passwords

doge-software-engineer’s-computer-infected-by-info-stealing-malware

DOGE software engineer’s computer infected by info-stealing malware

Login credentials belonging to an employee at both the Cybersecurity and Infrastructure Security Agency and the Department of Government Efficiency have appeared in multiple public leaks from info-stealer malware, a strong indication that devices belonging to him have been hacked in recent years.

Kyle Schutt is a 30-something-year-old software engineer who, according to Dropsite News, gained access in February to a “core financial management system” belonging to the Federal Emergency Management Agency. As an employee of DOGE, Schutt accessed FEMA’s proprietary software for managing both disaster and non-disaster funding grants. Under his role at CISA, he likely is privy to sensitive information regarding the security of civilian federal government networks and critical infrastructure throughout the US.

A steady stream of published credentials

According to journalist Micah Lee, user names and passwords for logging in to various accounts belonging to Schutt have been published at least four times since 2023 in logs from stealer malware. Stealer malware typically infects devices through trojanized apps, phishing, or software exploits. Besides pilfering login credentials, stealers can also log all keystrokes and capture or record screen output. The data is then sent to the attacker and, occasionally after that, can make its way into public credential dumps.

“I have no way of knowing exactly when Schutt’s computer was hacked, or how many times,” Lee wrote. “I don’t know nearly enough about the origins of these stealer log datasets. He might have gotten hacked years ago and the stealer log datasets were just published recently. But he also might have gotten hacked within the last few months.”

Lee went on to say that credentials belonging to a Gmail account known to belong to Schutt have appeared in 51 data breaches and five pastes tracked by breach notification service Have I Been Pwned. Among the breaches that supplied the credentials is one from 2013 that pilfered password data for 3 million Adobe account holders, one in a 2016 breach that stole credentials for 164 million LinkedIn users, a 2020 breach affecting 167 million users of Gravatar, and a breach last year of the conservative news site The Post Millennial.

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Why MFA is getting easier to bypass and what to do about it

These sorts of adversary-in-the-middle attacks have grown increasingly common. In 2022, for instance, a single group used it in a series of attacks that stole more than 10,000 credentials from 137 organizations and led to the network compromise of authentication provider Twilio, among others.

One company that was targeted in the attack campaign but wasn’t breached was content delivery network Cloudflare. The reason the attack failed was because it uses MFA based on WebAuthn, the standard that makes passkeys work. Services that use WebAuthn are highly resistant to adversary-in-the-middle attacks, if not absolutely immune. There are two reasons for this.

First, WebAuthn credentials are cryptographically bound to the URL they authenticate. In the above example, the credentials would work only on https://accounts.google.com. If a victim tried to use the credential to log in to https://accounts.google.com.evilproxy[.]com, the login would fail each time.

Additionally, WebAuthn-based authentication must happen on or in proximity to the device the victim is using to log in to the account. This occurs because the credential is also cryptographically bound to a victim device. Because the authentication can only happen on the victim device, it’s impossible for an adversary in the middle to actually use it in a phishing attack on their own device.

Phishing has emerged as one of the most vexing security problems facing organizations, their employees, and their users. MFA in the form of a one-time password, or traditional push notifications, definitely adds friction to the phishing process, but with proxy-in-the-middle attacks becoming easier and more common, the effectiveness of these forms of MFA is growing increasingly easier to defeat.

WebAuthn-based MFA comes in multiple forms; a key, known as a passkey, stored on a phone, computer, Yubikey, or similar dongle is the most common example. Thousands of sites now support WebAuthn, and it’s easy for most end users to enroll. As a side note, MFA based on U2F, the predecessor standard to WebAuthn, also prevents adversary-in-the-middle attacks from succeeding, although the latter provides flexibility and additional security.

Post updated to add details about passkeys.

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windows-rdp-lets-you-log-in-using-revoked-passwords-microsoft-is-ok-with-that.

Windows RDP lets you log in using revoked passwords. Microsoft is OK with that.

The ability to use a revoked password to log in through RDP occurs when a Windows machine that’s signed in with a Microsoft or Azure account is configured to enable remote desktop access. In that case, users can log in over RDP with a dedicated password that’s validated against a locally stored credential. Alternatively, users can log in using the credentials for the online account that was used to sign in to the machine.

A screenshot of an RDP configuration window showing a Microsoft account (for Hotmail) has remote access.

Even after users change their account password, however, it remains valid for RDP logins indefinitely. In some cases, Wade reported, multiple older passwords will work while newer ones won’t. The result: persistent RDP access that bypasses cloud verification, multifactor authentication, and Conditional Access policies.

Wade and another expert in Windows security said that the little-known behavior could prove costly in scenarios where a Microsoft or Azure account has been compromised, for instance when the passwords for them have been publicly leaked. In such an event, the first course of action is to change the password to prevent an adversary from using it to access sensitive resources. While the password change prevents the adversary from logging in to the Microsoft or Azure account, the old password will give an adversary access to the user’s machine through RDP indefinitely.

“This creates a silent, remote backdoor into any system where the password was ever cached,” Wade wrote in his report. “Even if the attacker never had access to that system, Windows will still trust the password.”

Will Dormann, a senior vulnerability analyst at security firm Analygence, agreed.

“It doesn’t make sense from a security perspective,” he wrote in an online interview. “If I’m a sysadmin, I’d expect that the moment I change the password of an account, then that account’s old credentials cannot be used anywhere. But this is not the case.”

Credential caching is a problem

The mechanism that makes all of this possible is credential caching on the hard drive of the local machine. The first time a user logs in using Microsoft or Azure account credentials, RDP will confirm the password’s validity online. Windows then stores the credential in a cryptographically secured format on the local machine. From then on, Windows will validate any password entered during an RDP login by comparing it against the locally stored credential, with no online lookup. With that, the revoked password will still give remote access through RDP.

Windows RDP lets you log in using revoked passwords. Microsoft is OK with that. Read More »

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1Password offers geo-locating help for bad apps that constantly log you out

You could name things more sensibly in 1Password, of course, and you should. But having a list of nearby logins in the app will certainly be more convenient than fixing every company’s identity issues. There is also the deeper, messier issue of apps calling out to URLs that do not share a name with the product or service, which can sometimes trip up apps like 1Password from linking credentials to the app you’re trying to log in to.

In the Washington, DC, area, the Washington Metropolitan Area Transit Authority (WMATA), or “Metro” to locals, manages the subways and buses (and one odd streetcar). Metro has an app that allows you to manage the money on your physical cards and set up digital payments on phones. The app is named “SmarTrip,” and it logs me out every time the sun sinks below the horizon, and 1Password can never quite associate the login page of the app with my account details. I rediscover this whenever I need to check my physical cards or wonder why an automatic reload hasn’t gone through.

Some of what I’m describing is almost certainly confirmation bias and the human tendency to remember stressful moments far more keenly than everyday actions. But I will be linking my frequent subway stations and bus stops to the SmarTrip login, along with stores, airports, and other places I want to spend less time looking at my phone while my heart rate rises.

Entirely optional but recommended

1Password app, open to the Home page, with

Credit: 1Password

1Password has a support page with details on how to add locations from all their desktop and mobile clients. As the firm suggests, you can also use locations for things like Wi-Fi passwords, PIN codes, credit and ATM/debit cards, and other items. When you open 1Password, everything that is “Nearby” will show up at the top of the “Home” page, and you can change how far a radius the app should take when pulling in nearby items.

1Password notes on its announcement post that it does not store, share, or track your location data, which is stored locally. Enterprise users do not have their location shared with employers. And the location feature is entirely optional. It should be available today for 1Password users whose apps are up to date, and I’m hoping that other password apps also consider offering this feature, securely, for their users.

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google-chrome-may-soon-use-“ai”-to-replace-compromised-passwords

Google Chrome may soon use “AI” to replace compromised passwords

Google’s Chrome browser might soon get a useful security upgrade: detecting passwords used in data breaches and then generating and storing a better replacement. Google’s preliminary copy suggests it’s an “AI innovation,” though exactly how is unclear.

Noted software digger Leopeva64 on X found a new offering in the AI settings of a very early build of Chrome. The option, “Automated password Change” (so, early stages—as to not yet get a copyedit), is described as, “When Chrome finds one of your passwords in a data breach, it can offer to change your password for you when you sign in.”

Chrome already has a feature that warns users if the passwords they enter have been identified in a breach and will prompt them to change it. As noted by Windows Report, the change is that now Google will offer to change it for you on the spot rather than simply prompting you to handle that elsewhere. The password is automatically saved in Google’s Password Manager and “is encrypted and never seen by anyone,” the settings page claims.

If you want to see how this works, you need to download a Canary version of Chrome. In the flags settings (navigate to “chrome://flags” in the address bar), you’ll need to enable two features: “Improved password change service” and “Mark all credential as leaked,” the latter to force the change notification because, presumably, it’s not hooked up to actual leaked password databases yet. Go to almost any non-Google site, enter in any user/password combination to try to log in, and after it fails or you navigate elsewhere, a prompt will ask you to consider changing your password.

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crook-made-millions-by-breaking-into-execs’-office365-inboxes,-feds-say

Crook made millions by breaking into execs’ Office365 inboxes, feds say

WHAT IS THE NAME OF YOUR FIRST PET? —

Email accounts inside 5 US companies unlawfully breached through password resets.

Crook made millions by breaking into execs’ Office365 inboxes, feds say

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Federal prosecutors have charged a man for an alleged “hack-to-trade” scheme that earned him millions of dollars by breaking into the Office365 accounts of executives at publicly traded companies and obtaining quarterly financial reports before they were released publicly.

The action, taken by the office of the US Attorney for the district of New Jersey, accuses UK national Robert B. Westbrook of earning roughly $3.75 million in 2019 and 2020 from stock trades that capitalized on the illicitly obtained information. After accessing it, prosecutors said, he executed stock trades. The advance notice allowed him to act and profit on the information before the general public could. The US Securities and Exchange Commission filed a separate civil suit against Westbrook seeking an order that he pay civil penalties and return all ill-gotten gains.

Buy low, sell high

“The SEC is engaged in ongoing efforts to protect markets and investors from the consequences of cyber fraud,” Jorge G. Tenreiro, acting chief of the SEC’s Crypto Assets and Cyber Unit, said in a statement. “As this case demonstrates, even though Westbrook took multiple steps to conceal his identity—including using anonymous email accounts, VPN services, and utilizing bitcoin—the Commission’s advanced data analytics, crypto asset tracing, and technology can uncover fraud even in cases involving sophisticated international hacking.”

A federal indictment filed in US District Court for the District of New Jersey said that Westbrook broke into the email accounts of executives from five publicly traded companies in the US. He pulled off the breaches by abusing the password reset mechanism Microsoft offered for Office365 accounts. In some cases, Westbrook allegedly went on to create forwarding rules that automatically sent all incoming emails to an email address he controlled.

Prosecutors alleged in one such incident:

On or about January 26, 2019, WESTBROOK gained unauthorized access to the Office365 email account of Company-1 ‘s Director of Finance and Accounting (“Individual-!”) through an unauthorized password reset. During the intrusion, an auto-forwarding rule was implemented, which was designed to automatically forward content from lndividual-1 ‘s compromised email account to an email account controlled by WESTBROOK. At the time of the intrusion, the compromised email account of Individual-I contained non-public information about Company-1 ‘s quarterly earnings, which indicated that Company-1 ‘s sales were down.

Once a person gains unauthorized access to an email account, it’s possible to conceal the breach by disabling or deleting password reset alerts and burying password reset rules deep inside account settings.

Prosecutors didn’t say how the defendant managed to abuse the reset feature. Typically such mechanisms require control of a cell phone or registered email account belonging to the account holder. In 2019 and 2020 many online services would also allow users to reset passwords by answering security questions. The practice is still in use today but has been slowly falling out of favor as the risks have come to be more widely understood.

By obtaining material information, Westbrook was able to predict how a company’s stock would perform once it became public. When results were likely to drive down stock prices, he would place “put” options, which give the purchaser the right to sell shares at a specific price within a specified span of time. The practice allowed Westbrook to profit when shares fell after financial results became public. When positive results were likely to send stock prices higher, Westbrook allegedly bought shares while they were still low and later sold them for a higher price.

The prosecutors charged Westbrook with one count each of securities fraud and wire fraud and five counts of computer fraud. The securities fraud count carries a maximum penalty of up to 20 years’ prison time and $5 million in fines The wire fraud count carries a maximum penalty of up to 20 years in prison and a fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Each computer fraud count carries a maximum five years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.

The US Attorney’s office in the District of New Jersey didn’t say if Westbrook has made an initial appearance in court or if he has entered a plea.

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Meta pays the price for storing hundreds of millions of passwords in plaintext

GOT HASHES? —

Company failed to follow one of the most sacrosanct rules for password storage.

Meta pays the price for storing hundreds of millions of passwords in plaintext

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Officials in Ireland have fined Meta $101 million for storing hundreds of millions of user passwords in plaintext and making them broadly available to company employees.

Meta disclosed the lapse in early 2019. The company said that apps for connecting to various Meta-owned social networks had logged user passwords in plaintext and stored them in a database that had been searched by roughly 2,000 company engineers, who collectively queried the stash more than 9 million times.

Meta investigated for five years

Meta officials said at the time that the error was found during a routine security review of the company’s internal network data storage practices. They went on to say that they uncovered no evidence that anyone internally improperly accessed the passcodes or that the passcodes were ever accessible to people outside the company.

Despite those assurances, the disclosure exposed a major security failure on the part of Meta. For more than three decades, best practices across just about every industry have been to cryptographically hash passwords. Hashing is a term that applies to the practice of passing passwords through a one-way cryptographic algorithm that assigns a long string of characters that’s unique for each unique input of plaintext.

Because the conversion works in only one direction—from plaintext to hash—there is no cryptographic means for converting the hashes back into plaintext. More recently, these best practices have been mandated by laws and regulations in countries worldwide.

Because hashing algorithms works in one direction, the only way to obtain the corresponding plaintext is to guess, a process that can require large amounts of time and computational resources. The idea behind hashing passwords is similar to the idea of fire insurance for a home. In the event of an emergency—the hacking of a password database in one case, or a house fire in the other—the protection insulates the stakeholder from harm that otherwise would have been more dire.

For hashing schemes to work as intended, they must follow a host of requirements. One is that hashing algorithms must be designed in a way that they require large amounts of computing resources. That makes algorithms such as SHA1 and MD5 unsuitable, because they’re designed to quickly hash messages with minimal computing required. By contrast, algorithms specifically designed for hashing passwords—such as Bcrypt, PBKDF2, or SHA512crypt—are slow and consume large amounts of memory and processing.

Another requirement is that the algorithms must include cryptographic “salting,” in which a small amount of extra characters are added to the plaintext password before it’s hashed. Salting further increases the workload required to crack the hash. Cracking is the process of passing large numbers of guesses, often measured in the hundreds of millions, through the algorithm and comparing each hash against the hash found in the breached database.

The ultimate aim of hashing is to store passwords only in hashed format and never as plaintext. That prevents hackers and malicious insiders alike from being able to use the data without first having to expend large amounts of resources.

When Meta disclosed the lapse in 2019, it was clear the company had failed to adequately protect hundreds of millions of passwords.

“It is widely accepted that user passwords should not be stored in plaintext, considering the risks of abuse that arise from persons accessing such data,” Graham Doyle, deputy commissioner at Ireland’s Data Protection Commission, said. “It must be borne in mind, that the passwords, the subject of consideration in this case, are particularly sensitive, as they would enable access to users’ social media accounts.”

The commission has been investigating the incident since Meta disclosed it more than five years ago. The government body, the lead European Union regulator for most US Internet services, imposed a fine of $101 million (91 million euros) this week. To date, the EU has fined Meta more than $2.23 billion (2 billion euros) for violations of the General Data Protection Regulation (GDPR), which went into effect in 2018. That amount includes last year’s record $1.34 billion (1.2 billion euro) fine, which Meta is appealing.

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Chrome will now prompt some users to send passwords for suspicious files

SAFE BROWSING —

Google says passwords and files will be deleted shortly after they are deep-scanned.

Chrome will now prompt some users to send passwords for suspicious files

Google is redesigning Chrome malware detections to include password-protected executable files that users can upload for deep scanning, a change the browser maker says will allow it to detect more malicious threats.

Google has long allowed users to switch on the Enhanced Mode of its Safe Browsing, a Chrome feature that warns users when they’re downloading a file that’s believed to be unsafe, either because of suspicious characteristics or because it’s in a list of known malware. With Enhanced Mode turned on, Google will prompt users to upload suspicious files that aren’t allowed or blocked by its detection engine. Under the new changes, Google will prompt these users to provide any password needed to open the file.

Beware of password-protected archives

In a post published Wednesday, Jasika Bawa, Lily Chen, and Daniel Rubery of the Chrome Security team wrote:

Not all deep scans can be conducted automatically. A current trend in cookie theft malware distribution is packaging malicious software in an encrypted archive—a .zip, .7z, or .rar file, protected by a password—which hides file contents from Safe Browsing and other antivirus detection scans. In order to combat this evasion technique, we have introduced two protection mechanisms depending on the mode of Safe Browsing selected by the user in Chrome.

Attackers often make the passwords to encrypted archives available in places like the page from which the file was downloaded, or in the download file name. For Enhanced Protection users, downloads of suspicious encrypted archives will now prompt the user to enter the file’s password and send it along with the file to Safe Browsing so that the file can be opened and a deep scan may be performed. Uploaded files and file passwords are deleted a short time after they’re scanned, and all collected data is only used by Safe Browsing to provide better download protections.

Enter a file password to send an encrypted file for a malware scan

Enlarge / Enter a file password to send an encrypted file for a malware scan

Google

For those who use Standard Protection mode which is the default in Chrome, we still wanted to be able to provide some level of protection. In Standard Protection mode, downloading a suspicious encrypted archive will also trigger a prompt to enter the file’s password, but in this case, both the file and the password stay on the local device and only the metadata of the archive contents are checked with Safe Browsing. As such, in this mode, users are still protected as long as Safe Browsing had previously seen and categorized the malware.

Sending Google an executable casually downloaded from a site advertising a screensaver or media player is likely to generate little if any hesitancy. For more sensitive files such as a password-protected work archive, however, there is likely to be more pushback. Despite the assurances the file and password will be deleted promptly, things sometimes go wrong and aren’t discovered for months or years, if at all. People using Chrome with Enhanced Mode turned on should exercise caution.

A second change Google is making to Safe Browsing is a two-tiered notification system when users are downloading files. They are:

  1. Suspicious files, meaning those Google’s file-vetting engine have given a lower-confidence verdict, with unknown risk of user harm
  2. Dangerous files, or those with a high confidence verdict that they pose a high risk of user harm

The new tiers are highlighted by iconography, color, and text in an attempt to make it easier for users to easily distinguish between the differing levels of risk. “Overall, these improvements in clarity and consistency have resulted in significant changes in user behavior, including fewer warnings bypassed, warnings heeded more quickly, and all in all, better protection from malicious downloads,” the Google authors wrote.

Previously, Safe Browsing notifications looked like this:

Differentiation between suspicious and dangerous warnings.

Enlarge / Differentiation between suspicious and dangerous warnings.

Google

Over the past year, Chrome hasn’t budged on its continued support of third-party cookies, a decision that allows companies large and small to track users of that browser as they navigate from website to website to website. Google’s alternative to tracking cookies, known as the Privacy Sandbox, has also received low marks from privacy advocates because it tracks user interests based on their browser usage.

That said, Chrome has long been a leader in introducing protections, such as a security sandbox that cordons off risky code so it can’t mingle with sensitive data and operating system functions. Those who stick with Chrome should at a minimum keep Standard Mode Safe Browsing on. Users with the experience required to judiciously choose which files to send to Google should consider turning on Enhanced Mode.

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Vulnerability in Cisco Smart Software Manager lets attackers change any user password

GET YER PATCH —

Yep, passwords for administrators can be changed, too.

Vulnerability in Cisco Smart Software Manager lets attackers change any user password

Cisco on Wednesday disclosed a maximum-security vulnerability that allows remote threat actors with no authentication to change the password of any user, including those of administrators with accounts, on Cisco Smart Software Manager On-Prem devices.

The Cisco Smart Software Manager On-Prem resides inside the customer premises and provides a dashboard for managing licenses for all Cisco gear in use. It’s used by customers who can’t or don’t want to manage licenses in the cloud, as is more common.

In a bulletin, Cisco warns that the product contains a vulnerability that allows hackers to change any account’s password. The severity of the vulnerability, tracked as CVE-2024-20419, is rated 10, the maximum score.

“This vulnerability is due to improper implementation of the password-change process,” the Cisco bulletin stated. “An attacker could exploit this vulnerability by sending crafted HTTP requests to an affected device. A successful exploit could allow an attacker to access the web UI or API with the privileges of the compromised user.”

There are no workarounds available to mitigate the threat.

It’s unclear precisely what an attacker can do after gaining administrative control over the device. One possibility is that the web user interface and application programming interface the attacker gains administrative control over make it possible to pivot to other Cisco devices connected to the same network and, from there, steal data, encrypt files, or perform similar actions. Cisco representatives didn’t immediately respond to an email. This post will be updated if a response comes later.

A security update linked to the bulletin fixes the vulnerability. Cisco said it isn’t aware of any evidence that the vulnerability is being actively exploited.

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Google makes it easier for users to switch on advanced account protection

APP MADE EASIER —

The strict requirement for two physical keys is now eased when passkeys are used.

Google makes it easier for users to switch on advanced account protection

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Google is making it easier for people to lock down their accounts with strong multifactor authentication by adding the option to store secure cryptographic keys in the form of passkeys rather than on physical token devices.

Google’s Advanced Protection Program, introduced in 2017, requires the strongest form of multifactor authentication (MFA). Whereas many forms of MFA rely on one-time passcodes sent through SMS or emails or generated by authenticator apps, accounts enrolled in advanced protection require MFA based on cryptographic keys stored on a secure physical device. Unlike one-time passcodes, security keys stored on physical devices are immune to credential phishing and can’t be copied or sniffed.

Democratizing APP

APP, short for Advanced Protection Program, requires the key to be accompanied by a password whenever a user logs into an account on a new device. The protection prevents the types of account takeovers that allowed Kremlin-backed hackers to access the Gmail accounts of Democratic officials in 2016 and go on to leak stolen emails to interfere with the presidential election that year.

Until now, Google required people to have two physical security keys to enroll in APP. Now, the company is allowing people to instead use two passkeys or one passkey and one physical token. Those seeking further security can enroll using as many keys as they want.

“We’re expanding the aperture so people have more choice in how they enroll in this program,” Shuvo Chatterjee, the project lead for APP, told Ars. He said the move comes in response to comments Google has received from some users who either couldn’t afford to buy the physical keys or lived or worked in regions where they’re not available.

As always, users must still have two keys to enroll to prevent being locked out of accounts if one of them is lost or broken. While lockouts are always a problem, they can be much worse for APP users because the recovery process is much more rigorous and takes much longer than for accounts not enrolled in the program.

Passkeys are the creation of the FIDO Alliance, a cross-industry group comprised of hundreds of companies. They’re stored locally on a device and can also be stored in the same type of hardware token storing MFA keys. Passkeys can’t be extracted from the device and require either a PIN or a scan of a fingerprint or face. They provide two factors of authentication: something the user knows—the underlying password used when the passkey was first generated—and something the user has—in the form of the device storing the passkey.

Of course, the relaxed requirements only go so far since users still must have two devices. But by expanding the types of devices needed,  APP becomes more accessible since many people already have a phone and computer, Chatterjee said.

“If you’re in a place where you can’t get security keys, it’s more convenient,” he explained. “This is a step toward democratizing how much access [users] get to this highest security tier Google offers.”

Despite the increased scrutiny involved in the recovery process for APP accounts, Google is renewing its recommendation that users provide a phone number and email address as backup.

“The most resilient thing to do is have multiple things on file, so if you lose that security key or the key blows up, you have a way to get back into your account,” Chatterjee said. He’s not providing the “secret sauce” details about how the process works, but he said it involves “tons of signals we look at to figure out what’s really happening.

“Even if you do have a recovery phone, a recovery phone by itself isn’t going to get you access to your account,” he said. “So if you get SIM swapped, it doesn’t mean someone gets access to your account. It’s a combination of various factors. It’s the summation of that that will help you on your path to recovery.”

Google users can enroll in APP by visiting this link.

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