International Journal of Scientific & Engineering Research, Volume 5, Issue 2, February-2014 561

ISSN 2229-5518

Authentication in Online Banking Systems: Quantum Cryptography Perspective

Anand Sharma, S.K.Lenka

Abstract— Online banking systems allows consumers to access their banking accounts, review most recent transactions, request a current statement, transfer funds, view current bank rates and product information and reorder checks. These services that are offered by online banking systems are changing and being improved because of the intense competition between the banks. The major concern in online-banking is security threat specially the user authentication. Banks use either symmetric cryptography or asymmetric cryptography for this but due to the advent of sophisticated technology and cryptanalysis techniques, security solutions are not unconditionally secure. Here in this paper we are going to analyze the use of quantum cryptography for the authentication purpose.

Index Terms— Authentication ,Online banking, Privacy, Quantum Cryptography, QKD, Quantum Mechanics, Security.

—————————— ——————————


HE online banking has triggered massive change in the commercial banking practices since it was first introduced as “home banking” services by the four major New York
banks in 1981. While there are differing definitions related to online banking found in the literature, in this study, online banking refers to performing banking transactions using elec- tronic medium. Online banking solutions have many features and capabilities in common but traditionally also have some features that are application specific. The common features fall broadly into the following categories:


• Payments to third parties, including bill payments
and telegraphic/wire transfers.
• Funds transfer between a customer's own transac-
tional account and savings accounts.
• Investments purchase or sale.
• Loan applications and transactions such as repay- ments of enrolments.


• Viewing recent transactions.
• Downloading bank statements, for example in
PDF format.
• Viewing images of paying checks.

Management of multiple users having varying levels of


Transaction approval services.

The various issues in online banking systems are as follows:
• confidentiality
• Integrity of communications;
• Non-repudiation of transactions;
• Data integrity;


Anand Sharma is currently pursuingPhD degree program in Faculty of Engineering and Technology of Mody Institute of Technology and Sci- ence, Lakshmangarh, Sikar, Rajasthan, India.


S.K.Lenka is Professorand Head of Department of IT inFaculty of Engi- neering and Technology of Mody Institute of Technology and Science,

Lakshmangarh, Sikar, Rajasthan, India. E-mail:
• Authenticity of the parties involved in transac- tions;
• Protection of personal data;
• Bank secrecy;
• Traceability of transactions;
• Continuity of offered services to customer;
• Prevention, detection and monitoring of intrusion
in the system;
• Restoration information system for managed and
natural disasters and unforeseen events;
• Management of information system.


Here we are providing a list of attacks. An ideal password authentication should be secure against these attacks.
• The attacker may observe the communications channel.
• The attacker records messages he has observed and re-
sends them at a later time.
• The attacker intercepts the messages sent between the
user and bank server and replaces these with his own
messages. He plays the role of the user in the messages
which it sends to the bank server, and at the same time
plays the role of the bank server in the messages that
he sends to the user.
• The attacker impersonates the user or the bank server to get some useful information.
• The attacker is assumed to have access to a relatively small dictionary of words that likely includes the secret password.
• The attacker records past communications, then goes over the dictionary and deletes those words that are not consistent with the recorded communications from the dictionary. After several tries, the attacker’s dic- tionary could become very small.
• An additional attack method targets a specific account and submits passwords until the correct password is discovered.
• Some attacks depend on patience, waiting until the
logged-in workstation is unattended.

IJSER © 2014

International Journal of Scientific & Engineering Research, Volume 5, Issue 2, February-2014 562

ISSN 2229-5518


The major concern in online-banking is security threat special- ly the user authentication. Banks use either symmetric cryp- tography or asymmetric cryptography for this but due to the advent of sophisticated technology and cryptanalysis tech- niques, security solutions are not unconditionally secure. Ear- lier we have proposed a QKD user authentication approach [1].
As Single factor authentication in online banking is no longer sufficient to protect accounts. The supplement suggests financial institutions incorporate multi-factor authentication for their higher risk transactions, such as cash management implementations. Multi-factor authentication requires the im- plementation of two types of access methodologies from the customer. Typically, it incorporates something the customer knows, such as an ID and password, and one of two other choices—something the customer has, a token, or something unique. Our proposed model explained in figure 1.
The starting point is the user’s request. In the event of a re-
quest, the user is redirected to authentication service, carrying
with him/her some kind of Pass code or PIN. After verifying
that pass code or PIN the user will access that Quantum cryp-
tosystem. Quantum Cryptography (QC) / Quantum Key Dis-
tribution (QKD) involvement is needed only to authenticate.
Entities involved are the user, user’s pass-code/PIN and the
quantum cryptosystem. The user submit user’s pass-code/PIN
for the user authentication and then quantum cryptosystem is
used for QKD user authentication.

Fig1. Quantum Cryptography for User Authentication

Source: [1]


Authentication allows user and bank to guard against authen- ticity of user and bank. That shows a user is communicating with right bank and its vice versa. QKD authentication must be performed on an ongoing basis after user authentication with pass code/ PIN given by bank. QKD does not remove the requirement for authentication: indeed, authentication is es- sential as a primary phase to the security of QKD. It described the authentication problem and sketched a solution to it based on quantum cryptography. This approach requires user and bank to already share a pass code/ PIN small secret key, which is given by bank to all its customers using online facili- ty. Authentication in online banking environment consists of
the following issues:

4.1 Security

Security of the transactions in online banking systems is the primary concern .Here the communicating parties (user and bank) must establish an authentic channel with unconditional security and use an unconditionally quantum cryptography algorithm. An unconditionally security is provided by only QKD. It ensures the highest security level of authentication because it is not possible for any third party to communicate in passive way. High security level of the QKD is ensured by means of the principles of the quantum mechanics. It meets this requirement in the best way – the quantum information is exchanged only between proper entities. In order to achieve high level of security for banking we are authenticating the user with QKD as well as normal authentication process. By combining a secure authentication scheme with a QKD au- thentication, user can produce a key exchange which gives a high level of security that can be established unconditionally, assuming only the validity of the laws of quantum physics. Most of attacks in online banking are based on deceiving the user to steal login data and valid pass code /PIN. By the use of QKD authentication we can easily avoid that attacks.

4.2 Privacy

The privacy of information may be one of the biggest con- cerns to the online banking users. Online banking users who most likely connect to the Internet via dial-up modem, Wi-Fi connection, or broadband connection are facing with a smaller risk of someone from the Internet gaining their information. The information that might be derived from the observation of network activities can be used by intruders against users or banks. Privacy directly ensures the secrecy of user’s personal information, bank details and further enhances the security of the transactions. When we have this requirement during sys- tem design process, we should consider the QKD authentica- tion. It is designed to protect user’s account information and transaction details. Always when third party want to observe the quantum information, they change the quantum states and can be uncovered. The private information related to the online banking system is: the amount of the transaction, the date and time of the transaction, and the name of the user where the transaction is taking place. Like previous require- ment – the QKD ensures the privacy by means of the princi- ples of the quantum mechanics.

4.3 Transaction

Transaction directly shows the bank’s ability to deliver products or services. This transaction issue exists in each product and service offered. Transaction issues arise from fraud, processing errors and unauthenticated user anticipated events. A traditional bank can host meetings and call in ex- perts to solve a specific issue. The transaction issue is mainly concern about the structure of the bank’s processing environ- ment, including the types of authentication system, support- ing technologies, services offered and the complexity of the processes. The key to controlling transaction issue lies in QKD authentication. This action means that user will be able to use their bank account to conduct transactions in online banking

IJSER © 2014

International Journal of Scientific & Engineering Research, Volume 5, Issue 2, February-2014 563

ISSN 2229-5518

system as securely and easily as they use in traditional bank- ing. QKD authentication controls, in particular, become more significant requiring additional authentication, processes, tools, expertise, and testing. The main concerns for the trans- action include not only ensuring the safe transaction, but also prove the authenticity which both the user and the bank are the ones they claim to be. QKD authentication ensures the con- fidentiality and the authenticity of the transaction.

4.4 Performance

Performance is the overall feature of the online banking systems which is inseparably from security. It is as important as security of the online banking system. Performance is the requirement which is usually directly felt by users. Perfor- mance of the QKD authentication has not be worse than other authentication tools like traditional authentication or single factor authentication.


To use and have faith in QKD authentication we have to con- sider some preliminary beliefs.

5.1 Quantum Mechanics is Correct

This belief shows that any third party involvement be detected and bounded by the laws of quantum mechanics, although within this realm there are no further restrictions beyond the unauthenticated user’s inability to access the devices. In par- ticular, we allow the unauthenticated user to have arbitrarily large quantum computing technology, far more powerful than the current state of the art. Quantum mechanics has been test- ed experimentally for nearly a century, to very high precision.

5.2 Our Devices Are Secure

Development of QKD authentication system that is verifiably secure is a substantial engineering challenge that researchers are still working on. Although the first prototype QKD system leaked key information over a side channel, it made different noises depending on the photon polarization, and thus the “prototype was unconditionally secure against any eaves- dropper who happened to be deaf”, experimental cryptanaly- sis leads to better theoretical and practical security. More so- phisticated side-channel attacks continue to be proposed against particular implementations of existing systems, but so too are better theoretical methods being proposed, such as the decoy state method. Device-independent security proofs aim to minimize the security assumptions on physical devices. It seems reasonable to expect that further theoretical and engi- neering advances will eventually bring us devices which have strong arguments and few assumptions for their security.


Online banking is a highly profitable channel for Banks. It provides user’s convenience and flexibility to use their ac- counts and various services at a lower cost than traditional branch banking. Online banking systems must authenticate users before granting them access to particular services. The need for stronger user authentication in an online banking environment has become necessary to ensure user security,
privacy, transaction and overall performance. Quantum cryp- tography is often described by its proponents as “uncondi- tionally secure” to emphasize its difference with computation- ally secure classical cryptographic protocols. In this paper, we analyzed the requirements of authentication from QKD point of view. We tried to show the issues which indicate that the QKD authentication will be really a good solution as multifac- tor authentication.


[1] Anand Sharma. S.K. Lenka, “Authentication in Online Banking Systems through Quantum Cryptography”, International Journal of Engineering and Technology, Vol 5 No 3, pp. 2696-2700, 2013.

[2] C. H. Bennett and G. Brassard, “Quantum cryptography: Public key distribu-

tion and coin tossing,” in Proceedings of IEEE International Conference on Computers, Systems and Signal Processing, Bangalore, India (IEEE, New York), pp. 175–179, 1984.

[3] C.H. Bennett, G. Bessette, G. Brassard, L. Salvail, and 1. Smolin, “Experimental quantum cryptography”, Advantages in Cryptology Eurocrypt '90 Proceed- ings, pages 351-366, May 1990.

[4] Anand Sharma, Vibha Ojha, Vishal Goar “Security Aspect of Quantum Key Distribution” in International Journal of Computer Applications, Volume 2 – No.2, pp. 58-62 , May 2010.

[5] Osho, G.S., “How technology is breaking traditional barriers in the banking industry: Evidence from financial management perspective.” European Jour- nal of Economics, Finance and Administrative Sciences(11), p. 15-21, 2008,

[6] A.M. Aladwani, “Online banking: a field study of drivers, development chal- lenges, and expectations”, International Journal of Information Management

21 213-225, 2001.

[7] K. B. Bignell “Authentication in an Internet Banking Environment; Towards Developing a Strategy for Fraud Detection.” In: Proceedings of the Interna- tional Conference on Internet Surveillance and Protection. IEEE Computer Society 2006

[8] C.S. Elizabeth Daniel, “On-line Banking: Strategic and Management Chal- lenges”, Long Range Planning 30 890-898, 1997.

[9] Muller, 1. Breguet, and N. Gisin, “Experimental demonstration of quantum cryptography using polarized photons in optical fiber over more than lkm”, Europhysics Letters, 23:383-388, August 1993.

[10] Anand Sharma, Vibha Ojha, R.C.Belwal, Vishal Goar “Quantum cryptog- raphy – The Concept and challenges” in proceeding of 2nd International Conference on Computer and Automation Engineering (ICCAE 2010) Singa- pore, volume 1, pp. 710-714, 2010.

[11] Lee Y. G., "The influence of security and risk perception on the reuse of inter- net banking", The Journal of MIS Research, Vol.17, No.1, , pp.77-93, 2007.

[12] Anand Sharma, Vibha Ojha, R.C.Belwal, Gaurav Agarwal “Transmission and System Control in Quantum Cryptography” International Journal of Com- puter Technology and Applications. Volume 2 (3) pp. 590-593, 2011.

[13] Gilles Brassard. “Brief history of quantum cryptography: A personal perspec- tive.” In IEEE Information Theory Workshop on Theory and Practice in In- formation-Theoretic Security 2005, pp. 19–23. IEEE, 2005. DOI:10.1109/ITWTPI.2005.1543949. EPRINT arXiv:quant-ph/0604072.

[14] Suh, B. and I. Han, "Effect of trust on customer acceptance of Internet bank-

ing", Electronic Commerce Research and Applications, Vol.1, pp.247-263, 2002 [15] onathan Barrett, Lucien Hardy, and Adrian Kent. “No signaling and quan- tum key distribution.” Physical Review Letters, 95(1):010503, 2005.

DOI:10.1103/PhysRevLett.95.010503. EPRINT arXiv:quantph /0405101.

[16] Yu I. and So S. H., "An empirical study on the factors influencing the usage intention of internet banking systems", The Journal of Industrial Economic

IJSER © 2014

International Journal of Scientific & Engineering Research, Volume 5, Issue 2, February-2014 564

ISSN 2229-5518

Research, Vol.17, No.6, pp.2383-2404, 2004.

[17] M. Quaddus, D. Achjari, “A model for electronic commerce success”, tele- communications policy, 127-151, 2005.

[18] M. Pohjola, “The New Economy: Facts, Impacts and Policies,” Information

Economics and Policy, 14, pp. 133–144, 2002.

[19] C.S. Yiua, K. Grantc, D. Edgar, “Factors affecting the adoption of Internet Banking in Hong Kong—implications for the banking sector”, International Journal of Information Management 27 , 336-351, 2007.

[20] C.S. Elizabeth Daniel, “On-line Banking: Strategic and Management Chal- lenges”, Long Range Planning 30 890-898, 1997.

[21] B. H. Wixom and P. A. Todd, “A theoretical integration of user satisfaction and technology acceptance,” Information System Research, vol. 12, no. 1, pp.

85-102, 2005.

IJSER © 2014