Key Takeaways: Using a Blacklist of Stolen Passwords [Webinar]

More than 90 billion passwords are being used across the web today, and it’s expected to be nearer 300 billion by 2020. With that in mind, the topics of password best practices and the threats around stolen credentials, remain top challenges for many global organizations.

Security Boulevard recently hosted a webinar with Shape and cyber security expert Justin Richer, co-author of the new NIST (National Institute of Standards and Technology) Digital Identity Guidelines. The webinar looks at how password protection and password attack prevention have evolved.

Watch the full webinar here

Key Takeaways


Traditional P@$$wOrd Guidelines Don’t Solve the Problem

Justin Richer discusses how passwords were originally invented as a way to gain entry. But today they have evolved into a way to authenticate who you are. Companies rely on a username-password combination to give them confidence you are who you say you are. So once passwords are stolen, companies have less and less confidence you are the person you claim to be.

To make it difficult for criminals to steal your identity companies have implemented complex password requirements. Unfortunately, this conventional wisdom around password management, such as enforced rotation every six months, using at least six characters, upper and lowercase characters, numbers and symbols, have made passwords hard to remember.

Additionally, for non-English languages, not all these rules can be applied regarding uppercase and lowercase. They also don’t always adapt to the world of mobile devices where it’s hard to type using touch screens, and the emerging technology of voice recognition personal assistants.

In the end, users reuse passwords that are easy to remember and pick bad passwords due to password fatigue. As a result, traditional password guidelines don’t help companies gain confidence—they are actually compounding the problem.

The Real Culprit – Password Reuse

In reality the problem companies are fighting is password reuse. Once one account has been compromised, the attackers have access to multiple accounts that use the same username and password. Fraudsters may use these accounts themselves, but often they bundle up the stolen credentials and sell the passwords on the dark web.

New NIST guidelines serve to help companies reduce password fatigue and reuse, while also providing suggestions for testing new passwords against a database of stolen credentials—a breach corpus. When the two are implemented together, fraudsters will have a much harder time taking advantage of stolen credentials through account takeover and automated fraud.

New Passwords and Using Blacklists

Revision 3 of the NIST password guidelines overview – Digital identity guidelines – has dramatically updated recommendations on how to use passwords properly:

https://pages.nist.gov/800-63-3/sp800-63b/appA_memorized.html

The main tenets are:

    • Don’t rely on passwords alone. Use multi-factor authentication steps to verify the user is who they claim to be.
    • Drop the complexity requirements, they make passwords hard to remember and aren’t as effective as once thought.
    • Allow all different types of characters.
    • End the upper limit on size. Length can be an important key to avoid theft.
    • Rotate when something seems suspect. Don’t rotate because of an arbitrary timeout, like every six months.
    • Disallow common passwords.
    • Check new passwords against a blacklist of stolen passwords

The most important step is to check new passwords against a blacklist. These cover a range of passwords, including those known to have been already compromised, and those used in any major presentation. Checking against a blacklist is new territory—a lot of organizations don’t even know where to start.

Creating a Blacklist

An ideal blacklist should have all stolen passwords—not just the ones discovered on the dark web. Unfortunately creating a list of all stolen passwords is difficult. Recently companies have been relying on lists of stolen credentials from the dark web, but these are often too little, too late as it’s not possible to know how long these stolen passwords have been in circulation. For example, Yahoo was breached in 2013, but didn’t realize until 2016. Due to the economics of attackers, there is almost always a big lag between when data is breached and when it’s exploited.

Blackfish and the Breach Corpus

At Shape we created Blackfish to proactively invalidate user and employee credentials as soon as they are compromised from a data breach. It notifies organizations in near real-time, even before the breach is reported or discovered. How does it do this?

Blackfish technology is built upon the Shape Security global customer network which includes many of the largest companies in the industries most targeted by cybercriminals including banking, retail, airlines, hotels and government agencies. By protecting the highest profile target companies, the Blackfish network sees attacks using stolen credentials first, and is able to invalidate the credentials early in the fraud kill chain. This provides a breakthrough solution in solving the zero-day vulnerability gap between the time a breach occurs and its discovery.

Using machine learning, as soon as a credential is identified as compromised on one site, Blackfish instantly and autonomously protects all other customers in its collective defense network. As a result, Blackfish is the most comprehensive blacklist in the industry today.

Don’t Rely on Dark Web Research

Dark web research provides too little information, too late. Today major online organizations can take a much more proactive approach to credential stuffing. By using Blackfish businesses can immediately defend themselves from attack while reducing the operational risk to the organization. Over time these stolen credentials become less valuable to attackers because they just don’t work, and in turn credential stuffing attacks and fraud are reduced.

Watch the full webinar here

The Right to Buy Tickets

Young people waiting in line to buy tickets in NewYork.

With President Obama’s signing of the Better Online Ticket Sales (BOTS) Act of 2016 and the passing of recent legislation in New York, there are signs of hope that beginning in 2017, humans may once again have a fighting chance of purchasing a ticket to a hot concert, show or event.

It took ticket prices reaching $1000 per head for the award-winning Broadway show “Hamilton”, to force action against ticket bots getting the best seats in the house. Lin-Manuel Miranda who created and stars in Hamilton wrote a compelling Op-Ed in the New York Times in June 2016 entitled “Stop the Bots from Killing Broadway.” Finally, in December New York Gov. Cuomo passed a bill to make ticket bot purchases illegal. As one of the founding fathers of the US Constitution, it seems that Hamilton would have approved of an amendment that protected “the right to buy tickets.”

So how did ticket bots get control over the ticket purchases? The cybercriminal ecosystem has evolved over the past few years to make it easier to launch automated attacks on web and mobile apps with the purpose of stealing assets. In the case of ticket bots, automated scripts running on rented botnets enable the immediate and rapid purchase of tickets to popular events once they go on sale. Humans don’t have a chance against a machine intent on purchasing tickets. Until now.

With the recently passed ticket bot legislation, it is officially illegal to use ticket bots with the purpose of automated purchasing. Now ticket sellers  are protected against fraud by state fines and possible jail time as a deterrent.  With this new legislation, ticket sellers must also tighten up their defenses so that they can prevent the use of ticket bots proactively. Just stating that the use of automation and ticket bots is not allowed will no longer be sufficient as a defense.

Enforcing this legislation will have some challenges given the number of parties involved in automated ticket purchases. The illegal ticket reseller is in many cases at the outer edge of a cybercriminal ecosystem that is rapidly building out infrastructure and services on the Dark Web. In addition to automated ticket purchases, automated credential stuffing attacks for account takeover and malicious content scraping are affecting retail, travel and ecommerce businesses. The threat of fines and possible jail time for ticket bots will hopefully go some way to drying up some of the demand for cybercriminal automation.

Shows such as Hamilton were created for humans to enjoy, and at Shape Security we believe consumers shouldn’t have to fight bots to get a ticket. Every day at Shape Security we help major companies defend against automated attacks by bots, and we applaud this new legislation outlawing ticket bots.