The document outlines the scenario for a research paper involving Alice, who experiences a financial dispute with her bank manager Felicity after a significant transfer from her account. The paper requires an analysis of communication security, the implications of RSA cryptography, and Alice's intentions regarding a purported gift. It also calls for recommendations on litigation strategy and improving cryptographic practices for Acme Security Trust (AST).

1. Description: The scenario description and requirements for
Short Paper #2:
Prepare a short research paper of approximately 900 to 1000
words, double-spaced, exclusive of cover, title page (optional),
table of contents (optional), endnotes and bibliography.
Assume the following incidences happened years ago before
there were agreements of cooperation between the US and the
Cayman and Nevis Islands. So, neglect, the recent agreements
between the US and the Navis Islands government for your
analysis
.
Alice changes banks following her troubles with SSB. At her
new bank, Acme Security Trust (AST), RSA is used as the
cryptographic system. Alice creates a key pair and supplies to
Felicity, a bank manager of AST with her public key {eA, nA},
securing her private key {dA, nA} on a thumb drive which Alice
keeps locked in a wall safe at her home. In turn, Felicity, a bank
manager, who is designated to handle Alice’s business, gave
Alice access to a key server maintained by AST so that Alice
can readily obtain Felicity’s current public key {eF, nF}
whenever she needs to communicate securely with Felicity.
Alice has provided her public key to Felicity
Things are fine for a few months until Alice sends Felicity a
message m asking about current interest rates on Certificates of
Deposit issued by AST. As shown below, she encrypts the
message with Felicity’s public key

2. first
and then signs with her private key.
C = (meF mod nF )dA mod nA
Where C is the encrypted message and m is the plaintext
message.
A few days later, Alice received a statement that shows a debit
of $1,000,000 from her account. On inquiring, she was told that
Felicity transferred the money out of Alice’s account into an
account of her own in a bank on the Caribbean island of Nevis,
where she subsequently moved. When reached via long distance
in Nevis, Felicity produced an encrypted message ’C’ and
corresponding plain text message from Alice saying:
"Thanks for your excellent service, Felicity. Please transfer
$1,200,000 from my account to yours as a token of my esteem
and appreciation. Signed, Alice."
Alice files suit against, Felicity, AST and the government of the
Nevis, claiming that the message was a forgery sent by Felicity
herself, asking for triple damages for pain and suffering.
Felicity has responded by claiming that all procedures were
followed properly, and that Alice is filing a nuisance suit.
You have been employed by AST as a an expert to assist in the
investigation of this matter and help them decide what to do
with Alice’s suit. You obtain Felicity’s private key from the
AST server, and the cipher text C, and calculate
g= (CeAmod nA)dFmod nF
Where g is the plain text message which was obtained
decrypting the cipher text C, using Felicity’s Private key
(dF,nF). Your report to the AST Board of Directors should

3. address the following issues:
From the facts as presented what can be determined about
Alice’s intentions to make Felicity a gift of $1,000,000? How
did the fact help you in forming your conclusion?
What is the significance of Nevis Island? Did the significance
sway your decision? If yes why? If no why?
What is the significance of Alice’s message to Felicity asking
for interest rates? Did it play a role in the controversy?
Assuming AST wishes to continue using RSA as its
cryptographic system, what AST and Alice could have done to
protect against this controversy arising?
How to proceed in the litigation?
Your report should clearly address these issues including the
recommendation for Alice’s suit, RSA with sufficient detail and
background to allow the Board of Directors who are
cryptographically challenged to understand the issues involved.
It should give direction to formulate plans for how to approach
the immediate legal issue with Alice, and to continue business
in the future, if they want to continue using only RSA.
Assume that the directors do not know what RSA is and how it
works