A method for secure transaction of data between at least one communication device and a server, the method comprising the steps of: transmitting a client message to the server from the communication device, the client message comprising challenge data to authenticate the server; generating, by the server, a random number r; generating, by the server, a first encrypted message, y, with the random number r using a hash function through a pre-shared private key, k, of the communication device, wherein the first encrypted message, y, is generated using an equation: y = Enck r XoR Hash Tr _ ID}, wherein Tr_ID refers to a transaction identity; transmitting, by the server, the first encrypted message to the communication device; decrypting the first encrypted message, by the communication device, upon receiving the first encrypted message by matching the hash function through the pre-shared private key, k, of the communication device; retrieving the random number r upon decrypting the first encrypted message, wherein the random number r is retrieved using an equation: Hash Tr _ ID XoR Deck y; generating, by the communication device, two new random numbers t 1, t 2 as catalysts to a Deterministic Random Sequence Generation, DRSG, algorithm; generating, by the communication device, two sequences S1, S2 from the two new random numbers t 1, t 2, and the random number r using the DRSG algorithm; computing, by the communication device, a sequence S using the two sequences S1, S2 and a nonce value; generating, by the communication device, a second encrypted message to the server using the two new random numbers t 1, t 2, the pre-shared private key, k, of the communication device, the two sequences S1 and S2, device name and network address through a session key, k1, associated with the sequence S and a nonce value, wherein the second encrypted message is generated using an equation: Enck 1 device name ‖ network address ‖ Enck t 1, t 2, date and time of a message ‖ Nonce S; decrypting, by the server, the two new random numbers t 1, t 2 using pre-shared private key, k,; computing, by the server, the two sequences S1 and S2, and a new resultant sequence S from the decrypted two new random numbers t 1 and t 2, and the retrieved random number r using the DRSG algorithm; validating, by the server, the second encrypted message by comparing hash values of the two sequences S1,S2, the new resultant sequence S and finding the session key, k1; generating, by the server, a response based on the comparison; and transmitting the response to the communication device by the server. transmitting a client message to the server from the communication device, the client message comprising challenge data to authenticate the server; generating, by the server, a random number r; generating, by the server, a first encrypted message, y, with the random number r using a hash function through a pre-shared private key, k, of the communication device, wherein the first encrypted message, y, is generated using an equation: y = Enck r XoR Hash Tr _ ID}, wherein Tr_ID refers to a transaction identity; transmitting, by the server, the first encrypted message to the communication device; decrypting the first encrypted message, by the communication device, upon receiving the first encrypted message by matching the hash function through the pre-shared private key, k, of the communication device; retrieving the random number r upon decrypting the first encrypted message, wherein the random number r is retrieved using an equation: Hash Tr _ ID XoR Deck y; generating, by the communication device, two new random numbers t 1, t 2 as catalysts to a Deterministic Random Sequence Generation, DRSG, algorithm; generating, by the communication device, two sequences S1, S2 from the two new random numbers t 1, t 2, and the random number r using the DRSG algorithm; computing, by the communication device, a sequence S using the two sequences S1, S2 and a nonce value; generating, by the communication device, a second encrypted message to the server using the two new random numbers t 1, t 2, the pre-shared private key, k, of the communication device, the two sequences S1 and S2, device name and network address through a session key, k1, associated with the sequence S and a nonce value, wherein the second encrypted message is generated using an equation: Enck 1 device name ‖ network address ‖ Enck t 1, t 2, date and time of a message ‖ Nonce S; decrypting, by the server, the two new random numbers t 1, t 2 using pre-shared private key, k,; computing, by the server, the two sequences S1 and S2, and a new resultant sequence S from the decrypted two new random numbers t 1 and t 2, and the retrieved random number r using the DRSG algorithm; validating, by the server, the second encrypted message by comparing hash values of the two sequences S1,S2, the new resultant sequence S and finding the session key, k1; generating, by the server, a response based on the comparison; and transmitting the response to the communication device by the server.