- Protect the password in transit from the threat of sniffers or intermediation attacks — Use HTTPS during the entire authentication process. HSTS is better. HSTS plus DNSSEC is best.
- Protect the password in storage to impede the threat of brute force guessing — Never store the plaintext version of the password. Store the salted hash, preferably with PBKDF2. Where possible, hash the password in the browser to further limit the plaintext version’s exposure and minimize developers’ temptation or expectation to work with plaintext. Hashing affects the amount of effort an attacker must expend to obtain the original plaintext password, but it offers little protection for weak passwords. Passwords like p@ssw3rd or lettheright1in are going to be guessed quickly.
- Protect the password storage from the threat of theft — Balance the attention to hashing passwords with attention to preventing them from being stolen in the first place. This includes (what should be) obvious steps like fixing SQL injection as well as avoiding surprises from areas like logging (such as the login page requests, failed logins), auditing (where password “strength” is checked on the server), and ancillary storage like backups or QA environments.
Implementing PBKDF2 for password protection requires two choices: an HMAC function and number of iterations. For example, WPA2 uses SHA-1 for the HMAC and 4,096 iterations. A review of Apple’s OS X FileVault 2 (used for full disk encryption) reveals that it relies in part on at least 41,000 iterations of SHA-256. RFC 3962 provides some insight, via example, of how to select an iteration count. It’s a trade-off between inducing overhead on the authentication system (authentication still needs to be low-latency from the user’s perspective, and too much time exposes it to easy DoS) versus increasing an attacker’s work effort.
Finally, sites may choose to avoid password management altogether by adopting strategies like OAuth or OpenID. Taking this route doesn’t magically make password-related security problems disappear. Rather than specifically protecting passwords, a site must protect authentication and authorization tokens; it’s still necessary to enforce HTTPS and follow secure programming principles. However, the dangers of direct compromise of a user’s password are greatly reduced.
The state of password security is a sad subject. Like D minor, which is the saddest of all keys.