Al Mac wrote on 10/06/2007 23:53:18:
There is also access to the decryption algorithm, as used by 
whatever software.
My understanding is that in the TJX breach, the data was encrypted, but 
the 
hackers got access to the decryption algorithm, rendering the encryption 
protection worthless.
A cryptosystem that relies solely on the secrecy of the algorithm is 
probably a bad cryptosystem.  I would strongly recommend that people use a 
well-known algorithm such as AES for their encryption needs.
 
I have witnessed security where characters are altered in-place.
For example, any given character in Hexadecimal is represented by two 
standard characters like say E-7 and they in turn are represented by a 
string of binary values.  One algorighm flips bits such that any E is 
replaced by an A, and other such combination replacements, so you end up 
with a string of characters that are intelligible but scrambled.  That 
kind 
of approach will not alter the number of characters that is the size of 
the 
field.
This is known as the 'Caesar cipher'.  It can be cracked by really simple 
cryptanalysis and at least as weak as no encryption at all.
 
I have also seen where some fields are labeled for a particular purpose, 
but people have keyed into them some other content.  So there coult be 
data 
content that needs to be protected, but you would not know it from the 
field naming.  There would need to be analysis of content according to 
patterns that would indicate that what's in there is not consistent with 
field labeling.
That's a really good point Al.  I think that parsing a free-form comment 
field for sensitive data would be extremely difficult.  I good solution 
might be to search for common identifiable info like bank account number, 
credit card number, and any pertinent government ID numbers (health 
insurance, drivers licence, social services, etc.), and warn the user.  In 
my mind, you either encrypt the field every time, or never encrypt it and 
train people not to put in sensitive data in fields not designed for that 
purpose.
I think someone else mentioned this earlier, but is worth repeating. 
Choosing a crypto algorithm and implementing it is probably the easiest 
part of this process.  The really challenging bit comes from human factors 
such as people 'repurposing' fields, who has access to sensitive data, key 
management and so on.
Hope this helps,
Adam
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