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eTechnology – Smart Card. Dr LM Cheng City University of Hong Kong HKIUG Conference 2000 21-22 June 2000. Smart Card Era. credit cards have become part of our daily life as forms of plastic money since its first launch in 1960 what is a magnetic card ? what is a smart card?. Magnetic Card.

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Etechnology smart card
eTechnology – Smart Card

Dr LM Cheng

City University of Hong Kong

HKIUG Conference 2000

21-22 June 2000


Smart card era
Smart Card Era

  • credit cards have become part of our daily life as forms of plastic money since its first launch in 1960

  • what is a magnetic card ?

  • what is a smart card?


Magnetic card
Magnetic Card

  • composed of a layer of magnetic material for storing information

  • easy to carry

  • can be use for authentication

  • what is its principles?


Information on magnetic card
Information on Magnetic Card

  • the stripe is

    8.5cm X 1.2cm

  • data is constructed based on ISO 7811/2

  • maximum 3 stripes

  • can store around 1K bits


Smart card
Smart Card

  • Integrated Circuit - chip

  • originated from France

  • invented in 70 and matured in 90

  • Magnetic Card replacement


Types of smart card
Types of Smart Card

  • Memory Card

  • MPU IC card

  • Crypto-

    processor card

  • Contactless card


Memory card
Memory Card

  • Primitive type

  • composed of EEPROM/PROM

  • simple function

  • as prepay card


Crypto processor ic cards
Crypto-processor IC Cards

  • composed of crypto-processor & PROM

  • a powerful MPU

  • can recognize illegal signal and security features


Mpu ic smart card
MPU IC Smart Card

  • Composed of MCU/MPC

  • software driven

  • have flexibility and primitive intelligence

  • some security features


Contactless smart card
Contactless Smart Card

  • similar to contact smart card

  • with RF transceiver to increase robustness and security


Advantages of smart card
Advantages of Smart Card

  • Large storage capacity

  • more security features

  • multiple functions

  • flexibility in use - intelligent, lower power consumption, effective packaging

  • as access card, electronic purse, debit/credit cards, ID card etc. - particular off-line applications


Hardware technologies
Hardware Technologies

  • new memory technologies - EEPROM and flash-EPROM

  • new silicon technologies – 0.6 mm to 0.18 mm for more storage and security, lower power consumption

  • new packaging technologies - against breakage, rubbing and bending


Smart card software
Smart Card Software

  • Intelligent Chip Operating System -COS

  • Encryption techniques – RSA, DES & ECC

  • Multiple Application OS

    • Mondex, EMV, GSM, Loyalty, JAVA, Linux

  • Platform War

    • JAVA (universal) & MULTOS

  • New requirements

    • hot list, trust key management, PKI, dual interface, downloading feature


THE SMART CARD MARKET IN THE YEAR 2000

(in millions – Source: Philips Communication Systems)

Application France Europe Others Total

Phone cards 140.8 553.1 640.0 1334

GSM cards 4.0 15.0 42.0 61

Health cards 10.0 55.0 92.0 157

Bank cards 25.0 85.0 75.0 185

ID cards - - - -

Transport tickets - - - -

Pay TV cards 4.5 24.0 81.0 110

Access control 1.8 3.0 5.0 10

City cards /Misc 24.0 55.1 64.3 143

Total 210.1 790.2 999.3 2000


Some difficulties worldwide
Some Difficulties Worldwide

  • Bank card project cancellation - Taiwan

  • Card tampering slow down bank sector development - RSA and New Zealand

  • MasterCard - year 2000 delay of massive launching

  • Visa - adoption of magnetic card in RSA debit card project

  • Major concern - COST EFFECTIVENESS


Smart card in electronic commerce
Smart Card in Electronic Commerce

  • Electronic Data Interchange (EDI)

  • Tradelink

  • Electronic Purchasing

  • Home Banking

  • Internet Shopping


New technologies required
New Technologies Required

  • Data Storage Management - information protection

  • authentication process -

    • biometric: fingerprint, facial features, iris identification, dynamic signature recognition, speech recognition

  • encryption methods -

    • Elliptic Curve Cryptography, chaotic techniques


Smart card in mobile phone applications
Smart Card in Mobile Phone Applications

  • Wireless Application Protocol (WAP) emerges for a mobile Internet access

  • Research work launched in Japan indicates a good market if available.

  • Mobile operators will provide add on WAP gateways and WAP services to enable wireless internet services:

    • Banks, financial institutions, restaurants, retailers,

    • Utilities, transit operators, hotels,

    • entertainment and media, selling goods and information


  • Limitation, the SIM card inside the WAP phone cannot provide complicated the PKI authentication process thus security is an issue.

  • A possible solution is to introduce an additional smart card interface (either contact or contactless) to enable the authentication process. (MasterCard – dual card phone)


  • New technologies requirements complicated the PKI authentication process thus security is an issue. :

    • The development of m-PKI (mobile PKI) in the multiple-application OS is more essential and practical

    • The development of high security low power card modules

    • A better interface to new wireless internet platform, other ancillary technologies, such as Bluetooth and Wireless Wallets are also important


Smart card in hong kong
Smart Card in Hong Kong complicated the PKI authentication process thus security is an issue.

  • Mondex

  • Visa Cash

  • Campus card

  • Octopus - smart traveling card

  • Jockey Club -pre-pay card

  • New airport - access control card

  • Telephone card & SIM Card

  • Parking Meter - prepay card project

  • Residential access card

  • Possible new ID card, Road Toll Pay Card


Smart card researches in hong kong
Smart Card Researches in Hong Kong complicated the PKI authentication process thus security is an issue.

  • HKUST obtained HK$2.5M sponsored by Industry Support Fund of HKSAR Government in implementing of biometric techniques for Smart Card/eCommerce application

  • Chinese University of Hong Kong was granted an Entrepreneur programme (HK$250K) in implementing Fingerprint recognition in smart cards

  • CityU (we) have submitted a proposal to ITF for HK$8.5M with an industry sponsorship of HK$3.5M to develop chip modules and COS for various special application customisations.


What about our neighbors
What about our neighbors? complicated the PKI authentication process thus security is an issue.

  • Taiwan Universities and ITRI in Taiwan have heavily involved in ID and bank card project. Totally spending was over NT$1 billion

  • Singapore government has invested in a Smart Card mounting technologies company and the investment is over US$10 million

  • China has heavily invested in various Sichuan University, Beijing University of Post & Telecom, Tsinghua University etc.

  • South Korea is emerging in parallel with its chip manufacturing (Samsung is one of the key module supplier)

  • In comparison Hong Kong, the government/industry support is limited


Conclusion
Conclusion complicated the PKI authentication process thus security is an issue.

  • Smart Card is an evolutionary product

  • Trends of use is irreversible

  • needs more technology breakthrough to make them really smart

  • Major difficulties - logistic and cost justification but not technology

  • To play a role in this new emerging market , the government/industries/research institutes have to plan wisely and invested the necessary resources


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