Therefore, we know that implementing validation and authentication standards such as JSON Web Signature (JWS) is key to protect the integrity and authenticity of transactions, especially in processes such as financial transfers, queries and withdrawals.
What is JSON Web Signature and why its important?
JSON Web Signature (JWS) is a technology that allows digitally signing the data of a transaction, ensuring that they are not altered or manipulated in the process of sending them to the authorizing entity, processor or bank. It works through a system of cryptographic keys that validate the identity of the entity issuing the order, preventing unauthorized access, data corruption or fraud.
Previously, financial institutions did not have an efficient digital signature validation mechanism. Some of them used cryptographic cards but their use was not widespread. Currently, the use of HSM is recommended to store the keys for secure signature management.
How is the digital signature generated by means of the JSON Web Signature (JWS) standard?
First of all, in order to create a digital signature, the data of the transaction to be carried out must be taken into account, including key information such as the amount, the accounts involved and the date. After validating the above, the digital signature is generated, using a private key with which the message is signed, in order to verify that only the issuing entity can have generated it.
Finally, the original data is combined with the digital signature in a secure and compact format, which can only be validated by the entity and its core banking with keys generated specifically for the transaction, protecting them and ensuring that they come from a legitimate source and have not been altered along the way.
When validating the digital signature, the system that receives the information must extract the digital signature and the original data, verifying the authenticity using the public key provided by the issuing entity, verifying that the data has not been modified.
If the validation is successful, the transaction continues its course. If not, it can be rejected to avoid risks of corruption or manipulation of the data.
Does the application of a standard such as JWS benefit financial institutions?
Not only can it benefit your company in the protection of information, it can also be useful in aspects such as:
- Secure funds transfers: Ensures that transfers, queries and withdrawals are legitimate.
- User authentication: Protects unauthorized third-party access to payment platforms.
- Responses and confirmations: Guarantees the authenticity of transaction messages.
- Information protection in inquiries and withdrawals: Avoids manipulation or corruption of data sent and received.
- Fraud reduction: Minimizes the risk of altered transactions or those generated by unauthorized users.
- Regulatory compliance: Meets security standards required by financial regulators.
- Customer confidence: Users can perceive greater security in their digital transactions.
- Operational efficiency: Reduces costs associated with disputes and reconciliations for fraudulent transactions.
In CLAI PAYMENTS® Technologies we have the experience of building innovative alliances with financial institutions in Peru, which allows them to generate direct connection with the ECC (Electronic Clearing House), we implement the encryption, decryption of messages, and flow of incoming queries and transactions according to messaging formats required by the ECC, considering the JWS communication and mutual certificate TLS.
In addition, we are committed to the use of technologies such as JWS to generate information security prevalidation schemes, which can represent a significant advance in the protection of your customers transactions. This implementation provides a more secure and reliable environment, aligned with international data protection standards, which can prepare your company to face the challenges of digitizing your payments.
If you would like to learn more about how to implement the process through CRYPTGRID™ and your cryptographic card management to connect with your core banking through our omnichannel payment solution, AZ7®, leave us your details below and our specialized team will contact you.
