What Is a Hardware Security Module and Why Is It Important?
Cybercriminals can be found everywhere, targeting and attacking every susceptible device, piece of software, or system they encounter. This has necessitated individuals and companies to take next-level security measures, like using cryptographic keys, to protect their IT assets.
However, managing cryptographic keys, including generating, storing, and auditing them, is often a major obstacle in securing systems. The good news is that it’s possible to securely manage cryptographic keys using a Hardware Security Module (HSM).
What Is a Hardware Security Module (HSM)?
An HSM is a physical computing device that protects and manages cryptographic keys. It typically has at least one secure cryptoprocessor, and it’s commonly available as a plugin card (SAM/SIM card) or external device that attaches directly to a computer or network server.
HSMs are purpose-built to protect the life cycle of cryptographic keys using tamper-resistant, tamper-evident hardware modules and protect data via multipletechniques, including encryption and decryption. They also serve as secure repositories for cryptographic keys that are used for tasks like data encryption, Digital Rights Management (DRM), and document signing.
How Do Hardware Security Modules Work?
HSMs ensure data safety by generating, securing, deploying, managing, archiving, and disposing of cryptographic keys.
During provisioning, unique keys are generated, backed up, and encrypted for storage. The keys are then deployed by authorized personnel who install them into the HSM, allowing for controlled access.
HSMs offer management functions for cryptographic key monitoring, control, and rotation as per industry standards and organizational policies. The latest HSMs, for example, ensure compliance by enforcing the NIST’s recommendation of using RSA keys of at least 2048 bits.
Once cryptographic keys are no longer actively used, the archiving process is triggered, and if the keys are no longer needed, they’re securely and permanently destroyed.
Archiving involves storing decommissioned keys offline, allowing for future retrieval of data encrypted with those keys.
What Are Hardware Security Modules Used For?
The primary purpose of HSMs is to secure cryptographic keys and provide essential services for protecting identities, applications, and transactions. HSMs support multiple connectivity options, including connecting to a network server or being used offline as standalone devices.
HSMs can be packaged as smartcards, PCI cards, discrete appliances, or a cloud service called HSM as a Service (HSMaaS). In banking, HSMs are used in ATMs, EFTs, and PoS systems, to name a few.
HSMs protect many everyday services, including credit card data and PINs, medical devices, national identity cards and passports, smart meters, and cryptocurrencies.
Types of Hardware Security Modules
HSMs come in two main categories, each offering distinct protective capabilities tailored to specific industries. Here are the different types of HSMs available.
1. General Purpose HSMs
General-purpose HSMs feature multipleencryption algorithms, including symmetric, asymmetric, and hash functions. These most-popular HSMs are best known for their exceptional performance in protecting sensitive data types, such as crypto wallets and public key infrastructure.
The HSMs manage numerous cryptographic operations and are commonly used in PKI, SSL/TLS, and generic sensitive data protection. Because of this, general purpose HSMs are usually employed to help meet general industry standards like HIPAA security requirements and FIPS compliance.
General-purpose HSMs also support API connectivity using Java Cryptography Architecture (JCA), Java Cryptography Extension (JCE), Cryptography API Next Generation (CNG), Public-Key Cryptography Standard (PKCS) #11, and Microsoft Cryptographic Application Programming Interface (CAPI), enabling users to choose the framework that best suits their cryptographic operations.
2. Payment and Transaction HSMs
Payment and transaction HSMs were specifically designed for the financial industry to protect sensitive payment information, like credit card numbers. These HSMs support payment protocols, like APACS, while upholding multiple industry-specific standards, such as EMV and PCI HSM, for compliance.
The HSMs add an extra layer of protection to payment systems by securing sensitive data during transmission and storage. This has led financial institutions, including banks and payment processors, to adopt it as an integral solution for ensuring the secure handling of payments and transactions.
Key Features of Hardware Security Modules
HSMs serve as critical components for ensuring compliance with cybersecurity regulations, enhancing data security, and maintaining optimal service levels. Here are the key features of HSMs that help them achieve this.
1. Tamper Resistance
The primary goal of making HSMs tamper resistant is to protect your cryptographic keys in case of a physical attack on the HSM.
According to FIPS 140-2, an HSM must include tamper-evident seals to qualify for certification as a Level 2 (or higher) device. Any attempt to tamper with the HSM, like removing a ProtectServer PCIe 2 from its PCIe bus, will trigger a tamper event that deletes all cryptographic material, configuration settings, and user data.
2. Secure Design
HSMs are equipped with unique hardware that meets the requirements set by the PCI DSS and conforms to various government standards, including Common Criteria and FIPS 140-2.
The majority of HSMs are certified at various FIPS 140-2 Levels, mostly at Level 3 certification. The select HSMs certified at Level 4, the highest tier, are a great solution for organizations seeking peak-level protection.
3. Authentication and Access Control
HSMs serve as gatekeepers,controlling access to the devices and datathey protect. This is evident through their ability to monitor HSMs actively for tampering and respond effectively.
If tampering is detected, certain HSMs will either stop working or wipe cryptographic keys to prevent unauthorized access. To further enhance security, HSMs employ strong authentication practices likemulti-factor authenticationand strict access control policies, restricting access to authorized individuals.
4. Compliance and Auditing
To maintain compliance, HSMs need to adhere to various standards and regulations. Major ones includethe European Union’s General Data Protection Regulation (GDPR),Domain Name System Security Extensions (DNSSEC), PCI Data Security Standard, Common Criteria, and FIPS 140-2.
Compliance with the standards and regulations ensures data and privacy protection, DNS infrastructure security, secure payment card transactions, internationally recognized security criteria, and adherence to government encryption standards.
HSMs also include logging and auditing features, allowing for monitoring and tracking of cryptographic operations for compliance purposes.
5. Integration and APIs
HSMs support popular APIs, like CNG and PKCS #11, allowing developers to seamlessly integrate HSM functionality into their applications. They’re also compatible with several other APIs, including JCA, JCE, and Microsoft CAPI.
Protect Your Cryptographic Keys
HSMs provide some of the highest levels of security among physical devices. Their ability to generate cryptographic keys, securely store them, and protect data processing positions them as an ideal solution for anyone seeking enhanced data security.
HSMs include features like a secure design, tamper resistance, and detailed access logs, making them a worthwhile investment for fortifying the security of crucial cryptographic data.
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