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May 13, This year s Financial Cryptography FC conference was once again held in Anguilla, where the first instance of FC was held one that I personally attended back in , despite a looming American Airlines pilot strike. This year s conference had a sense of retrospective, reinforced by Ron Rivest s keynote speech and Michael Froomkin s invited talk.

They put in considerable effort to make this an excellent conference with a solid program. There also were a series of Short Papers, an industry presentation, and a rump session. The conference itself was held at Paradise Cove, a resort on the southwest side of island, facing the island of St. Maarten only a few miles across the sea. As the number of attendees hovered around 70 people too large for the set of rooms at the small resort , all from industry, government, and academia, many had to find alternate housing arrangements that made the Traveling Conference Attendee, err, Traveling Salesman Problem look tame.

Left-hand driving is a must, which one can easily forget as the cars are left-hand drive as well. Many drivers heard the desperate reminders of stay left! However, shuttle service from the various hotels to the conference venues and the events was excellent. The sessions were mostly held at the Paradise Cove, and for those who are turning green with envy, they can be reassured that the sessions were held in the basement conference center, where no sunlight penetrated.

A series of wireless base stations assured connectivity, and many attendees opted for the Tor http: The rum p session was held at the original FC location, Chandeliers, the conference facility at the Interisland hotel. Other highlights were the live music night with reggae legend Bankie Banx at the Dune Preserve and the Beach BBQ at the Anguilla Great House for most attendees these were a short stroll via the beach at Rendezvous Bay, but not close by car - a simple exercise in non-Euclidean distance metrics.

Now on to the technical part of the program. The sessions were summarized by various attendees at the conference. Stay tuned for the Call for Papers for Financial Cryptography and please consider submitting and attending. At the first FC in , Ron Rivest presented his perspectives on financial cryptography. In this presentation, he discussed 18 debatable propositions.

With time, we gain experience, and hence new perspectives on security. For the FC keynote address, he revisited these points. There is little difference between Internet payment schemes and interstellar payment schemes. In , the Internet was not nearly as embedded into our daily lives. Historically, payment schemes have not worked well. Payment schemes have transitioned though many forms of exchange. Sampling a few, we observe metal, paper money, checks, credit cards, and more recently, electronic money.

In , electronic money was a relatively new concept, and it was debatable whether or not it would fair. While he views the original proposition on existing payment schemes, looking back, Rivest believes the original proposition was mostly true. Electronic cash begets many of the same concerns as when the printing press became widely available.

In particular, many believe it will diminish the role of the central bank. In , Rivest believes the proposition is technically true, it has proven false in practice, as there is a continued dominance of large financial institutions. National currencies won t go away, to be replaced by cyberspace dollars. Looking back in , and given proposition P2, Rivest believes this will remain true.

Individual privacy is already lost, and must be regained. In , this remains true. In fact, it has gotten worse. The real question is, how much to people care? Despite the privacy infringement introduced by profiling, it does allow for better service, e. In , this remains true, but only if it works well, e. Governments will not allow payment systems to support true payer or payee anonymity for large payments. With respect to law enforcement, there are many good reasons document the identities making large transactions, e.

Only, now, there is not even serious debate about it. Achieving payer anonymity for small payments by cryptographic means is too expensive in terms of complexity and CPU time. In , remains true, but mostly in terms of user and system complexity. Again, as people do not care much about anonymity, there has been little demand for such systems. Anonymity will be a value-added feature that a user may purchase. Conversely, a user may break his own anonymity in a transaction for a fee.

In , Rivest believes to original proposition to be false. Anonymity as a value-added feature only exists in a minor way. Again, there is a recurring theme that people only care about ease-of-use, disregarding any concern for privacy. Avi Rubin noted that many people do care about their cell phone records. Subsequently, another attendee mentioned that there is a parallel between identity theft and anonymity, but Rivest disagreed, saying that they are different beasts. Multi-application smart cards will never make it big.

This mainly results from user s comfort with having one card per issuer. In , we are beginning to see signs of change, e. It is a prime candidate for use as an authentication device or trusted agent. The question that remains is, do we trust it? Smart cards can be obtained anonymously and then used for many small-value purchases. In , this remains true, as small pre-paid application cards e. While smart card use has not exploded, the proposition can be directly applied to RFIDs.

In this regard, in the proposition remains true. Digital coins will not be used for large-value transactions. The main concern with using digital coins for large-value transactions is replication. The problem is much less severe in micro-payments. Rivest believes the proposition is still true, but only because digital coins just are not being used. He then revised the proposition to state that digital coins will never make it.

Payment schemes with off-line coin transfers between users won t make it. There is really no good business model for digital coins, and by virtue of the analysis of P11, the original proposition remains true. Micropayment schemes will be the system of choice for purchasing most information over the web. Most information on the web is of low value, but in we have still not seen the rise of micropayments. This is mainly due to the success and dominance of ad-based systems.

He further commented that some specialized applications may occur. General-purpose public key infrastructures PKI s are not necessary for financial cryptography--they can and will be special-cased. In , there is still no general purpose PKI; the original proposition remains true. Voting systems and payment systems will be seen as being very close. Of course, in voting, anonymity is necessary. The more the analogy is investigated, the similarities seem superficial, e. Therefore, the proposition is false, but it is still useful to think about the differences.

In , this remains true, even more so with the magic of elliptical curves and bilinear maps. Over the years, it has become apparent that most people are more concerned with convenience than privacy. Currently, privacy is really a secondary thing, after functionality. Therefore, we need to design systems so that privacy has no cost.

Phishing is a growing problem. It currently affects millions of people per year and results in large losses to businesses. A typical phishing attack involves a legitimately looking email from a bank or another institution and redirects the user to a website. The website looks secure and collects information about the user that later can be sold or misused.

Current techniques for phishing consist of copying of images, DNS tricks, JavaScript attacks, and certificates. Advanced techniques make use of target selection, socially aware attacks, and context-aware attacks. Security is secondary to users, since all they want is functionality. Thus, they choose bad passwords, are not good at parsing domain names or going through certificates, too many pop-ups. And the main goal of this work is to prevent the attacker from viewing or modifying user account, by limiting what an attacker can do.

The work assumes that the user will make mistakes and tries to help her not to make mistakes. This is done by guarding user accounts using mobile devices. The main idea is that a mobile device creates a public key pair, then authenticates to various servers that user wants to use. The server refuses the connection if the mobile device doesn t authenticate properly. Every time a user wants to access her account, she has to initiate the connection from her mobile device.

Advanced features for improved security are also available. The protocol uses the standard SSL protocol, the private key never leaves the mobile device.

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