Tokenization Topic Roundup

By Adrian Lane

Tokenization has been one of our more interesting research projects. Rich and I thoroughly understood tokenization server functions and requirements when we began this project, but we have been surprised by the depth of complexity underlying the different implementations. The variety of variations and different issues that reside ‘under the covers’ really makes each vendor unique. The more we dig, the more interesting tidbits we find. Every time we talk to a vendor we learn something new, and we are reminded how each development team must make design tradeoffs to get their products to market. It’s not that the products are flawed – more that we can see ripples from each vendor’s biggest customers in their choices, and this effect is amplified by how new the tokenization market still is.

We have left most of these subtle details out of this series, as they do not help make buying decisions and/or are minutiae specific to PCI. But in a few cases – especially some of Visa’s recommendations, and omissions in the PCI guidelines, these details have generated a considerable amount of correspondence. I wanted to raise some of these discussions here to see if they are interesting and helpful, and whether they warrant inclusion in the white paper. We are an open research company, so I am going to ‘out’ the more interesting and relevant email.

Single Use vs. Multi-Use Tokens

I think Rich brought this up first, but a dozen others have emailed to ask for more about single use vs. multi-use tokens. A single use token (terrible name, by the way) is created to represent not only a specific sensitive item – a credit card number – but is unique to a single transaction at a specific merchant. Such a token might represent your July 4th purchase of gasoline at Shell. A multi-use token, in contrast, would be used for all your credit card purchases at Shell – or in some models your credit card at every merchant serviced by that payment processor.

We have heard varied concerns over this, but several have labeled multi-use tokens “an accident waiting to happen.” Some respondents feel that if the token becomes generic for a merchant-customer relationship, it takes on the value of the credit card – not at the point of sale, but for use in back-office fraud. I suggest that this issue also exists for medical information, and that there will be sufficient data points for accessing or interacting with multi-use tokens to guess the sensitive value it represents.

A couple other emails complained that inattention to detail in the token generation process make attacks realistic, and multi-use tokens are a very attractive target. Exploitable weaknesses might include lack of salting, using a known merchant ID as the salt, and poor or missing of initialization vectors (IVs) for encryption-based tokens.

As with the rest of security, a good tool can’t compensate for a fundamentally flawed implementation.

I am curious what you all think about this.

Token Distinguishability

In the Visa Best Practices guide for tokenization, they recommend making it possible to distinguish between a token and clear text PAN data. I recognize that during the process of migrating from storing credit card numbers to replacement with tokens, it might be difficult to tell the difference through manual review. But I have trouble finding a compelling customer reason for this recommendation. Ulf Mattsson of Protegrity emailed me a couple times on this topic and said:

This requirement is quite logical. Real problems could arise if it were not possible to distinguish between real card data and tokens representing card data. It does however complicate systems that process card data. All systems would need to be modified to correctly identify real data and tokenised data.

These systems might also need to properly take different actions depending on whether they are working with real or token data. So, although a logical requirement, also one that could cause real bother if real and token data were routinely mixed in day to day transactions. I would hope that systems would either be built for real data, or token data, and not be required to process both types of data concurrently. If built for real data, the system should flag token data as erroneous; if built for token data, the system should flag real data as erroneous.

Regardless, after the original PAN data has been replaced with tokens, is there really a need to distinguish a token from a real number? Is this a pure PCI issue, or will other applications of this technology require similar differentiation? Is the only reason this problem exists because people aren’t properly separating functions that require the token vs. the value?

Exhausting the Token Space

If a token format is designed to preserve the last four real digits of a credit card number, that only leaves 11-12 digits to differentiate one from another. If the token must also pass a LUHN check – as some customers require – only a relatively small set of numbers (which are not real credit card numbers) remain available – especially if you need a unique token for each transaction.

I think Martin McKey or someone from RSA brought up the subject of exhausting the token space, at the RSA conference. This is obviously more of an issue for payment processors than in-house token servers, but there are only so many numbers to go around, and at some point you will run out. Can you age and obsolete tokens? What’s the lifetime of a token? Can the token server reclaim and re-use them? How and when do you return the token to the pool of tokens available for (re-)use?

Another related issue is token retention guidelines for merchants. A single use token should be discarded after some particular time, but this has implications on the rest of the token system, and adds an important differentiation from real credit card numbers with (presumably) longer lifetimes. Will merchants be able to disassociate the token used for billing from other order tracking and customer systems sufficiently to age and discard tokens? A multi-use token might have an indefinite shelf life, which is probably not such a good idea either.

And I am just throwing this idea out there, but when will token servers stop issuing tokens that pass LUHN checks?

Encrypting the Token Data Store

One of the issues I did not include during our discussion of token servers is encryption of the token data store, which for every commercial vendors today is a relational database. We referred to PCI DSS’s requirement for protect PAN data with encryption. But that leaves a huge number of possibilities. Does anyone think that an encrypted NAS would cut it? That’s an exaggeration of course, but people do cut corners for compliance, pushing the boundaries of what is acceptable. But do we need encryption at the application level? Is database encryption the right answer? If you are a QSA, do you accept transparent encryption at the OS level? If a bastioned database is used as the token server, should you be required to use external key management?

We have received a few emails about the lack of specificity in the PCI DSS requirements around key management for PCI. As these topics – how best to encrypt the data store and how to use key management – apply to PCI in general, not just token servers, I think we will offer specific guidance in an upcoming series. Let us know if you have specific questions in this area for us to cover.


The Visa Best Practices guide for tokenization also recommends monitoring to “detect malfunctions or anomalies and suspicious activities in token-to-PAN mapping requests.” This applies to both token generation requests and requests for unencrypted data. But their statement, “Upon detection, the monitoring system should alert administrators and actively block token-to requests or implement a rate limiting function to limit PAN data disclosure,” raises a whole bunch of interesting discussion points. This makes clear that a token server cannot ‘fail open’, as this would pass unencrypted data to an insecure (or insufficiently secure) system, which is worse than not serving tokens at all. But that makes denial of service attacks more difficult to deal with. And the logistics of monitoring become very difficult indeed.

Remember Mark Bower’s comments about authentication in response to Rich’s FireStarter: an Encrypted Value Is Not a Token!: the need for authentication of the entry point. Mark was talking about dictionary attacks, but his points apply to DoS as well. A monitoring system would need to block non-authenticated requests, or even requests that don’t match acceptable network attributes. And it should throttle requests if it detects a probable dictionary, but how can it make that determination? If the tokenization entry point uses end-to-end encryption, where will the monitoring software be deployed? The computational overhead for decryption before the request can be processed is an issue, and raises a concern about where the monitoring software need to reside, and what level of sensitive data it needs access to, in order to perform analysis and enforcement.

I wanted to throw these topics out there to you all. As always, I encourage you to make points on the blog. If you have an idea, please share it. Simple loose threads here and there often lead to major conversations that affect the outcome of the research and positon of the paper, and that discourse benefits the whole community.

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@Sue - sorry, I just noticed that the comment that (I thought) I had posted is not here. The answer to your question is two-fold. The first part is multi-use tokens based on cryptography either _don’t_ modify in the initialization vector or don’t use ECB to randomize the encryption output, _or_ use a hash for reverse look-up. Both are subject to dictionary attacks as both are less secure than a block cipher with randomized output.

Second, if multi-use tokens are the same across a couple of different vendors served by the same payment processor, that an attacker that knows tokens at one merchant can guess what the tokens are at the second merchant. There is speculation that this information could be used to commit fraud in charge-backs or repeat payment scenarios where the token is used in lieu of the original credit card number to initiate the transaction with the payment processor. I am not aware of a real attack at this point - just possible scenarios discussed over drinks at Blackhat.


By Adrian Lane

I can see the roundup continuing to grow..great discussion topics Adrian. We’re wresting with these on the PCI SSC’s Scoping SIG Tokenization Working Group as we work through it with the PCI SSC TWG to provide guidance later this year.

Regarding multi-use tokens, I think you’re talking about 1:1 token/card number relationship, BUT used across multiple merchants, correct?  If so, there’s nothing wrong with it technically. From a business point, it helps fraud detection in the broad sense (much like the card brands do today), but if one of the providers or merchants is breached, it affects every merchant that uses that 1:1 token/card relationship. Goes back to the degree of risk we want to live with as an industry.

By Gary Palgon

I’m not following the issues around multi-use tokens.  You said “Some respondents feel that if the token becomes generic for a merchant-customer relationship, it takes on the value of the credit card—not at the point of sale, but for use in back-office fraud.”  If the token provider adequately secures the token database, and adequately authenticates the merchant requests, please explain to me where the risk is.

Large retailers are using credit cards today for customer analytics and all kinds of historical purchase tracking. You can’t just make that go away - you have to provide a solution for that business need. And multi-use tokens provide that solution.

By Sue Zloth

This is a great “round up” folks - thanks for bringing the topics together.  One thought about the “multi-use token” quandary:  it seems like we’ll eventually end up in a place where we’ll have to protect the tokens just like we do the cardholder data today.  Moving from PCI-DSS to a PTI (Payment Token Information) DSS doesn’t seem like it helps much.

How can you avoid this problem?

No matter how hard we try, it seems like good security of critical data assets is not something we can get away from.

By thatdwayne

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