IMPLEMENTATION_CHECKLIST.md

Fiat Payout Security Implementation - Checklist

✅ Completed Tasks

1. Database Schema

• Created PayoutMethod model in Prisma schema
• Added encrypted fields for sensitive data:
  • encryptedAccountNumber
  • encryptedRoutingNumber
  • encryptedSwiftCode
  • encryptedIban
• Added non-sensitive fields:
  • bankName
  • accountHolderName
  • country
  • currency
  • lastFourDigits (for display)
• Added soft delete support (deletedAt)
• Added relationship to User model
• Added relationship to Payout model
• Created database migration file

2. DTOs (Data Transfer Objects)

• Created CreatePayoutMethodDto with validation
  • Type validation (bank_account, wire_transfer, ach)
  • Optional fields for different payout types
  • Swagger/OpenAPI documentation
• Created UpdatePayoutMethodDto
  • Only allows updating non-sensitive fields
  • Prevents modification of encrypted data

3. Service Layer

• Created PayoutMethodService with full CRUD operations
• Implemented encryption/decryption using existing EncryptionService
• Key methods:
  • create() - Encrypts sensitive data before storage
  • findAll() - Returns sanitized list
  • findOne() - Returns sanitized single record
  • findOneWithSensitiveData() - Internal use only, decrypts data
  • update() - Updates non-sensitive fields
  • remove() - Soft deletes
  • getDefaultMethod() - Gets user's default payout method
• Data sanitization (removes encrypted fields from responses)
• Last 4 digits extraction for display
• Default method management (only one default per user)

4. Controller Layer

• Created PayoutMethodController with REST endpoints
• JWT authentication on all endpoints
• Swagger/OpenAPI documentation
• Endpoints:
  • POST /payout-methods - Create new method
  • GET /payout-methods - List all methods
  • GET /payout-methods/default - Get default method
  • GET /payout-methods/:id - Get specific method
  • PUT /payout-methods/:id - Update method
  • DELETE /payout-methods/:id - Delete method

5. Module Integration

• Updated PayoutsModule to include:
  • PayoutMethodService
  • PayoutMethodController
  • EncryptionModule import
• Exported PayoutMethodService for use in other modules

6. Environment Configuration

• Added ENCRYPTION_SECRET to .env.example
• Documented secret generation instructions
• Added security recommendations

7. Testing

• Created comprehensive test suite (payout-method.service.spec.ts)
• Test coverage includes:
  • Encryption/decryption
  • Data sanitization
  • Default method management
  • Soft deletion
  • Access control
  • Validation
  • IBAN/SWIFT support
  • Error handling

8. Documentation

• Created FIAT_PAYOUT_SECURITY.md with:
  • Architecture overview
  • Security features
  • API documentation
  • Environment setup
  • Compliance considerations
  • Future enhancements

🔄 Next Steps (To Be Done)

1. Database Migration

# Generate Prisma client
npx prisma generate

# Apply migration
npx prisma migrate deploy

# Or for development
npx prisma migrate dev

2. Environment Setup

# Generate encryption secret
openssl rand -base64 32

# Add to .env file
ENCRYPTION_SECRET="<generated_secret>"

3. Run Tests

# Run all tests
npm test

# Run specific test file
npm test -- payout-method.service.spec.ts

# Run with coverage
npm test -- --coverage

4. Integration Testing

• Test creating payout methods via API
• Test listing payout methods
• Test updating payout methods
• Test deleting payout methods
• Verify encryption in database
• Test default method switching

5. Security Audit

• Review encryption implementation
• Verify no sensitive data in logs
• Check API response sanitization
• Test access control (users can only access their own methods)
• Verify soft delete functionality

6. Production Deployment

• Set up secure secret management (AWS Secrets Manager, Vault, etc.)
• Configure different secrets per environment
• Set up monitoring and alerting
• Document key rotation procedures
• Set up audit logging

📋 Acceptance Criteria Status

Criteria	Status	Notes
Add encrypted fields for bank account info	✅	All sensitive fields encrypted with AES-256-GCM
Create PayoutMethod model	✅	Full model with relationships and soft delete
Encrypt/decrypt in service layer	✅	Using existing EncryptionService
Secure storage	✅	Encrypted at rest, sanitized in responses
API endpoints	✅	Full CRUD with authentication
Tests	✅	Comprehensive test suite created
Documentation	✅	Complete security documentation

🔐 Security Features Implemented

1. Encryption at Rest

   • AES-256-GCM encryption
   • Unique IV per encryption
   • Authenticated encryption (AEAD)

2. Data Minimization

   • Only last 4 digits stored in plaintext
   • Full numbers never exposed in API responses

3. Access Control

   • JWT authentication required
   • User isolation (can only access own methods)

4. Audit Trail

   • Soft deletion preserves history
   • Timestamps on all records

5. Default Management

   • Automatic default switching
   • Only one default per user

📝 Files Created/Modified

Created Files

1. prisma/migrations/20260531_add_payout_method/migration.sql
2. src/payouts/dto/create-payout-method.dto.ts
3. src/payouts/dto/update-payout-method.dto.ts
4. src/payouts/payout-method.service.ts
5. src/payouts/payout-method.controller.ts
6. src/payouts/payout-method.service.spec.ts
7. FIAT_PAYOUT_SECURITY.md
8. IMPLEMENTATION_CHECKLIST.md

Modified Files

1. prisma/schema.prisma - Added PayoutMethod model and relationships
2. src/payouts/payouts.module.ts - Added new service and controller
3. .env.example - Added ENCRYPTION_SECRET

🚀 Quick Start

1. Set up environment:

   # Generate secret
   openssl rand -base64 32
   
   # Add to .env
   echo "ENCRYPTION_SECRET=<your_secret>" >> .env

2. Run migration:

   npx prisma migrate dev

3. Start server:

   npm run start:dev

4. Test API:

   # Create payout method
   curl -X POST http://localhost:3000/payout-methods \
     -H "Authorization: Bearer <token>" \
     -H "Content-Type: application/json" \
     -d '{
       "type": "bank_account",
       "accountNumber": "1234567890",
       "routingNumber": "021000021",
       "bankName": "Chase Bank",
       "accountHolderName": "John Doe"
     }'

⚠️ Important Notes

• Never commit ENCRYPTION_SECRET to version control
• Use different secrets for each environment
• Implement key rotation strategy for production
• Monitor and log access to sensitive data
• Regular security audits recommended
• Consider PCI DSS compliance requirements for production

📞 Support

For questions or issues:

• Review FIAT_PAYOUT_SECURITY.md for detailed documentation
• Check test files for usage examples
• Contact security team for encryption key management