Hardware Security Key Purpose, Benefits & Use Cases
There has never been a more exciting time in credential management, with options like biometric authentication, passkeys, and “magic links” pushing the boundaries of technology to protect our identities, data, and privacy.
Hardware security keys are another solution that opens new possibilities for reliably securing computers, data centers, and sensitive work areas. As technology and security improve, easy-to-use hardware security keys are finding new applications every day.
What is a hardware security key?
A hardware security key, also called a security key, is a physical device that grants access to a system, device, or app. A USB dongle that provides access to a program when plugged into a laptop is among the more familiar hardware security key types. Hardware security keys are a popular and effective form of multi-factor authentication since they require possession of a physical entity rather than just a password or PIN.
What is a hardware password manager?
A hardware password manager is a physical device that stores and manages passwords. Unlike software-based password managers, which store information on a computer or in the cloud, hardware password managers are completely isolated from other devices or external cybersecurity threats.
How do security keys work?
Hardware security keys always include a physical component, but they also require software applications to register and activate keys. Once a key is registered, it provides a gateway to a program when plugged into a device. The same basic premise applies to many different security key types, such as contact smart cards and near-field communication (NFC) technology.
Where are hardware security keys used?
Hardware security keys, in their various forms, have been around for decades, so much so that they’ve become part of the fabric of society, which is why we often overlook them. New applications continue to leverage security keys to protect users and sensitive data in a wide variety of locations.
- Personal computers: Laptop and desktop computers include ports and Bluetooth capabilities that allow seamless connectivity with external devices and peripherals. This makes it easy to deploy hardware security keys, including those with biometric features like fingerprint scanning.
- Financial services: Hardware security modules (HSMs) protect sensitive information during payment processing by performing important encryption and decryption processes. HSMs also help companies in the financial services industry stay in compliance with payment card industry data security standards (PCI DSS).
- IoT devices: The internet of Things (IoT) opens a world of new possibilities for real-time scanning and data transfer, but without the right security features, the IoT can leave network endpoints exposed. Hardware security keys help overcome this limitation by ensuring only authorized users access and communicate with IoT devices.
- Cloud security: Now that so many companies outsource apps and computing functions, cloud security practices combine policies, controls, and security tools to protect cloud-based assets. Security keys form an important link in this chain by preventing unauthorized external devices and users from accessing data in the cloud.
- Healthcare industry: The healthcare sector is particularly vulnerable to cybersecurity threats, with its sensitive patient information and infrastructure. In hospitals, security badges can incorporate FIDO2 passwordless technology to keep patients, data, and healthcare facilities secure.
Real-world examples of hardware security key use
It’s easy to see how valuable hardware authentication devices are when we take a look at real-world examples already making use of this important technology.
- Government ID cards: Many government agencies now use highly secure, multifunctional employee badges to limit facility access. These advanced ID cards utilize radio frequency (RF) transmission and embedded antennas to communicate securely with specialized badge readers.
- Google Titan security keys: Google developed highly secure, tamper-resistant Titan hardware security keys based on open FIDO standards. These compact, versatile devices are available in either USB or NFC formats, and you can configure them to work across multiple sites and devices.
- YubiKeys: The YubiKey is a popular multi-factor authentication (MFA) solution that allows users to press a button on a physical key plugged into their device as a quick and easy secondary identification method. The versatile YubiKey can be used to secure login processes for laptops, online services, email accounts, or physical spaces.
- Building access controls: As computer technology has improved, hardware authentication devices have gradually replaced the traditional lock-and-key approach to building access. These secure, modern systems include basic keypads and PINs, card readers, and fingerprint scanners.
- Company secure systems: Businesses use secure systems made up of hardware, software, and human elements working in harmony to prevent cyberattacks and data breaches. Software components include antivirus software and password managers, while hardware includes laptops, devices, and security keys used to protect them.
The benefits of using a hardware security key
The physical aspect of hardware security keys makes them effective security tools when their authorized users keep them protected. Physical keys have many other advantages, including:
- MFA: Many websites and apps use secondary identification factors like codes sent through an email or text to prevent unauthorized access. Security keys offer an extremely powerful form of MFA by combining something you know (such as your password) with something you have (the key). The National Institute of Standards and Technology (NIST) provides useful MFA guidelines to help businesses and individuals implement robust security measures to protect sensitive information.
- Phishing protection: Social engineering tactics like phishing rely on emails that appear to be from reputable sources to trick recipients into providing credentials, account numbers, and other sensitive information. Security keys render these tactics ineffective since would-be cybercriminals must also possess the physical key to gain unauthorized access.
- Resistance to external threats: One of the common traits shared by phishing, malware attacks, and other types of external threats is a reliance on stolen or compromised credentials to break through company defenses. By combining the use of security keys and additional tools like a VPN to encrypt transmissions over public WiFi networks, you can nullify these external threats.
- Ease of use: Many common 2-factor authentication (2FA) methods require information like one-time passwords or security codes to be transmitted and entered. When reviewing the pros and cons of security keys vs. passwords, plug-and-go hardware security keys offer a higher level of user protection—since they are a physical device, they can’t be stolen online like a password can.
- Protection from credential stuffing and brute force attacks: Cybercriminal tactics like brute force attacks and credential stuffing rely on stolen credentials to systematically enter usernames and passwords until one combination works. When a security key is required as a second factor, these common cybercriminal tactics no longer work.
- Maintaining compliance: The General Data Protection Regulation (GDPR) was established by the European Union (EU) to safeguard personal data and information. Hardware security keys provide reliable 2FA that reduces the risk of unauthorized access and data theft, helping companies stay in compliance through this valuable data protection measure.
Tips for using hardware security keys
Even the best authentication methods and cybersecurity tools are only effective when you take the recommended precautions. Some best practices for the use of hardware security keys include:
- Keep a backup key: Losing or misplacing tiny security keys can be a pitfall that locks you out of your device or application. Creating and keeping backup keys handy can minimize downtime and laborious account recovery processes.
- Don’t share your key: Much like sharing credentials with other users, sharing security keys is inadvisable since it can undermine your control of important assets and inadvertently put data at risk. Each authorized user should establish their own unique key.
- Store your key safely: What is hardware security without secure hardware? Security keys should be assigned the same value as the data they safeguard. This means keeping them in locked drawers when not in use rather than leaving them plugged in or sitting on desks.
- Report lost or stolen keys: Most services will allow you to authenticate in a different way or use a recovery code if you lose or misplace your security key or device. Despite this convenience, you should always report lost keys to the service provider so they can be disabled remotely.
How Dashlane supports the use of hardware security keys
Hardware security keys provide valuable protection from hacking and data breaches, especially when combined with tools like credential managers that ensure your passwords are always strong and unique. Dashlane provides an unmatched level of support, with standard features including passkey support, 2-factor authentication, 256-bit AES encryption, VPN, and Dark Web Monitoring. An intuitive Password Health score also allows you or your organization to track weak, reused, and compromised passwords.
Passkeys are a digital authentication method for fast, secure logins. Learn more about the rise of passkeys across industries: Check out the Dashlane Passkey Report.
References
- Donglify, “What Is A Dongle Key. How Does A Dongle Work?” August 2022.
- Dashlane, “A Complete Guide to Multifactor Authentication,” November 2022.
- The New York Times, “The Best Security Key for Multi-Factor Authentication,” July 2024.
- Dashlane, “A Complete List of PCI Password Requirements for Businesses,” June 2023.
- Dashlane, “Internet of Things (IoT) Security Practices Can Prevent Breaches,” June 2024.
- Dashlane, “Cyber Threats: Your Guide to Common Terms,” January 2023.
- Dashlane, “Dashlane Becomes a Board Member of the FIDO Alliance,” April 2023.
- Secure Technology Alliance, “U.S. Federal Government Smart Card Programs.”
- Google, “Titan Security Key.”
- Yubico, “How the YubiKey works.”
- Dashlane, “What a Secure System Is & How to Implement It in Your Business,” October 2022.
- NIST, “MultiFactor Authentication,” March 2024.
- Dashlane, “Interview With a Hacker: Rachel Tobac Tells You How to Defend Yourself From…Well, Her!” March 2021.
- Dashlane, “A Guide To External Security Threats in 2024,” May 2023.
- GDPR.eu, “Everything you need to know about GDPR compliance.”
- The Zebra, “79% of Americans Share Passwords, But Only 13% Are Worried About Identity Theft,” April 2024.
- Dashlane, “How Businesses with a BYOD Policy Can Secure Employee Devices,” January 2023.
- Dashlane, “How Password Reuse Leads to Cybersecurity Vulnerabilities,” May 2023.
- Simplilearn, “AES Encryption: Secure Data with Advanced Encryption Standard,” July 2024.
- Dashlane, “Report: A Global Look at Password Health,” 2022.
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