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Appendix E
Virtual Private Networking
There have been many improvements in the Internet, including Quality of Service, network
performance, and inexpensive technologies, such as DSL. But one of the most important advances
has been in Virtual Private Networking (VPN) Internet Protocol security (IPSec). IPSec is one of
the most complete, secure, and commercially available, standards-based protocols developed for
transporting data.
What is a VPN?
A VPN is a shared network, where private data is segmented from other traffic, so that only the
intended recipient has access. The term VPN was originally used to describe a secure connection
over the Internet. Today, however, VPN is also used to describe private networks, such as Frame
Relay, Asynchronous Transfer Mode (ATM), and Multiprotocol Label Switching (MPLS).
A key aspect of data security is that the data flowing across the network is protected by encryption
technologies. Private networks lack data security, which allows data attackers to tap directly into
the network and read the data. IPSec-based VPNs use encryption to provide data security, which
increases the network’s resistance to data tampering or theft.
IPSec-based VPNs can be created over any type of IP network, including the Internet, Frame
Relay, ATM, and MPLS, but only the Internet is ubiquitous and inexpensive.
VPNs are traditionally used for:
Intranets:
Intranets connect an organization’s locations. These locations range from the
headquarters offices, to branch offices, to a remote employee’s home. Often this connectivity
is used for e-mail and for sharing applications and files. While Frame Relay, ATM, and MPLS
accomplish these tasks, the shortcomings of each limits connectivity. The cost of connecting
home users is also very expensive compared to Internet-access technologies, such as DSL or
cable. Because of this, organizations are moving their networks to the Internet, which is
inexpensive, and using IPSec to create these networks.
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Remote Access:
Remote access enables telecommuters and mobile workers to access e-mail
and business applications. A dial-up connection to an organization’s modem pool is one
method of access for remote workers, but is expensive because the organization must pay the
associated long distance telephone and service costs. Remote access VPNs greatly reduce
expenses by enabling mobile workers to dial a local Internet connection and then set up a
secure IPSec-based VPN communications to their organization.
Extranets
: Extranets are secure connections between two or more organizations. Common
uses for extranets include supply-chain management, development partnerships, and
subscription services. These undertakings can be difficult using legacy network technologies
due to connection costs, time delays, and access availability. IPSec-based VPNs are ideal for
extranet connections. IPSec-capable devices can be quickly and inexpensively installed on
existing Internet connections.
What is IPSec and How Does It Work?
IPSec is an Internet Engineering Task Force (IETF) standard suite of protocols that provides data
authentication, integrity, and confidentiality as data is transferred between communication points
across IP networks. IPSec provides data security at the IP packet level. A packet is a data bundle
that is organized for transmission across a network, and includes a header and payload (the data in
the packet). IPSec emerged as a viable network security standard because enterprises wanted to
ensure that data could be securely transmitted over the Internet. IPSec protects against possible
security exposures by protecting data while in transit.
IPSec Security Features
IPSec is the most secure method commercially available for connecting network sites. IPSec was
designed to provide the following security features when transferring packets across networks:
Authentication:
Verifies that the packet received is actually from the claimed sender.
Integrity:
Ensures that the contents of the packet did not change in transit.
Confidentiality:
Conceals the message content through encryption.
IPSec Components
IPSec contains the following elements:
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Encapsulating Security Payload (ESP)
: Provides confidentiality, authentication, and
integrity.
Authentication Header (AH)
: Provides authentication and integrity.
Internet Key Exchange (IKE)
: Provides key management and Security Association (SA)
management.
Encapsulating Security Payload (ESP)
ESP provides authentication, integrity, and confidentiality, which protect against data tampering
and, most importantly, provides message content protection.
IPSec provides an open framework for implementing industry standard algorithms, such as SHA
and MD5. The algorithms IPSec uses produce a unique and unforgeable identifier for each packet,
which is a data equivalent of a fingerprint. This fingerprint allows the device to determine if a
packet has been tampered with. Furthermore, packets that are not authenticated are discarded and
not delivered to the intended receiver.
ESP also provides all encryption services in IPSec. Encryption translates a readable message into
an unreadable format to hide the message content. The opposite process, called decryption,
translates the message content from an unreadable format to a readable message. Encryption/
decryption allows only the sender and the authorized receiver to read the data. In addition, ESP has
an option to perform authentication, called ESP authentication. Using ESP authentication, ESP
provides authentication and integrity for the payload and not for the IP header.
Figure E-1:
Original packet and packet with IPSec Encapsulated Security Payload
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The ESP header is inserted into the packet between the IP header and any subsequent packet
contents. However, because ESP encrypts the data, the payload is changed. ESP does not encrypt
the ESP header, nor does it encrypt the ESP authentication.
Authentication Header (AH)
AH provides authentication and integrity, which protect against data tampering, using the same
algorithms as ESP. AH also provides optional anti-replay protection, which protects against
unauthorized retransmission of packets. The authentication header is inserted into the packet
between the IP header and any subsequent packet contents. The payload is not touched.
Although AH protects the packet’s origin, destination, and contents from being tampered with, the
identity of the sender and receiver is known. In addition, AH does not protect the data’s
confidentiality. If data is intercepted and only AH is used, the message contents can be read. ESP
protects data confidentiality. For added protection in certain cases, AH and ESP can be used
together. In the following table, IP HDR represents the IP header and includes both source and
destination IP addresses.
Figure E-2:
Original packet and packet with IPSec Authentication Header
IKE Security Association
IPSec introduces the concept of the Security Association (SA). An SA is a logical connection
between two devices transferring data. An SA provides data protection for unidirectional traffic by
using the defined IPSec protocols. An IPSec tunnel typically consists of two unidirectional SAs,
which together provide a protected, full-duplex data channel.
The SAs allow an enterprise to control exactly what resources may communicate securely,
according to security policy. To do this an enterprise can set up multiple SAs to enable multiple
secure VPNs, as well as define SAs within the VPN to support different departments and business
partners.
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Mode
SAs operate using modes. A mode is the method in which the IPSec protocol is applied to the
packet. IPSec can be used in tunnel mode or transport mode. Typically, the tunnel mode is used for
gateway-to-gateway IPSec tunnel protection, while transport mode is used for host-to-host IPSec
tunnel protection. A gateway is a device that monitors and manages incoming and outgoing
network traffic and routes the traffic accordingly. A host is a device that sends and receives
network traffic.
Transport Mode:
The transport mode IPSec implementation encapsulates only the packet’s
payload. The IP header is not changed. After the packet is processed with IPSec, the new IP
packet contains the old IP header (with the source and destination IP addresses unchanged)
and the processed packet payload. Transport mode does not shield the information in the IP
header; therefore, an attacker can learn where the packet is coming from and where it is going
to. The previous packet diagrams show a packet in transport mode.
Tunnel Mode:
The tunnel mode IPSec implementation encapsulates the entire IP packet. The
entire packet becomes the payload of the packet that is processed with IPSec. A new IP header
is created that contains the two IPSec gateway addresses. The gateways perform the
encapsulation/decapsulation on behalf of the hosts. Tunnel mode ESP prevents an attacker
from analyzing the data and deciphering it, as well as knowing who the packet is from and
where it is going.
Note:
AH and ESP can be used in both transport mode or tunnel mode.
Figure E-3:
Original packet and packet with IPSec ESP in Tunnel mode

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