DESIGN AND DEVELOPMENT OF A BANK VERIFICATION AUTHENTICATION SYSTEM USING QUICK RESPONSE CODE (QRCODE)

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ABSTRACT

 

This thesis focused on the Design and Development of a Bank Verification and Authentication System using Quick Response Code (QR-Code). The traditional method of verification and authentication system for bank transactions has been using the username and password method. These password methods are most of the times encrypted with hash and Message Digest (MD5). This system is prone to several threats including lost and stolen passwords which are readable by humans. The system cookies have the ability to save the username and password which sometime possess several hacking threat and theft. String encryption actually uses a specific mathematical formula which can be decoded by black hackers. The designed system concentrates on machine capabilities rather than human ability and this new system used an encrypted image readable by camera. The spiral method was used as the implementation model. The account holder can make payments by generating dynamic QR-Codes which often presented as payment token for business transactions. The system accepts the account number and amount to generate a specific image QR-Code for payment to the beneficiary. In this system, accounts are debited and credited through different system users. The framework is python flask and the database model is the SQLite, whereas the Hyper Text Markup Language (HTML 5) was used for front end coding. The results obtained indicated that the designed system generated a dynamic QR-Code for bank transactions either by debiting or crediting the beneficiary accounts. Also, the users have access to the dashboard through the use of QR-Code generated by the administrator.





TABLE OF CONTENTS

 

Title Page                                                                                                                    i

Declaration                                                                                                                  ii

Certification                                                                                                                iii

Dedication                                                                                                                  iv

Acknowledgements                                                                                                    v

Table of Content                                                                                                         vi

List of Tables                                                                                                              x

List of Figures                                                                                                             xi

Abstract                                                                                                                      xii

 

CHAPTER 1: INTRODUCTION                                                                          1

1.1       Background of Study                                                                                     1

1.2       Statement of the Problem                                                                               5

1.3       Aims and Objectives                                                                                       5

1.4       Significance of the Study                                                                               6

1.5       Scope and Limitations                                                                                                7

 

CHAPTER 2: LITERATURE REVIEW                                                              8

2.1       Historical Background                                                                                    8

2.1.1    Web base application                                                                                      9

2.2       Bank Verification and Authentication                                                           10

2.3       QR Code Encryption                                                                                      11

2.4       QRCODE Encoding and Decoding                                                               13

2.4.1    Enhancing QR code security                                                                          15

2.4.2    QR code standard                                                                                           16

2.5       QRCODE Processing                                                                                     17

2.5.1    Scanning QRCODE                                                                                       19

2.6       Empirical Framework                                                                                      21

2.6.1    QR code software                                                                                           22

2.6.2    Real world QR code implementation                                                             24

2.7       Applications of QRCODE                                                                             25

2.7.1    Financial institutions                                                                                       25

2.7.2    Bank verification number                                                                               27

2.7.3    Bank authentications                                                                                      27

2.7.4    Advertising                                                                                                     28

2.7.5    Mobile payments                                                                                             28

2.7.6    QR codes as attack vectors                                                                             29

2.8       Analysis of the System                                                                                   30

2.9       Analysis of the Design System                                                                       31

2.9.1    Comparing the existing system with the designed system                             32

2.10     Implementation Model                                                                                   33

2.11     Review of Related Work                                                                                36

2.12.    Research Gap                                                                                                  40

 

CHAPTER 3:            MATERIALS AND METHODS                                                   41

3.1       Materials                                                                                                         41

3.1.1    Data collection                                                                                                41

3.1.2    Primary data                                                                                                    42

3.1.3    Secondary data                                                                                               42

3.2       Questionnaire                                                                                                  42

3.2.1    Web base questionnaire                                                                                  43

3.3       System Requirements                                                                                     44

3.3.1    Hardware requirements                                                                                   44

3.3.2    Human resource requirements                                                             44

3.4       Data Flow Diagram                                                                                        45

3.5       Design Model                                                                                                 47

3.6       Sequence Diagram of the Designed System                                                   48

3.7       Class Diagram of the Designed System                                                        50

3.8       Entity Relational Diagram                                                                              51

3.9       Quick Response Code Model Algorithms Approach (2D)                             52

 

CHAPTER 4: RESULTS AND DISCUSSIONS                                                  59

4.1       Results                                                                                                            59

4.1.1    Main menu                                                                                                      59

4.1.2    Submenus                                                                                                        59

4.2       Specification                                                                                                   61

4.3       Database Specification                                                                                   62

4.3.1    Physical design                                                                                               62

4.3.2    Physical structure                                                                                            62

4.3.3    Database design and functionalities                                                               63

4.4       Input/Output Format                                                                                      64

4.4.1    Input format                                                                                                    64

4.4.2    Output format                                                                                                 64

4.5       User Case Diagram of the Designed System                                                  67

4.6       Flowchart of the Designed System                                                                71

4.6.1    Designed system block diagram                                                                     72

4.6.2    System testing                                                                                                 73

4.6.3    Testing plan                                                                                                     73

4.6.4    Testing data                                                                                                    74

4.6.5    Actual test versus expected test result                                                            75

4.7       Training and Requirement of Users’                                                               76

4.7.1    How to install the software                                                                            76

4.8       Program Documentation                                                                                 77

CHAPTER 5: CONCLUSION AND RECOMMENDATION                           79

5.1       Conclusion                                                                                                      79

5.2       Recommendation                                                                                            80

5.3       Contribution to Knowledge                                                                            80

References

Appendices

  

 

 

 

 

 

LIST OF TABLES

PAGE

 2.1:     Maximum character storage capacity (40-L)                                                  12

 2.2:     Comparison of the existing system and the designed system                        33

 3.1:     Software requirement                                                                                     44

 4.1:     Physical structure of the new system database                                               63

 4.2:     Information stored in new system database                                                   64

 4.3:     Data dictionary of the new system                                                                 70

 4.4:     Result using test data                                                                                      75

 

 


 

LIST OF FIGURES

PAGE

 2.1:     Samples of some function QR code symboles                                               13

 2.2:     QR code layout structure                                                                                17

 2.3:     QR-code scanning and processing                                                                  19

 2.4:     The modification attack                                                                                  30

 2.5:     Spiral Model                                                                                                   35

 3.1:     Level 0 data flow diagram (DFD)                                                                  46

 3.2:     Level 1 data flow diagram (DFD)                                                                  46

 3.3:     System design model  for QRCode banking system                                      47

 3.4:     Sequence diagram of the designed system                                                     49

 3.5:     Class diagram of the designed system                                                            51

 3.6:     Entity diagram of the new system                                                                  52

 3.7:     QRCODE encryption process                                                                        54

 3.8:     QRCODE decryption process                                                                                    57

 4.1:     Main menu of the new system                                                                        59

 4.2:     Diagram of admin login user                                                                          60

 4.3:     User dashboard diagram                                                                                 61

 4.4:     Physical design of the new system database                                                  62

 4.5:     Input format of the new system                                                                     65

 4.6a:   Output format of the new system                                                                   66

 4.6b:   Output format of the new system                                                                   67

 4.7:     User case diagram of the designed system                                                     68

 4.8:     Flowchart of a bank verification and authentication system                          71

 4.9:     Block diagram of bank verification and authentication system                     72

 







CHAPTER 1

INTRODUCTION


1.1       BACKGROUND OF STUDY

Banking system for decade requires highly secured system and uses of the recent technology not known by the common man. Several authentication systems have been used for transactions like encryption models and algorithm. The bank verification and authentication are very vital part of the entire banking system. The users are registered and before the payment transactions are documented, the users provide the system with authentication parameter which is verified. The authentication systems are encrypted string in the form user password and string username generated by system or user choice, Young sil lee et al., (2010).

The internet is currently facilitating online purchases and making payment very flexible. This has opened new market for companies on which the numbers of customers are frequently increasing. The techniques used in E-payment system fields have some problems in security, speed, usability, and flexibility. We therefore aim at providing a new system that will solve and interact with this problems, our system will enable crediting and debiting of an account by generating a Quick Response (QR) Code amount for the designated account holder.

When a customer's payment information is sent to merchant, the merchant has the ability to obtain the customer's payment information like credit card number, credit card issuers and expiration date. Even if a merchant receives a customer's payment information in an encrypted form, he can save the encrypted information and decrypt it later. The current payment systems allow a merchant to obtain some form of a customer's payment information so that merchant can claim the validity of a transaction. However, a merchant does not necessarily need a customer's payment information to prove the validity of a transaction. Other information related to a purchase can be used to prove the validity of a transaction, Dey et al., (2013)

Frauds that occur on the internet today are mostly from hackers, fraud merchant's, spammer's and data thieves who place attacks on networks and personal computers to corrupt and steal information. To avoid these risks, it is desirable not to send a customer's payment information to a merchant at all, because it creates the possibilities of security breach and information-leak from a merchant side.

 

User authentication and the verification of banking transactions in Internet based services is an important issue that has received much attention by researchers and practitioners alike. Addressing the security concern surrounding user authentication and online transactions is essential, considering the extensive use of computers and electronic devices in our everyday life. Moreover, with the increasing number and variety of malicious threats such as phishing, Trojans and key-loggers, many banking transactions are carried out on unreliable computers or devices.

The recent technology requires a system that will encrypt transaction information on a given generated image known as QRCODE. The transaction details are embedded into the QRCODE. The account number to be credited, the amount and the transaction ID. Expeditious growth in E-Commerce trade has led to various user centric applications throughout the world. The ever growing popularity of online shopping and ticket booking has shown new dimensions of technology. The Debit or Credit card fraud and personal information security are major issues for customers and banks particularly in the case of funds transfer or during online shopping, Rif_a-Pous and Helena et al, (2009).

 

Banks are becoming increasingly reluctant to reimburse user who fall prey to online scams such as phishing or a pharming. The first hacking incident in Korea in 2005 spurred the Korean Financial Supervisory Service (FSS) to announce a comprehensive countermeasure. One of the countermeasures that draw high attention of the financial agencies is One Time Password (OTP), one of the user confirmation methods is introduced, and Joint Confirmation Center (JCC) of OTP is established, Sun and Chen et al., (2012).

Two new approaches are used for the purpose of E-payment transaction. The first method requires customer’s limited personal information that is necessary for fund transfer during online shopping. This safeguards the customer data which indeed increases customer confidence and prevents identity theft. The second method is the generation of secure e-tickets for train and movie applications based on QRCODES with encrypted content, Chow and Susilo et al, (2014).

In modern world, we do almost everything on-online (banking, communicating, storing and sharing personal information, shopping), it is now critical to be able to access these services in the most secured manner. As viruses and cracking methods are becoming more complex and powerful day by day, so the available security techniques must improve as well, to allow users to protect their data and communications with the maximum security, Young and Nack et al., (2010).

There is a method called one factor authentication which was used traditionally, but it was less secure because using username and password are not secure enough for critical transactions and anyone can access this information. This research, therefore represent one method namely Two Factor Authentication method which provide more security than the previous one and a two-factor-authentication method includes two of three authentication verification method, Chow et al., (2014).

Cyber – security is very important because of gradual increase in information technology. The Online financial transaction in the past was required to apply a security card and public key certificate which were the methods of confirming a user, and in recent decade, One-Time Password (OTP) was introduced. One-Time Pass-word is a password system where passwords can only be used once and the user has to be authenticated with a new password each time. This guarantee the safety even if an attacker is tapping password in network or a user loses it. Besides, OTP features anonymity, portability, and extensity, and enables the user keep the information from being leaked, Chow et al., (2014).

Previous banking services used security card which does not suite modern Mobile environment because we do not know when and where online banking will be used. In very emergency situation online banking cannot be done without security cards. The current online banking system send OTP on user’s mobile which can be hack during transmission. In order to overcome such weaknesses and inconvenience of security card, our proposed authentication system uses two dimensional barcodes (2D Barcode) called QR code instead of security cards. QR code stands for “Quick Response” code. From QR code data can be retrieved very fast with greater accuracy even if some part of data is corrupted, Bonneau and Herley et al., (2012).

The QRCODE is a type of bar code. A bar code is one dimensional code and QRCODES are two dimensional. QR codes can store more data than bar code. To eliminate attack like phishing attack and to confirm user identity, QRCODE which is scanned by user system device can be used and weakness of traditional password based system can be improved by finding the user transaction information and it is unique at the user side, Denso Wave, (2014).

This thesis work examines the challenging problem of user verification and authentication of a transaction on unreliable devices. We present an approach that uses personal trusted device, with the requirement that the device has a camera. This is a reasonable requirement that does not overburden the user, as nowadays many devices such as smartphones, ATMs and laptops are common and are equipped with cameras / webcam. Moreover, in our approach the user does not have to remember any password(s).

 

1.2       STATEMENT OF THE PROBLEM

In most of the cases, users have complained about the loss of their bank card and the password hacked or stolen. Stealing stored electromagnetic information of an ATM card, using a skimming device or by any other latest technology is quite easier and has access to the human signature through forceful request or forgery, Mukhopadhyay, et al, (2011).

The use of Username and password has failed in most cases of banking system authentication. Also, keeping an ATM card handy is not at all safe, because there is a chance that someone can steal it, or the latest technology updates facilitates the stealing of the ATM cards information by just passing it very close to the user. By this, user may not be aware of losing privacy of their Bank card’s information, Clarke, et al, (2002).

Furthermore, the loss of personal mobile phones GSM, has also aided criminal activities and hacking ones bank information. People are therefore looking for a highly secured banking system and other security systems to get rid of anti-social elements. The main aim is to provide an intelligent dual security level to the current security systems in banking sector.


1.3       AIM AND OBJECTIVES

The main aim of this thesis is to Design and Develop a Bank Verification Authentication System using QRCODE that will handle the use of an intelligent machine generated encrypted code (QRcode) to achieve a highly intensive security measure. The specific objectives are:

1.      To identify the necessary data required for the development of a bank verification and authentication system.

2.      To develop an algorithm for bank verification and authentication system.

3.      Based on the algorithm developed in (2) above, to develop and realize this algorithm in code using Hyper Text Markup Language (HTML5).

4.      To develop the back end of bank verification platform using python flask and HTML 5.

5.      To develop a database a database for web management using SQLite.

6.      To integrate the verification, authentication module with the back end platform for QRcode using python flask.

7.      To setup prove of concept on sublime text Widows environment and Android environment.

 

1.4       JUSTIFICATION

The system used for generating this encrypted files or password could be decrypted by the same operating system or system kernel using several hacking practices. In other that individual bank accounts are secured from unauthorized user to have access, there is the need for an image alphanumeric security.

The QR coded image is generated using Unique Personal Identifier Code (UPIDC) generated by the system, with an intelligent agent that monitors successful and unsuccessful authentication. This thesis will also help in the elimination of paper cheque thereby permitting all transactions to be generated with QRcode account debiting and crediting.

 

1.5       SCOPE

Several authentication systems have been used for transactions like encryption models and algorithm. The bank verification and authentication are very vital part of the entire banking system. User authentication and the verification of banking transactions in Internet based services is an important issue that has received much attention by researchers and practitioners alike. Addressing the security concern surrounding user authentication and verifications in online transactions is essential, considering the extensive use of computers and electronic devices in our everyday life.

This research work basically focuses on the design and development of a highly intelligent secured banking system that cannot be hacked using human properties. The security system of the two-dimensional QRCODE incorporates the technology architecture of the use of encrypted text into image files with intelligent agent. The (2-D QRCODE) will serve as a gateway to accessing bank account.


 

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