The Password is …
Recent data breaches, including those of Target, Neiman Marcus, Adobe, LivingSocial and SnapChat, indicate that merely evaluating passwords isn't an effective way to protect the systems that guard online customer account information. These are high-profile examples, but in reality nearly all online merchants are experiencing an onslaught of attacks as criminals attempt to break into their systems and steal credit card and other sensitive data. Even relatively small retailers are being assaulted. For many of these businesses, unless they adopt new authentication tactics and implement better controls, it's just a matter of time until they too become a statistic.
Studies have repeatedly shown that the most damaging and expensive cyber attacks all have one thing in common: hackers defeat the system's authentication system. Today's sophisticated cybercriminals employ numerous strategies to crack, discover or steal passwords and/or login credentials. Countless victims fall prey to spear phishing and pharming attacks, as devious and cunning thieves are very good at secretly deploying malicious software that's capable of capturing IDs and passwords.
Although it's uncertain what percentage of malware can actually capture login credentials, most malicious programs are designed to do exactly that. With 30 percent to 50 percent of PCs known to be infected, every online business needs to take heed. Mobile devices aren't immune to malware either. Juniper Network's Third Annual Mobile Threats Report revealed that mobile malware grew by more than 600 percent during the previous 12 months.
Phishing and malware aren't the only ways credentials are obtained, however. Employees frequently share their passwords with unauthorized individuals, and weak passwords that are easily cracked or guessed are still commonly used. In spite of the emphasis placed on using strong passwords, it's estimated that over 30 percent of all passwords are very weak and easily compromised. Even stronger passwords don't necessarily equate to a safe harbor. Numerous reports released this past year have shown that most strong passwords can also be cracked by skilled cybercriminals. Research from Deloitte revealed that with the right tools and access, 90 percent of user-generated passwords can be discovered or cracked in a matter of seconds, including passwords once thought to be strong — e.g., those with at least eight characters, using both upper and lower case letters, containing at least one symbol and having at least one number.