What Happens When a Password Database is Hacked?
- crypticana
- May 14, 2024
- 2 min read
Password managers have become essential tools for safeguarding our online accounts and other secrets. However, the security of these managers relies heavily on one crucial element: the master password. Often touted as the ultimate defense, this single password is ironically the Achilles' heel of the system. But why is that, and what can we do about it?
The Vulnerability of Master Passwords
Most password managers protect user passwords and other secrets with... a password. Sometimes they call it a “master password” to create an air of importance, but it’s still just a password. It's even more dangerous than the ones it protects because it has to be memorized. In hacker terms, this means it is vulnerable to dictionary attacks.
When a password can be memorized by a human, it typically consists of one or several words with additional prefixes and suffixes intended to make it more secure. Unfortunately, this often isn't sufficient. Hackers use specialized software to automate the process of trying multiple words and combinations of characters and numbers. This type of attack, known as a dictionary attack, involves cycling through a dictionary of words in various combinations. Without going into too much detail, it’s only a matter of time before the master password is cracked.
How Hackers Exploit This Weakness
To perform a dictionary attack, hackers need to steal the password database from the service provider's server or access your local data file. They cannot conduct such an attack online due to the limited number of retries before the account is locked out. However, there are countless ways for hackers to compromise a user's computer or corporate data center, making data breaches almost inevitable.
A Revolutionary Solution: Bitcoin Technology
The solution to this vulnerability has existed since 2008, the year the first cryptocurrency, Bitcoin, was launched. Unlike traditional databases, including those used by password managers, the Bitcoin database is not hidden behind corporate firewalls. Instead, it is openly accessible, but only those with the correct keys can access the data. This is because the data is encrypted using private keys derived from a secret phrase, not a password. A 12-word secret phrase, also known as mnemonic phrase, is not easily memorized, making it immune to dictionary attacks.
How MystSafe Protects Your Data
At MystSafe, we use the same technology as Bitcoin to protect user passwords and other secrets, such as crypto wallets and bank account credentials. By employing encryption keys derived from secret phrases, we ensure that your data remains secure and out of reach from potential attackers.
In an era where data breaches are increasingly common, relying on a master password for security is no longer sufficient. By adopting advanced encryption methods like those used in Bitcoin, we can protect our digital lives more effectively. MystSafe is at the forefront of this revolution, offering a secure and reliable solution for safeguarding your most valuable information.
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