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How can cryptology help verify a customer’s identity during an online purchase?
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cryptology
In encrypting plaintext, the cipher letter is found at the intersection of the column headed by the plaintext letter and the row indexed by the key letter. To decrypt ciphertext, the plaintext letter is found at the head of the column determined by the intersection of the diagonal containing the cipher letter and the row containing the key letter.
In the context of online commerce, cryptology serves as a vital tool for verifying a customer's identity and ensuring transaction integrity when physical identification is not possible. Because online merchants cannot rely on traditional documents like driver’s licenses, they use cryptographic protocols to establish trust and prevent fraud.1
Key methods include:
- Authentication Protocols: Systems use encrypted exchanges to verify that both the customer and the merchant are legitimate. For example, "smart" cards use microprocessors to perform sign/countersign exchanges, ensuring both parties are authorized before a transaction proceeds.1
- Secure Links and Encryption: Transactions are often conducted over secure links using strong encryption (such as 128-bit or 256-bit keys), which protects personal information from interception.1
- Digital Signatures: These provide a legally recognized way to verify the origin and integrity of electronic documents, serving the same function as a written signature.1
- PINs and Hashing: Customers often use a personal identification number (PIN), which may be stored as a one-way cipher. This allows the system to verify the user without storing the actual PIN in a vulnerable format.1
- Multifactor Authentication: This adds layers of security by requiring multiple forms of evidence, such as one-time codes or biometric data, to confirm identity.2