Swift has selected US security outfit SafeNet to supply the hardware security modules (HSM) and authentication tokens it is providing free to member banks under its ongoing infrastructure upgrade project.
SafeNet's Luna HSMs and iKey authentication tokens will be used as part of the new PKI-based security architecture. The new security framework is based on the exchange of digital signatures and public key cryptography and is being introduced as part of the second phase migration to the IP-based messaging network SwiftNet.
The SwiftNet PKI model replaces the current outmoded bilateral key exchange method used to verify correspondents over the FIN store and forward network.
SafeNet says it has received its first order from Swift, to be delivered by the company over the next four quarters as banks cutover to SwiftNet Release 6, upgrade their FIN interfaces and install the HSM ahead of the 'C1' deadline at the end of 2007. Swift says the HSM and Release 6 software will be shipped at least three months before the deadline to allow time for testing.
At a press conference on day one of Swift's Sibos event in Sydney, Swift CEO chairman Lenny Schrank said the organisation had tried to make the infrastructure upgrade less painful for banks: "We know from our user surveys that banks are concerned about the total cost of ownership of using Swift, hence our decision to give away the hardware security modules."
When it announced the offer of free HSMs in June, Swift said that it will save SwiftNet Fin users around EUR23 million. After the C1 deadline, organisations that are still using Login/Select via ICC will incur a surcharge of EUR1,000 per month per BIC. And organisations that fail to order their migration kits, which include the HSM and software, by December 15, 2006 will be forced to pay for their own HSM units.
SafeNet's Luna HSMs comprise a range of hardware security solutions for digital identity applications. Luna products feature hardware key management to maintain the integrity of encryption keys. Sensitive keys are created, stored, and used exclusively within the secure confines of the Luna HSM to prevent compromise. The HSM also features direct hardware-to-hardware backup, split user role administration, multi-person authentication, and trusted path authentication.
The SafeNet iKey authentication token offers a compact hardware solution for authentication and digital identity management. While offering similar functionality to a smartcard, iKey features two-factor authentication, encryption key management, and digital signing functionality into a small, secure package that includes an integrated USB port to eliminate the need for a separate reader device.