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Townsend Security Data Privacy Blog

PGP Encryption 101: Should I Give My Trading Partner My Private Key?

Posted by Jared Mallory on Jun 20, 2013 4:48:00 PM

In the world of PGP encryption, we often hear from users who tell us, “My trading partner says they need my private key for encryption. Is it ok to send it to them?” The simple answer to this question is no. Your private key is aptly named “private” because it should never be shared with others. The key intended for distribution is also aptly named as the “public” key.

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The longer and more technical explanation of why you shouldn’t give out your private key is a little more confusing.

The PGP process requires that encryption be performed with a public key that your trading partner gives to you to use, if you are going to send encrypted data to them. You cannot encrypt the data with a private key. If your partner requires that the file be signed as a part of the process, then you will use your private key as a signature. In order to read that signature you must give your trading partner your matching public key to your private key. You should never give them your private key.

On the other hand, if someone wishes to send encrypted data to you, you must provide them with your public key in order for them to send you files. Your system should automatically recognize the key that was used to encrypt the file and will select the appropriate private key for the decryption process. You only need to provide the passphrase for the key to validate that you are authorized to the unencrypted data.

Here’s an example: XYZ Productions uses the services of ABC Personnel Services for payroll management. Each month YXZ sends payroll files to ABC for processing. Due to the confidential nature of the information in the file, XYZ and ABC have agreed to use PGP encryption to protect the data. Both companies export their public keys and send them to one another. As the originator of the file, XYZ uses the ABC public key to encrypt the file before sending it.  By doing so, the file can only be decrypted by the holder of the private key. XYZ then uses their private key to sign the file as a means of verifying the origin of the encrypted file. When the file is received by ABC, they validate the signature by comparing it to the XYC public key they have been given, then use their private key to decrypt the file for processing.

The safety of the confidential data in the example is protected because the encrypted files can only be read using the private key, which has never left the trust of the key generator.      

Remember, when exporting a key to send to a customer, one should always remember that the key type identifies if the key should be shared. Public keys are for sharing; whereas a private key should always be kept close to home.

Topics: Encryption, Data Privacy, PGP

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