CompTIA SecurityX (CAS-005)Security ArchitectureMedium

A financial institution is designing a new payment processing system that must comply with strict regulatory requirements for data confidentiality and non-repudiation. The system needs to ensure that all financial transactions are provably authentic and that the sender cannot later deny having sent a specific transaction. Which cryptographic primitive is essential for achieving non-repudiation in this context?

  1. ASymmetric Encryption.
  2. BDigital Signatures.
  3. CHashing.
  4. DAsymmetric Encryption.
Show answer & explanation

Correct answer: B. Digital Signatures.

Digital signatures use the sender's private key to sign a transaction, providing strong evidence of authenticity and integrity. Because only the sender possesses their private key, they cannot credibly deny having originated the signed transaction, thus achieving non-repudiation.

Why the other options are wrong

  • A. Symmetric encryption provides confidentiality but not non-repudiation, as both sender and receiver share the same key.
  • C. Hashing provides integrity (detects tampering) but does not prove the sender's identity or prevent repudiation.
  • D. Asymmetric encryption provides confidentiality (using the recipient's public key) but does not inherently provide non-repudiation for the sender without the use of their private key for signing.

Digital Signatures

A digital signature is a cryptographic mechanism used to verify the authenticity, integrity, and non-repudiation of a digital message or document.

  • Uses asymmetric cryptography (sender's private key for signing, public key for verification).
  • Provides authenticity (sender identity).
  • Provides integrity (detects tampering).
  • Provides non-repudiation (sender cannot deny).
  • Often based on hashing the message first, then encrypting the hash.

Memory trick: A digital signature is like your unique, undeniable fingerprint on a document.

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