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SESSION	ID:SESSION	ID:
#RSAC
Sandra	Lambert
Cybersecurity	vs.	Tokenization
PDAC-R02	
CEO
Lambert	&	Associates
ANSI	X9F4	Workgroup	Vice	Chair
Jeff	Stapleton
Security	Architect
Wells	Fargo
ANSI	X9F4	Workgroup	Chair
#RSAC
Cybersecurity	vs.	Tokenization	- Agenda
2
Tokenization	Fundamentals
Top	Four	Controversial	Implementation	Issues	
Payment	vs.	Non-Payment	Tokens
Tokenization	vs.	Detokenization
System	Isolation	Requirements	
Cryptographic	Hardware	vs.	Software	– a	Very	Contentious	Topic	
Conclusions
#RSAC
Tokenization	Fundamentals
#RSAC
Who	Wants	Tokenization	and	Where?	
4
Definition	of	Tokenization
PCI:	Tokenization	is	a	process	by	which	the	Primary	Account	Number	(PAN)	is	
replaced	with	a	surrogate	value	called	a	token.	
— Index	Token	is	a	cryptographic	token	that	replaces	the	PAN,	based	on	a	given	index	for	an	
unpredictable	value	
ANSI	X9:	The	process	of	mapping	a	plaintext	value	(i.e.,	the	underlying	sensitive	
value)	to	an	existing	or	newly-generated	surrogate	value	(i.e.,	a	token).	A	token	is	a	
surrogate	value	used	in	place	of	the	original	value	in	certain,	well-defined	
situations,	but	that	is	not	used	in	place	of	the	original	value	in	every	way	that	the	
original	value	is	used.
EMV:	A	process	by	which	the	Primary	Account	Number	(PAN)	is	replaced	with	a	
surrogate	value	called	a	Payment	Token.	Tokenization	may	be	undertaken	to	
enhance	transaction	efficiency,	improve	transaction	security,	increase	service	
transparency,	or	to	provide	a	method	for	third-party	enablement.	
Conflicting	definitions,	so,	what	is	a	token?
#RSAC
What	is	Tokenization	and	Why	Do	It?	
5
Tokenization
PAN
SSN
Name
123
ABC
789
Random
Encryption
Table
MAC
4400	1111	1111	1113
Alice	Smith
USV* Token
*Underlying	Sensitive	Value	– protecting	data
#RSAC
When	Can	It	Be	Used?
6
• For	example:	primary	account	number	(PAN)	
• Token	1:	middle	6	digits,	note	check	digit	
• Token	2:	whole	PAN,	ignore	check	digit	
• Any	16-digits	might	be	a	legitimate	PAN	somewhere
• Same	issues	for	SSN	or	other	things	
PAN 4 80801 000000 000 5
Token	1 4 80801 123456 000 4
Token	2 9 21456 332157 278 3
Backwards	compatibility
Separate	channel
Issues
• Format
• Length
• Syntax	
Check	digit
#RSAC
What	is	Detokenization?	Encryption	Method
7
Encryption
Decryption
USV Token
Cryptographic
Key	
Tokenization
Detokenization
Tokenization	Service
#RSAC
What	is	Detokenization?	MAC	Method
8
MAC
USV Token
Cryptographic
Key	
Tokenization
Detokenization
USV	Û Token
Tokenization	Service
Verification
Detokenization	
controversial
Verification	
acceptable
#RSAC
What	is	Detokenization?	Random	Method
9
Random
USV Token
Tokenization
Detokenization
USV	Û Token
RNG
Tokenization	Service
#RSAC
What	is	Detokenization?	Table	Method
10
Table
USV Token
Tokenization
Detokenization
PRNGRNG
Tokenization	Service
Table
#RSAC
Implementation	Issue:	
Payment	vs.	Non-Payment	Tokens
#RSAC
EMV	Payment	Tokenization
12
4400	1111	1111	1113
Alice	Smith
TSP
Issuer
Wallet
PAN
EMV EMV
PAN
Merchant
EMV
Post-auth tokens	are	
non-payment	tokens
EMV	tokens	can	
only	be	used	for	
authorization
Step	1:	Issuer	issues	card	to	cardholder
Brick	&	Mortar
Merchant
EMV
Chip
Card
Step	3:	Cardholder
shops	online
AMEX
Visa MasterCard
Discover
Acquirer
PAN	Û EMV
Step	2:	Cardholder	
gets	EMV	token
EMV
EMV
PAN
EMV
PAN
Authorization	to	
Issuer	is	EMV	or	PAN
#RSAC
Non-Payment	Tokenization
13
Tokenization
Requesting
Interface	
(TRI)
Tokenization	
Service
(TS)
USV
Token
Tokenization	System
• Encryption
• MAC
• Random
• Table
Requesting
Entity
RE
RE
USV	Û Token
Token	¹ EMV
Post	Authorization	(Payment	Related)	Applications
Non-Payment
Applications
Storage
• Tokenization
• Detokenization
#RSAC
Implementation	Issue:	
Tokenization	vs.	Detokenization
#RSAC
Tokenization	Environments:	Internal	
15
Tokenization
Requesting
Interface
Tokenization	
Service
USV
Token
Tokenization	System
RE
RE
USV	Û Token
Storage
RE
RE
Non-Tokenization	Users
NT
NT
NT
Authorized	Tokenization
Requesting	Entity
Authorized	Detokenization
Requesting	Entity	
NT
Write
Read
#RSAC
Tokenization	Environments:	External	
16
TRI TS
USV
Token
Tokenization	System
RE
RE
USV	Û Token
RE
RE
NT
NT
NT
Authorized	Tokenization
Requesting	Entity
Authorized	Detokenization
Requesting	Entity	
NT
Write
Read
Enterprise	NetworkDMZ
TSP	becomes	Third	Party	(Cloud)	Service	Provider
API
RE
RE
#RSAC
Tokenization	Environments:	Multiple
17
Issues
Multi-tokenization	systems	interoperability	
Multi-tokenization	systems	migration	
Multi-tokenization	systems	backup	and	recovery	
TRI TS USV	Û Token
RE
RE
TRITSUSV	Û Token
RE
RE
Tokenization	System	A Tokenization	System	B
#RSAC
Implementation	Issue:	
System	Isolation	Requirements
#RSAC
Organization’s	Internal	Network
Tokenization	Isolation
19
Tokenization
Requesting
Interface
Tokenization	
Service
USV
Token
Tokenization	System
USV	Û Token
Storage
FW
R
S
D
M
Z
Internet
NT
Other
Applications Cardholder	Data	Environment	(CDE)
#RSAC
Implementation	Issue:
Cryptographic	Hardware	vs.	Software
#RSAC
Cryptography:	Encryption	Method
21
Encryption
Decryption
USV Token
Tokenization
Detokenization
Tokenization	Service
HSM
HSMs	are	
typically	
optional
Check	with	
vendor	support
#RSAC
Cryptography:	MAC	Method
22
MAC
USV Token
Tokenization
USV	Û Token
Tokenization	Service
HSM
HSMs	are	
typically	
optional
Check	with	
vendor	support
Detokenization
Verification
#RSAC
Cryptography:	Random	Method
23
Random
USV Token
Tokenization
Detokenization
USV	Û Token
Tokenization	Service
RNG HSM
Random	is	
difficult	to	
achieve
Quantum	
mechanics
Available	
quantum	
randomness	
products
#RSAC
Cryptography:	Table	Method
24
Table
USV Token
Tokenization
Detokenization
Tokenization	Service
Table
HSMs	have	
insufficient	
memory	to	
store	tables
HSMs	have	
insufficient	
CPU	to	process	
tables
Cryptographic	
boundary	is	
software	based
ISO	19790	
Security	Levels
1	and	2
are	software
PRNGRNG
#RSAC
Conclusions
#RSAC
Apply	What	You’ve	Learned	Today…
26
Share	your	tokenization	understanding
Determine	your	tokenization	needs	(if	any)
EMV	payments
PCI	compliance	
Cybersecurity	control	
Define	your	tokenization	strategy
Plan	your	tokenization	implementation
Where	USV	is	tokenized	
Where	tokens	are	stored	
Where	tokens	are	processed	
Where	tokens	are	detokenized,	recovering	the	USV
Implementations
Strategy
Needs
#RSAC
Conclusions
27
Tokenization	can	protect	your	underlying	sensitive	data	
Tread	carefully	through	the	major	cybersecurity	issues	
Payment	vs.	Non-Payment	Tokens
Tokenization	vs.	Detokenization
System	Isolation	Requirements	
Cryptographic	Hardware	vs.	Software	– including	key	management	
Standards,	specifications,	and	guidelines	exist	and	are	in	development
Tokens	are	not	a	panacea;	they’re	not	for	everybody
Tokenization	can	affect	database	search	functions
Tokenization	is	not	interoperable,	today
Tokenization	controls	need	to	be	incorporated	into	your	cybersecurity	policies	
and	practices	– including	incident	response	plans
#RSAC
References
28
Accredited	Standards	Committee	X9			www.x9.org
American	National	Standard	X9.82	Random	Number	Generation	(RNG)	– multiple	parts	
American	National	Standard	X9.119	Requirements	for	Protection	of	Sensitive	Payment	Card	
Data	– Part	2:	Implementing	Post-Authorization	Tokenization	Systems	(in	ballot)	
American	National	Standard	X9.137	Tokenization	Management	and	Security	(work	in	progress)	
Payment	Card	Industry	(PCI)	Security	Standards	Council	(SSC)	
www.pcisecuritystandards.org
PCI	Data	Security	Standard	(DSS)	Requirements	and	Security	Assessment	Procedures	v3.2	April	
2016	
PCI	Tokenization	Product	Security	Guidelines	v1.0	April	2015	
PCI	DSS	Tokenization	Guidelines	v2.0	August	2011
Europay-MasterCard-Visa	Company	(EMVCo)			www.emvco.com
EMVCo Payment	Tokenisation Specification	Technical	Framework	v1.0	March	2014

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