C# application which requires access key to activate licence [duplicate] - c#

I'm currently involved in developing a product (developed in C#) that'll be available for downloading and installing for free but in a very limited version. To get access to all the features the user has to pay a license fee and receive a key. That key will then be entered into the application to "unlock" the full version.
As using a license key like that is kind of usual I'm wondering :
How's that usually solved?
How can I generate the key and how can it be validated by the application?
How can I also avoid having a key getting published on the Internet and used by others that haven't paid the license (a key that basically isn't "theirs").
I guess I should also tie the key to the version of application somehow so it'll be possible to charge for new keys in feature versions.
Anything else I should think about in this scenario?

Caveat: you can't prevent users from pirating, but only make it easier for honest users to do the right thing.
Assuming you don't want to do a special build for each user, then:
Generate yourself a secret key for the product
Take the user's name
Concatentate the users name and the secret key and hash with (for example) SHA1
Unpack the SHA1 hash as an alphanumeric string. This is the individual user's "Product Key"
Within the program, do the same hash, and compare with the product key. If equal, OK.
But, I repeat: this won't prevent piracy
I have recently read that this approach is not cryptographically very sound. But this solution is already weak (as the software itself has to include the secret key somewhere), so I don't think this discovery invalidates the solution as far as it goes.
Just thought I really ought to mention this, though; if you're planning to derive something else from this, beware.

There are many ways to generate license keys, but very few of those ways are truly secure. And it's a pity, because for companies, license keys have almost the same value as real cash.
Ideally, you would want your license keys to have the following properties:
Only your company should be able to generate license keys for your products, even if someone completely reverse engineers your products (which WILL happen, I speak from experience). Obfuscating the algorithm or hiding an encryption key within your software is really out of the question if you are serious about controlling licensing. If your product is successful, someone will make a key generator in a matter of days from release.
A license key should be useable on only one computer (or at least you should be able to control this very tightly)
A license key should be short and easy to type or dictate over the phone. You don't want every customer calling the technical support because they don't understand if the key contains a "l" or a "1". Your support department would thank you for this, and you will have lower costs in this area.
So how do you solve these challenges ?
The answer is simple but technically challenging: digital signatures using public key cryptography. Your license keys should be in fact signed "documents", containing some useful data, signed with your company's private key. The signatures should be part of the license key. The product should validate the license keys with the corresponding public key. This way, even if someone has full access to your product's logic, they cannot generate license keys because they don't have the private key. A license key would look like this: BASE32(CONCAT(DATA, PRIVATE_KEY_ENCRYPTED(HASH(DATA))))
The biggest challenge here is that the classical public key algorithms have large signature sizes. RSA512 has an 1024-bit signature. You don't want your license keys to have hundreds of characters.
One of the most powerful approaches is to use elliptic curve cryptography (with careful implementations to avoid the existing patents). ECC keys are like 6 times shorter than RSA keys, for the same strength. You can further reduce the signature sizes using algorithms like the Schnorr digital signature algorithm (patent expired in 2008 - good :) )
This is achievable by product activation (Windows is a good example). Basically, for a customer with a valid license key, you need to generate some "activation data" which is a signed message embedding the computer's hardware id as the signed data. This is usually done over the internet, but only ONCE: the product sends the license key and the computer hardware id to an activation server, and the activation server sends back the signed message (which can also be made short and easy to dictate over the phone). From that moment on, the product does not check the license key at startup, but the activation data, which needs the computer to be the same in order to validate (otherwise, the DATA would be different and the digital signature would not validate). Note that the activation data checking do not require verification over the Internet: it is sufficient to verify the digital signature of the activation data with the public key already embedded in the product.
Well, just eliminate redundant characters like "1", "l", "0", "o" from your keys. Split the license key string into groups of characters.

Simple answer - No matter what scheme you use it can be cracked.
Don't punish honest customers with a system meant to prevent hackers, as hackers will crack it regardless.
A simple hashed code tied to their email or similar is probably good enough. Hardware based IDs always become an issue when people need to reinstall or update hardware.
Good thread on the issue:
http://discuss.joelonsoftware.com/default.asp?biz.5.82298.34

When generating the key, don't forget to concatenate the version and build number to the string you calculate the hash on. That way there won't be a single key that unlocks all everything you ever released.
After you find some keys or patches floating in astalavista.box.sk you'll know that you succeeded in making something popular enough that somebody bothered to crack. Rejoice!

I'm one of the developers behind the Cryptolens software licensing platform and have been working on licensing systems since the age of 14. In this answer, I have included some tips based on experience acquired over the years.
The best way of solving this is by setting up a license key server that each instance of the application will call in order to verify a license key.
Benefits of a license key server
The advantages with a license key server is that:
you can always update or block a license key with immediate effect.
each license key can be locked to certain number of machines (this helps to prevent users from publishing the license key online for others to use).
Considerations
Although verifying licenses online gives you more control over each instance of the application, internet connection is not always present (especially if you target larger enterprises), so we need another way of performing the license key verification.
The solution is to always sign the license key response from the server using a public-key cryptosystem such as RSA or ECC (possibly better if you plan to run on embedded systems). Your application should only have the public key to verify the license key response.
So in case there's no internet connection, you can use the previous license key response instead. Make sure to store both the date and the machine identifier in the response and check that it's not too old (eg. you allow users to be offline at most 30 days, etc) and that the license key response belongs to the correct device.
Note you should always check the certificate of license key response, even if you are connected to the internet), in order to ensure that it has not been changed since it left the server (this still has to be done even if your API to the license key server uses https)
Protecting secret algorithms
Most .NET applications can be reverse engineered quite easily (there is both a diassembler provided by Microsoft to get the IL code and some commercial products can even retrieve the source code in eg. C#). Of course, you can always obfuscate the code, but it's never 100% secure.
I most cases, the purpose of any software licensing solution is to help honest people being honest (i.e. that honest users who are willing to pay don't forget to pay after a trial expires, etc).
However, you may still have some code that you by no means want to leak out to the public (eg. an algorithm to predict stock prices, etc). In this case, the only way to go is to create an API endpoint that your application will call each time the method should be executed. It requires internet connection but it ensures that your secret code is never executed by the client machine.
Implementation
If you don't want to implement everything yourself, I would recommend to take a look at this tutorial (part of Cryptolens)

Besides what has already been stated....
Any use of .NET applications are inherently breakable because of the intermediate language issues. A simple disassembly of the .NET code will open your product to anyone. They can easily bypass your licensing code at that point.
You can't even use hardware values to create a key anymore. Virtual machines now allow someone to create an image of a 'licensed' machine and run it on any platform they choose.
If it's expensive software there are other solutions. If it's not, just make it difficult enough for the casual hacker. And accept the fact that there will be unlicensed copies out there eventually.
If your product is complicated, the inherent support issues will be create some protection for you.

The C# / .NET engine we use for licence key generation is now maintained as open source:
https://github.com/appsoftware/.NET-Licence-Key-Generator.
It's based on a "Partial Key Verification" system which means only a subset of the key that you use to generate the key has to be compiled into your distributable. You create the keys your self, so the licence implementation is unique to your software.
As stated above, if your code can be decompiled, it's relatively easy to circumvent most licencing systems.

I've used Crypkey in the past. It's one of many available.
You can only protect software up to a point with any licensing scheme.

I don't know how elaborate you want to get
but i believe that .net can access the hard drive serial number.
you could have the program send you that and something eles ( like user name and mac address of the nic)
you compute a code based off that and email them back the key.
they will keep them from switching machines after they have the key.

I strongly believe, that only public key cryptography based licensing system is the right approach here, because you don't have to include essential information required for license generation into your sourcecode.
In the past, I've used Treek's Licensing Library many times, because it fullfills this requirements and offers really good price. It uses the same license protection for end users and itself and noone cracked that until now. You can also find good tips on the website to avoid piracy and cracking.

The only way to do everything you asked for is to require an internet access and verification with a server. The application needs to sign in to the server with the key, and then you need to store the session details, like the IP address. This will prevent the key from being used on several different machines. This is usually not very popular with the users of the application, and unless this is a very expensive and complicated application it's not worth it.
You could just have a license key for the application, and then check client side if the key is good, but it is easy to distribute this key to other users, and with a decompiler new keys can be generated.

I've implemented internet-based one-time activation on my company's software (C# .net) that requires a license key that refers to a license stored in the server's database. The software hits the server with the key and is given license information that is then encrypted locally using an RSA key generated from some variables (a combination of CPUID and other stuff that won't change often) on the client computer and then stores it in the registry.
It requires some server-side coding, but it has worked really well for us and I was able to use the same system when we expanded to browser-based software. It also gives your sales people great info about who, where and when the software is being used. Any licensing system that is only handled locally is fully vulnerable to exploitation, especially with reflection in .NET. But, like everyone else has said, no system is wholly secure.
In my opinion, if you aren't using web-based licensing, there's no real point to protecting the software at all. With the headache that DRM can cause, it's not fair to the users who have actually paid for it to suffer.

You can use a free third party solution to handle this for you such as Quantum-Key.Net It's free and handles payments via paypal through a web sales page it creates for you, key issuing via email and locks key use to a specific computer to prevent piracy.
Your should also take care to obfuscate/encrypt your code or it can easily be reverse engineered using software such as De4dot and .NetReflector. A good free code obfuscator is ConfuserEx wich is fast and simple to use and more effective than expensive alternatives.
You should run your finished software through De4Dot and .NetReflector to reverse-engineer it and see what a cracker would see if they did the same thing and to make sure you have not left any important code exposed or undisguised.
Your software will still be crackable but for the casual cracker it may well be enough to put them off and these simple steps will also prevent your code being extracted and re-used.
https://quantum-key.net
How to use ConfuserEx?
https://github.com/0xd4d/de4dot
https://www.red-gate.com/dynamic/products/dotnet-development/reflector/download

I know this is an old question, but I referenced this when I was re-writing my licensing process for one of my applications.
After reading a lot of opinions out there and relying on past experience with license codes I came up with this process.
public static class LicenseGenerator
{
private static string validChars = "ACEFHJKMNPRSTUVWXYZ234579";
private static Random rnd = new Random(Guid.NewGuid().GetHashCode());
/// <summary>
/// Generate a license code
/// </summary>
/// <param name="length">length of each phrase</param>
/// <param name="number">number of phrases separated by a '-'</param>
/// <returns></returns>
public static string GetNewCode(int length, int number)
{
string license = string.Empty;
for (int numberOfPhrases = 0; numberOfPhrases < number; numberOfPhrases++)
{
license += getPhrase(length);
if (numberOfPhrases < number)
license += "-";
}
return license.TrimEnd('-');
}
/// <summary>
/// generate a phrase
/// </summary>
/// <param name="length">length of phrase</param>
/// <returns></returns>
private static string getPhrase(int length)
{
string phrase = string.Empty;
for (int loop = 0; loop < length; loop++)
{
phrase += validChars[rnd.Next(validChars.Length)];
}
return phrase;
}
}
You really don't want to provide a code that has similar letters; it makes for a mess when the end user goes to enter it in. Letters like 6 and G, B and 8, L, I, and 1. Of course if you do want them, you can always add them back in... The above code will generate a license like xxxx-xxxx-xxxx-xxxx using the characters in "validChars". Calling GetNewCode(4, 4) will return a code like above.
I'm using Azure functions to register then validate the code. When my app registers the code, it generates an encrypted hash with things that are unique to the install, device and/or user. That is provided to the registration function and is stored with the key in the DB in Azure.
The validate regenerates the key and provides it with the license code, IP address (which in my case will not change and if it does then it will need to be updated anyway), and the regenerated hash then the Azure function returns if the application is licensed. I do store a "temporary" key on their server that allows the app to run for a period of time without talking back up.
Of course, my app must be on the net for it to work regardless.
So, the end result is a simple key for the end user to type in and an easy process to manage the license on the backend. I can also invalidate a license if need be.

I solved it by interfacing my program with a discord server, where it checks in a specific chat if the product key entered by the user exists and is still valid. In this way to receive a product key the user would be forced to hack discord and it is very difficult.

Related

Product activation with public key certificate

I need some ideas how to create a activation algorithm. For example i have demo certificate. Providing that the application runs in demo mode. When full version certificate is provided then application runs in full mode.
Is it even possible and how would be a good way creating this system?
One simple was i was thinking would be just have a 2 encrypted strings, now when the decryption is succsessful with the demo public key certificate then the application will run in demo mode and etc..
You could do something like:
Generate public/private key pair
As owner of private key, you can sign those "activation certificates" (called AC from now on)
In your app, with public key, you can check if the sign is correct
As Overbose mentioned -- you can't prevent reverse engineering. In general someone could take functionality and put it in his/hers own app and thus eliminate any possible activation algorithm. So you can only assume (or make) this is hard enough not to be worth the effort (this is the same as for cryptography -- when you make the cost of breaking the message greater then the profit of gaining it you can say it is well secured).
So you could:
Make executable self-verifying (signed by you, self-checking based on hard-coded public key (one thing: you must skip this value when self-checking)).
Do some tricks with pointers (point to the activation function, go to 7th bit and change value of it for something based on value of another pointer; in some weird places change hard-coded values to those based on occurrence of some bits in other places of the code; generally -- make it more difficult to break than by simply changing bits in executable with hex editor)
Try to make some protocol that your server would use to ask questions about the app ("gimme the value of 293 byte of yourself") and check answers.
Use imagination and think of some weird self-checking method nobody used before :)
As mentioned -- none of this is secure from cutting the authentication part off. But nothing is and this could make it harder for crackers.
Background: I've deployed an activation based system built on top of a third-party license system, i.e. server, database, e-commerce integrations. I've also separately written a C# activation system using RSA keys, but never deployed it.
Product Activation commonly means that the software must be activated on a given machine. I assume that's what you mean. If all you want to do is have two strings that mean "demo" and "purchased", then they will be decrypted and distributed within hours (assuming your product is valuable). There is just no point.
So. assuming you want "activation", then when the user purchases your software, the following process needs to happen:
Order-fulfillment software tells Server to generate "Purchase Key" and send to user
User enters "Purchase Key" into software
Software sends Purchase Key and unique Machine ID to server.
Server combines Purchase Key and Machine ID into a string and signs it with its certificate and returns it to user.
Software checks that signature is valid using Servers public key.
Software could check in lots of places: loading the sig in lots of places, checking it in others.
When generating Purchase Keys, the server can store not only what produce was purchased, but what level of product. You can also have "free" products that are time limited, so the user can try the full version of the software for 30 days.
You are using C#, so make sure you obfuscate the binaries, using dotfuscator or equivalent. However, even with that there is nothing you can do against a determined hacker. Your goal, I assume, is to force non-paying users to either be hackers themselves, or to have to risk using a cracked version: kids wont care, corporations might. YMMV.
The code that does the checking needs to be in every assembly that needs protecting, otherwise an attacker can trivially remove protection by replacing the assembly that does the checking. Cut and paste the code if you have to.
Or just buy something.
Another option is to have the server pre-generate "Purchase Keys" and give them to the Order fulfillment service, but then you dont get to link the key to the customers details (at least not until they register). Better to have the ecommerce server hit your server when a purchase has been made, and have your server send it out.
The hard part isn't so much the generation of activation keys as it is the creation of the server, database, and the integration with e-commerce software, and most of all, human issues: do you allow unlimited installs per Purchase Key? Only 1? If only 1 then you have to have customer-support and a way to allow a user to install it on a new machine. That's just one issue. All sorts of fun.
This guy wrote a blog post about a similar idea, explaining what he did with their own commercial software. Also wrote a list of recommendations about the most obvious cracking techniques. Hope it helps.
One simple was i was thinking would be just have a 2 encrypted
strings, now when the decryption is succsessful with the demo public
key certificate then the application will run in demo mode and etc..
Could be a simple solution. But this way you won't prevent someone to reverse engineer your binaries and make the execution jump to the correct line. Everyone has your program, has a complete version of it, so it's only a matter of find how to break this simple mechanism.
Maybe a better solution is encrypt a part of the binaries needed to use the full application version, instead of a simple string. This way to execute the application complete version someone need to decrypt those binaries in order to execute them.
Please take in consideration that even that solution isn't enough. There are other problems with that:
Does all the version of your tool will share the same encryption key? Breaking one of them for breaking all..
Even if you use a different key for each binary application released, does the encrypted binary are identical? Once cracked one, you can reuse the unencrypted binaries for all distributed applications.
How to solve these problems? There's no simple solution. Most of the more important commercial software with even sophisticated protection systems are broken just few hours or days after they have been released.
Product activation is not a problem that asymmetric cryptography can solve. Asymmetric cryptography is about keeping secrets from your adversary. The problem is that you can't keep a secret that is stored on you're adversaries machine, that would be security though obscurity.
The correct way to do product activation. Is to generate a Cryptographic Nonce that is stored in a database on your server. You give this Nonce to the customer when they buy the product, and then they activate it online. This activation process could download new material, which would make it more difficult for the attacker to modify the copy they have to "unlock" new features.
But even with DRM systems that require you to be online while using the product. Like the ones found in new games like "From Dust" are still broken within hours of their release.
One of the benefits of public key encryption is that you can verify the origin of a given piece of data. So if you store the public key in your assembly, then sign a given piece of data (say an authorization code or serial number) your assembly can verifiably determine that you were the one that created that data - and not a hacker. The actual data itself isn't all that important - it can be a simple pass/fail value.
This is actually pretty easy to do with .NET. You can use an x509 certificates or like we use in DeployLX Licensing the RSACryptoServiceProvider.
I would highly recommend buying a commercial product (doesn't really matter which one, though DeployLX is excellent) and not doing this yourself for 2 reasons
Even if you're a great developer, you'll probably get it wrong the first time. And any savings you might have enjoyed by rolling your own will be lost to recovering from that mistake.
You'll spend far more time working on your own system - time that you should spend making your product great.
The second phase in protecting the software is to make sure that it runs the way you created it - and hasn't been modified by a hacker. It really doesn't matter what encryption you use if hackers can check if( licensed ) to if( true ).
You can use AsProtect to solve this problem. This is good staring point.

How to limit use to only one computer per installation?

I'm about to release my application which is built in C# VS2008 to my customer, and I want to prevent copy abuse post deployment, since it's easy to copy installation files to another machine and use the application. I want to limit usage to only one computer per installation.
See this question for some products that will help you do this...
https://stackoverflow.com/questions/118031/best-activation-key-software-for-net-application
My favorite for now is IntelliLock. Decent price, supports ASP.Net, and has been around for a while.
Locking to a machine ID is not a trivial thing to do manually. So I would us a license software package. Even if you're just trying to deter casual copying, you have to consider machine components change, and people get new computers.
But if you really want to do this manually see CPU serial number and http://www.vcskicks.com/hardware_id.php. But note even the CPU Serial is not a fool proof method as it quite often is disabled.
Use hashing to generate an unlock key. The idea is to gather some data which is fixed on the target machine but also unique. Examples are the name of the machine, id of network card, ... Generate a hash from these values and let the user send this data to you. Generated a new hash from this value and a secret key (only known by you) and send it back to the user. Now the user has to enter this key to unlock your software.
Use an "activation" scheme, like Microsoft does with Windows. Each installation must authenticate itself against a server somewhere using a key. If a key is used more than once, prompt the user to call and talk to a real person.
Just make a pre-screen to enter login\pwd

Implementing License Validation with RSA

I am about to sell a program I have written in C# and I want to control licenses for it, strictly. That means I want to let the client connect to my server every single time it starts. This also gives me the ability to disable keys (in case of chargebacks on paypal or distribution of the code). Of course this might be a hassle for other users, but it is necessary in this case.
Since I was unable to find any good .NET Licensing systems that are uncracked, I wanted to take the approach of writing a little one myself.
My plan was to do the following:
Generate a key.dat containing 1024 characters that gets shipped with the software (individual to each user)
In the application entrypoint add a httprequest to my server that sends the key.dat + current timestamp, encrypted.
My HTTP server (running PHP) decrypts the request and checks if the key is valid (in my database) and replies with the "access level" (license type). If the key is invalid or disabled it replies with an errorcode. Just like with the request, the reply is being salted with a timestamp, so someone can't validate his program by sending a valid packet to himself. The timestamp is being checked in the client. The reply is encrypted with RSA and a previously generated public key.
Client receives response, decrypts with private key and reacts.
Is RSA the correct approach for this, so I can assure that the packets are sent by me and are not crafted (by noone else having the public key)?
Is there a better approach for solving this problem?
Someone who wants your software bad enough will just decompile it and remove the part of the code that phones home on startup.
If you were to add a checksum to the app that checks whether the code has been altered, someone can just change the checksum the program checks against (or remove the check entirely).
People who want your application enough will find ways around any type of protection you can conceive. You're better off sticking to something simple, having a product that is worth paying for (and easily) and make sure it's worth the price you're asking.
EDIT
Given that protection is important, the fact that the users will have code running on their machines is a risk you can avoid. If the users don't have the code, they can't crack it. They can't copy it and share it.
Now, it might not apply to the application you intend to write, but you should consider writing a web, Flash or Silverlight application instead of a regular client application. That way you don't have to distribute the code to customers. All you have to do is manage credentials into the application, which should be a lot easier than your round-about RSA system.
It's also easier to push out new versions of the software in a centralized model, and you won't have to worry about theft at all. Of course, load will become an issue when it wasn't before. And not all applications can be centralized easily (or at all). I'm just proposing this to make sure you consider it because it is a valid solution to your problem.
A web-based application will have the same issues as your application (i.e. it will be down whenever the user is offline, whenever the network is down, whenever your server is down, etc). So there's no added risk in that regard.
Is RSA the correct approach for this?
I do not think RSA is your best choice.
One of the capabilities of PKE (Public Key Encryption) is that it lets parties talk to each other who previously have never exchanged information before (eg. strangers).
I do not see this applying to your case. Your software knows your server well. They are not "strangers".
Consider instead Shared Secret Key encryption, where each copy of the software you distribute is given a unique secret key, and your server knows each user's secret key as well. The keys are never sent, and must be protected, but can still be used to encrypt, sign, and validate communications.
Edit After considering the comments and other answers.
Anyone who wants your software badly enough will be able to bypass the authentication completely. RSA does nothing to prevent that.
The real question is: Does breaking a single license make all licenses vulnerable/worthless. In both cases, (RSA and Secret Key), the answer is No. Just because one copy of the software got hacked and got its key exposed, or the licenses system bypassed, other copies are no more exposed. PKE and SSE seem equal in that respect to me.
Because Shared Secret Key is easier to implement, and computationally faster to execute, I think it is preferred in this case over RSA/PKE. That is not to say RSA is "wrong". It will accomplish what you are after, to the same degree that SSE will (no more, no less). But I think SSE is the smarter choice.

How can I secure an "enabled functions" license file for my program?

My Application can perform 5 business functions. I now have a requirement to build this into the licensing model for the application.
My idea is to ship a "keyfile" with the application. The file should contain some encrypted data about which functions are enabled in the application and which are not. I want it semi hack proof too, so that not just any idiot can figure out the logic and "crack" it.
The decrypted version of this file should contain for example:
BUSINESS FUNCTION 1 = ENABLED
BUSINESS FUNCTION 2 = DISABLED.... etc
Please can you give me some ideas on how to do this?
While it could definitely be done using Rijndael, you could also try an asymmetric approach to the problem. Require the application to decrypt the small settings file on start up using a public key and only send them new configuration files encrypted using the private key.
Depending on the size of your configuration file, this will cause a performance hit on startup compared to the Rijndael algorithm, but even if the client decompiles the program and gets your public key its not going to matter in regards to the config file since they won't have the private key to make a new one.
Of course none of this considers the especially rogue client who decompiles your program and removes all the checking whatsoever ... but chances are this client won't pay for your product no matter what you do thus putting you in a position of diminishing returns and a whole new question altogether.
Probably the easiest secure solution is to actually use online activation of the product. The client would install your product, enter his key (or other purchase identification -- if you purchase online this could all be integrated, if you are selling a box, the key is more convenient).
You then use this identification to determine what features are available and send back an encrypted "keyfile" (as you term it), but also a custom key (it can be randomly generated, both the key and key file would be stored on your server -- associated with that identification).
You then need to make sure the key file doesn't work on other computers, you can do this by having the computer send back it's machine ID and use that as added salt.
I've been pondering using custom built assemblies for the purpose of application licensing. The key file approach is inherently flawed. Effectively, it's a bunch of flags saying "Feature X is enabled, Feature Y is not". Even if we encrypt it, the application will have all the functionality built in - along with the method to decrypt the file. Any determined hacker is unlikely to find it terribly hard to break this protection (though it may be enough to keep the honest people honest, which is really what we want).
Let's assume this approach of encrypted "Yay/Nay" feature flags is not enough. What would be better is to actually not ship the restricted functionality at all. Using dynamic assembly loading, we can easily put just one or two core functions from each restricted feature into another assembly and pull them in when needed. These extra "enablement" assemblies become the keyfiles. For maximum security, you can sign them with your private key, and not load them unless they're well signed.
Moreover, for each customer, your build and licensing process could include some hard to find customer specific data, that effectively ties each enablement assembly to that customer. If they choose to distribute them, you can track them back easily.
The advantage of this approach over simple Yay/Nay key files is that the application itself does not include the functionality of the restricted modes. It cannot be hacked without at least a strong idea of what these extra assemblies do - if the hacker removes their loading (as they would remove the keyfile), the code just can't function.
Disadvantages of this approach include patch release, which is somewhat mitigated by having the code in the keyfile assemblies be simple and compact (yet critical). Custom construction of an assembly for each customer may be tricky, depending on your distribution scenario.
You could achieve this fairly easily using Rijndael, however the problem is the fact that the code will contain your Key in your current design. This basically means someone will disassemble your code to find the key and boom, goodbye protection. You could slow this process by also obfuscating your code, but again, if they want to get it, they will get it.
However, this aside, to answer your question, this code should work for you:
http://www.dotnetspark.com/kb/810-encryptdecrypt-text-files-using-rijndael.aspx
I find Perforce-style protection scheme easiest to implement and use, while at the same time being quite hack-proof. The technique uses a plain text file with a validation signature attached at the last line. For example:
----(file begin)
key1: value1
key2: value2
expires: 2010-09-25
...
keyN: valueN
checksum: (base64-encoded blob)
---- (file end)
You would choose an assymetric (public/private key) encryption algorithm + hashing algorithm of your choice. Generate your reference public/private key pair. Include the public key in your program. Then write a small utility program that will take an unsigned settings file and sign it - compute the digital signature for the contents of the file (read settings file, compute hash, encrypt this hash using private key) and attach it (e.g. base64-encoded) as "checksum" in the last line.
Now when your program loads the settings file, you would read the embedded public key and validate the digital signature (read file contents, strip the last line, compute hash; compare this value against checksum from last line base64 decoded and run through the assymetric decryption using embedded public key). If the validation succeeds, you know the settings file has not been tampered with.
I find the advantages to be that the settings are in plain text (so for example the customer can see when the license expires or what features they paid for), however changing even a single character in the file with result in the digital signature check failing. Also, keep in mind that you are now not shipping any private knowledge with your program. Yes, the hackers can reverse-engineer your program, but they will only find the public key. To be able to sign an altered settings file, they will have to find the private key. Good luck doing that unless you're a three-letter agency... :-).
Use any 'Cryptography' method to implement this.
Just check out the namespace 'System.Security.Cryptography'
The above namespace providing many encryption and decryption functions to protect secret data.
You have another method to implement this using registry.
You can store data in windows registry.
Better to encrypt data before store into registry.
ROT-13!
Edit:
ROT-13 is a simple substitution cipher in which each letter is substituted by the letter 13 letters before it in the alphabet. (NOTE: alternatively, you can use the ascii-value 13 less than the given char to support more than [ A-Z0-9]).
For more info see wikipedia.

Storing credit card details

I have a business requirement that forces me to store a customer's full credit card details (number, name, expiry date, CVV2) for a short period of time.
Rationale: If a customer calls to order a product and their credit card is declined on the spot you are likely to lose the sale. If you take their details, thank them for the transaction and then find that the card is declined, you can phone them back and they are more likely to find another way of paying for the product. If the credit card is accepted you clear the details from the order.
I cannot change this. The existing system stores the credit card details in clear text, and in the new system I am building to replace this I am clearly not going to replicate this!
My question, then, is how I can securely store a credit card for a short period of time. I obviously want some kind of encryption, but what's the best way to do this?
Environment: C#, WinForms, SQL-Server.
Basically avoid by all means taking the responsiblity to save the CC details on your side, however I can assume you are using a thirdparty service to do your transaction such as PayPal/Verisign or whatever, most of them have API's that enables you to save CC credentials at their side, and they give you back a key that you can then use later to complete or initiate transactions, so they take care of the hard part, while all what you have to do is store this string key in your DB.
I don't believe it's actually illegal to store CVV info (in the sense that it's against any law), but it does violate Payment Card Industry rules, and they could impose any number of different sanctions. So, your requirements could actually result in you not being able to accept credit cards ;-(
Andrew, you need to understand the PCI-DSS, no small task. Personally, I find it extremely vague but here is what I understand.
First off, from the scenario you describe I would attempt to authorize the card for the full amount and then if that failed I would store the customer's information (but not the cardholder data) so someone could contact the user. Where I use to work some of our customers would only charge $1.00 and then void the transaction immediately, just to make sure the card was valid. They would then process all orders manually.
Where you will need to store the number is on a successful authorization. The only number you need then is the credit card number and the transaction code (at least with every gateway I have ever worked with).
The standard, last time I looked at it, is not specific on encryption algorithms but instead makes it clear it should be currently unbreakable encryption.
Now, one thing you cannot do is store the CCV subsequent to authorization. My understanding is that you can store it prior to authorization but I could never get anyone that would put that in writing. Basically, you authorize the card, you better wipe it.
And it is not illegal at this point but if you get nailed they will bring the hammer down on you. They have within their authority to level heavy fines against you, but it seems like what they usually do is put you in remediation. If you don't comply I don't know what happens because everyone I have heard this happening to complied. But then they really go up your booty with a microscope.
Ultimately, I believe their only stick they really have is to prevent you from accepting credit cards. Most merchants I have worked with were scared to death of exactly that.
If you just want to store the string for a short period of time in memory, you can take a look at System.Security.SecureString.
Taken from this answer:
SecureString values are stored encrypted (obfuscated, rather), but most importantly, they are never swapped to disk and can be disposed of immediately when you're done with them.
They're tricky to use because you can only build them one character at a time (to encourage you to build them by capturing keystrokes as the user types their password), and require three lines of code to recover and then wipe their plain text, but when used properly they can make a program more secure by avoiding the virtual-memory vulnerability.
At the end of the example the SecureString is converted into a regular managed string, which makes it vulnerable again (be sure to use the try-catch-finally pattern to Zero the string after you're done with it). SecureString's use is in reducing the surface-area of attack by limiting the number of copies the Garbage Collector will make of the value, and reducing the likelihood of being written to the swap file.
// Make a SecureString
SecureString sPassphrase = new SecureString();
Console.WriteLine("Please enter your passphrase");
ConsoleKeyInfo input = Console.ReadKey(true);
while (input.Key != ConsoleKey.Enter)
{
sPassphrase.AppendChar(input.KeyChar);
Console.Write('*');
input = Console.ReadKey(true);
}
sPassphrase.MakeReadOnly();
// Recover plaintext from a SecureString
// Marshal is in the System.Runtime.InteropServices namespace
try {
IntPtr ptrPassphrase = Marshal.SecureStringToBSTR(sPassphrase);
string uPassphrase = Marshal.PtrToStringUni(ptrPassphrase);
// ... use the string ...
}
catch {
// error handling
}
finally {
Marshal.ZeroFreeBSTR(ptrPassphrase);
}
If you are going to store credit card information you really need to be PCI compliant or you're just asking for trouble.
Having said that look at the cell level encryption available in SQL Server 2005 and above. Coincidentally :) I have recently given a presentation with T-SQL samples on encryption with SQL Server 2005/2008 available here: http://moss.bennettadelson.com/Lists/Events/Attachments/9/June2008.zip (Link location updated December 23, 2008)
Agreed that you should avoid storing the data if you can. But maybe you are that third party? If so, get familiar with PCI standards. Look around a bit on the site and you'll find the security measures you are required to implement.
It costs somewhere in the neighborhood of $30,000 to become properly compliant and to be able to do that kind of stuff. You are better off using a 3rd party payment service. Personally, I recommend Element Express, and they have a "Hosted" solution that bypasses the PCI-DSS PAPDB compliance. I've had to convert to this for my own applications, even a Point of Sale machine!!! It's a big pain, but we're a small company.
http://www.elementps.com/software-providers/our-security-edge/hosted-payments/PA-DSS-Certification-vs-Elements-Hosted-Payments/
The above link has some good information about the costs associated with becoming compliant. We have had customers ask us to store credit card numbers, and we won't do it because we could be fined as well. Not good. Don't open yourself up to liability.
Edit:
Additionally, if you DO decide to store the credit card information you definitely need to consider the forms of encryption you are going to use. Symmetric ? Asymmetric ?
If you do Symmetric encryption (Passkey) then you open yourself up to some serious security vulnerabilities if the server(site) that has the key (needed to encrypt) is compromised in any way. Remember, even compiled code won't hide a text key.
If you use Asymmetric encryption (public/private keypairs) then you run into some additional issues, but if the primary public facing server is compromised they will only have the public key, and if they also access your database.. they won't be able to decrpyt the contents.
The question then is, where do you store the private key ? Do you have someone paste it in from their local computers when running admin functions.. have a separate application that runs on the desktop to view orders, etc.
There are a lot of things to take into consideration.
Final note: Use a payment gateway (Element Express, Authorize.NET, Paypal, etc.) and don't store any credit card info locally. :P
Here is a link about using X509 Asymmetric Encryption in C#: http://www.csharpbydesign.com/2008/04/asymmetric-key-encryption-with.html
Lets look at the requirement a little differently. Currently it looks like this:
As a product owner for website X i want the system to temporarily store a customers cc details so that i can recover a sale that was declined by the CC company
Ppl tend to think like that and request features in that manner. Now i think your requirement is more conveniently described as follows:
As a user i want website X to be able to retry payment for my purchase so i dont have the hassle of having to go thru the checkout process again coz that is a real pain in the...
So there's no explicit requirement for storing anything (on your side) is there? Its only implied
Payment providers can provide programmatic APIs to your merchant account and the ability to attempt a re-auth on a declined attempt. i think #bashmohandes eluded to this earlier
Not all payment providers can do this however i think its dependent on their relationships with the banks involved. Thats the stuff you want to avoid ie. having a close relationship with banks.
Scenario 1: Assuming all i said is true
You don't have to store anything but a reference to the authorization attempt. Some payment providers even give you a sweet backoffice tool so you dont have to make your own to do re-auths. I think paygate does this
Your best bet i believe is to interview a number of payment providers. they should know this stuff like the back of their hands. This is potentially a zero-code solution
Scenario 2: Assuming i'm like totally wrong but legally this storing CC stuff is ok
So you have to store that data somewhere temporarily. I advise:
use a 2-way encryption method (naturally) that is non-vendor specific so you can use any language/platform to encrypt/decrypt
decouple the encrypt/decrypt service from your app and treat it like a black box
use public/private keys for authentication to this service
put this machine on a private network with its own elevated firewall rules (doesn't have to be a hardware firewall but hardware is better)
have your app servers communicate with this machine via ssl (you could get away with a self-signed cert since its on your private LAN)
All i've suggested in scenario 2 is hurdles but eventually persistence wins the race to get to your data. The only way to absolutely secure data is to unplug your server from the ether but that option is a little radical :-)
Scenario 1 would be nice. Wouldn't it?
Consider your t logs!
If you explain to your customer the full impact (and remedial requirements if they are found out of compliance) then trust me, your 'business requirements' will change very quickly.
If you must store the credit card number (and I advance the thought here that there is no reasonable scenario where you should) and you intend to use a native encryption built-in to your database, then consider this: what about your transaction logs?
If your transaction logs could reflect a credit card number in the clear, then you are out of compliance and should budget for a $10,000 to $50,000 forensic audit at your site if you get caught. Budget for your own attorney in case your customer sues you because you should have known all this stuff.
So if you are going to store a credit card number, run the cipher in code so the transaction logs (insert or update) reflect a ciphered string, not the card number in the clear.
And don't even have a field or column in your database for CVV - encrypted or not - that forensic audit will reveal this (so will the logs) and then your customer is in BIG, BIG trouble. They will pay a fine and could lose their ability to accept credit cards. Your attorney will be very happy.
I have a blog post that deals with this exact situation of storing sensitive data in the database. The blog post uses a String Encryptor class that I built using a Triple DES algorithm but you can plug in your own if you would like.
The blog post contains the video and source code that was used. You can check it out at http://www.wrightin.gs/2008/11/how-to-encryptdecrypt-sensitive-column-contents-in-nhibernateactive-record-video.html. I think it will definitely solve your issue.

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