Establishing a Secure Channel between a Server and a Portable Device

A system for forming a secure channel, the system comprising:

• a portable storage device coupled to a host computer;
• and
• a server communicatively coupled with the host computer via a network;
• the portable storage device comprising a device cryptography module stored in memory and executable by a processor to encrypt and decrypt information transferred between the portable storage device and the server, and a challenge generation module stored in memory and executable by a processor to generate a server challenge;
• the server comprising a server cryptography module stored in memory and executable by a processor to encrypt and decrypt information transferred between the portable storage device and the server, and a shared secret module stored in memory and executable by a processor to generate a shared secret.

A computer readable storage medium having a program embodied thereon, the program executable by a processor to perform a method for forming a secure channel between a server and a portable storage device coupled to a host computer, the method comprising:

• exchanging a message sequence between the server and the portable storage device, the message sequence passing transparently through the host computer;
• authenticating the server and the portable storage device based on the message sequence;
• and
• establishing a secure channel between the server and the portable storage device when the server and the portable storage device are authenticated.