Crypto, hashes and password questions, total noob? - security

I've read several stackoverflow posts about this topic, particularly this one:
Secure hash and salt for PHP passwords
but I still have a few questions, I need some clarification, please let me know if the following statements are true and explain your comments:
If someone has access to your database/data, then they would still have to figure out your hashing algorithm and your data would still be somewhat secure, depending on your algorithm? All they would have is the hash and the salt.
If someone has access to your database/data and your source code, then it seems like no matter what your do, your hashing algorithm can be reversed engineered, the only thing you would have on your side would be how complex and time consuming your algorithm is?
It seems like the weakest link is: how secure your own systems are and who has access to it?
Lasse V. Karlsen ... brings up a good point, if your data is compromised then game over ... my follow up question is: what types of attacks are these hashes trying to protect against? I've read about rainbow table and dictionary attacks (brute force), but how are these attacks administered?

The security of cryptographic algorithms is always in their secret input. Reasonable cryptanalysis is based on an assumption that any attacker knows what algorithm you use. Good cryptographic hashes are non-invertible and collision resistant. This means that there's still a lot of work to do going from a hash to the value that generated it, regardless of whether you know the algorithm applied.
If you used a secure hash, access to the hash, salt, and algorithm will still leave a lot of work for a would-be attacker.
Yes, a secure hash puts a very hard to invert algorithm on your side. Note that this inversion is not 'reverse-engineering'
The weak link is probably the processes and procedures that get those password hashes into the database. There are all sorts of ways to screw up and store sensitive data in the clear.
As I noted in a comment, there are attacks that these measures defend against. First, knowing the password may lead to authorization to do things beyond what the contents of the database suggest. Second, those passwords may be used elsewhere, and you expose your users to risk by revealing their passwords as a result of a break-in. Third, with hashing, an insider can't exploit read-only access to the database (subject to less auditing, etc.) to impersonate a user.
Dictionaries and rainbow tables are techniques for accelerating hash inversion.

You question is about using passwords as an authentication mechanism and how to securely store these passwords in a database using a hash. As you probably already know the goal is to be able to verify passwords without storing these passwords i clear text in the database. In this context let me try to answer each of your questions:
If someone has access to your database/data, then they would still have to figure out your hashing algorithm and your data would still be somewhat secure, depending on your algorithm? All they would have is the hash and the salt.
The basic idea of hashing passwords is that the attacker has knowledge of the hashing algorithm and has access to both the hash and the salt. By selecting a cryptographic strong hash function and a suitable salt value that is different for each password the computational effort required to guess the password is so high that the cost exceeds the possible gain the attacker can get from guessing the password. So to answer your question, hiding the hash function does not improve the security.
If someone has access to your database/data and your source code, then it seems like no matter what your do, your hashing algorithm can be reversed engineered, the only thing you would have on your side would be how complex and time consuming your algorithm is?
You should always use a well-known (and suitably strong) hashing algorithm, and reverse engineering this algorithm is not meaningful as there is nothing hidden in your code. If you didn't mean reverse engineer but actually reverse then, yes, the passwords are protected by the complexity of reversing the hash function (or guessing a password that matches a hash value). Good hash functions makes this very hard.
It seems like the weakest link is: how secure your own systems are and who has access to it?
In general this is true, but when it comes to securing passwords by storing them as hashes you should still assume that the attacker has full access to the hashes and design your system accordingly by choosing an appropriate hash function and using salts.
What types of attacks are these hashes trying to protect against? I've read about rainbow table and dictionary attacks (brute force), but how are these attacks administered?
The basic attack that password hashing protects against is when the attacker gets access to your database. The clear text password cannot be read from the database and the password is protected.
A more sophisticated attacker can generate a list of possible passwords and compute the hash using the same algorithm as you. He can then compare the computed hash to the stored hash and if he finds a match he has a valid password. This is a brute force attack and it is generally assumed that the attacker has "offline" access to your database. By requiring the users to use long and complex passwords the effort required to "brute force" a password is significantly increased.
When the attacker wants to attack not one password, but all the passwords in the database a large table of passwords and hash value pairs can be precomputed and further improved by using what is called hash chains. Rainbow tables is an application of this idea and can be used to brute force many passwords simultaneously without increasing the effort significantly. However, if a unique salt is used to compute the hash for each password a precomputed table becomes useless as it is different for each salt and cannot be reused.
To sum it up: Security by obscurity is not a good strategy for protecting sensitive information and modern cryptography allows you to secure information without having to resort to obscurity.

what types of attacks are these hashes trying to protect against?
That type when someone gets your password from poorly secured site, reverses it, and then tries to access your bank/PayPal/etc. account. It happens all the time, and many people are still using same (and often weak) passwords everywhere.
As a side note, from what I've read, key derivation functions (PBKDF2/scrypt/bcrypt) are considered better/more secure (#1, #2) than plain salted SHA-1/SHA-2 hashes by crypto people.

If you have just a hash, no salt, then once they know your data (and algorithm) they can get your password via a rainbow table lookup. If you have a hash and a salt, they can get your password by burning a lot of CPU cycles and building a rainbow table.
If your salt is the same for all your data, they only need to burn a lot of CPU cycles once to build the table and then they have all the passwords. If your salt is not always the same, they need to burn through the CPU cycles to make a unique rainbow table for each record.
If the salt is long enough, the CPU cycles they need become very cost-prohibitive.
If you know your data security is breached, of course, you need to reset all the passwords immediately anyway, because as far as you know the attacker is willing to spend that time.

If someone has access to your database/data, then they would still
have to figure out your hashing
algorithm and your data would still be
somewhat secure, depending on your
algorithm? All they would have is the
hash and the salt.
This might be all a really dedicated opponent would need. Much of this answer depends on how valuable the data is, which would tell you how motivated the opponent is. Credit card numbers are going to be extremely valuable, and criminal attackers seem to have plenty of time and accomplices to do their dirty work. Some bad guys have been known to farm out key decryption tasks to botnets!
If someone has access to your database/data and your source code,
then it seems like no matter what your
do, your hashing algorithm can be
reversed engineered, the only thing
you would have on your side would be
how complex and time consuming your
algorithm is?
If they have access to your source and all the data, the question is going to be "how did you load your key into the memory of the server in the first place?" If it's embedded in the data or in the program code, it's game over and you've lost. If it was hand-keyed by an operator at the machine's boot time, it should be as secure as your trust in your operator. If it is stored in an HSM*, it should still be secure.
And if they have root-level authority access to your running machine, then they can probably trigger and recover a memory dump that will reveal the secret key.
It seems like the weakest link is: how
secure your own systems are and who
has access to it?
This is true. But there are alternatives that help improve security.
For bank-like protection, the kind that passes security and industry audits, it's recommended that you use a *Hardware Security Module (HSM) to perform key storage and encryption/decryption functions. The commercial strength HSMs we're looking at cost 10s of thousands of dollars or more each, depending on capacity. But I have seen hardware encryption cards that plug into a PCI slot that cost substantially less.
The idea behind an HSM is that the encryption happens on a secure, hardened platform that nobody has access to without the secret keys. Most of them have cabinets with intrusion detection switches, trip wires, epoxied chips, and memory that will self-destruct if tampered with. Not even the legitimate owner or the factory should be able to recover the database key from an HSM without the set of authorized crypto keys (usually carried on smart cards.)
For a very small installation, an HSM can be as simple as a smart card. Smart cards aren't high performance encryption devices, though, so you can't pump more than about one decryption transaction per second through them. Systems using smart cards usually just store the root key, then decrypt the working database key on the smart card and send it back to the database accessing system. These will still yield the working database key if the attacker can access running memory, or if the attacker can sniff the USB traffic to and from the smart card.
And I have no experience getting TPM chips to work (yet), but theoretically they can be used to securely store keys on a machine. Again, it is still no defense against an attacker taking a memory dump while the key is loaded in memory, but they would prevent a stolen hard drive containing code and data from revealing its secrets.

A hash cannot be reversed. Conceptually, think of a hash as taking the value to be hashed as the seed to a random number generator, then taking the 500th number that it generates. This is a repeatable process, but it is not a reversible process.
If you store a hashed password in your database, when your user logs in, you take his password from the input to the login page, you apply the same hash to it, and then you compare the result of that operation to what you have stored in the database. If they match, the user typed the right password. (Or, in theory, they could have typed something that happens to hash to the same value, but in practice, you can completely ignore this.)
The purpose of the salt is so that even if users have the same password, you can't tell, and also lots of other things which are equivalent to this idea. If the user's password is "secret", and the salt is "abc", then instead of making a hash of "secret", you hash "secretabc" and store the results of that in your database. You also store the salt, but this is perfectly safe to store -- you can't figure out any information about the password from it.
The only reason to safeguard the hashed passwords and salt is that if an attacker has a copy of it, he can test passwords offline on his own machine, rather than repeatedly trying to log in to your server, which you would probably lock him out after three attempts or something like that. Even if you don't lock him out, it's much faster to test locally than to wait for the network round-trip.

( OP )
brings up a good point, if your data
is compromised then game over ... my
follow up question is: what types of
attacks are these hashes trying to
protect against? I've read about
rainbow table and dictionary attacks
(brute force), but how are these
attacks administered
( discussion )
It's not a game, except to the attacker. Research these terms:
Sarbanes-Oxley
Gramm-Leach-Bliley Act (GLBA)
HIPAA
Digital Millenium Copyright Act (DMCA)
PATRIOT Act
Then tell us ( as thought provocation for you ) how do we protect against whom? For one thing, it is the efforts of innocents vis-a-vis intruders - and for another it is data-recovery if part of the system fails.
It is an interesting experiment that the original intent of tcp/ip and so on is advertised as being a weapon of war, survivability under attacks. Okay, so passwords are hashed - no one can recover them ...
Which, duh, includes the owner-operator of the system.
So you build a robust record locking tool that implements key controls, then political pressures force the use of brand-x tools.
You can read Federal Information Security Management Act (FISMA) and by the time you have read it some governmental entity somewhere will have had an entire disk either stolen or compromised.
How would you protect that disk if it was your personal identity information on that disk.
I can tell you from the caliber of Martin Liversage and jadeters they will be paying attention.

Here are my thoughts to your points:
If people have access to your database you have bigger security concerns than your hash algorithm and salt phrase. Hashes are somewhat secure, however there are problems such as hash collisions and hash lookups.
Hashes are one-way, so unless they can guess the input there is no way to reverse out the original text even with the algorithm and salt; hence the name one-way hash.
Security is about obscurity and layers of defense. If you layer your defenses and make determining what those defenses are you stand a much better chance of staving off an attack than if you relied on a single approach to security such as password hashing and running OS/network hardware updates. Throw in some curveballs like obsfucation of the web server platform and clear boundaries between the prod web and database environments. Layers and hiding implementation details buy you valuable time.

When hashing a password, it is one way. So it is very difficult to get the password even if you have the salt, source and alot of cpu cyles to burn.

Related

Is SHA1(3DES-CBC) a good encryption for storing passwords in database?

I am security analyst and I had been asked this question Is SHA1(3DES-CBC) a good encryption for storing passwords in database?
However, to my knowledge I feel use of salt for storing any sensitive information. And I feel CBC mode is vulnerable on certain protocols. And I feel this is the best pratice https://www.owasp.org/index.php/Password_Storage_Cheat_Sheet
Please correct my understanding of the above.
However, I am trying to understand the technical implication of SHA1(3DES-CBC) to better explain my team of its issues in implimentation. Please advise me on the same.
Fast hashing algorithms like SHA* are never a good choice to hash passwords, instead you should use a slow key-derivation function with a cost factor like BCrypt or PBKDF2.
I couldn't find much information about "3DES-CBC" in combination with SHA1, but both (SHA1 and DES) are hash functions without iterating.
However, to my knowledge I feel use of salt for storing any sensitive information ...
John Stevens of OWASP put together a good document on server password security and storage. It walks through the attacks and threats, and then adds steps to neutralize the threats. Here are the references to the OWASP material (you only referenced one of them):
Password Storage Cheat Sheet
Secure Password Storage Threat Model
And I feel CBC mode is vulnerable on certain protocols...
I don't believe this is correct. A block cipher operated in CBC mode is a pseudo random function. It posses the PRP-notion of security. However, it can't be used in a vacuum. Hence, the reason you need understand the material in the two OWASP references.
SHA1(3DES-CBC)...
I'm not sure what the purpose of the composite function is. You'll have to ask the developers what their security goals are, and what threat it neutralizes. Naively, I'm going to say AES/CBC or 3DES/CBC alone should have been sufficient.
You also have the key storage problem to contend with. Its known as the "Unattended Key Storage" problem, and its a problem without a solution. See Peter Gutmann's Engineering Security.
NO!
If you're storing passwords in a database, you should be using bcrypt or scrypt. bcrypt has been analyzed by numerous cryptographers over the years, and is the 'defacto' password hashing algorithm.
SHA1 is bad because:
It can be run quickly (bad, makes it vulnerable to brute force).
It is susceptible to collision attacks (this means attackers don't even need to brute force the password).
It can be easily reversed if you're not using a salt (rainbow tables).
bcrypt is great because:
It's very slow (slows down attackers trying to brute force).
It requires a lot of CPU (this means attackers need many computers, with large CPUs).
It has no collisions.
scrypt is just like bcrypt, but also requires a lot of memory to compute a hash, further slowing down attackers. scrypt is relatively new, however, so you might want to stick with bcrypt for now.

Importance of salt when using Rfc2898DeriveBytes to create secure passwords from clear text passwords

I'd like to incorporate the encryption and decryption of files in one of my C# .NET apps. The scenario is simple: User A sends an AES256-encrypted file to user B. The clear text password is exchanged on a different channel (e.g. phone call or whatever).
From what I understand I should use Rfc2898DeriveBytes for converting the user's clear text password into a more secure password using maybe 10,000 rounds. (see this article).
What I don't understand is the role of salt in my scenario. Usually salt is used in hashing passwords to prevent dictionary attacks. But in my scenario the PBKDF2 algo is used to compensate weaknesses of short or easy to guess clear text passwords by adding extra calculations required by the PBKDF2-rounds.
If I choose a random salt then the receiver will need to know that salt also in order to decrypt correctly. If I use a constant salt, then hackers can easily reverse engineer my code and run brute force attacks using my constant salt (although they'll be really slow thanks to the PBKDF2 iterations).
From what I understand I have no choice but to use a constant salt in my scenario and enforce a good clear text password rule to make up for the weakness of constant salt. Is my assumption correct?
Salts, in the context of password hashing (and key derivation), are used to prevent precomputation attacks like rainbow tables.
Note that the salt must be different and unpredictable (preferably random) for every password. Also note that salts need not be secret – that's what the password is for. You gain no security by keeping the salt secret.
The recommended approach in your case is to generate a random salt every time a file is encrypted, and transmit the salt along with the ciphertext.
Is there a specific reason you're using AES-256 by the way? It's around 40% slower than AES-128 due to the extra rounds, and it offers no practical security benefit (particularly not in the case of password-based encryption).
It's also worth considering using a well-established standard like PGP rather than building your own protocol from cryptographic primitives, because building secure protocols is so hard that even experts don't always get it right.
Your assumption is correct. If they have access to the password, they will also have access to the salt. The BCrypt implementations I've seen put the number of iterations, the hash, and the salt all in the same result string!
The idea is: your hash should be secure even if the salt and number if iterations is known. (If we could always know that the salt and number of iterations and even the algorithm would be unknown to attackers, security would get a whole heck of a lot easier! Until attackers politely decline to read our salts, we must assume they will have access to them in the event of a breach.) So you're right, they can brute force it - if they have a few supercomputers and a couple million years of computing time at their disposal.

Best Practices: Salting & peppering passwords?

I came across a discussion in which I learned that what I'd been doing wasn't in fact salting passwords but peppering them, and I've since begun doing both with a function like:
hash_function($salt.hash_function($pepper.$password)) [multiple iterations]
Ignoring the chosen hash algorithm (I want this to be a discussion of salts & peppers and not specific algorithms but I'm using a secure one), is this a secure option or should I be doing something different? For those unfamiliar with the terms:
A salt is a randomly generated value usually stored with the string in the database designed to make it impossible to use hash tables to crack passwords. As each password has its own salt, they must all be brute-forced individually in order to crack them; however, as the salt is stored in the database with the password hash, a database compromise means losing both.
A pepper is a site-wide static value stored separately from the database (usually hard-coded in the application's source code) which is intended to be secret. It is used so that a compromise of the database would not cause the entire application's password table to be brute-forceable.
Is there anything I'm missing and is salting & peppering my passwords the best option to protect my user's security? Is there any potential security flaw to doing it this way?
Note: Assume for the purpose of the discussion that the application & database are stored on separate machines, do not share passwords etc. so a breach of the database server does not automatically mean a breach of the application server.
Ok. Seeing as I need to write about this over and over, I'll do one last canonical answer on pepper alone.
The Apparent Upside Of Peppers
It seems quite obvious that peppers should make hash functions more secure. I mean, if the attacker only gets your database, then your users passwords should be secure, right? Seems logical, right?
That's why so many people believe that peppers are a good idea. It "makes sense".
The Reality Of Peppers
In the security and cryptography realms, "make sense" isn't enough. Something has to be provable and make sense in order for it to be considered secure. Additionally, it has to be implementable in a maintainable way. The most secure system that can't be maintained is considered insecure (because if any part of that security breaks down, the entire system falls apart).
And peppers fit neither the provable or the maintainable models...
Theoretical Problems With Peppers
Now that we've set the stage, let's look at what's wrong with peppers.
Feeding one hash into another can be dangerous.
In your example, you do hash_function($salt . hash_function($pepper . $password)).
We know from past experience that "just feeding" one hash result into another hash function can decrease the overall security. The reason is that both hash functions can become a target of attack.
That's why algorithms like PBKDF2 use special operations to combine them (hmac in that case).
The point is that while it's not a big deal, it is also not a trivial thing to just throw around. Crypto systems are designed to avoid "should work" cases, and instead focus on "designed to work" cases.
While this may seem purely theoretical, it's in fact not. For example, Bcrypt cannot accept arbitrary passwords. So passing bcrypt(hash(pw), salt) can indeed result in a far weaker hash than bcrypt(pw, salt) if hash() returns a binary string.
Working Against Design
The way bcrypt (and other password hashing algorithms) were designed is to work with a salt. The concept of a pepper was never introduced. This may seem like a triviality, but it's not. The reason is that a salt is not a secret. It is just a value that can be known to an attacker. A pepper on the other hand, by very definition is a cryptographic secret.
The current password hashing algorithms (bcrypt, pbkdf2, etc) all are designed to only take in one secret value (the password). Adding in another secret into the algorithm hasn't been studied at all.
That doesn't mean it is not safe. It means we don't know if it is safe. And the general recommendation with security and cryptography is that if we don't know, it isn't.
So until algorithms are designed and vetted by cryptographers for use with secret values (peppers), current algorithms shouldn't be used with them.
Complexity Is The Enemy Of Security
Believe it or not, Complexity Is The Enemy Of Security. Making an algorithm that looks complex may be secure, or it may be not. But the chances are quite significant that it's not secure.
Significant Problems With Peppers
It's Not Maintainable
Your implementation of peppers precludes the ability to rotate the pepper key. Since the pepper is used at the input to the one way function, you can never change the pepper for the lifetime of the value. This means that you'd need to come up with some wonky hacks to get it to support key rotation.
This is extremely important as it's required whenever you store cryptographic secrets. Not having a mechanism to rotate keys (periodically, and after a breach) is a huge security vulnerability.
And your current pepper approach would require every user to either have their password completely invalidated by a rotation, or wait until their next login to rotate (which may be never)...
Which basically makes your approach an immediate no-go.
It Requires You To Roll Your Own Crypto
Since no current algorithm supports the concept of a pepper, it requires you to either compose algorithms or invent new ones to support a pepper. And if you can't immediately see why that's a really bad thing:
Anyone, from the most clueless amateur to the best cryptographer, can create an algorithm that he himself can't break.
Bruce Schneier
NEVER roll your own crypto...
The Better Way
So, out of all the problems detailed above, there are two ways of handling the situation.
Just Use The Algorithms As They Exist
If you use bcrypt or scrypt correctly (with a high cost), all but the weakest dictionary passwords should be statistically safe. The current record for hashing bcrypt at cost 5 is 71k hashes per second. At that rate even a 6 character random password would take years to crack. And considering my minimum recommended cost is 10, that reduces the hashes per second by a factor of 32. So we'd be talking only about 2200 hashes per second. At that rate, even some dictionary phrases or modificaitons may be safe.
Additionally, we should be checking for those weak classes of passwords at the door and not allowing them in. As password cracking gets more advanced, so should password quality requirements. It's still a statistical game, but with a proper storage technique, and strong passwords, everyone should be practically very safe...
Encrypt The Output Hash Prior To Storage
There exists in the security realm an algorithm designed to handle everything we've said above. It's a block cipher. It's good, because it's reversible, so we can rotate keys (yay! maintainability!). It's good because it's being used as designed. It's good because it gives the user no information.
Let's look at that line again. Let's say that an attacker knows your algorithm (which is required for security, otherwise it's security through obscurity). With a traditional pepper approach, the attacker can create a sentinel password, and since he knows the salt and the output, he can brute force the pepper. Ok, that's a long shot, but it's possible. With a cipher, the attacker gets nothing. And since the salt is randomized, a sentinel password won't even help him/her. So the best they are left with is to attack the encrypted form. Which means that they first have to attack your encrypted hash to recover the encryption key, and then attack the hashes. But there's a lot of research into the attacking of ciphers, so we want to rely on that.
TL/DR
Don't use peppers. There are a host of problems with them, and there are two better ways: not using any server-side secret (yes, it's ok) and encrypting the output hash using a block cipher prior to storage.
Fist we should talk about the exact advantage of a pepper:
The pepper can protect weak passwords from a dictionary attack, in the special case, where the attacker has read-access to the database (containing the hashes) but does not have access to the source code with the pepper.
A typical scenario would be SQL-injection, thrown away backups, discarded servers... These situations are not as uncommon as it sounds, and often not under your control (server-hosting). If you use...
A unique salt per password
A slow hashing algorithm like BCrypt
...strong passwords are well protected. It's nearly impossible to brute force a strong password under those conditions, even when the salt is known. The problem are the weak passwords, that are part of a brute-force dictionary or are derivations of them. A dictionary attack will reveal those very fast, because you test only the most common passwords.
The second question is how to apply the pepper ?
An often recommended way to apply a pepper, is to combine the password and the pepper before passing it to the hash function:
$pepperedPassword = hash_hmac('sha512', $password, $pepper);
$passwordHash = bcrypt($pepperedPassword);
There is another even better way though:
$passwordHash = bcrypt($password);
$encryptedHash = encrypt($passwordHash, $serverSideKey);
This not only allows to add a server side secret, it also allows to exchange the $serverSideKey, should this be necessary. This method involves a bit more work, but if the code once exists (library) there is no reason not to use it.
The point of salt and pepper is to increase the cost of a pre-computed password lookup, called a rainbow table.
In general trying to find a collision for a single hash is hard (assuming the hash is secure). However, with short hashes, it is possible to use computer to generate all possible hashes into a lookup onto a hard disk. This is called a Rainbow Table. If you create a rainbow table you can then go out into the world and quickly find plausable passwords for any (unsalted unpeppered) hash.
The point of a pepper is to make the rainbow table needed to hack your password list unique. Thus wasting more time on the attacker to construct the rainbow table.
The point of the salt however is to make the rainbow table for each user be unique to the user, further increasing the complexity of the attack.
Really the point of computer security is almost never to make it (mathematically) impossible, just mathematically and physically impractical (for example in secure systems it would take all the entropy in the universe (and more) to compute a single user's password).
I want this to be a discussion of salts & peppers and not specific algorithms but I'm using a secure one
Every secure password hashing function that I know of takes the password and the salt (and the secret/pepper if supported) as separate arguments and does all of the work itself.
Merely by the fact that you're concatenating strings and that your hash_function takes only one argument, I know that you aren't using one of those well tested, well analyzed standard algorithms, but are instead trying to roll your own. Don't do that.
Argon2 won the Password Hashing Competition in 2015, and as far as I know it's still the best choice for new designs. It supports pepper via the K parameter (called "secret value" or "key"). I know of no reason not to use pepper. At worst, the pepper will be compromised along with the database and you are no worse off than if you hadn't used it.
If you can't use built-in pepper support, you can use one of the two suggested formulas from this discussion:
Argon2(salt, HMAC(pepper, password)) or HMAC(pepper, Argon2(salt, password))
Important note: if you pass the output of HMAC (or any other hashing function) to Argon2 (or any other password hashing function), either make sure that the password hashing function supports embedded zero bytes or else encode the hash value (e.g. in base64) to ensure there are no zero bytes. If you're using a language whose strings support embedded zero bytes then you are probably safe, unless that language is PHP, but I would check anyway.
Can't see storing a hardcoded value in your source code as having any security relevance. It's security through obscurity.
If a hacker acquires your database, he will be able to start brute forcing your user passwords. It won't take long for that hacker to identify your pepper if he manages to crack a few passwords.

Storing salt+password hash in DB and protecting against password attack

Please help me with my understanding. Also I am not talking about SSL or DH key exchange.
As the salt is stored in DB and is a secret to the attacker to just protect the user original password (Rainbow tables), in case attacker gets their hand on the actual DB itself. Then how will how you protect against brute/dictionary based attacks. Once again, logging the wrong requests and denying IP of many bad request is known, I am talking about cryptography here. As the password is same for user1, attacker got it from other websites, how does salt protects here. I guess not, then what are the best solutions available to stop such attacks. Assume data is really important like credit card numbers + CVV(I know don't store CVV, but that is not the question).
EDIT: By the way, I came up with some stupid idea, and it looks like a known method for stopping dictionary attacks. Read more this question: High cost encryption but less cost decryption
May be we can discuss some other methods here, to protect against brute/dictionary/social engineering password attack
It's a little unclear to me what your actual question is, but if it is "How does a salt help protect me against brute force attacks?" the answer is that technically it does not. There is nothing about a salt that makes brute force attacks more difficult, salts instead make it difficult to brute force multiple accounts simultaneously. Essentially salts artificially inflate search space required to do a brute force attack, making it computationally difficult to pre-calculate every possible password and then check them against the entire database. Salts can be stored in the clear, so long as they are unique to each password.
If you want to make brute forcing passwords more difficult, what you want is an adaptive hashing scheme. These schemes allow you to dictate how long hashing should take. Because an honest client should only have to authenticate on the order of tens of times, but an attacker will need to do it on the order of millions or billions of times, slower hashes make the task near impossible for the attacker while introducing little overhead in the system.
What this all boils down to is that you should use bcrypt if you are hashing passwords. It is designed to incorporate a salt and is an adaptive hashing system. For more info, see this article on security.stackexchange.com
About salt : If you search the "MD5" encrypted password using search engine like google, here you may find the original plain password. But if you mix the salt in your plain password and then apply "MD5" encryption, you wont be able to find it. If any hacker anyhow hacks your database and if you are using just MD5 encryption then he may use above method to hack passwords. For e.g. Search this string on google : 5f4dcc3b5aa765d61d8327deb882cf99, you'll get original password string. Salt is mainly added to protect against such attacks.
Check out here. Look at Just content and concept here to understand. This is from Spring security docs.
The purpose of a salt is not to prevent dictionary attacks; it is to prevent precomputation attacks such as rainbow tables. Having a salt requires the attacker to attack each password individually, after they gain access to the database; they can't precompute hashes for passwords in the dictionary, or reuse this effort across users.
Password Stretching is a way to make dictionary attacks more difficult, by increasing the amount of work the attacker has to do to test each candidate password.
Without salt, an attacker can use an offline attack to precalculate the hash of common passwords: "secret" "qwerty" etc. No salt allows an attacker to tell when different users are using the same password, as they will have the same hashes. Salt prevents precalculation and avoids the matching hash problem.
An attacker with access to the datbase will also have access to the salts. She will need to attack each password separately, because of the different salts.
Using stretching (repeated hashing) can also slow down an attacker. Rather than storing hash(password + salt) you store hash^n(password + salt), where n is large enough for the overall calculation to take at least 0.1 second . That limits the attacker to around ten trials a second while having no discernible impact on the user.

Is MD5 less secure than SHA et. al. in a practical sense?

I've seen a few questions and answers on SO suggesting that MD5 is less secure than something like SHA.
My question is, Is this worth worrying about in my situation?
Here's an example of how I'm using it:
On the client side, I'm providing a "secure" checksum for a message by appending the current time and a password and then hashing it using MD5. So: MD5(message+time+password).
On the server side, I'm checking this hash against the message that's sent using my knowledge of the time it was sent and the client's password.
In this example, am I really better off using SHA instead of MD5?
In what circumstances would the choice of hashing function really matter in a practical sense?
Edit:
Just to clarify - in my example, is there any benefit moving to an SHA algorithm?
In other words, is it feasible in this example for someone to send a message and a correct hash without knowing the shared password?
More Edits:
Apologies for repeated editing - I wasn't being clear with what I was asking.
Yes, it is worth worrying about in practice. MD5 is so badly broken that researchers have been able to forge fake certificates that matched a real certificate signed by a certificate authority. This meant that they were able to create their own fake certificate authority, and thus could impersonate any bank or business they felt like with browsers completely trusting them.
Now, this took them a lot of time and effort using a cluster of PlayStation 3s, and several weeks to find an appropriate collision. But once broken, a hash algorithm only gets worse, never better. If you care at all about security, it would be better to choose an unbroken hash algorithm, such as one of the SHA-2 family (SHA-1 has also been weakened, though not broken as badly as MD5 is).
edit: The technique used in the link that I provided you involved being able to choose two arbitrary message prefixes and a common suffix, from which it could generate for each prefix a block of data that could be inserted between that prefix and the common suffix, to produce a message with the same MD5 sum as the message constructed from the other prefix. I cannot think of a way in which this particular vulnerability could be exploited in the situation you describe, and in general, using a secure has for message authentication is more resistant to attack than using it for digital signatures, but I can think of a few vulnerabilities you need to watch out for, which are mostly independent of the hash you choose.
As described, your algorithm involves storing the password in plain text on the server. This means that you are vulnerable to any information disclosure attacks that may be able to discover passwords on the server. You may think that if an attacker can access your database then the game is up, but your users would probably prefer if even if your server is compromised, that their passwords not be. Because of the proliferation of passwords online, many users use the same or similar passwords across services. Furthermore, information disclosure attacks may be possible even in cases when code execution or privilege escalation attacks are not.
You can mitigate this attack by storing the password on your server hashed with a random salt; you store the pair <salt,hash(password+salt)> on the server, and send the salt to the client so that it can compute hash(password+salt) to use in place of the password in the protocol you mention. This does not protect you from the next attack, however.
If an attacker can sniff a message sent from the client, he can do an offline dictionary attack against the client's password. Most users have passwords with fairly low entropy, and a good dictionary of a few hundred thousand existing passwords plus some time randomly permuting them could make finding a password given the information an attacker has from sniffing a message pretty easy.
The technique you propose does not authenticate the server. I don't know if this is a web app that you are talking about, but if it is, then someone who can perform a DNS hijack attack, or DHCP hijacking on an unsecure wireless network, or anything of the sort, can just do a man-in-the-middle attack in which they collect passwords in clear text from your clients.
While the current attack against MD5 may not work against the protocol you describe, MD5 has been severely compromised, and a hash will only ever get weaker, never stronger. Do you want to bet that you will find out about new attacks that could be used against you and will have time to upgrade hash algorithms before your attackers have a chance to exploit it? It would probably be easier to start with something that is currently stronger than MD5, to reduce your chances of having to deal with MD5 being broken further.
Now, if you're just doing this to make sure no one forges a message from another user on a forum or something, then sure, it's unlikely that anyone will put the time and effort in to break the protocol that you described. If someone really wanted to impersonate someone else, they could probably just create a new user name that has a 0 in place of a O or something even more similar using Unicode, and not even bother with trying to forge message and break hash algorithms.
If this is being used for something where the security really matters, then don't invent your own authentication system. Just use TLS/SSL. One of the fundamental rules of cryptography is not to invent your own. And then even for the case of the forum where it probably doesn't matter all that much, won't it be easier to just use something that's proven off the shelf than rolling your own?
In this particular case, I don't think that the weakest link your application is using md5 rather than sha. The manner in which md5 is "broken" is that given that md5(K) = V, it is possible to generate K' such that md5(K') = V, because the output-space is limited (not because there are any tricks to reduce the search space). However, K' is not necessarily K. This means that if you know md5(M+T+P) = V, you can generate P' such that md5(M+T+P') = V, this giving a valid entry. However, in this case the message still remains the same, and P hasn't been compromised. If the attacker tries to forge message M', with a T' timestamp, then it is highly unlikely that md5(M'+T'+P') = md5(M'+T'+P) unless P' = P. In which case, they would have brute-forced the password. If they have brute-forced the password, then that means that it doesn't matter if you used sha or md5, since checking if md5(M+T+P) = V is equivalent to checking if sha(M+T+P) = V. (except that sha might take constant time longer to calculate, that doesn't affect the complexity of the brute-force on P).
However, given the choice, you really ought to just go ahead and use sha. There is no sense in not using it, unless there is a serious drawback to using it.
A second thing is you probably shouldn't store the user's password in your database in plain-text. What you should store is a hash of the password, and then use that. In your example, the hash would be of: md5(message + time + md5(password)), and you could safely store md5(password) in your database. However, an attacker stealing your database (through something like SQL injection) would still be able to forge messages. I don't see any way around this.
Brian's answer covers the issues, but I do think it needs to be explained a little less verbosely
You are using the wrong crypto algorithm here
MD5 is wrong here, Sha1 is wrong to use here Sha2xx is wrong to use and Skein is wrong to use.
What you should be using is something like RSA.
Let me explain:
Your secure hash is effectively sending the password out for the world to see.
You mention that your hash is "time + payload + password", if a third party gets a copy of your payload and knows the time. It can find the password (using a brute force or dictionary attack). So, its almost as if you are sending the password in clear text.
Instead of this you should look at a public key cryptography have your server send out public keys to your agents and have the agents encrypt the data with the public key.
No man in the middle will be able to tell whats in the messages, and no one will be able to forge the messages.
On a side note, MD5 is plenty strong most of the time.
It depends on how valuable the contents of the messages are. The SHA family is demonstrably more secure than MD5 (where "more secure" means "harder to fake"), but if your messages are twitter updates, then you probably don't care.
If those messages are the IPC layer of a distributed system that handles financial transactions, then maybe you care more.
Update: I should add, also, that the two digest algorithms are essentially interchangeable in many ways, so how much more trouble would it really be to use the more secure one?
Update 2: this is a much more thorough answer: http://www.schneier.com/essay-074.html
Yes, someone can send a message and a correct hash without knowing the shared password. They just need to find a string that hashes to the same value.
How common is that? In 2007, a group from the Netherlands announced that they had predicted the winner of the 2008 U.S. Presidential election in a file with the MD5 hash value 3D515DEAD7AA16560ABA3E9DF05CBC80. They then created twelve files, all identical except for the candidate's name and an arbitrary number of spaces following, that hashed to that value. The MD5 hash value is worthless as a checksum, because too many different files give the same result.
This is the same scenario as yours, if I'm reading you right. Just replace "candidate's name" with "secret password". If you really want to be secure, you should probably use a different hash function.
if you are going to generate a hash-mac don't invent your scheme. use HMAC. there are issues with doing HASH(secret-key || message) and HASH(message || secret-key). if you are using a password as a key you should also be using a key derivation function. have a look at pbkdf2.
Yes, it is worth to worry about which hash to use in this case. Let's look at the attack model first. An attacker might not only try to generate values md5(M+T+P), but might also try to find the password P. In particular, if the attacker can collect tupels of values Mi, Ti, and the corresponding md5(Mi, Ti, P) then he/she might try to find P. This problem hasn't been studied as extensively for hash functions as finding collisions. My approach to this problem would be to try the same types of attacks that are used against block ciphers: e.g. differential attacks. And since MD5 already highly susceptible to differential attacks, I can certainly imagine that such an attack could be successful here.
Hence I do recommend that you use a stronger hash function than MD5 here. I also recommend that you use HMAC instead of just md5(M+T+P), because HMAC has been designed for the situation that you describe and has accordingly been analyzed.
There is nothing insecure about using MD5 in this manner. MD5 was only broken in the sense that, there are algorithms that, given a bunch of data A additional data B can be generated to create a desired hash. Meaning, if someone knows the hash of a password, they could produce a string that will result with that hash. Though, these generated strings are usually very long so if you limit passwords to 20 or 30 characters you're still probably safe.
The main reason to use SHA1 over MD5 is that MD5 functions are being phased out. For example the Silverlight .Net library does not include the MD5 cryptography provider.
MD5 provide more collision than SHA which mean someone can actually get same hash from different word (but it's rarely).
SHA family has been known for it's reliability, SHA1 has been standard on daily use, while SHA256/SHA512 was a standard for government and bank appliances.
For your personal website or forum, i suggest you to consider SHA1, and if you create a more serious like commerce, i suggest you to use SHA256/SHA512 (SHA2 family)
You can check wikipedia article about MD5 & SHA
Both MD5 amd SHA-1 have cryptographic weaknesses. MD4 and SHA-0 are also compromised.
You can probably safely use MD6, Whirlpool, and RIPEMD-160.
See the following powerpoint from Princeton University, scroll down to the last page.
http://gcu.googlecode.com/files/11Hashing.pdf
I'm not going to comment on the MD5/SHA1/etc. issue, so perhaps you'll consider this answer moot, but something that amuses me very slightly is whenever the use of MD5 et al. for hashing passwords in databases comes up.
If someone's poking around in your database, then they might very well want to look at your password hashes, but it's just as likely they're going to want to steal personal information or any other data you may have lying around in other tables. Frankly, in that situation, you've got bigger fish to fry.
I'm not saying ignore the issue, and like I said, this doesn't really have much bearing on whether or not you should use MD5, SHA1 or whatever to hash your passwords, but I do get tickled slightly pink every time I read someone getting a bit too upset about plain text passwords in a database.

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