, CITI needed more R&D $$$ pretty badly and proposed to take on the |
work. Remarkably, CITI succeeded in building the smart card-based key |
store. We paid some bills, learned a lot about smart cards, and got some |
nice papers out of the collaboration. |
By coincidence, just as CITI began investigating smart card capabilities |
and developing smart card competencies, the University of Michigan was |
deploying a smart card-based ID card -- the MCard -- equipped with an |
electronic purse application. The University had a business agreement with |
a bank and a vending machine supplier: the bank installed charging stations |
all over campus so that students, faculty, and staff could fill their |
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