PayThink Innovation can take tokenization beyond simple encryption – PaymentsSource

Tokenization is the security process that most recently unlocked the mobile payments market, but the concept can be expanded.

All the major "OEM Pays" (Apple Pay, Samsung Pay etc.,) use the technology to secure the transmission of payment data between device and terminal. The process itself however, of replacing sensitive data with unique identifiers which retain the essential information but dont compromise security, can, in theory, be applied to any kind of transaction, from bank details, to health records, ID numbers, even to the idea of money itself.

The central idea is this: when tokenized, unlawfully intercepted payment authorization data is rendered valueless because it simply isnt there; it is replaced by a token. This means the data can, in effect, hide in plain sight.

A "smart" token takes this idea a step further. Its a regular token on steroids. It transmits the value and all the information needed to authorize the transaction together, in one go, including enhanced counterpart identity, transaction and invoicing data.

It consists of three layers: an asset, a set of rules, and a state. Lets break it down.

An asset is the source of value. Think of it as the "center" of the smart token. Typically, its a bank account, such as your current or savings account.

Surrounding this asset are a number of rules. These rules, which can be programmed by the issuer, dictate who can access the asset, at what time, for what purpose and under what set of circumstances.

Imagine youre buying a TV from Amazon. When you hit buy, your bank sends a smart token to Amazon which has the following rules: a 1000 payment limit and a two-week expiry date. In another transaction, the smart token issued in relation to the same asset (your bank account) could have completely different rules. If youre buying a series of weekly Pilates classes, the token may have a six-month duration, enabling your gym to regularly draw down on that token as each class takes place.

That is the great thing about rules. They are the flexible layer that allow smart tokens to create an almost infinite number of unique and secure digital payment types at a fraction of the cost of todays conventional payments infrastructure. Any existing payment method you can currently imagine, such as cash, credit card, cheques, and gift cards, can be emulated by a smart token, thanks to the rules. This is the flexibility that opens the door for banks.

Finally, a smart token has a state. This is the part of the token which tracks the value of the token according to its rules. After three months of Pilates classes, its the state that will record that 50% your payments have been made. The combination of asset, rules and state combine to provide banks with the power to tear up the rulebook and perform transactions faster and at a vastly reduced cost, without relying on third parties to validate the payment.

Marten Nelson is co-founder and vice president of marketing at Token.

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PayThink Innovation can take tokenization beyond simple encryption - PaymentsSource

Indonesia lifts threat to ban encrypted app Telegram – ABC News

The Indonesian government lifted its threat to ban the encrypted messaging app Telegram because it's taking steps to block "negative" content that includes forums for Islamic State group supporters. But it warned other sites could now face scrutiny.

Rudiantara, the Minister of Communications and Information Technology, who met Tuesday with Telegram co-founder Pavel Durov announced that "we have agreed to keep Telegram accessible."

Many other social media sites, messaging apps and file and video sharing systems are used Indonesia, he said, specifically mentioning Facebook and Google as platforms that could be scrutinized in the "near future."

Earlier this month, the ministry said it was preparing to shut down Telegram in Indonesia, where it has several million users, if it didn't develop procedures to block unlawful content including pro-Islamic State group discussion groups.

As a partial measure, it asked internet companies in the world's most populous Muslim nation to block access to 11 addresses offering the web version of Telegram. Durov apologized for failing to quickly respond to the Indonesian government's requests for apparent terror content to be blocked, blaming a miscommunication.

Rudiantara, who uses one name, said the ministry and Telegram will put in place standard operating procedures that improve the ability to "address the negative content in Telegram." The blocking measures against web Telegram could be lifted next week, he said.

Suspected militants arrested by Indonesian police have told authorities that they communicated with each other via Telegram and received orders and directions to carry out attacks through the app, including from Bahrun Naim, an Indonesian with the Islamic State group in Syria accused of orchestrating several attacks in the past 18 months.

Critics of the government's threat said it would make more sense to monitor the IS discussion groups for possible intelligence than banning the app.

Durov told reporters there would a line of direct communication between the ministry and top people in Telegram but also said he wouldn't have come to Indonesia if the government had made any requests that would require Telegram's encryption to be compromised.

"The basis of Telegram is a 100 percent promise of encryption. This is why our company exists," he said.

"We've discussed ways to block the public channels available for the propaganda of terrorism, which is something that we are committed to do globally, and particularly Indonesia," Durov said.

The free messaging service can be used as a smartphone app and on computers through a web interface or desktop messenger. Its strong encryption has contributed to its popularity with those concerned about privacy and secure communications in the digital era but also attracted militant groups and other criminal elements.

Durov said about 20,000 people sign up to use Telegram in Indonesia daily. It has at least 100 million users worldwide, a figure released by Telegram in February 2016.

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Indonesia lifts threat to ban encrypted app Telegram - ABC News

Encryption is for ‘Real People’ – Human Rights Watch

WhatsApp and Facebook messenger icons are seen on an iPhone in Manchester , Britain March 27, 2017.

In a recent op-ed, United Kingdom Home Secretary Amber Rudd argued strong encryption was thwarting the governments ability to monitor terrorists and criminals. Rudd expressed skepticism about the need for end-to-end encryption, reasoning that real people dont prioritize security in their technology. Who uses WhatsApp because it is end-to-end encrypted, rather than because it is an incredibly user-friendly and cheap way of staying in touch with friends and family? she wrote.

The answer is simple: I do, along with broad swaths of the human rights movement and many other people around the world.

Human Rights Watch defends the rights of people in 90 countries worldwide, spotlighting abuses and bringing perpetrators to justice. We rely heavily on networks of local NGO partners, witnesses, and victims, often located in closed societies where surveillance is pervasive. End-to-end encryption built into apps like WhatsApp shields our communications with these networks from abusive regimes and is a critical tool for ensuring we do not put contacts at risk of reprisal. Simply put, if we cant guarantee the security of our communications, we cant do our work. For that reason, every guide on digital security, including one previously funded by the UK, recommends the use of encrypted apps.

Who else uses end-to-end encryption? The list is long. Peaceful pro-democracy and reform activists in places like Hong Kong, Turkey, Central Africa, and across the Middle East. LGBT people living in countries where their sexual orientation is criminalized. Whistleblowers who reveal governmental or corporate malfeasance. Journalists everywhere trying to protect their sources.

Add to that list diplomats and government officials, including some in the UK parliament and Foreign Office. Or doctors, lawyers, and business people discussing sensitive and confidential information.

However, the home secretarys question itself indicates a fundamental misunderstanding of modern cybersecurity threats and the harms of undermining encryption. It doesnt matter whether WhatsApps 1.2 billion users in 180 countries are using the app out of convenience or concern for security. End-to-end encryption protects all of them students, pensioners, consumers, ordinary tax-paying citizens from cybercriminals and identify thieves. As information security experts, former Five Eyes intelligence officials, and even Europol have warned, any attempt to enable surveillance by compromising encryption will broadly undermine cybersecurity for all users. And the bad guys will simply find other encrypted alternatives that are made outside the UK and not subject to its laws.

The good news: Rudd said the UK government has no intention of banning end-to-end encryption. This is a welcome statement as the government continues to interpret the 2016 Investigatory Powers Act, which contains provisions requiring Internet companies to take undefined practicable steps to provide data in unencrypted form.

But the home secretary then pivots to suggest that tech companies should give them access to unencrypted information anyway by working with governments through confidential conversations. What Rudd ultimately seeks is unclear. By definition, if communications are encrypted end-to-end, companies cannot access them.

Regardless, these conversations cannot happen out of public sight. The real people who make up the public have a right to know if the government has subverted the security of the tools many rely on every day.

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Encryption is for 'Real People' - Human Rights Watch

Amber Rudd has got it backwardsencryption is key to defending our civil liberties – Prospect

End-to-end encryption allows journalists to speak to sources, and lawyers to their vulnerable clients. We mustn't let a climate of fear impinge on our right to speak privately by Edward Siddons / August 3, 2017 / Leave a comment

Amber Rudds approach to encryption ignores how many people use it for innocent means. Photo: PA/Prospect composite

Since the gruesome attacks in Westminster and Manchester, end-to-end encryption has become something of a buzzword for the beleaguered government. In a recent article for The Daily Telegraph, Home Secretary Amber Rudd has returned to the fray in the most apocalyptic of terms: The enemy online is fast. They are ruthless. They prey on the vulnerable and disenfranchised. They use the very best of innovation for the most evil of ends. This measure, like all other digital surveillance measures, is a matter of national security. In the seemingly never-ending war of us versus an increasingly amorphous them, civil liberties promise to be the first casualty.

In a confused and confusing piece, Rudd dismisses a blanket ban on encrypted messaging, instead proposing specific, targeted surveillance. Despite her claims to the contrary, such measures would require a backdoor, a hole in the encryption software which government and tech companiesnot to mention hackerswould be able to exploit. Renate Simpson, Chief Executive of civil liberties group Big Brother Watch, has characterised Rudds remarks as at best nave, at worst dangerous.

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Amber Rudd has got it backwardsencryption is key to defending our civil liberties - Prospect

HBO Hack Highlights Importance of Encryption, Data Governance – eSecurity Planet

ByJeff Goldman, Posted August 2, 2017

1.5 TB of data, including unreleased episodes of upcoming shows, was stolen and leaked online.

Hackers recently claimed to have breached HBO's systems and stolen 1.5 TB of data including upcoming episodes of Ballers and Room 104, Entertainment Weekly reports.

In response, HBO stated that an incident had "resulted in the compromise of proprietary information," adding, "We immediately began investigating the incident and are working with law enforcement and outside cyber security firms."

In an email to employees, HBO chairman and CEO Richard Plepler wrote, "I can assure you that senior leadership and our extraordinary technology team, along with outside experts, are working round the clock to protect our collective interests. The efforts across multiple departments have been nothing short of herculean."

Protecting Key Data

AlertSec CEO Ebba Blitz told eSecurity Planet by email that the breach should serve as a clear reminder that hacking isn't limited to financial, health and personal information.

"All information is vulnerable because some hackers are motivated by the thrill of it," Blitz said. "They steal because they can, not because the information always has any real long-term value. All data needs to be protected with encryption."

Gemalto CTO of data protection Jason Hart said by email that broadcasters in particular face a unique threat. "Due to the nature of the industry, hackers have the opportunity to access data as it is transmitted between multiple data centers, and so they require solutions to help encrypt their high value TV transmissions -- without interfering with the audience's viewing experience," he said.

"HBO now joins a list of other Hollywood victims of crime such as Netflix and Sony," Hart added. "This incident is another reminder that broadcasters must invest in fundamental security controls and practices -- encryption, key management and two-factor authentication -- to control access to highly sought-after content and protect it in the event that a breach takes place."

Data Governance

Richard Stiennon, chief strategy officer at Blancco Technology Group, said the HBO breach is a great example of the importance of data governance. "Content producers and all the parties involved in shooting, editing and post-production processing and distribution should be on high alert," he said. "They should immediately review their data governance policies and discover the weak links in protecting their content and shore up their defenses. An information governance policy should take into account where critical content resides at all times."

Still, a recent Thycotic survey of over 400 global business and security executives found that four out of five companies don't know where their sensitive data is located or how to secure it.

And while 80 percent of data breaches involve stolen or weak credentials, 60 percent of companies still don't adequately protect privileged accounts. Two out of three companies don't fully measure whether their disaster recovery will work as planned, and four out of five never measure the success of security training investments.

"It's really astonishing to ... see just how many people are failing at measuring the effectiveness of their cyber security and performance against best practices," Thycotic chief security scientist Joseph Carson said in a statement.

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HBO Hack Highlights Importance of Encryption, Data Governance - eSecurity Planet

UpVote: Turkish regime jails IT trainers in encryption clampdown – Ars Technica UK

Chris McGrath/Getty Images

On UpVote this week we discuss Turkey's deepening crackdown against critics of the Erdogan regime, which recently imprisoned IT trainers who were teaching citizens how to secure their digital communications.

We're joined by Amnesty Internationals tech adviser, Tanya O'Carroll, to work out why the net has widened to include tech experts who help human rights' advocates stay safe in a country that is increasingly and chillingly hostile to freedom of speech, following a failed coup to topple president Recep Tayyip Erdogan in 2016.

End-to-end encryption isn't only perceived as a threat to oppressive regimes, however. This week, the UK's home secretary Amber Rudd once again pushed tech firms such as Facebook and Google to do more to prevent terrorists from using their services. Rudd claimed "real people" dont care about an app's security. Is she sure about that?

UpVote is a Wired and Ars Technica UK co-production hosted by Rowland Manthorpe and Kelly Fiveash.

This episode was recorded on Wednesday, August 2.

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UpVote: Turkish regime jails IT trainers in encryption clampdown - Ars Technica UK

Physicists Take Big Step Towards Quantum Computing and Encryption with new Experiment – Universe Today

Quantum entanglement remains one of the most challenging fields of study for modern physicists. Described by Einstein as spooky action at a distance, scientists have long sought to reconcile how this aspect of quantum mechanics can coexist with classical mechanics. Essentially, the fact that two particles can be connected over great distances violates the rules of locality and realism.

Formally, this is a violation of Bells Ineqaulity, a theory which has been used for decades to show that locality and realism are valid despite being inconsistent with quantum mechanics. However, in a recent study, a team of researchers from the Ludwig-Maximilian University (LMU) and the Max Planck Institute for Quantum Optics in Munich conducted tests which once again violate Bells Inequality and proves the existence of entanglement.

Their study, titled Event-Ready Bell Test Using Entangled Atoms Simultaneously Closing Detection and Locality Loopholes, was recently published in the Physical Review Letters. Led by Wenjamin Rosenfeld, a physicist at LMU and the Max Planck Institute for Quantum Optics, the team sought to test Bells Inequality by entangling two particles at a distance.

John Bell, the Irish physicist who devised a test to show that nature does not hide variables as Einstein had proposed. Credit: CERN

Bells Inequality (named after Irish physicist John Bell, who proposed it in 1964) essentially states that properties of objects exist independent of being observed (realism), and no information or physical influence can propagate faster than the speed of light (locality). These rules perfectly described the reality we human beings experience on a daily basis, where things are rooted in a particular space and time and exist independent of an observer.

However, at the quantum level, things do not appear to follow these rules. Not only can particles be connected in non-local ways over large distances (i.e. entanglement), but the properties of these particles cannot be defined until they are measured. And while all experiments have confirmed that the predictions of quantum mechanics are correct, some scientists have continued to argue that there are loopholes that allow for local realism.

To address this, the Munich team conducted an experiment using two laboratories at LMU. While the first lab was located in the basement of the physics department, the second was located in the basement of the economics department roughly 400 meters away. In both labs, teams captured a single rubidium atom in an topical trap and then began exciting them until they released a single photon.

As Dr. Wenjamin Rosenfeld explained in an Max Planck Institute press release:

Our two observer stations are independently operated and are equipped with their own laser and control systems. Because of the 400 meters distance between the laboratories, communication from one to the other would take 1328 nanoseconds, which is much more than the duration of the measurement process. So, no information on the measurement in one lab can be used in the other lab. Thats how we close the locality loophole.

The experiment was performed in two locations 398 meters apart at the Ludwig Maximilian University campus in Munich, Germany. Credit: Rosenfeld et al/American Physical Society

Once the two rubidium atoms were excited to the point of releasing a photon, the spin-states of the rubidium atoms and the polarization states of the photons were effectively entangled. The photons were then coupled into optical fibers and guided to a set-up where they were brought to interference. After conducting a measurement run for eight days, the scientists were able to collected around 10,000 events to check for signs entanglement.

This would have been indicated by the spins of the two trapped rubidium atoms, which would be pointing in the same direction (or in the opposite direction, depending on the kind of entanglement). What the Munich team found was that for the vast majority of the events, the atoms were in the same state (or in the opposite state), and that there were only six deviations consistent with Bells Inequality.

These results were also statistically more significant than those obtained by a team of Dutch physicists in 2015. For the sake of that study, the Dutch team conducted experiments using electrons in diamonds at labs that were 1.3 km apart. In the end, their results (and other recent tests of Bells Inequality) demonstrated that quantum entanglement is real, effectively closing the local realism loophole.

As Wenjamin Rosenfeld explained, the tests conducted by his team also went beyond these other experiments by addressing another major issue. We were able to determine the spin-state of the atoms very fast and very efficiently, he said. Thereby we closed a second potential loophole: the assumption, that the observed violation is caused by an incomplete sample of detected atom pairs.

By obtaining proof of the violation of Bells Inequality, scientists are not only helping to resolve an enduring incongruity between classical and quantum physics. They are also opening the door to some exciting possibilities. For instance, for years, scientist have anticipated the development of quantum processors, which rely on entanglements to simulate the zeros and ones of binary code.

Computers that rely on quantum mechanics would be exponentially faster than conventional microprocessors, and would ushering in a new age of research and development. The same principles have been proposed for cybersecurity, where quantum encryption would be used to cypher information, making it invulnerable to hackers who rely on conventional computers.

Last, but certainly not least, there is the concept of Quantum Entanglement Communications, a method that would allow us to transmit information faster than the speed of light. Imagine the possibilities for space travel and exploration if we are no longer bound by the limits of relativistic communication!

Einstein wasnt wrong when he characterized quantum entanglements as spooky action. Indeed, much of the implications of this phenomena are still as frightening as they are fascinating to physicists. But the closer we come to understanding it, the closer we will be towards developing an understanding of how all the known physical forces of the Universe fit together aka. a Theory of Everything!

Further Reading: LMU, Physical Review Letters

By Matt Williams - Matt Williams is the Curator of Universe Today's Guide to Space. He is also a freelance writer, a science fiction author and a Taekwon-Do instructor. He lives with his family on Vancouver Island in beautiful British Columbia.

Bell's Inequality, classical physics, Featured, Max Planck Institute for Quantum Optics, quantum entanglement, quantum mechanics

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Physicists Take Big Step Towards Quantum Computing and Encryption with new Experiment - Universe Today

Indonesia lifts threat to ban encrypted app Telegram – The Philadelphia Tribune

JAKARTA, Indonesia The Indonesian government lifted its threat to ban the encrypted messaging app Telegram because its taking steps to block negative content that includes forums for Islamic State group supporters. But it warned other sites could now face scrutiny.

Rudiantara, the Minister of Communications and Information Technology, who met Tuesday with Telegram co-founder Pavel Durov announced that we have agreed to keep Telegram accessible.

Many other social media sites, messaging apps and file and video sharing systems are used Indonesia, he said, specifically mentioning Facebook and Google as platforms that could be scrutinized in the near future.

Earlier this month, the ministry said it was preparing to shut down Telegram in Indonesia, where it has several million users, if it didnt develop procedures to block unlawful content including pro-Islamic State group discussion groups.

As a partial measure, it asked internet companies in the worlds most populous Muslim nation to block access to 11 addresses offering the web version of Telegram. Durov apologized for failing to quickly respond to the Indonesian governments requests for apparent terror content to be blocked, blaming a miscommunication.

Rudiantara, who uses one name, said the ministry and Telegram will put in place standard operating procedures that improve the ability to address the negative content in Telegram. The blocking measures against web Telegram could be lifted next week, he said.

Suspected militants arrested by Indonesian police have told authorities that they communicated with each other via Telegram and received orders and directions to carry out attacks through the app, including from Bahrun Naim, an Indonesian with the Islamic State group in Syria accused of orchestrating several attacks in the past 18 months.

Critics of the governments threat said it would make more sense to monitor the IS discussion groups for possible intelligence than banning the app.

Durov told reporters there would a line of direct communication between the ministry and top people in Telegram but also said he wouldnt have come to Indonesia if the government had made any requests that would require Telegrams encryption to be compromised.

The basis of Telegram is a 100 percent promise of encryption. This is why our company exists, he said.

Weve discussed ways to block the public channels available for the propaganda of terrorism, which is something that we are committed to do globally, and particularly Indonesia, Durov said.

The free messaging service can be used as a smartphone app and on computers through a web interface or desktop messenger. Its strong encryption has contributed to its popularity with those concerned about privacy and secure communications in the digital era but also attracted militant groups and other criminal elements.

Durov said about 20,000 people sign up to use Telegram in Indonesia daily. It has at least 100 million users worldwide, a figure released by Telegram in February 2016. (AP)

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Indonesia lifts threat to ban encrypted app Telegram - The Philadelphia Tribune

Top UK official: ‘Real people’ don’t care about encryption – The Hill

United Kingdom Home Secretary Amber Rudd claimed "real people" do not considersecurity to be a selling point when picking smartphonechat applications.

"Who uses WhatsApp because it is end-to-end encrypted, rather than because it is an incredibly user-friendly and cheap way to keep in touch with friends and family?" Rudd wrote in an editorialabout encryptionin the Daily Telegraph on Tuesday.

Rudd, like leaders in Germany and France, as well as some politicians in America, is concerned about "end-to-end" encryption encryption that cannot be broken while data is in transit because there is no way for law enforcement to intercept such communications, even with a warrant.

In the editorial, she said she had traveled to Silicon Valley to discuss the issue with tech firms.

Many of the top chat apps on the market incorporate end-to-end encryption. An Amnesty International report of 16 globally popular chat apps found that more than half used or permitted end-to-end encryption, including Telegram, Apple Chat, Facebook Messenger, Viber and Line.

Over the weekend, Rep. Will Hurd (R-Texas) accused European nations ofunfairly criticizing the United States forbeing weak on privacy while European Unionmemberspursued their own policies to limit encryption.

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Top UK official: 'Real people' don't care about encryption - The Hill

Telegram messaging app strikes deal with Indonesia on encryption – Digital Trends

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Telegram messaging app strikes deal with Indonesia on encryption - Digital Trends