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What is a Security Key?

A security key, also known as a security token, is a physical device used for two-factor authentication (2FA) or multi-factor authentication (MFA) to improve the security of online accounts and systems.

Security keys are secondary hardware devices that depend on a primary device, such as a workstation, application, or laptop. They require software integration with the primary device or system as part of the authentication mechanism. These keys are pocket-sized, can be plugged into any USB port, and operate similarly to smart cards.

YubiKey is an example of a security key, providing hardware-based authentication solutions that resist phishing attacks. They function based on MFA and integrate easily with passwordless authentication solutions. Other popular security key options include Google Titan, Feitian, and Thetis.

Security keys offer organizations an additional layer of protection beyond a simple username and password, which are vulnerable to credential stuffing, keyloggers, and advanced phishing techniques.

Research indicates that 80% of data breaches result from compromised login credentials. Security keys can help prevent data breaches by adding an extra layer of authentication, reducing the risk of unauthorized access to sensitive accounts and systems.

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What is a Security Key

How Security Keys Work

Most security keys today use public key cryptography for authentication. During registration, the public key is linked to the user’s account. When the user logs in, the service sends a challenge, and the key signs it with its private key, creating a unique signature.

This challenge-response mechanism ensures each authentication request is unique and time-sensitive, making it highly resistant to replay attacks, where an attacker intercepts and retransmits data in a manner similar to a man-in-the-middle attack.

The signature, along with the public key, is then transmitted to the service to initiate the verification process. Upon successful verification, access is granted, ensuring that only the verified user with the physical key can complete the authentication process.

However, security keys have their disadvantages. Let’s examine a side-by-side comparison of the pros and cons of using security keys.

Advantages and Disadvantages of Using Security Keys

Advantages Disadvantages
Simple to use and quick to set up Costly. For enterprises, maintenance, and renewal can incur more expenses compared to software-based alternatives
Rely on advanced cryptography to generate unique signatures for authentication Due to their small size, security keys can easily get lost, stolen, or damaged
Do not expose any secret information during authentication, as each transaction generates a unique, one-time signature, minimizing the risk of breaches due to credential reuse Dependence on physical hardware means users must have the key on hand to authenticate at all times, which can be problematic if forgotten or if the key malfunctions
Add an extra security layer to your accounts with 2FA or MFA mechanisms Using security keys across multiple devices can be inconvenient due to constant switching
Highly effective against remote attacks, as malicious actors cannot authenticate without direct physical access to the security key Account recovery can be challenging if a security key becomes inoperable or lost, potentially locking a user out of an account and making the recovery process more complex than resetting a password

What is the Difference Between a Security Key and Passwordless Authentication?

Passwordless Authentication (Based on FIDO Device-Bound Standards) Security Keys
Multi-factor authentication that uses two independent factors. Most security keys are single-factor authentication. For multi-factor authentication, they need to be used in conjunction with a password or another authenticator, like a FIDO passwordless app.
One factor relies on verifying details that represent “something you are,” such as biometrics (fingerprint or facial recognition) for authentication. Relies on the “something you have” factor, where the possession of the access card or token is required for authorization.
The second factor uses the authenticating device (usually a mobile phone) as “something you have.” Some security keys also have biometric capability. In these instances, they serve as a “something you are” factor.
Greatly enhanced UX: more user-friendly, requiring fewer steps in the login process, and leveraging biometric data, eliminating the need to remember complex passwords and increasing security measures. UX is less user-friendly due to the additional authentication step and the need to carry, recall, and occasionally replace an extra device if it goes missing.

While security keys greatly enhance security compared to passwords, OTPs, and SMS-based MFA methods, they lag behind in terms of user experience and cost-benefit ratio when compared to passwordless authentication. According to research from The State of Passwordless Security 2023, 86% of organizations consider passwordless authentication essential for both the security and efficiency of their business.

FAQ’s

What is a security key?

A security key, also known as a security token, is a physical device used for two-factor authentication (2FA) or multi-factor authentication (MFA) to enhance the security of online accounts and systems.

How do security keys work?

Security keys use public key cryptography for authentication. During registration, the public key is linked to the user’s account. When logging in, the key signs a challenge from the service with its private key, creating a unique signature. This ensures each authentication request is unique and resistant to attacks.

What are the advantages of using security keys?

Security keys are simple to use, rely on advanced cryptography, do not expose secret information, add an extra security layer with 2FA or MFA mechanisms, and are highly effective against remote attacks.

What are the disadvantages of using security keys?

Security keys can be costly for enterprises, prone to loss or damage due to their small size, require physical possession for authentication, can be inconvenient when used across multiple devices, and pose challenges for account recovery if lost or inoperable.

How do security keys differ from passwordless authentication?

Passwordless authentication, based on FIDO Device-Bound Standards, typically uses biometrics or possession of a device (like a mobile phone) for authentication. It offers a more user-friendly experience with fewer login steps and enhances security by eliminating the need for complex passwords.

Why choose passwordless authentication over security keys?

Passwordless authentication improves user experience, reduces the risk of credential theft, and is considered essential by a majority of organizations for enhancing both security and operational efficiency.

What research supports the adoption of passwordless authentication?

Research from The State of Passwordless Security 2023 shows that 86% of organizations believe passwordless authentication is crucial for enhancing security and operational efficiency.

Conclusion

Security keys provide strong security benefits with multi-factor authentication, despite challenges like user inconvenience and higher costs. Passwordless authentication offers a user-friendly alternative with biometrics and device-bound standards, enhancing security and operational efficiency. The rising adoption of passwordless methods, as highlighted in The State of Passwordless Security 2023, underscores their critical role in advancing digital security practices.

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