The Chip Authentication Program (CAP) is a MasterCard initiative and technical specification for using EMV banking smartcards for authenticating users and transactions in online and telephone banking. It was also adopted by Visa as Dynamic Passcode Authentication (DPA)[1]. The CAP specification defines a handheld device ("CAP reader") with a smartcard slot, a decimal keypad, and a display capable of displaying at least 12 characters (e.g. a starburst display). Banking customers who have been issued a CAP reader by their bank can insert their Chip and PIN (EMV) card into the CAP reader in order to participate in one of several supported authentication protocols. CAP is a form of two-factor authentication as both a smartcard and a valid PIN must be present for a transaction to succeed. Banks hope that the system will reduce the risk of unsuspecting customers entering their details into fraudulent websites after reading ‘phishing’ emails.[2]
Operating principle
The CAP specification supports several authentication methods. The user first inserts their smartcard into the CAP reader and enables it by entering the PIN. A button is then pressed to select the transaction type:
- Identify: Without requiring any further input, the CAP reader interacts with the smartcard to produce a decimal one-time password, which can be used, for example, to log in to a banking website.
- Response: This mode implements challenge-response authentication, where the bank's website asks the customer to enter a "challenge" number into the CAP reader, and then copy the "response" number displayed by the CAP reader into the web site.
- Sign: This mode is an extension of the previous, where not only a random "challenge" value, but also crucial transaction details such as the transferred value, the currency, and recipient's account number have to be typed into the CAP reader.
Protocol details
In all three modes, the CAP reader asks the EMV card to output a data packet that confirms the cancellation of a fictitious EMV payment transaction, which involves the details entered by the user. This confirmation message contains a message authentication code (typically CBC-MAC/TDES) that is generated with the help of a card-specific secret key stored securely in the smartcard. Such cancellation messages pose no security risk to the regular EMV payment application, but can be cryptographically verified and are generated by an EMV card only after the correct PIN has been entered. It provided the CAP designers a way to create strong cryptographic evidence that a PIN-activated EMV card is present and has seen some given input data, without having to add any new software functions to already fielded EMV cards.
An EMV smartcard contains a (typically 16-bit) transaction counter that is increased by one with each payment or CAP transaction. The response displayed by a CAP reader essentially consists of a concatenation of the (typically 7) least-significant bits of the transaction counter, followed by selected bits from the message authentication code of the transaction abort message sent by the card, converted from a binary into a decimal number.
In the identify mode, the response depends only on the transaction counter value. In the response mode, it depends in addition on the entered challenge, and in signing mode it also depends on the entered transaction details.
The same on-card PIN retry counter is used as in EMV transactions. So just like at an ATM or POS terminal, entering an incorrect PIN three times in a row into a CAP reader will block the card.
Incompatibility
The original CAP specification was designed to use normal EMV transactions, such that the CAP application could be deployed without updating the firmware of existing EMV cards. However, some banks found this approach difficult to manage in their existing back-end systems. They instead implemented a modified version of CAP, where the reader selects a dedicated CAP application on the card, separate from the original EMV application. This allows the CAP and EMV applications on the card to use independent secret keys, although the PIN and its retry counter are still shared, at the expense of having to replace all existing cards with CAP-enabled ones. Different banks implemented these modifications slightly differently (e.g., using different application identifiers), therefore CAP readers are currently not necessarily compatible across banks.
Users
Sweden
- Nordea began using CAP in November 2007.[3] The Nordea eCode solution is used by Nordea both for eBanking, eCommerce (3DS) and also with eID. The reader which has some more advanced function that extends CAP, makes Nordea's CAP implementations more secure against trojans and man-in-the-middle attacks. When used for eID, the user is able to file his "tax declaration" online, or any of provided eGoverment functions. The device is also equipped with a USB-port, that enable the bank to perform Sign-What-You-See for approval of sensitive transactions.
United Kingdom
- APACS defined a CAP subset for use by UK banks.
- Barclays Bank began issuing CAP readers (which they call "PINsentry") in 2007 to customers who make an online payment to a new recipient.[4][5] Their online-banking website uses the "identify" mode for login verification and the "sign" mode for transaction verification. The "respond" mode is not currently used. The PINsentry device is powered by four LR44 button cell batteries, which the manual claims will last from five to seven years. A version for vision-impaired users (with voice output) is available on request.
- Nationwide
- Co-operative Bank and Smile
- Royal Bank of Scotland (including NatWest)
- The CAP readers of Barclays, Nationwide and RBS are all intercompatible.
References
- ^ Dynamic passcode authentication, VISA Europe
- ^ http://www.theregister.co.uk/2007/04/18/pinsentry/
- ^ New security solution | nordea.se, in Swedish.
- ^ "Barclays PINsentry".
- ^ Barclays to launch two-factor authentication, The Register, 2006-08-09.