Bahaa Abdul Hussien says that although conventional security methods have been useful, the emergence of digital banking, mobile payments, and cloud-based systems has changed the way banks should guard consumer critical information.
Zero Trust and Zero Knowledge Proofs (ZKPs) are two ideas that have attracted a lot of interest. Although both ideas center on separate strategies for security, when together they can provide a strong defense against the rising amount of cyberattacks banks deal with now.
What Are Zero Knowledge Proofs (ZKPs)?
Zero Knowledge Proofs (ZKPs) are cryptographic systems whereby one party can show to another that they know a piece of information without disclosing the knowledge itself. When privacy is of great importance, this idea is especially helpful since it lets data be checked without really distributing private information to third parties.
Within the banking sector, ZKPs can be used to demonstrate that a client has enough money in their account without disclosing the precise number. For instance, a ZKP can verify that the user’s balance is above a specific amount without revealing the precise figure instead of a consumer proving their affordability for a transaction. This lessens the visibility of private information while nevertheless allowing the required confirmation.
Zero Trust and ZKPs: Their Interplay in Banking
Although Zero Knowledge Proofs and Zero Trust have diverse uses, when together they enhance one another. These cooperate to improve security in the banking sector as follows:
Improved Identity and Privacy
Zero Trust centers on ongoing user and device verification. To confirm access, nevertheless, it sometimes calls for sensitive data—passwords, authentication tokens, biometrics, etc. Should sensitive material be leaked or intercepted, this raises privacy problems. Zero-knowledge proofs then become relevant here.
ZKPs let consumers confirm their identity or the legality of a transaction without disclosing private information, therefore improving the authentication process. A bank might, for example, employ a ZKP to verify a user’s identification without asking for personal data such as their social security number or complete account information. This guarantees that, although still following the Zero Trust ideas of constant validation and verification, the authentication process stays private and safe.
Minimizing Data Exposition
Combining Zero Trust with ZKPs has one of the main advantages in terms of lessening sensitive banking data exposure. Under the Zero Trust paradigm, just the minimum required data is supplied for the sought access, and all access requests are rigorously checked. ZKPs go one step further and let banks demonstrate that particular criteria are satisfied without disclosing private information. This reduces the possibility of data leaks during consumer account access or transaction completion.
ZKPs could be used, for instance, by a bank verifying the applicant’s credit score or income level during the loan application process without disclosing personal information like tax returns or account numbers. This guarantees that just the required data is provided, therefore lowering the possibility of data leaks and so boosting client confidence.
Lessening the Attack Surface
Once attackers have access to one region, Zero Trust guarantees they cannot roam a network unhindered. It restricts lateral movement, therefore stopping hackers from obtaining more access to vital systems. By enabling the bank to confirm the validity of an action without disclosing underlying data that might be used by an attacker, ZKPs serve to further reduce the attack surface when included in the security system.
Combining these two security concepts helps banks greatly restrict the routes an assailant would follow to access systems or critical information. This tiered security system enhances the whole defense plan.
Conclusion
Zero Trust and Zero Knowledge Proofs provide banks in a world going more and more digital a strong security architecture. Zero Trust constantly verifies access to important data, therefore guaranteeing that no user or device is trusted by default.
Conversely, zero-knowledge proofs give even more privacy by allowing the confirmation of identities or transactions without disclosing the real facts. The article was written by Bahaa Abdul Hussein and has been published by the editorial board of Fintek Diary. For more information, please visit www.fintekdiary.com.
