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Key Management System Overview_Key Management System Architecture
**Overview of the Key Management System**
The key management system is composed of a ministerial-level key system and a city-level key system. These two layers generate application-specific keys based on different priorities. The exchange of keys between the two levels is typically done via a key mother card or a hardware encryption device. To ensure security, the system must include a root key backup mechanism and an emergency key update process in case of a key breach. All operations involving key transfer, duplication, and distribution should be conducted through secure devices such as encryption machines or smart IC cards to maintain the integrity and confidentiality of the keys.
This system is part of a joint pilot project for financial IC cards among commercial banks. Effective key management by banks at all levels is crucial for the security of the entire application system. The system employs the 3DES encryption algorithm and follows a three-tier management structure: the People's Bank of China, its branches (such as commercial bank headquarters), and member banks. This hierarchical approach ensures secure sharing of the public master key, enabling interoperability between cards and machines.
**Key Management System Architecture**
As the foundation of the social security (personal) card system, the key management architecture is multi-layered and involves complex data sources. The software should offer transparent services, allowing users to perform necessary operations without needing to understand the underlying key details or physical addresses. It should also be flexible enough to support various business functions based on user needs.
Because the system requires dedicated hardware like encryption devices and card readers, the software must provide configuration and communication capabilities for these components. The specific functions and requirements of the system are outlined in the following diagram and description.
[Image: Key Management System Architecture]
1. **Provincial Key Management**: Manage provincial key factors and generate seed key cards.
2. **Department-Level Key Import**: Import keys from the Ministry of Labor and Social Security into the provincial encryption machine.
3. **Local City Key Dispersion**: Distribute national and provincial keys to local city systems.
4. **PSAM Card Management**: Handle PSAM card data and production.
5. **Operator Management**: Control operator data and permissions.
6. **System Parameter Settings**: Configure interface parameters like encryptor address and card issuer connection modes.
The essential hardware required includes one encryption machine (subject to social security regulations) for secure key storage and one dual-card reader for reading and writing user or PSAM cards.
Due to high security requirements, the key management software should run on a dedicated PC separate from other systems. For data backup, it should integrate with databases such as Oracle Personal, SQL Server Desktop, or Access.
[Image: Key Management System Architecture]
**Design Principles of Key Management**
1. No password should be stored in plain text unless within a secure device. Manually assigned keys must be split and held by multiple trusted entities. They should not be directly controlled by a single entity in clear text. Any operation on a cryptographic device must prevent the key from being exposed outside the device.
2. Keys used by different communication entities must be distinct and unrelated. A security issue in one pair should not affect another, even if some entities overlap.
3. Keys must have a backup mechanism. In case of system failure, the key should be recoverable through backups without compromising overall security.
4. Keys must have a defined validity period. When an old key expires, it should be replaced promptly. The new key must be independent of the old one, ensuring that the exposure of the old key does not compromise the new one.
5. Key management must follow a hierarchical structure.
Each transaction requires PIN confidentiality, and MAC calculation and information encryption should be unique per session. These keys are generated by one entity and securely transmitted to the other. Communication parties must use a shared encryption key (KEK) to protect these session keys. KEKs should not be transmitted over the network but loaded before system use or generated separately by both entities.
In networks where merchants and issuers communicate with many entities, a large number of keys (session keys and KEKs) are needed. These cannot be stored in secure cryptographic devices and must be encrypted using a Master Key (MFK) and stored in a host database.
- **Level 1: MFK (Master Key)** – Used to encrypt KEK and SK, stored in the key installation.
- **Level 2: KEK (Key Encryption Key)** – Used to encrypt session keys, shared between communication pairs.
- **Level 3: SK (Session Key)** – Used for PIN encryption, MAC generation, and verification.
**Key and Key Attributes**
Both KEK and SK have attributes that ensure functional separation and legal compliance, enhancing system security. Key attributes include the key type (KEK or SK), serial numbers, and usage restrictions. These attributes are used alongside the key to verify its validity and prevent misuse. The key check value is generated under MFK encryption and stored in the host system. Key attributes are only used within the host and not transmitted.
**Introduction to Smart Card Key Management System**
The system fully complies with the “China Financial IC Card Specification v1.0,†including:
1. Supporting electronic wallet and e-passbook functions, with nationwide offline transactions and balance checks.
2. Enabling nationwide top-up of IC cards through the Longka network.
3. Securing the IC card PIN, with features like unlocking available only at the issuing bank.
**Features of the Smart Card Key Management System**
The system ensures secure key management by supporting key generation, export, injection, backup, restoration, and updates. It provides comprehensive tools to manage keys throughout their lifecycle, ensuring the highest level of security for IC card applications.