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Terrorist fraud is a relay attack against distance bounding protocols where the prover conspires with an adversary to misrepresent the distance between himself and the verifier. In ideal situations, the adversary does not gain any knowledge about the prover's long-term secret. This makes designing a distance bounding protocol resistant to a such fraud tricky: the secrets of an honest prover must be protected, while those of a dishonest one should be disclosed as an incentive not to cheat. In this paper, the authors present that using a secret-sharing scheme, possibly based on threshold cryptography, is well suited for thwarting terrorist fraud.
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