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MS-CHAPv2



MS-CHAP v2 is a one-way encrypted password, two-way authentication process that provides mutual authentication between peers (see Figure 1). It differs from MS-CHAP-V1 because it piggybacks an additional peer challenge (PCS) on the Response packet and an additional authenticator response on the Success packet. Both the authenticating server and the client challenge and authenticate each other. The message flow is as follows:
  1. Authenticator sends a challenge consisting of a Session ID and random authenticator challenge string (ACS).
  2. Client (peer) sends a response containing an encrypted one-way hash of the session ID, username, a peer challenge string (PCS), the peer response (PR), and the user password (secret).
  3. Authenticator responds with another one-way hash (based on the client response) of a success/failure code, the authenticator response (AR), and the user’s password (secret).
  4. The peer verifies the authenticator response and begins communications if the response is successful. It disconnects on failure.

 
Figure 1: MS-CHAP-V2
This authentication method depends upon a secret (password) known only to the authenticator and the peer. The secret is not sent over the link. A one-way hash function, also known as a message digest, is a mathematical function that takes a variable-length input string and converts it into a fixed-length binary sequence that is computationally difficult to invert—that is, generate the original string from the hash.
CHAP and MS-CHAP
CHAP was defined in RFC1994: PPP Challenge Handshake Authentication Protocol. CHAP (Challenge-Handshake Authentication Protocol) was initially used to verify client identity on PPP links using a three-way handshake. The handshake begins with the authenticator issuing a challenge to the client. The client responds with a digest calculated using a hashing function. The authenticator then verifies the response and acknowledges the connection if the match is successful, otherwise it terminates the connection. CHAP depends upon a secret known only to the authenticator and the client. The secret is not sent over the link.
MS-CHAP differs from CHAP in that MS-CHAP does not require that the shared secret be stored in cleartext at both ends of the link. The Microsoft client knows the hash method used by the server so it can reproduce it, effectively creating a “matching” password on both ends. The client proves its identity based on the fact that it can reproduce the hashed value of the password.
PAP
PAP (Password Authentication Protocol) is described in RFC1334. PAP provides a simple method for the peer to establish its identity using a two-way handshake. PAP is not a strong authentication method. Passwords are sent over the connection in cleartext and there is no protection from playback or repeated trial and error attacks.
MD5
MD5 (Message-Digest algorithm 5) is a widely used cryptographic hash function that results in a 128-bit hash value. The 128-bit (16-byte) MD5 hashes (also termed message digests) typically are represented as 32-digit hexadecimal numbers (for example, ec55d3e698d289f2afd663725127bace). EAP-MD-5 typically is not recommended for wireless LAN implementations because it may expose the user’s password, and because several collision-based weaknesses have been demonstrated. It provides for only one way authentication—there is no mutual authentication of wireless client and the network. And very importantly it does not provide a means to derive dynamic, per-session wired equivalent privacy (WEP) keys.
GTC
Typically, password (PIN) information is read by a user from a token card device and entered as ASCII text into the client. GTC is similar to PAP in that passwords are sent in the clear.
Notes from the Underground…—Dictionary Attacks

Passwords can be broken in real-time (active) and offline (passive) modes. The premise of a dictionary attack is that by trying every possible combination or words (or tokens), an attacker ultimately will succeed in discovering user secret passwords. A dictionary attack relies on the fact that d. password is often a common word, name, or concatenation of words or names with a minor modification such as a trailing digit or two, Longer passwords with a variety of characters (such as ^Y2o4uEA16r3-2e64A12EFing!) offer the greatest protection against dictionary attacks.
During an online dictionary attack, an attacker tries to actively gain network access by trying many possible combinations of passwords for a specific user. Online dic-tionary attacks can be prevented using password lockout mechanisms that lock out the user account after a certain number of invalid login attempts. Online attacks also generally show up in logs, which can indicate that this type of “loud” hacking activity occurred or is occurring. Offline attacks rely on the attacker’s ability to capture and record data from the datastream usually by using a sniffer such as tcpdump or ethereal. These captured data can then be compared at leisure against tables of hashes until a password ‘s discovered or the attacker gives up, The offline attacks can be thwarted by changing passwords regularly and limiting attackers’ access to the datastream.
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