HSM – Securing Payments and Transactions

Category: Computers & Electronics

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.