We are building an android application and one of its features is to book a cab service provider's cab (say an Uber).
We have an application specific user ID. Let us call it AUID. To book the cab, the application would Post a request to server and send AUID along with other relevant information (like lat, long etc). How do I make sure at the server end that the request is indeed coming from the correct user and it is safe to book the cab? In the current form, if a third party gets to know the AUID of another person, the third party can book a cab on behalf of that person.
One of the solutions I thought of was using asymmetric encryption. The application would hold the public key and the server would contain the private key. Instead of sending the user ID to the server, we'll instead send an encrypted key where the key would be AUID + timestamp encrypted using the public key. We'll then decrypt the message using private key at server end to obtain the AUID. If the timestamp at server does not lie within a certain interval of the timstamp sent by the client, we reject the request.
Is this a safe enough approach? Is there any other practice widely followed for such scenarios?
What you propose is sensible: encrypt the AUID on the client app and verify on the server. As comments suggest, SSL is vital.
The problem is that if how to encrypt the AUID is in your app, it can be figured out by anyone dedicated enough.
You can drastically reduce the risks of fake requests by issuing a separate encryption key for each user. This means that if someone cracks your code, they can still only spoof from one account. However, once an attacker had decompiled your app, they could theoretically start new accounts, get a valid encryption key and spoof requests.
What you need for 100% reliability is some form of authentication which is not stored in the client app - like a password or TouchID on iOS or fingerprint api on Android M. So when a user orders a cab, they need to enter some piece of information which you also encode with the AUID and check on the server. That secret information is not stored in your app, so no-one can fake requests.
Requiring a password from a user is pretty inconvenient. Fingerprint scanning is much easier and probably acceptable. You could also use a trust system - if the user has ordered cabs before and everything was OK, they can order without special authentication. Using Trust together with individual encryption keys is pretty effective because anyone trying to spoof requests would need to do a successful order before being able to spoof - which is probably too much hassle for them.