The Best Way To Protect Real Passwords: Create Fake Ones
jfruh writes: Many security-savvy users have a password manager that stores their randomly-generated passwords — but if that manager is cracked, the gig is up. Some security researchers are suggesting a technique to stop this: a password manager that offers up fake passwords when an attacker tries and fails to crack it, which makes the process of figuring out if you've broken in much more difficult.
This just adds an extra step to automate: take the password and try to login. It's not like people are manually trying passwords...
P.S: company eventually got sold to a bigger player and the home grown license manager was retired for industry standard "FlexLm". Soon after, ALL software using Flex were cracked and sold on the warez sites. Pirates could have easily cracked the license manager of that small company, but it is too small to be worth the effort.
Moral of the story: Monoculture is bad, both for Irish potato farmers of the 18th century and license/password managers of the 21st century.
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
What you're proposing sounds like Kamouflage (PDF link from TFA), with only 1 decoy password set (Kamouflage suggest 10,000); and suffers from the problem of generating plausible fake master passwords without revealing anything about the real master password, as mentioned by the authors of NoCrack.
What the NoCrack authors try to achieve is a solution where every incorrect guess at the master password still provides a set of (incorrect but at least sometimes plausible) passwords. A bit like a one-time pad, which is the only provably secure encryption, because brute-forcing the key yields all the possible plain texts (both the correct and all the incorrect ones). Of course, the problem with the one-time pad is that the key length matches the plain text length, which would completely eliminate the benefit of a password manager. Additionally, as noted in TFA, authorized users might not like the idea that making a typo when entering the master password yields (seemingly) correct passwords. :-)
I'm not convinced the NoCrack authors have actually succeeded, as they claim, but can nevertheless recommend the NoCrack paper (PDF), since it discusses pros of cons of the approach and alternatives.
Deception is a valid form of security, similar to obfuscation. It should not be relied upon, but it is merely another layer. In the early 90s me and some buddies ran a multi-node BBS. One of the admins used the same password on another BBS, and someone was able to log into our system using his admin account. So to prevent that from ever happening again, I wrote a script that, for the three site admins, would also ask for their birthdate every time they logged in. If an incorrect date was entered a single time, the account would be locked. Thing is, it wasn't our birthdates that we had to enter, but just another very short password that we could enter really easily. So an attacker, if they got to that point again (obtained the password), would give it their best guess (or perhaps even research to find) the admin's birthdate. If any date was entered at all (containing two slashes or hyphens) the account was immediately locked, because the expected password was just a couple letters is all, and anyone entering an actual date was not an admin.
Better known as 318230.