Vijay Pandurangan is the founder and CEO of Mitro.

We’ve used passwords since the beginning of computing. But back then you only had to remember one password—a single account let you access all the programs on one computer. You were unlikely to need to get into more than one of those giant machines! As the number of devices and applications we use has exploded, so has the number of passwords with which we have to deal.

Unfortunately, people are quite bad at managing passwords. Recent studies are full of frightening statistics. Over 60% use the same password on multiple sites — all these sites are then only as secure as the least secure site, a scary thought indeed. People also tend to select passwords that are easier to remember. While this avoids forgotten passwords, it makes them far too easy to guess.

So what gives? Why is this still such a mess?

For consumers, there’s at least been some slow progress. You can log into some services (e.g. Instagram, Quora, Spotify, etc.) using accounts from widely-used platforms such as Google, Facebook, or Twitter instead of creating a new account. But not everyone feels comfortable using platform accounts for fear of being locked out of their data if their platform account becomes inaccessible. Developers are sometimes reticent to agree to provider’s current and future terms of service.

Consumers’ password problems pale in comparison to the corporate world. Since employees have different roles and different data and software access privileges, companies need a way to export business identity — i.e., metadata about an employee and his rights — to cloud providers like Salesforce, Box, or GMail. But this usually requires Software as a Service (SaaS) developers and company administrators to configure and maintain a complex system to speak a special protocol (such as SAML). Consequently, most SaaS sites don’t interface with most business identity systems.

Additionally, business users in particular often share accounts on SaaS services: most services don’t natively support several people working on the same project or data (e.g., tax authority login, Twitter, many analytics products), and this use case is hugely prevalent in the corporate world. In fact, some 40% of business users share accounts, most often via email, spreadsheets or other insecure means.

Companies that try to prevent users from using non-sanctioned services (such as Google Docs, Dropbox, online analytics tools, etc.) for fear of data leakage often end up worsening their situation: in a recent survey, 70% of employees admitted to subverting such policies. Now, not only are the company’s data on third-party sites, IT staff is totally unaware, and have no way of accessing or controlling access to these data.

For large organizations with high employee turnover, the process of creating and deleting new accounts can be quite daunting. Forgetting to terminate users’ accounts means they can continue to access privileged information after they leave. There are some solutions for this in the market now: Okta is geared towards automating the account creation/deletion process for commonly-used SaaS sites, while providing better controls. But it isn’t optimized for the “long tail” of services which are so commonly used and shared in the workplace.

Possible Solutions

Can biometrics be a panacea? Unfortunately not. Passwords are supposed to be secrets, but biometrics are the exact opposite of a secret—you take them and leave copies everywhere you go. Using the same biometric data to authenticate to multiple applications is really no different from using the same password on multiple sites. (Bruce Schneier has a good summary of biometrics here.)

Developers should do a better job of storing passwords. Passwords should not be stored in plaintext (because anyone with access to the database will immediately know all the passwords). Proper practices require hashing and salting passwords. This is a daunting challenge. Even well-established sites often don’t follow best practices: 6.5 million poorly-hashed LinkedIn passwords were recently leaked. Others store passwords in plain text—Troy Hunt has put together a list of the most egregious violators here.

Using the power of modern processors, passwords are surprisingly easy to crack. Based on recent research, a random lower-case 8-character MD5-hashed password would cost only about $190 to crack on AWS (assuming $2.1/hour/machine and ~2B MD5 hashes/sec). Cracking a similar password stored with a stronger hash (e.g., PBKDF2) would cost around $2M.

One of the simplest ways of securing systems is the use of multi-factor authentication (MFA). MFA requires the use of a separate number generated by a program or device, or sent to you via SMS, in addition to a password when logging in to services, or performing certain actions. A good example of this is Google’s Two-Step Authentication. This means that having a user’s password is insufficient to impersonate him.

Unfortunately, it’s unlikely that most services will adopt oAuth, OpenID, SAML, or similar interfaces, store passwords correctly, or support multi-user collaboration in the near future due to the difficulty of implementation and limited payoff. Instead, we should try to build a better framework for managing business identity — starting by better managing passwords. We need a system that gets universal buy-in from the multitude of players in the space by providing a tangible benefit to each: developers, users, IT administrators, security officers, and regulators. It must be easier for customers to use than email, post-it notes, and spreadsheets.

It should enforce using unique passwords on different sites, give administrators more visibility and control over processes, provide strict security guarantees, and provide thorough auditing capabilities. Cryptography needs to be done on the client side so that the service provider does not need to be trusted. Widespread use of such a system will afford a number of other advances including pro-active fraud and suspicious activity detection. Products that address some of these problems exist today (LastPass, 1Password, etc.), but nothing has come close to solving all them.

Wrapping up

As we’ve seen, the password problem is pervasive, serious, and unlikely to get better on its own. What’s needed is software that addresses the challenges listed above, and a shift in both user and developer mindset to take security more seriously. Ideally, the software is designed in a way to galvanize that shift. We’ve recently released a tool for organizations and individuals that starts down that path, but there’s a lot more work to be done. We’d welcome your input and support!

Vijay Pandurangan is the founder and CEO of password collaboration startup Mitro. Vijay learned how to build large software systems at Google from 2002-2008 and at CMU. He worked on cluster management, mobile apps before smartphones and AdWords. He was also the first engineer at Jumo (started by Facebook co-founder Chris Hughes), and worked with Acumen Fund (a socially responsible investment firm). He grew up in Montreal and is still a die-hard Canadiens fan.

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