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Short Paper #2

Description: The scenario description and requirements for Short Paper #2:

Prepare a short research paper of approximately 900 to 1000 words, double-spaced, exclusive of cover, title page (optional), table of contents (optional), endnotes and bibliography. Your paper must use APA formatting with the exception that tables and figures can be inserted at the appropriate location rather than added at the end. Submit the paper in your assignment folder as a MS Word file

A paper longer than the upper limit or not in APA format will cause loss of up to 5% points.

If you are unable to virus check your document, please submit as an RTF file rather than as a doc file. Please do not use macros in your document.

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Assume the following incidences happened years ago before there were agreements of cooperation between the US and the Cayman and Nevis Islands. So, neglect, the recent agreements between the US and the Cayman Islands government for your analysis.

Alexis changes banks following her troubles with SBT. At her new bank, Acme Security Trust (AST), RSA is used as the cryptographic system. Alexis creates a key pair and supplies to Florida, a manager of AST with her public key {eA, nA}, securing her private key {dA, nA} on a thumb drive which Alexis keeps locked in a wall safe at her home. In turn, Florida, who is designated to handle Alexis’s business, gave Alexis access to a key server maintained by AST so that Alexis can readily obtain Florida’s current public key {eF, nF} whenever she needs to communicate securely with Florida.

Things are fine for a few months until Alexis sends Florida a message m asking about current interest rates on Certificates of Deposit issued by AST. As shown below, she encrypts the message with Florida’s public key first and then signs with her private key.

C = (meF mod nF )dA mod nA

Where C is the encrypted message and m is the plaintext message.

A few days later, Alexis received a statement that shows a debit of $1,000,000 from her account. On inquiring, she was told that Florida transferred the money out of Alexis’s account into an account of her own in a bank on the Caribbean island of Nevis, where she moved. When reached via long distance in Nevis, Florida produced an encrypted message ’C’ and corresponding plain text message from Alexis saying:

“Thanks for your excellent service, Florida. Please transfer $1,000,000 from my account to yours as a token of my esteem and appreciation. Signed, Alexis.”

Alexis files suit against, Florida, AST and the government of the Nevis, claiming that the message was a forgery sent by Florida herself, asking for triple damages for pain and suffering. Florida has responded by claiming that all procedures were followed properly, and that Alexis is filing a nuisance suit.

You have been employed by AST as a cryptographic expert to assist in the investigation of this matter and help them decide what to do with Alexis issue. You obtain Florida’s private key from the UST server, and the cipher text C, and calculate

g= (CeAmod nA)dFmod nF

Where g is the plain text message which was obtained decrypting the cipher text C, using Florida’s Private key (dF,nF). Your report to the AST Board of Directors should address the following issues:

From the facts as presented what can be determined about Alexis’s intentions to make Florida a gift of $1,000,000? How did the fact help you in forming your conclusion?

What is the significance of Nevis Island? Did the significance sway your decision? If yes why? If no why?

What is the significance of Alexis’s message to Florida asking for interest rates?

Assuming AST wishes to continue using RSA as its cryptographic system, what AST and Alexis could have done to protect against this controversy arising?

How to proceed in the litigation?

Your report should clearly address these issues including the recommendation for Alexis’s suit, RSA with sufficient detail and background to allow the Board of Directors who are cryptographically challenged to understand the issues involved. It should give direction to formulate plans for how to approach the immediate legal issue with Alexis, and to continue business in the future, if they want to continue using only RSA. Assume that the directors do not know what RSA is and how it works