Ever wonder how your data is being kept safe when you swipe your card at a shop, withdraw cash from an ATM, or use your CVV for online shopping? With an increase in cash-free and online transactions, banks and financial institutions have even more on their plate to protect customer data against hackers and bank frauds. To ensure a high level of security, a cryptographic system is used which is called a Hardware Security Module (HSM). The importance of HSM is also reflected in the growth of the HSM market, which is projected to expand at a CAGR of 11.4% and reach a value of US$ 6,592.5 Mn by 2027 on account of rising security concerns across a number of industries. The essential part here is to generate random cryptographic keys that are truly unique for each transaction. As stated in the Kerckhoffs' principle, “The security of the cryptographic system must lie in the security of the key”. If the key is vulnerable, the entire transaction and potentially all data linked to it is at risk of exposure. Managing this securely is a complex task and needs to be done by certified and experienced professionals. ITCrats specializes in services for Payments and Cards. Know more here. What is HSM? HSM is a tamper-resistant device that generates, stores, and protects cryptographic keys, critical to transactional data. HSM can be deployed locally (on-premises) or on the cloud. The HSM computer hardware is added to the computer or network server, typically as an external device, connected via cable or card. These are well-tested and certified hardware under international standards like FIPS 140-2, PCI HSM. With strictly controlled rules and the ability to hide and protect cryptographic material, HSMs form the backbone for transactional security. From authentication to processing and personalization to encryption, HSMs are being widely used to prevent breaches in security while maintaining customer data. HSM as-a-service (HSMaaS) Cloud services offer many advantages for businesses of all sizes and HSM is no exception. In fact, HSM as-a-Service offers benefits that can lead to significant cost savings while enhancing the ease of doing business. One of the main reasons for adopting HSMaaS is scalability. A scalable cloud provider can allow you to rapidly expand your volumes without the hassle of investing in physical systems. The need for instant scalability is even higher for systems like HSM, where compromising security even for an instant is not an option. Another advantage of HSMsaaS is security and compliance. In this case, security and compliance is the responsibility of the service provider. So, it is one less thing for your business to worry about and concentrate your resources on other valuable tasks. With everything going “on the cloud”, many big names such as AWS, Microsoft Azure, Google, and IBM are providing HSM as-a-service or on cloud. What is important to note here is that these services offer general-purpose HSM that can be used for PCI DSS integration but are not special cryptographic standards like PCI PIN, PCI P2PE, or PCI 3DS environments. All these are core security standards prescribed by the Payment Card Industry (PCI) that are mandated for ensuring the security of transactional data. ITCrats specializes in PCI compliant HSM services for Payments and Cards. Know more here. Choosing the Right HSM Making the right choice for HSM is crucial and needs much deliberation. Apart from security, some more factors can be considered to guide your decision. · Scalability – HSM should provide near-instant scalability to keep systems safe during expansion. Security and speed are part of the core service experience for your customers. · Ease of Use – With dedicated HSM service providers, a business should be able to leave the details to the experts and focus on their core competencies. · Speed of Deployment – Hiring full-time resources or training existing staff to deal with HSM can be a time-consuming and costly affair. With a reliable HSM service provider, you can be sure to save on these aspects. · Cost optimizations – The services offered should involve reasonable expenditure. In the case of HSMaaS, there is no need for CAPEX investments. · Customizability – The service provider should be able to provide case-specific HSM solutions. Customizations do come with increased costs, but can prove to be a big differentiator in the market for your business. Conclusion HSMs are robust devices, and even services, that can be utilized for safeguarding transactional data. With ever-increasing transactions come security threats. With their multiple features and proven track-record, HSMs are a dependable solution for protected, fast, and compliant payment solutions that showcase the best of cryptography and security.
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