This is way, way, worse than the password case, because the password, even in /etc/passwd days, was stored as a salted CPU-intensive hash. So the bad guys have to do a bunch of heavy lifting (even today it's far from trivial to reverse those old DES based hashes for a decent 8 character password, and if the user upgraded to PHK-MD5 hashes and a 10 character password, kiss your chances goodbye).
But with these OTP systems the stored value is a shared secret. If the bad guy has it, they can successfully authenticate as you with no additional work.
Posted Dec 8, 2011 2:58 UTC (Thu) by dwmw2 (subscriber, #2063)
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"This is way, way, worse "
You are absolutely correct. I do apologise for understating the astounding stupidity of the default Google Authenticator setup.
access to the shared secret
Posted Dec 8, 2011 13:50 UTC (Thu) by PlaguedByPenguins (subscriber, #3577)
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how about using google authenticator (or yubikeys etc.) via radius - then you can put all the plaintext secrets on a "secure" radius machine that's heavily defended. no more secrets on clients.