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A security token is a peripheral device used to gain access to an electronically restricted resource. The token is used in addition to or in place of a password. It acts like an electronic key to access something. Examples include a wireless keycard opening a locked door, or in the case of a customer trying to access their bank account online, the use of a bank-provided token can prove that the customer is who they claim to be.

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Some tokens may store cryptographic keys that may be used to generate a digital signature, or biometric data, such as fingerprint details. Some may also store passwords.^[1] Some designs incorporate tamper resistant packaging, while others may include small keypads to allow entry of a PIN or a simple button to start a generating routine with some display capability to show a generated key number. Connected tokens utilize a variety of interfaces including USB, near-field communication (NFC), radio-frequency identification (RFID), or Bluetooth. Some tokens have an audio capability designed for vision-impaired people.

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Password types[edit]

All tokens contain some secret information that is used to prove identity. There are four different ways in which this information can be used:

Asynchronous password token for online banking.

Static password token: The device contains a password which is physically hidden (not visible to the possessor), but which is transmitted for each authentication. This type is vulnerable to replay attacks.
Synchronous dynamic password token: A timer is used to rotate through various combinations produced by a cryptographic algorithm. The token and the authentication server must have synchronized clocks.
Asynchronous password token: A one-time password is generated without the use of a clock, either from a one-time pad or cryptographic algorithm.
Challenge response token: Using public key cryptography, it is possible to prove possession of a private key without revealing that key. The authentication server encrypts a challenge (typically a random number, or at least data with some random parts) with a public key; the device proves it possesses a copy of the matching private key by providing the decrypted challenge.

One-time passwords[edit]

Time-synchronized one-time passwords change constantly at a set time interval; e.g., once per minute. To do this some sort of synchronization must exist between the client's token and the authentication server. For disconnected tokens this time-synchronization is done before the token is distributed to the client. Other token types do the synchronization when the token is inserted into an input device. The main problem with time-synchronized tokens is that they can, over time, become unsynchronized.^[2] However, some such systems, such as RSA's SecurID, allow the user to resynchronize the server with the token, sometimes by entering several consecutive passcodes. Most also cannot have replaceable batteries and only last up to 5 years before having to be replaced – so there is additional cost.^[3]

Another type of one-time password uses a complex mathematical algorithm, such as a hash chain, to generate a series of one-time passwords from a secret shared key. Each password is unguessable, even when previous passwords are known. The open source OAuth algorithm is standardized; other algorithms are covered by US patents. Each password is observably unpredictable and independent of previous ones, whereby an adversary would be unable to guess what the next password may be, even with knowledge of all previous passwords.

Physical types[edit]

Tokens can contain chips with functions varying from very simple to very complex, including multiple authentication methods.

The simplest security tokens do not need any connection to a computer. The tokens have a physical display; the authenticating user simply enters the displayed number to log in. Other tokens connect to the computer using wireless techniques, such as Bluetooth. These tokens transfer a key sequence to the local client or to a nearby access point.

Alternatively, another form of token that has been widely available for many years is a mobile device which communicates using an out-of-band channel (like voice, SMS, or USSD).

Still other tokens plug into the computer, and may require a PIN. Depending on the type of the token, the computerOS will then either read the key from the token and perform a cryptographic operation on it, or ask the token's firmware to perform this operation.

A related application is the hardware dongle required by some computer programs to prove ownership of the software. The dongle is placed in an input device and the software accesses the I/O device in question to authorize the use of the software in question.

Commercial solutions are provided by a variety of vendors, each with their own proprietary (and often patented) implementation of variously used security features. Token designs meeting certain security standards are certified in the United States as compliant with FIPS 140, a federal security standard. Tokens without any kind of certification are sometimes viewed as suspect, as they often do not meet accepted government or industry security standards, have not been put through rigorous testing, and likely cannot provide the same level of cryptographic security as token solutions which have had their designs independently audited by third-party agencies.^{[citation needed]}

Disconnected tokens[edit]

A disconnected token. The number must be copied into the PASSCODE field by hand.

Disconnected tokens have neither a physical nor logical connection to the client computer. They typically do not require a special input device, and instead use a built-in screen to display the generated authentication data, which the user enters manually themselves via a keyboard or keypad. Disconnected tokens are the most common type of security token used (usually in combination with a password) in two-factor authen

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