System and method for the protection of consumer financial data utilizing dynamic content shredding

A computer-implemented method of protecting electronic financial transaction data, the method comprising the steps of:

• (i) providing a first network-based computing device including at least one processor and memory storing instructions, said first network-based computing device further comprising one of a credit card reader or a POS system associated with a merchant;
• (ii) initiating at said first network-based computing device a dynamic key exchange using an Elliptic Curve Diffie-Hellman (ECDH) algorithm between said first network-based computing device operating in an encryption endpoint mode and a second network-based computing device operating in a decryption endpoint mode, wherein the dynamic key exchange comprises:
• (a) generating public/private key pairs for said first network-based computing device and said second network-based computing device;
• (b) exchanging public keys between said first network-based computing device and said second network-based computing device through a certificate authority that validates the public keys of each endpoint;
• and
• (c) generating a shared symmetric key configured for use in block cipher encryption at said first network-based computing device, wherein the shared symmetric key is used for a limited interval before being reestablished;
• (iii) receiving at said first network-based computing device electronic transaction information associated with a financial transaction and including at least a personal account number in non-persistent memory;
• (iv) causing said first network-based computing device to:
• (a) encrypt at least a portion of said electronic financial transaction data using an AES-256 block cipher,
• (b) remove said encrypted portion of said electronic financial transaction data from said non-persistent memory and remove any trace of the original, unencrypted data that may be left in non-persistent memory,
• (c) apply cryptographic bitsplitting comprising a key information dispersal algorithm to break said encrypted portion of said electronic financial transaction data into a predetermined number of discrete data splits, wherein the key information dispersal algorithm pseud-randomly splits the data into a desired number of n pieces, and wherein reconstitution of these pieces can only be achieved if a pre-specified number of the original shreds are available;
• (d) store said predetermined number of discrete data splits across a plurality of distinct memory locations, and
• (e) generate metadata including routing and transaction information, an identification of an issuing bank, a transaction total, an identification of a merchant, a listing of the last four digits of a purchaser's account number, and a hash-based message authentication code (HMAC), and excluding said encrypted portion of electronic financial transaction data;
• (v) transferring said plurality of discrete data splits and said metadata to said second network-based computing device operating in said decryption endpoint mode;
• (vi) processing at said second network-based computing device said dynamic key exchange between said second network-based computing device operating in said decryption endpoint mode and said first network-based computing device operating in said encryption endpoint mode;
• (vii) receiving at said second network-based computing device said plurality of discrete data splits and metadata from said first network-based computing device operating in said encryption endpoint mode, wherein said discrete data splits and metadata further comprise discrete portions of data corresponding to a single electronic financial transaction data set that has been processed at step (iv) by said first network-based computing device;
• (viii) causing said second network-based computing device to decrypt said electronic financial transaction data by
• (a) verifying the HMAC to ensure that the metadata and encrypted data have not been tampered with during its lifespan,
• (b) consolidating the n number of splits back into a single encrypted data buffer using cryptographic bitsplitting, and
• (c) decrypting the necessary data using the AES-256 block cipher;
• and
• (ix) processing at said second network-based computing device a financial transaction corresponding to said electronic financial transaction data set.