Since the first SMS (Short Message Services) message was sent in the UK in 1992, the SMS has become a mass communication tool and has been broadly used in mobile business applications. But the security issue of the SMS has often been considered as a crucial barrier to its application in many fields that need strong authentication and confidentiality, such as mobile-commerce. The Subscriber Identity Module (SIM) inside mobile phones is a tamper resistant device which contains strong authentication mechanism and has been used in remote user authentication system, e.g. WIM 1 1 WAP Identity Module (WIM) is the security module implemented in the SIM card for WAP applications. It is based on the WAP 1.2 specification enabling secure transactions and non-repudiation based on a digital signature. card in Wireless Application Protocol (WAP). In this contribution, we design and realize a secure SIM card, named PK-SIM card, which is a standard SIM card with additional PKI functionality; based on the PK-SIM card, we present a security framework offering solutions for the development of secure mobile business applications using SMS as bearer. The security framework consists of a client device, in which a PK-SIM card is used to store security credentials, a Secure Access Gateway (SAG) which is used to receive and send secure SMS messages, a trusted third-party, Certification Authority (CA), which provides a public-key certification service and a Mobile Operator which provides the communication infrastructure for the SMS. Then we propose an authentication and session key distribution protocol which provides end-to-end security between the PK-SIM card and the SAG, and give a formal security analysis to the proposed protocol based on BAN authentication logic 2 2 Burrows-Abadi-Needham logic (also known as the BAN logic) is a set of rules for defining and analyzing information exchange protocols. Specifically, BAN logic helps its users determine whether exchanged information is trustworthy, secured against eavesdropping, or both. . Lastly, we provide a typical application of the security framework in Mobile Police Information System. The evaluations of the system have proved that the security framework is suitable for actual needs both in speed and security.