Privacy-Preserving Observation in Public Spaces

One method of privacy-preserving accounting or billing in cyber-physical systems, such as electronic toll collection or public transportation ticketing, is to have the user present an encrypted record of transactions and perform the accounting or billing computation securely on them. Honesty of the user is ensured by spot checking the record for some selected surveyed transactions. But how much privacy does that give the user, i.e. how many transactions need to be surveyed? It turns out that due to collusion in mass surveillance all transactions need to be observed, i.e. this method of spot checking provides no privacy at all. In this paper we present a cryptographic solution to the spot checking problem in cyber-physical systems. Users carry an authentication device that authenticates only based on fair random coins. The probability can be set high enough to allow for spot checking, but in all other cases privacy is perfectly preserved. We analyze our protocol for computational efficiency and show that it can be efficiently implemented even on platforms with limited computing resources, such as smart cards and smart phones.