Cryptography in financial systems: from TLS to key management and HSMs

1Introduction

Standard algorithms are rarely broken; implementation and key management are the weak points.

2Discussion

Use TLS 1.2+ (preferably 1.3) in transit and AES-256 at rest for databases, files or sensitive fields.

Key management covers generation, distribution, rotation, backup and destruction; keep keys apart from data, e.g. via envelope encryption.

Hardware security modules keep keys inside tamper-resistant devices and are standard for PIN processing and transaction signing.

3Conclusion

Build crypto-agility: NIST published its first post-quantum standards in 2024. Maintain a key and certificate inventory and plan rotations.