Best Effort and Practice Activation Codes

Activation Codes are used in many different digital services and known by many different names including voucher, e-coupon and discount code. In this paper we focus on a specific class of ACs that are short, human-readable, fixed-length and represent value. Even though this class of codes is extensively used there are no general guidelines for the design of Activation Code schemes. We discuss different methods that are used in practice and propose BEPAC, a new Activation Code scheme that provides both authenticity and confidentiality. The small message space of activation codes introduces some problems that are illustrated by an adaptive chosen-plaintext attack (CPA-2) on a general 3-round Feis- tel network of size 2^(2n) . This attack recovers the complete permutation from at most 2^(n+2) plaintext-ciphertext pairs. For this reason, BEPAC is designed in such a way that authenticity and confidentiality are in- dependent properties, i.e. loss of confidentiality does not imply loss of authenticity.Comment: 15 pages, 3 figures, TrustBus 201

Reprofiling Sovereign Debt

• The IMF staff’s 2013 proposal to reprofile (i.e., stretch out for a short period without haircutting principal or interest) the maturing debt of a country that has lost market access is a sensible policy in cases where the IMF is uncertain whether the country’s debt stock is sustainable. • The motivation for the policy is to avoid situations, such as occurred during the Eurozone debt crisis, in which Fund resources are used to bail-out commercial creditors in full. • But a debt reprofiling is a species of debt restructuring and as such is susceptible to holdout creditor behaviour. • By allowing a small portion of its loans to the debtor country to be used to neutralise some or all of the additional credit risk caused by the reprofiling, the IMF could minimise holdout creditors in these operations. • The authors propose a technique for minimizing the risk that certain creditors may elect to decline a reprofiling proposal, no matter how lenient its terms

InShopnito: an advanced yet privacy-friendly mobile shopping application

Mobile Shopping Applications (MSAs) are rapidly gaining popularity. They enhance the shopping experience, by offering customized recommendations or incorporating customer loyalty programs. Although MSAs are quite effective at attracting new customers and binding existing ones to a retailer's services, existing MSAs have several shortcomings. The data collection practices involved in MSAs and the lack of transparency thereof are important concerns for many customers. This paper presents inShopnito, a privacy-preserving mobile shopping application. All transactions made in inShopnito are unlinkable and anonymous. However, the system still offers the expected features from a modern MSA. Customers can take part in loyalty programs and earn or spend loyalty points and electronic vouchers. Furthermore, the MSA can suggest personalized recommendations even though the retailer cannot construct rich customer profiles. These profiles are managed on the smartphone and can be partially disclosed in order to get better, customized recommendations. Finally, we present an implementation called inShopnito, of which the security and performance is analyzed. In doing so, we show that it is possible to have a privacy-preserving MSA without having to sacrifice practicality

Why do consumers pay bills electronically? an empirical analysis

Why do consumers use electronic bill payment services? what do the differences between nonusers, low users, and high users imply about the potential future market these services? How might public policy evolve in the future? Analyzing a unique consumer survey conducted by the Federal Reserve's Retail Product Office, the author finds important differences between nonusers, low users, and high users of electronic bill payment. The analysis suggests that the industry will need to address fundamental customer needs before a broader portion of consumers will adopt these services.Electronic funds transfers ; Payment systems ; Internet ; Electronic commerce

Federal Reserve Banks as fiscal agents and depositories of the United States in a changing financial environment

Pursuant to the Federal Reserve Act, the Federal Reserve Banks perform a number of services for the United States and for other entities as fiscal agents and depositories. These roles have evolved since the relevant provisions of the Federal Reserve Act were implemented in 1915. An article in the April 2000 Federal Reserve Bulletin described these activities as being mainly the issuance and redemption of securities and the processing of payments to and from the federal government. Although the basic fiscal agent services have not changed since the article was published in 2000, considerable changes have occurred in the way those services are provided. For example, the Treasury and the Reserve Banks have implemented new web-based technology to improve the federal government's provision of services, much the same as financial services firms have used web-based technology to improve the ways that they do business and communicate with their customers. This article reviews the evolution of the Reserve Banks' fiscal agent role since early in the twentieth century, and describes fiscal agent and depository services today.Federal Reserve banks ; Financial markets

The Malawi Agricultural Input Subsidy Programme: 2005-6 to 2008-9

Malawi’s implementation of a large scale agricultural input subsidy programme in 2005/6 and subsequent years has attracted significant international interest. This paper reviews the background, processes, achievements and outcomes of the programme over the period 2005/6 to 2008/9. The very large scale disbursement of heavily subsidised fertilisers and (mainly hybrid and composite maize) seed to very large numbers of beneficiaries across the country represents a significant logistical achievement and led to significant increases in national maize production and productivity, and this has contributed to increased food availability, higher real wages and wider economic growth and poverty reduction. However the latter years of the programme have also been accompanied by very high international fertilizer prices and costs and by high maize prices, the latter undermining the programme’s food security, poverty reduction and growth benefits for the majority of Malawian farmers, who are very poor and rely on purchased maize for significant amounts of their staple food requirements. Estimated economic returns to the programme have been satisfactory, given other benefits of the programme not captured in cost benefit analysis. With substantial reductions in both prices and subsidised volumes of fertilisers in subsequent years, there is considerable scope for building on achievements to substantially raise programme effectiveness, efficiency and benefits. Any application of Malawi’s subsidy experience to other countries needs to take account of special characteristics of the Malawian maize economy and of measures needed to raise such programmes’ effectiveness and efficiency and ensure their best fit with and contribution to sustainable development policies

Peer to Peer Mobile Coupons: Adding Incentives without Sacrificing Security

Mobile commerce is flourishing today due to the advance of the mobile technology. Many conventional marketing activities are moving their ways to the mobile environment. Efficient marketing instruments such as the paper coupons and the electronic coupons are also evolving into the mobile coupons. In comparison with conventional coupons, mobile coupons are personalized and suitable for peer to peer delivery. Coupons are commonly issued by the merchants, used by the interested customers, and discarded by the uninterested receivers. Raising the redemption rate of the coupon will increase the sales of the promoted items. The raise can be accomplished by forwarding coupons from uninterested receivers to potentially interested customers. The ease-of-use exchange mechanism in mobile devices pushes the delivery in the peer to peer environment. Moreover, the characteristic of personalization inspires trust into mobile coupons. Thus, adding the incentives of coupon forwarding, such as a reward bonus, may activate the movement of stationary coupons and eventually increase the redemption rate of mobile coupons. Nevertheless, the incentives adding may bring the threats of alterations and forgery; if the adding mechanism is improperly made. Additionally, complicated security means are hindered by the limitations of storage space, computation power, and communication bandwidth of mobile devices. Therefore, we propose a scheme that uses digital signatures for verifying the incentive-added coupons and design a hash chain to detect possible forgery. The proposed scheme may increase the use of peer to peer mobile coupons without sacrificing the security