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We present a secure two-factor authentication (TFA) scheme based on the user’s possession of a password and a crypto-capable device. Security is “end-to-end” in the sense that the attacker can attack all parts of the system, including all communication links and any subset of parties (servers, devices, client terminals), can learn users’ passwords, and perform active and passive attacks, online and offline. In all cases the scheme provides the highest attainable security bounds given the set of compromised components. Our solution builds a TFA scheme using any Device-enhanced Password-authenticated Key Exchange (PAKE), defined by Jarecki et al., and any Short Authenticated String (SAS) Message Authentication, defined by Vaudenay. We show an efficient instantiation of this modular construction, which utilizes any password-based client-server authentication method, with or without reliance on public-key infrastructure. The security of the proposed scheme is proven in a formal model that we formulate as an extension of the traditional PAKE model. We also report on a prototype implementation of our schemes, including TLS-based and PKI-free variants, as well as several instantiations of the SAS mechanism, all demonstrating the practicality of our approach. Finally, we present a usability study evaluating the viability of our protocol contrasted with the traditional PIN-based TFA approach in terms of efficiency, potential for errors, user experience, and security perception of the underlying manual process. 1
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