ASC X9 defines encryption methods for financial services data

Wednesday 9 May 2018 11:40 CET | News

Accredited Standards Committee X9 (ASC X9) has published a standard with requirements for using a particular method of preserving formatting in the encryption of financial services data.

Format-preserving encryption (FPE) is useful in situations where fixed-format data, such as primary account numbers or Social Security numbers, must be encrypted, but there is a requirement to limit changes to existing communication protocols, database schemata or application code. The benefit of FPE techniques is that encryption can be added to existing systems in such a way that system modifications are kept to a minimum. Often, substantial savings can be realized because database schemas and financial applications can run with encrypted data without needing modification or replacement.

X9.124-2 defines requirements for using a particular approach – Key Stream with Counter Mode -- to specify a set of algorithms that securely encrypts formatted data and retains that format in the resulting ciphertext. Format-preserving encryption Counter Mode is a particularly s mechanism for maintaining data format while also safeguarding its security. IT equipment vendors, banks, and retailers are some of the sectors that will benefit from X9.124-2.

ASC X9 is a non-profit organization accredited by the American National Standards Institute (ANSI) to develop both domestic and international standards for the financial services industry. The subjects of X9s standards include: retail and mobile payments; printing, imaging and processing of checks; corporate treasury functions; distributive ledger technology; processing of legal orders issued to financial institutions; tracking of financial transactions and instruments; tokenization of data; protection of financial data at rest and in motion; data breaches; electronic contracts; and remittance data in business payments.

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Keywords: ASC X9, data protection, financial services, encryption, financial transactions
Countries: World