How Banks Use HSM to Protect Data

HSM (Hardware Security Module) is a specialized device used by banks to protect cryptographic transactions and sensitive data such as encryption keys, PIN codes and bank card data. HSM provides secure storage, generation and processing of cryptographic keys, preventing their compromise, which is critical for protection against carding, including attempts to use skimmed data (card dumps). For educational purposes, I will describe in detail how banks use HSM to protect data, its technical aspects, integration with other systems, effectiveness and limitations in the context of combating fraud.