What is Security Token? Why Are They Important? - zenarmor.com (2024)

Personal identification numbers and passwords are commonplace in contemporary businesses. The majority of employees are aware that in order to access files, servers, and critical information, they must input a set of credentials. Its protection is enhanced by security tokens.

Companies are increasingly investing in digital security tokens to go beyond passwords and add better levels of protection due to the rising degrees of social engineering and hacking, as well as the accompanying costs.

No matter how a business's computer network is accessed, digital tokens assist in keeping it secure. The token joins the two-factor or multi-factor authentication security chain.

Users need to have a security token in order to access a system physically. To verify identities and access, authentication information must move back and forth between the user and the system. For this data, a security token serves as the conduit.

A security token can range in size from a key fob to a microchip. They interact with a database or third-party system that provides verification services, or they retain data that confirms a person's identification.

Security tokens could assist your business in securing and safeguarding priceless assets. They add an extra degree of security to ensure the safety of your clients, staff, business partners, and other stakeholders.

With a comprehensive view of security tokens, you can find responses to the following queries in this article:

  • What is a security token?

  • How does a security token work?

  • What are the types of security tokens?

  • What are the advantages of using a security token?

  • What are some common issues that can occur with security tokens?

  • How is a security token different from a password?

  • What are the most commonly used security tokens?

  • What is the difference between a software token and a hardware token?

What is a Security Token?

During the login process, a user can prove their identity using two-factor authentication (2FA) by using a security token, which is either physical or digital. It is frequently applied as a means of identification for physical access or as a way to gain access to computer systems. A token is a physical object or card that the system uses to verify the security information it contains about a user or displays about them. A password is used in conjunction with the token or instead of it.

Security tokens are used instead of conventional passwords or in addition to them. Security tokens are utilized to store data like passwords, cryptographic keys for creating digital signatures, or biometric information (such as fingerprints). Tamper-resistant packaging is incorporated into some designs, while others might have tiny keypads for a PIN entry or a straightforward button to start a generation routine with a display that shows a generated key number. Tokens that are connected use a number of interfaces, such as Bluetooth, NFC, radio-frequency identification (RFID), or USB. For people with vision impairment, some tokens have audio capabilities.

Security tokens include cryptographic information that uniquely identifies a user's device. One of three formats is typically used to present the information used for authentication:

  • Static password: The token communication protocol stores and transmits a password. For their own security, users typically don't see it.

  • Dynamic password: Dynamic passwords are one-of-a-kind codes that change and expire, and they can either be read and entered by the user or they can go unnoticed and be sent automatically.

  • Challenge-response: The token answers a question that is posed. To demonstrate possession, a cryptographic challenge-response is used.

How does a Security Token Work?

Any device that generates a password can access a system with the help of a security token. Smart cards, USB keys, mobile devices, and radio frequency identification cards can all be examples of this. A security token can be used to log into a computer or virtual private network by entering the password it generates into the prompt because the device generates a new password each time it is used.

A device that generates a random number encrypts it, and sends it to a server along with user authentication data is the basis of security token technology. The device can only decrypt the response that the server sends back after it has been encrypted. In order to reduce the system's susceptibility to hacking, the device is reused for each authentication and does not need to be stored by the server.

You could use keywords in your token setup. A strong password must be typed in by the user from memory. This password frequently has specific requirements, such as a minimum character count or other requirements.

The computer system notifies the user's cellphone when a login attempt is made. The password in that message must be entered for access to be granted. This appears to be the same form of authentication and authorization that users have been using with passwords for years. To access the systems they require, they must enter credentials they have memorized. Security tokens, however, call for a specific tool. Simple memory is insufficient.

Security tokens can take on various forms, such as a USB key or a name badge with an embedded chip. Security tokens include things like banking tokens that can be used to sign transactions like wire transfers or wireless keycards that can be used to unlock locked doors. They secure a person's physical access to a building and serve as electronic signatures for documents, but they are most frequently used to access computer networks.

What are the Types of Security Tokens?

Customization is taken into account when creating security tokens. One company's needs may be very different from another's. To guarantee that you're providing the ideal balance of security and flexibility, choose your version carefully.

A variety of assets and applications are secured using various security token types. Types of security tokens are as follows:

  1. One-Time Passwords (OTPs): OTPs, a type of digital security token, are only good for one login session, which means they can only be used once. The authentication server is informed after the initial use that the OTP shouldn't be used again. Typically, a shared secret key made up of two distinct and random data elements is used to generate OTPs using a cryptographic algorithm. A secret key and a random session identifier make up the other element.
  2. Connected Tokens: A connected token is a real-world item that physically connects to a computer or sensor; examples include USB plug-in devices and smart card readers. In order to grant or deny access, the device reads the connected token. A smart card or keychain like the Yubikey is an illustration. When a user inserts the device into a reader, it immediately sends authentication data to the computer system.
  3. Disconnected Tokens: Users may need to enter a code generated by the token instead of physically inserting anything into a device. An OTP or other credentials may be generated by the device. A disconnected token is used by a desktop application that sends a text message to a cellphone that the user must input during login.
  4. Tokens with no Contact: They establish a logical link with a computer. Users are not required to connect to a device or enter an additional access code or keyword. Instead, these devices establish a wireless connection with the system, and access is then granted or denied in accordance with that connection. A physical device that uses a contactless token, such as an NFC or Bluetooth token, connects wirelessly to the system to gain access.
  5. Tokens for Single Sign-On (SSO) Software: Software tokens for SSO keep track of digital data like usernames and passwords. They make it possible for users of numerous computer systems and network services to sign in to each one without having to keep track of numerous usernames and passwords.
  6. Customizable Tokens: To grant user access, a programmable security token repeatedly generates a special code good for a limited period of time, frequently 30 seconds.

What is Security Token? Why Are They Important? - zenarmor.com (1)

Figure 1. Types of Security Tokens

What are the Advantages of Using a Security Token?

The security token authentication method has the advantage of adding security to a digital system in a physical (rather than digital) manner. Hackers cannot access physical tokens because they are not connected to an online network. For interoperability and flexibility, security tokens use a wide range of communication protocols and take many different forms.

We can list the benefits of security tokens as follows:

  • Scalable and Effective Authentication: Tokens provide a scalable solution because it is known that users must store them. Additionally, the server only needs to create and verify the tokens in conjunction with the information, making it simple to support multiple concurrent users on a website or application.

  • Performance and Flexibility: When it comes to token-based authentication, flexibility, and improved overall performance are crucial factors because they can be applied across multiple servers and provide simultaneous authentication for a variety of websites and applications. For a flawless experience, this encourages more opportunities for collaboration between businesses and platforms.

  • Strong Security: Only a secret key can validate a stateless token like a JWT when it is received at the server-side application that generated it. They are therefore regarded as the best and most secure method of providing authentication. The user's login information is stored on tokens, which are never compromised as the token moves between the server and the web browser.

What are some common issues that can occur with security tokens?

Security tokens' primary disadvantage is that they are actual physical things. Any tangible item can be misplaced or stolen, and depending on the kind of token, malicious parties in physical possession may use it to access accounts and computer systems. For instance, USB cards and fobs are small and easy to misplace. The user will have to use a secondary recovery authentication method, which can be troublesome if they do not have access to their security token.

The user is the main security token vulnerability. A user's security token may become the property of a bad actor if they fail to protect it. Additionally, the vulnerability of security tokens that create one-time passwords has increased due to the rise in social engineering attacks brought on by the global pandemic. The OTP generated by a security token, which can allow access to accounts by criminals using stolen credentials, is being tricked by users via social engineering.

In a nutshell, security tokens are supposed to protect sensitive data. Unfortunately, they are not unbeatable. The risks are actual and can occasionally be challenging to reduce. We can list the following security token flaws:

  • Loss: Small and simple to misplace are keycards, fobs, and USB sticks. Anyone who finds them has access if they are not encrypted or secured with a second password.
  • Theft: Theft of these identical devices is possible, either as part of a targeted attack or another crime like stealing a purse. This could put them in the hands of evil people, just like with loss.
  • Secret Key Compromise: One of the main drawbacks of using tokens is that only one key is required. Yes, JWT only uses one key, which could have serious consequences if it were handled improperly by a developer or administrator and compromised sensitive data. To ensure the highest level of security, businesses must seek professional assistance and implement strong security measures when planning to add JWT to their authentication mechanism.
  • Hacking: Users should be protected from malware by tokens, and organizations like banks frequently inform their customers that token systems are safer as a result. However, anything that is electronic and linked to a network can be compromised by a patient and skilled hacker. Security tokens provide an additional layer of protection, but they are not impervious to hacking.
  • Data Handling: Increasing the amount of information in the token will slow down overall loading and reduce the user experience. This situation can be resolved if proper development procedures are followed and only the most necessary data is added to the token.
  • Security Breach: Hackers can bypass authentication mechanisms by luring users into keying in keywords for data collection. In 2006, this occurred in a significant banking system, sparking a significant scandal.
  • Reduced Lifespan: Users find it more difficult to work with short-lived tokens. It can occasionally be annoying to have to frequently reauthorize these tokens, especially for the clients. The only solution to this problem, where long-lived refresh tokens can help users stay authorized for a longer period of time, is to add refresh tokens and store them properly.

How is a Security Token Different from a Password?

While security tokens offer a more secure choice for securing networks and digital systems, passwords and user IDs are still the most often used type of identification. User IDs and passwords have the drawback of not always being safe. Passwords are vulnerable as a result of threat actors' ongoing development of password-cracking techniques and tools. In a data breach, password information may also be accessed or taken. Furthermore, passwords are frequently simple to figure out since they typically contain easily accessible personal data.

In contrast, security tokens make use of a digital or physical identity specific to the user. The majority of forms are convenient and generally simple to use.

What are the most commonly used security tokens?

The most common security tokens are as follows:

  • RSA SecurID

  • YubiKey

  • Duo Security

  • FIDO

  • AWS STS

  • Auth0

RSA SecurID

The RSA SecurID token serves as a tool for two-factor authentication. Application, email, or SMS delivery are examples of software. The process produces authentication codes after a predetermined amount of time, such as 60 seconds. The party is required to enter the credentials associated with the particular token and the genuinely valid authentication code in order to accomplish authentication.

Random authentication codes are generated by the SecurID token using a factory-encoded key called seed and an internal clock. A database of live tokens and associated seeds can be found on the RSA SecurID server. It makes use of a real-time clock as well. The server accomplishes authentication by comparing the user's entry to the code that the RSA SecurID mechanism should really present during authentication:

The RSA SecurID technique increases the authentication process's security and lowers the likelihood of a data breach. Yet, it is still susceptible to some threats and assaults. Some theoretical attacks have an effect on the security of RSA tokens.

The most fundamental issue is the possibility of loss or theft of token devices or activated cellphones with the inbuilt RSA function. Moreover, any attacks that are capable of stealing the credentials are capable of stealing the authentication code.

Second, man-in-the-middle attacks are not immune to the RSA SecurID tokens. A man-in-the-middle attack, to put it simply, is when an attacker steps in between two parties they believe are connected directly. The sent data can therefore be intercepted or changed by the attacker.

The RSA server could be compromised by an attacker, allowing them to steal information linked to tokens such as seeds. As a result, the token loses all of its value. Actually, RSA was the victim of a successful cyberattack in 2011 when thieves obtained private information from RSA SecurID tokens. The US government was one of the thousands of significant clients the attacker affected.

There are several practical form factors for RSA SecurID hardware authenticators:

  • Hybrid RSA SecurID 800 Authenticator: The RSA SecurID Authenticator SecurID 800 is a USB smart card (USB token) with a built-in reader that also functions as an RSA SecurID authenticator. The two sets of electronics run separately from one another. The SecurID 800 creates and displays token codes for RSA SecurID authentication while it is unplugged. The token performs two tasks when connected to a computer: Instead of reading the number of the token for RSA SecurID authentication, users get their token codes from the relevant middleware placed on their desktops. Users store credentials, including numerous X.509 digital certificates, which enable authentication, digital signature, and file-encryption apps, as well as Windows login accounts, using the smart card features of the token.
  • RSA SecurID 700 Authenticator: Any key ring can readily connect to this hardware gadget. Simply by reading the changing display, which normally changes every 60 seconds, the user creates a dynamic password that is constantly changing.

YubiKey

In order to secure access to computers, networks, and online services, Yubico produces the YubiKey, a hardware authentication tool that supports one-time passwords (OTP), public-key cryptography, authentication, and the Universal 2nd Factor (U2F) and FIDO2 protocols created by the FIDO Alliance. By broadcasting one-time passwords or utilizing a FIDO-based public/private key pair created by the device, it enables users to connect to their accounts securely. For usage on websites that do not accept one-time passwords, YubiKey enables the storage of static passwords. Both staff and end-user accounts are protected by YubiKey devices at Google, Amazon, Microsoft, Twitter, and Facebook. YubiKey is supported by some password managers. Yubico produces the Security Key, a comparable, less expensive device that only supports FIDO2/WebAuth and FIDO/U2F.

The YubiKey, which identifies itself as a keyboard that transmits one-time passwords through the USB HID standard, implements the HMAC-based One-time Password Algorithm (HOTP) and the Time-based One-time Password Algorithm (TOTP). Depending on the version, a YubiKey can appear as an OpenPGP card using 1024, 2048, 3072, and 4096-bit RSA (for key sizes over 2048 bits, GnuPG version 2.0 or higher is required), and elliptic curve cryptography (ECC), p256, p384, and more. This enables users to sign, encrypt, and decrypt messages without disclosing their private keys to third parties. The PKCS#11 standard, which simulates a PIV smart card, is supported. Code signing for Docker images is possible with this functionality, along with certificate-based SSH and Microsoft Active Directory authentication.

Duo Security

By logging in as usual with your username and password using your device, you can use Duo to confirm your identity. Your administrator can set the system to be done with this action and ensure that it includes SMS, voice calls, one-time passwords, Duo Mobile smartphone apps, etc.

You can use a landline, or a tablet, or get a hardware token from your administrator. You can link many devices to your account using Duo. As a result, you can use a hardware token with a landline, two distinct mobile devices, a landline, and a mobile phone, etc.

FIDO tokens

FIDO lessens the issues consumers have with creating and remembering several usernames and passwords, as well as the lack of compatibility among devices that use strong authentication.

The whole spectrum of authentication technologies supported by FIDO includes biometrics, such as voice and facial recognition, embedded secure elements (eSE), smart cards, and near-field communication (NFC), as well as current solutions and communications standards. The USB security token device can be used to authenticate by either pressing a button or entering a short password (for example, a four-digit PIN). A device-centric model is emphasized in the specs. Public-key cryptography is used for over-the-wire authentication. By registering a public key, the user's device registers it with a server. The device signs a challenge from the server with its private key in order to verify the user's identity. A local user gesture, such as a biometric or touching a button, unlocks the device's keys.

FIDO offers two different user interfaces based on the chosen protocol.

Regardless of the user's choice of local authentication technique, both protocols define a common interface for the client.

AWS Security Token

For I AM authenticated users and users who are authenticated in AWS, such as federated users using OpenID or SAML 2.0, you can request temporary security credentials for your AWS resources through the AWS STS (security token service).

Using API requests, your Amazon console, or the AWS command line interface, you can grant trusted users temporary access to resources via STS (security token service) (CLI)

The only difference between the temporary security credentials and standard long-term security access key credentials given to IAM users is the shorter lifecycle of the access credentials.

Normally, an application will send an API request to the AWS STS (security token service) endpoint for credentials; these access keys are dynamically produced by STS (security token service) when the request is sent, rather than being saved with the user. When the STS (security token service)-generated credentials run out, the user can, if they still have the authority to do so, request new ones.

The need to embed security tokens within your code is eliminated once the generated credentials have expired and cannot be used again to access your resources.

You decide on the STS token lifecycle, which can range from 15 minutes to 36 hours.

Amazon STS security tokens are frequently used for cross-account access, identity federation, and EC2 instance resources that need to be accessed by other applications.

You can grant users who have been authenticated on your company network access to AWS resources via AWS STS. No additional Amazon identities or login credentials are needed thanks to this enterprise identity federation.

A third-party online identity management service like Amazon, Google, Facebook, or any other provider that is compatible with Open-ID Connect can verify external web identities. In order to facilitate access to your AWS resources, this web identity federation eliminates the need to disseminate long-term security credentials.

Enterprise federation supports open standards like SAML2.0, which is used to create your own authentication service or to use Microsoft Active Directory Federation Services (ADFS) if you are using Microsoft AD. SAML is used with a variety of authentication methods, including SSO.

Many businesses maintain multiple AWS accounts, and they can give users from one account access to resources in another by using cross-account roles and IAM identities. This trusted relationship is used to seek temporary access using Amazon STS temporary credentials once the permissions have been delegated to an IAM user.

auth0 Token

An artifact that demonstrates the user has been authenticated is an ID token. OpenID Connect (OIDC), an open authentication protocol adopted by numerous identity providers like Google, Facebook, and, naturally, Auth0, introduced it.

A built-in enrollment and authentication mechanism for MFA is available from Auth0 using Universal Login. If you want to, you can use the MFA API in the following situations:

  • Use the Resource Owner Password Grant to verify users' identities.

  • Provide a user interface that allows users to control their own authentication factors.

When authenticating a user, you must ask for an access token in order to access your API.

You can adapt your application to authenticate users using these Auth0 tools:

  • They demonstrate how to use the language- and framework-specific SDKs for Auth0 and Universal Login.

  • Those that like to create their own code might use the Auth0 Authentication API as a guide. Choose the appropriate flow first. then implement that flow by following the instructions.

  • To obtain an access token, make a POST request to the token URL.

With the token-based authentication scenarios offered by Auth0, three specific tokens are employed:

  • Refresh tokens: A token used to renew an access token without requiring a new user authentication.

  • IDP access tokens: These are access tokens that you can use to call third-party APIs that are granted by identity providers upon user authentication.

  • Management API access tokens from Auth0: These are short-lived tokens that contain specific claims (scopes) that allow you to contact management API endpoints.

The Auth0 Guardian app, SMS, voice, push notifications via email, and OTP factors are all compatible with the MFA API. At the moment, neither Duo nor WebAuthn enrollment is supported.

What is the Difference Between a Software Token and a Hardware Token?

One of the many authentication factors is the use of tokens. Physical objects created specifically to serve as authentication tokens are known as hardware tokens. A software token, which can be accessed by another device like a smartphone, is a digital representation of a physical token.

Hardware tokens are commonly used by IT administrators who prefer a more physical administration of keys. This is the situation if managers prefer to track actual tokens over the number of phones that may or may not have access to their systems. Hardware tokens can be useful if clients are unwilling to download a business-required app to their personal phones. Unless the organization provides corporate phones, the hardware token is a better solution for management. Hardware tokens are often more practical than software tokens when the user has no or limited Internet access or when phones are outlawed (secure environments).

Software tokens are less expensive and easier to install because they only require the download of an application agent from the user's PC. The software token receives software upgrades automatically, requiring minimal company maintenance. A software token does not require a battery. Because the quality and functionality of the hosting device (phone) on which soft tokens rely is a factor in the performance of the authentication process, the authentication experience may not always be consistent or as satisfying.

A hardware token can be used for 2FA, OTP, password management, computer access control, and other functions. A software token performs the same responsibilities as a hardware token, but on your phone or another device as software.

What is Security Token? Why Are They Important? - zenarmor.com (2024)

FAQs

What is Security Token? Why Are They Important? - zenarmor.com? ›

A token is a physical object or card that the system uses to verify the security information it contains about a user or displays about them. A password is used in conjunction with the token or instead of it. Security tokens are used instead of conventional passwords or in addition to them.

What is the importance of security token? ›

A security token's primary purpose is to record ownership of an underlying asset on a blockchain. These tokens also allow investors interested in blockchain investing to access investment opportunities that exist in regulated markets.

What is meant by security token? ›

A security token is a physical or wireless device that provides two-factor authentication (2FA) for users to prove their identity in a login process.

What is your security token? ›

Security tokens are devices or apps that generate unique 6-digit codes. These codes change regularly, expire after a short amount of time, and can only be used once.

What is secure token used for? ›

A security token is a physical device that users must possess to access a system. Authentication data must flow between both the user and the system to validate identities and access. A security token is the conduit for this data.

What is the purpose of a token? ›

Tokens have a huge range of potential functions, from helping make decentralized exchanges possible to selling rare items in video games. But they can all be traded or held like any other cryptocurrency. “Token” is a word that you hear a lot in cryptocurrency.

What is an example of a security token? ›

Examples of security tokens in crypto include Polymath, tZero, Harbor, and Securitize.

How to use a security token? ›

The tokens have a physical display; the authenticating user simply enters the displayed number to log in. Other tokens connect to the computer using wireless techniques, such as Bluetooth. These tokens transfer a key sequence to the local client or to a nearby access point.

What is the difference between a token and a security? ›

Utility Tokens: Serve a specific function within a blockchain ecosystem, providing access to features or participation in governance mechanisms. Security Tokens: Represent ownership or investment in real-world assets or enterprises, with an expectation of financial returns.

What does a security token contain? ›

Every security token contains a tiny bit of data that could be considered a password. It isn't always entered into a system via a keypad or scanner, but the token completes some type of secure data exchange with the resource the user is trying to access.

Can security tokens be hacked? ›

The token and number itself could be hacked, but it would take years of attempts to be successful because of the encryption methods. While security tokens are generally considered to be a secure method of authentication, they are not completely immune to attacks.

Are security tokens safe? ›

They are issued by Security Token Services (STS), which authenticate the person's identity. They may be used in place of or in addition to a password to prove the owner's identity. Security tokens are not always secure—they may be lost, stolen, or hacked.

How does a security token offering work? ›

A Security Token Offering (STO) is an event where a company distributes blockchain-based tokens that represent ownership of tangible or intangible assets. These assets can range from real estate and art to company equity.

What do you mean by security token? ›

Security tokens are physical devices that people use as hardware authenticators to securely access a system. The token typically contains cryptographic information that is specific for each user and is used for user authentication into that system.

How do I check if a user has a secure token? ›

To check that a user has a secure token, you can use the command sysadminctl -secureTokenStatus <username> .

What is the use of security token service? ›

The tokens issued by security token services can then be used to identify the holder of the token to services that adhere to the WS-Trust standard. Security token service provides the same functionality as OpenID, but unlike OpenID is not patent encumbered.

What is the significance of tokens? ›

7. Significance – Tokens played a major role in the development of counting, data processing and communication in the ancient Near East. They made possible the establishment of a Neolithic redistribution economy and thereby set the foundation of the Mesopotamian Bronze Age civilization.

What is the benefit of token? ›

Benefits of Tokenization

Enhanced Security: Tokenization replaces sensitive payment data with tokens, making it less valuable to hackers while adding an extra layer of security for customers on your website.

What is the benefit of access token? ›

A valid token allows a user to retain access to an online service or web application until the token expires. This offers convenience, as the user can continue to access a resource without re-entering their login credentials every time. A token's life cycle varies depending on the type of token it is.

What is the difference between a security key and a security token? ›

The primary difference between a Secuity Key and a Hardware Token is that a Security Key is a physical device which plugs into your computer when you're signing into a service protected by MFA.

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