What is FIPS 140-2: Why It’s Important? – Source: securityboulevard.com

Know About the Federal Information Processing Standard (FIPS) 140-2

The Federal Information Processing Standard (FIPS) 140-2 defines security standards for cryptography to be utilized by software and hardware companies contracting with the United States government. FIPS 140-2, released by the National Institute of Standards and Technology in 2001, outlines the latest cryptography standard the federal government utilizes. FIPS 140-2 defines how cryptographic modules used by government agencies are approved and validated. It specifies requirements around the operation and design of cryptographic software and modules used to protect information.

FIPS 140-2 describes how cryptographic modules should handle sensitive data such as storing, processing, and transmitting encryption keys, digital signatures, hash functions, and other crypto algorithms. Cryptographic modules include both hardware and software components that implement cryptography. The standard outlines requirements to ensure these modules are secure, reliable, and interoperable across different systems and vendors. It establishes minimum security levels for a cryptographic module’s secure design, implementation, and operation. Compliance with FIPS 140-2 is mandated by many government and private sector organizations to protect sensitive data.

What does it mean to be compliant with FIPS 140-2?

Compliance with FIPS 140-2 specifies that a software or hardware cryptography product fulfills the security mandates outlined within the standard. Accredited labs have validated compliant products to prove they securely implement approved algorithms and key management. Products comply with FIPS 140-2 and assure customers their sensitive data and communications will remain private through solid cryptography.

To achieve FIPS 140-2 compliance, vendors must have their cryptographic modules independently validated by an accredited testing laboratory. The validation process rigorously tests the module to ensure it implements the approved cryptographic algorithms correctly and meets the standard’s other requirements. Modules that receive validation are issued a certificate and added to the NIST list of compliant modules. Customers of the vendors can have confidence in the security of the modules based on this compliance.

FIPS 140-2 Compliance Levels

FIPS 140-2 defines four levels of security compliance for cryptographic modules. The levels range from basic validation to modules that meet more stringent physical security and access control requirements. The levels are in ascending order of strictness and security:

• Level 1: This is the lowest level of compliance. It requires basic requirements for key management and module interfaces. Physical security mechanisms are not required. Software and some hardware implementations typically meet Level 1.
• Level 2: Increases requirements over Level 1 for key management, role-based authentication, and initialization vector selection. Tamper-evident coatings or seals on hardware are required. Smart cards and general-purpose encryption devices commonly meet Level 2.
• Level 3: Adds stricter key management and physical security mechanisms like tamper-response and tamper-detection circuits. It also requires limited administrative access, usually for key transport and storage devices.
• Level 4: The highest level of compliance. Requires a tamper-resistant physical environment with several keys and critical security parameters compartments. Stringent access controls and monitoring are required. Usually required for HSMs involved in electronic funds transfers.

Higher compliance levels require additional operational and documentation requirements. Most commercial software and devices target Level 1 or Level 2 compliance balancing security needs with cost. Levels 3 and 4 are usually for hardware security modules and key management devices where physical security is most critical.

Why is being FIPS 140-2 compliant important?

There are several benefits to achieving FIPS 140-2 certification:

• Meets U.S. Government Requirements: Many U.S. government agencies mandate compliance with FIPS 140-2 for vendors who supply cryptographic modules. Cryptographic equipment must meet FIPS 140-2 to be approved for use.
• Gains Customer Confidence: Compliance demonstrates high-security assurance to customers. It shows cryptographic products meet rigorous testing and validation by accredited labs. This can differentiate vendors and gain additional sales.
• Interoperability: FIPS 140-2 helps enable interoperability between modules from different vendors. It ensures compliant modules implement cryptography in a standardized way. This is important for integrating into government and enterprise systems.
• Liability Reduction: If sensitive data is breached, a FIPS 140-2 compliant vendor has taken the necessary steps to implement strong cryptography according to government standards. This can reduce potential legal liability.
• International Recognition: FIPS 140-2 is influential worldwide. It has become a de facto international standard for cryptographic modules, with many countries adopting similar methodologies. Compliance may satisfy requirements beyond the U.S.

Benefits of FIPS 140-2 Compliance

FIPS 140-2 compliance offers several key benefits:

• It provides a high degree of assurance that sensitive data remains private and secure through the use of strong cryptography. This is important for any organization that handles financial, healthcare, or other confidential digital information.
• It meets the minimum mandates of procuring FIPS 140-2 validated technology enforced by U.S. and Canadian government agencies as well as many enterprises. Agencies that do not enforce it still strongly prefer compliant products.
• It gives a competitive advantage to vendors and increases customer confidence in their security. Compliance can differentiate products in the market and accelerate sales.
• It ensures the interoperability of cryptographic modules through the standardized implementation of algorithms and protocols. This makes it easier to deploy and integrate the modules into existing infrastructure.
• It offers a certain level of future-proofing. FIPS 140-2 validated modules implement algorithms that have been approved and are expected to remain secure for the foreseeable future. Modules can be re-validated to ensure continued compliance.
• It may reduce potential liability by demonstrating due diligence in implementing government-approved cryptographic protections. The organization may face less legal exposure if a data breach still occurs.
• It sets a baseline for international compliance since FIPS 140-2 has strongly influenced standards in other countries. Meeting it may satisfy requirements beyond the U.S. and Canada.
• It gives additional confidence that a product will have a longer useful lifespan. The costs of validation encourage vendors to design modules for longevity to maximize the value of compliance over time.

How to become FIPS 140-2 compliant

To achieve FIPS 140-2 compliance, a vendor must take the following steps:

To achieve compliance with FIPS 140-2, cryptographic modules must adhere to guidelines covering module architecture, key management, physical security, software/firmware integrity, and operating system security. The level of compliance from Level 1 to Level 4 must be determined based on the module’s purpose.

Develop policies, procedures, and documentation governing the cryptographic module’s secure installation, initialization, operation, and management. This includes both vendor and operator documentation.

Have an accredited third-party Cryptographic and Security Testing (CST) laboratory tested and validated the module? The laboratory will rigorously analyze and test the module to verify it properly implements the claimed security requirements at the target FIPS 140-2 level.

If testing is successful, the lab will issue a certification that the module has been validated under the FIPS 140-2 program. The module is then added to the NIST list of validated modules and given a validation certificate.

Maintain compliance through subsequent re-validations within the required timeframe, depending on the validation level. Continue following FIPS 140-2 guidance on identifying and fixing vulnerabilities that may arise. NIST may require a transition to new standards like FIPS 140-3 when they are finalized. Vendors must have modules re-tested to continue to meet U.S. government compliance mandates under new program publications.

What algorithms are compliant with FIPS 140-2?

FIPS 140-2 requires cryptographic modules to implement cryptography using FIPS-approved algorithms and protocols to become validated.

These include:

• AES (Advanced Encryption Standard): Specified in FIPS 197 for encryption and decryption. Used for symmetric key encryption.
• Triple DES (3DES): An older block cipher used for symmetric key encryption. Being phased out for AES but is still approved. Specified in NIST SP 800-67.
• RSA (Rivest–Shamir–Adleman): An algorithm for public-key encryption and digital signatures. Specified in FIPS 186-4.
• ECDSA (Elliptic Curve Digital Signature Algorithm): An elliptic curve cryptography digital signature algorithm. Specified in FIPS 186-4.
• SHA (Secure Hash Algorithm): The Secure Hash Algorithm (SHA), specified in FIPS 180-4, refers to a family of hash functions, including SHA-1, SHA-2, and SHA-3. These functions generate digital signatures from messages and data to ensure their integrity.
• HMAC (Hash-based Message Authentication Code): A mechanism for message authentication using hash functions. Specified in FIPS 198-1.
• DRBG (Deterministic Random Bit Generator): An algorithm for generating random bits for use as keys or challenges. Specified in NIST SP 800-90A.
• Key Establishment Schemes: Methods for establishing cryptographic keys between two parties, including key transport (RSA) and key agreement (ECDH). Specified in NIST SP 800-56A/B/C.
• Digital Signatures: Mechanisms for generating and verifying digital signatures, including RSA and ECDSA. Specified in FIPS 186-4.
• Key Wrapping: Methods for encrypting keys using other cryptographic keys and algorithms. Specified in NIST SP 800-38F.

Who needs to be FIPS compliant?

The following types of organizations are typically required to use FIPS 140-2 validated cryptographic modules:

• U.S. and Canadian Government Agencies: Compliance with FIPS 140-2 is mandated for all government agencies under the Federal Information Security Management Act (FISMA). Agencies must procure and deploy validated cryptographic modules to protect sensitive data.
• Government Contractors: Organizations that handle government-controlled data are often required to use FIPS 140-2 validated products when implementing cryptography. This may apply even when developing commercial products.
• Healthcare Organizations: Healthcare groups in the U.S. and Canada may be required to use compliant cryptographic modules under HIPAA and PIPEDA privacy laws. This includes technology that handles electronic health records and insurance data.
• Financial Services: Banks, insurance companies, brokerages, and payment processors frequently need to comply with FIPS 140-2 to protect financial data under regulations like GLBA and FFIEC guidelines.
• Public Companies: Publicly traded companies may be required to follow FIPS 140-2 under Sarbanes-Oxley Act regulatory compliance for public financial reporting and auditing.
• Critical Infrastructure: Organizations involved in areas like utilities, emergency services, and transportation systems where security and data integrity are paramount. FIPS 140-2 is recommended under NIST guidelines for protecting critical public infrastructure.
• Any Organization Transmitting or Storing Highly Sensitive Data: Although not mandated, FIPS 140-2 is considered an industry best practice for cryptography by many large private enterprises, especially those holding valuable intellectual property or other confidential business data. Compliance helps reduce risk.

What’s the difference between FIPS 140-2 and FIPS 197?

FIPS 140-2 and FIPS 197 are two different standards published by NIST related to cryptography. However, they address separate issues:

FIPS 140-2 specifies requirements for validating cryptographic modules that implement approved algorithms. It focuses on the secure implementation of cryptography, including aspects like:

• Cryptographic module architecture
• Key management and operation
• EMI/EMC requirements
• Software/firmware security
• Physical security

FIPS 197 specifically defines the Advanced Encryption Standard (AES) algorithm, which is approved for use within FIPS 140-2 compliant cryptographic modules. It details how AES can be used for symmetric key encryption and decryption.

So essentially:

• FIPS 140-2 sets standards for secure cryptographic modules.
• FIPS 197 defines the AES encryption algorithm approved for use within those modules.

A cryptographic module must meet all FIPS 140-2 requirements, including properly implementing the AES algorithm as specified in FIPS 197, to become FIPS 140-2 compliant. Compliance with FIPS 140-2 requires the use of FIPS-approved algorithms like AES, but FIPS 197 only covers the AES algorithm itself.

FIPS 140-2 takes a holistic approach to validating secure and reliable cryptography implementation. FIPS 197 focuses specifically on standardizing one of the approved algorithms that must be used as part of that broader validation. According to NIST, both work together but cover different facets of cryptography standardization.

Conclusion

FIPS 140-2 is the U.S. government standard defining cryptographic module requirements to protect sensitive data. Compliance with the standard provides a level of assurance that organizations can rely upon to secure their data and communications. Compliance opens up opportunities for vendors to supply products and services to government agencies and regulated industries.

Overall, FIPS 140-2 helps set a widely used benchmark for properly implementing cryptography through standardized algorithms, protocols, and robustly validated modules. Although complex, compliance can yield both security and business benefits, especially when handling financial, healthcare, or other confidential information. When national or even global data protection is considered, standards like FIPS 140-2 become increasingly important.

FAQs

What types of products can become FIPS 140-2 compliant?

Cryptographic modules, including both software (encryption programs, toolkits) and hardware (HSMs, Smart cards, TPMs), can achieve FIPS 140-2 compliance. Both standalone products and embedded cryptography within other systems/devices are eligible.

How long does FIPS 140-2 validation last?

Validation certificates under FIPS 140-2 are issued for a fixed period depending on the level of compliance. Levels 1 and 2 are valid for 2 years, Level 3 for 4 years, and Level 4 for 6 years. Re-validation is required by retesting the module to maintain an active validation.

What happens if a module validation expires?

If a module’s FIPS 140-2 validation certificate expires before re-validation occurs, the module is no longer considered compliant or approved for use in regulated applications that require FIPS 140-2. The NIST validation certificate list listing is removed, and a new validation test must be passed to regain compliance.

Can the software be FIPS 140-2 Level 4 Compliant?

Only hardware cryptographic modules are eligible for Level 4 compliance under FIPS 140-2. Software alone does not meet the stringent physical security requirements for Level 4, like tamper protection and isolation of critical components. Software modules may achieve Level 1-3 compliance.

Does FIPS 140-2 address algorithm agility?

Not directly. FIPS 140-2 defines requirements for secure cryptographic modules at a high level but does not mandate specific algorithms. It references other FIPS standards that define approved algorithms like AES (FIPS 197) and ECC (FIPS 186-4). If an approved algorithm is found to be vulnerable in the future, NIST may remove or replace it by proposing a new standard. Vendors would need to have modules validated under the new guidance to maintain compliance, ensuring a certain level of “algorithm agility.”

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