A look at hardware security tokens

A look at hardware tokens

We’ve once lived in a world where a simple password was considered a great and secure way to protect your data and accounts. That seems like a fairytale in today’s world as technology and hacking have developed into a threat to many users and organizations.

We’ll take a closer look at another good way to secure your data with hardware security tokens, a crucial component of a robust authentication system, and compare this with its relative, software security tokens.

What are hardware security tokens?

First, we should take a look at what hardware security tokens actually are. The tech world generally distinguishes between two types of hardware security tokens; disconnected and connected tokens.

The disconnected tokens are probably the most common type of hardware security token. These do not require a direct connection with the device you’re using to log onto e.g. a website. This type usually requires the user to enter credentials to activate the token and get access to wherever they wish to enter, making it a secure physical device for authentication.

The connected hardware security token is a bit different since you need a direct connection between the security token and the device. This is required to transfer data between the token and the device. A connected hardware security token is usually a USB stick, a small Bluetooth device, or the like.

What both types have in common is that they are small physical devices that the user brings with them.

Types of hardware tokens

Hardware tokens can be categorized into several types based on their functionality, connectivity, and form factor. Here are some of the most common types of hardware tokens:

Connected tokens: These tokens require a physical connection to the client system, typically via USB or Bluetooth. They transmit the generated one-time passwords (OTPs) directly to the system for authentication. Examples include USB sticks and Bluetooth devices.
Disconnected tokens: Unlike connected tokens, these devices do not need a direct connection to the client system. Instead, they generate OTPs that the user manually enters into the system for authentication. This type of token is often used in environments where a physical connection is impractical.
Smart cards: These are small, credit-card-sized devices equipped with a microprocessor and memory. Smart cards can store sensitive information such as encryption keys and certificates, making them a versatile option for secure authentication.
USB tokens: These compact devices plug into a USB port on the client system. They can store sensitive information and generate OTPs, providing a secure and convenient way to authenticate users.
Wireless tokens: Utilizing wireless communication protocols like Bluetooth or Wi-Fi, these tokens transmit OTPs to the client system without the need for a physical connection. This makes them highly convenient for users who need mobility.
Biometric tokens: These tokens incorporate biometric authentication methods, such as fingerprint or facial recognition, to verify the user’s identity. By combining physical tokens with biometric data, they offer an additional layer of security.

How does it work?

The next thing we should settle is how a hardware security token works.

A hardware security token is typically handed out by the IT department within the organization. Beforehand, the IT department has registered the authentication tokens to belong to a specific device and thus grants access to this specific employee.

In that way, the IT department can control what each employee has access to and thus limit access and follow the principle of privilege – which is another great element to implement for better cyber security.

The system registers the hardware security token and assumes that only authorized tokens and accepted credentials should access the organization’s data including operating systems, accounts and storage.

An example of a hardware security token is access cards that many organizations use – if employees want to access offices or company areas, they need to use their physical access cards and a designated PIN code. This is essentially a two-factor authentication method, as you’d need both the access card and the specific PIN code. Explore how two-factor authentication strengthens security and protects against unauthorized access.

Access cards and hardware security tokens are similar to normal keys we use for our car or home – they are specified to only work for your keyhole.

Hardware tokens vs. software tokens

You can use two kinds of security tokens, namely hard and soft tokens, which include hardware tokens and software tokens. So, let’s take a look at the differences between the two:

As we’ve established, hardware tokens are some sort of physical token whereas software tokens are digital tokens. Software tokens, also known as soft tokens, are, as the name suggests, a software installation you can get on your device like a multi-factor authentication app.

This does, however, require that you’re connected to a Wi-Fi connection – otherwise, the token won’t work, and you won’t be able to access it wherever you wish to log in.

The hardware tokens are physical tokens you connect with your device. They use encryption methods to be as secure as possible – and they come in the aforementioned disconnected or connected forms.

In the cyberworld we usually recommend hardware security tokens as they are more secure against cybercriminals – they would need to steal the physical token in order to use it and access the device. However, we do understand that software security tokens are more flexible and convenient than physical keys. We’re essentially just happy if you’re using any type of security token!

Hardware token security features

Hardware tokens offer several security features that make them a robust authentication method. Here are some of the key security features of hardware tokens:

Public-key cryptography: Hardware tokens use public-key cryptography to prove ownership and identity. This ensures that the token is genuine and has not been tampered with, providing a high level of security.
Private key isolation: The private key stored on the hardware token is isolated from the user’s device, making it inaccessible to malware. This isolation ensures that even if the user’s device is compromised, the private key remains secure.
Phishing resistance: Hardware tokens are resistant to phishing attacks because they require the token to recognize the service making the authentication request. This means that even if a user is tricked into entering their credentials on a fake site, the token will not authenticate the request.
Malware resistance: Since the private key never leaves the hardware token, it is protected from malware attacks. This feature ensures that even if the user’s device is infected with malware, the authentication process remains secure.
Activity tracking resistance: Hardware tokens provide resistance against activity tracking across different services by generating a new ID and key-pair for each service they are registered with. This prevents attackers from tracking the user’s activities across multiple services.

Advantages and disadvantages of hardware tokens

We’ve already mentioned one of the biggest advantages of using hard tokens, namely that they are a lot harder to exploit for hackers.

Another advantage is that they are fairly easy to use for any user – it’s pretty much plug-and-play, so even the employees who aren’t as tech-savvy as others won’t have a hard time using it.

Hardware security tokens furthermore secure the physical working environment with e.g. access cards to enter areas and offices. If every employee needs to use a key card to access different locations within an organization, you avoid theft and unauthorized access from outsiders.

There are, unfortunately, also some disadvantages to consider with hardware security tokens.

Firstly, it can be a bit costly for an organization to establish hardware security tokens; they need locks and card readers as well as actual key cards for every employee. There is furthermore the maintenance of the card readers and making sure every employee has an activated card or token.

Another disadvantage regarding hardware security tokens is that if your token gets stolen by a hacker – and thus becomes compromised – it poses a pretty severe security threat. Often a token will give the user access to different files and systems, and if a hacker gets their hands on the token, they will be able to access these systems and files. And as with most hackers, they will then use this for financial gain.

Using hardware tokens with web apps

Hardware tokens can be used with web apps to provide an additional layer of security. Here are some ways to use hardware tokens with web apps:

WebAuthn: WebAuthn is a protocol that allows web apps to use hardware tokens for authentication. It requires the token to recognize the service making the authentication request, which helps prevent phishing attacks. By integrating WebAuthn, web apps can offer a secure and user-friendly authentication method.
CTAP: The Client to Authenticator Protocol (CTAP) ensures that the private key never leaves the hardware token, which helps prevent malware attacks. This protocol works in conjunction with WebAuthn to provide a comprehensive security solution for web apps.
Anvil: Anvil is a framework for building full-stack web apps with Python. It includes user authentication options that support hardware tokens, making it easier for developers to implement secure authentication methods in their web apps.
Custom recovery flows: Web apps can implement custom recovery flows to allow users to reset their tokens by email or through the Users Service admin interface. This ensures that users can regain access to their accounts even if their hardware token is lost or damaged.

A solution for your multi factor authentication cybersecurity

You might be wondering what you should do when it comes to your cybersecurity; whether you should use a software security token or get a hardware security token. As mentioned, we recommend that you first and foremost get a security token.

With modern technology, a user's mobile device can function as a security token with multi-factor authentication and one-time passwords. Dive into our guide on one-time passwords to learn how they work. Hardware authentication tokens, which use public-key cryptography, provide an additional layer of security. Third party hardware tokens can also be integrated with existing systems to enhance security. This essentially makes it a lot more difficult for hackers to get access to your accounts and systems.

The essence here is that you have some type of additional authentication connected to your files and data – this additional layer of security can really help you out when it comes to securing your assets.

An organization’s security relies on internal security meaning that if one employee or security token is compromised, the entire organization can become a target. So, to stay secure, you might want to consider a solution that suits the organization and employees in the best way possible.

Future of hardware tokens

Hardware tokens are becoming increasingly popular as a robust authentication method. Here are some trends that are shaping the future of hardware tokens:

Increased adoption: As organizations recognize the need for robust authentication methods, the adoption of hardware tokens is on the rise. This trend is driven by the growing awareness of cybersecurity threats and the need for stronger protection.
Improved user experience: Hardware tokens are becoming more user-friendly, with features such as biometric authentication and wireless connectivity. These improvements make it easier for users to adopt and use hardware tokens in their daily routines.
Advanced security features: Hardware tokens are incorporating advanced security features, such as artificial intelligence and machine learning, to detect and prevent attacks. These technologies enhance the security of hardware tokens and make them more resilient against evolving threats.
Integration with other authentication methods: Hardware tokens are being integrated with other authentication methods, such as passwordless authentication and behavioral authentication, to provide a more comprehensive security solution. This integration ensures that users have multiple layers of protection, making it more difficult for attackers to compromise their accounts.

By understanding the different types of hardware tokens, their security features, and how they can be used with web apps, organizations can make informed decisions about implementing robust authentication methods. As the future of hardware tokens continues to evolve, staying informed about the latest trends and advancements will be crucial for maintaining strong cybersecurity.