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A soft token is a software-based security token that generates a single-use login personal identification number (PIN). Traditionally, a security token was a hardware device, such as a key fob or USB token, that produces a new, secure and unique PIN for each use and displays it on a built-in liquid crystal display (LCD). The system activates after the user presses a button or enters an initial PIN.

Security tokens are generally used in environments with higher security requirements as part of a multifactor authentication (MFA) system. While the hardware tokens are more secure than soft tokens, they are also costly and difficult to deploy on a large scale, as might be required for online banking.

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Soft tokens, also known as software tokens, are an attempt to replicate the security advantages of MFA, while simplifying distribution and lowering costs. Soft tokens exist on common devices, such as a smartphone with a soft token app that performs the same task as a hardware security token. The smartphone provides an easy-to-protect and easy-to-remember location for secure login information. Unlike a hardware token, smartphones are wirelessly connected devices, which can make them less secure. Just how secure they are depends on the device's operating system and client software.

When using a soft token system, an end user logging into a financial investment company's user portal is required to enter a username and a password. Then, the system sends a one-time password (OTP) to a phone number or email address associated with that user's account. The user enters the OTP in the field indicated in the security login screen to get access to the portal.

Soft tokens are used by individuals and organizations to enhance cybersecurity by providing an additional layer of authentication. Soft tokens are commonly used to provide secure remote access, as well as in virtual private networks and cloud applications.

Industries that deal with confidential personal data, such as healthcare, financial institutions and government agencies, are among the top adopters of soft tokens. Soft tokens are accessible and convenient, making them ideal for deployment to a range of users and applications.

Hard tokens predate soft tokens and are still in use, though far less than a few decades ago when they were common. A popular hard token is the RSA SecurID, a thumb-sized device with an LCD for token PINs. An algorithm in the device changes the six-character display at preset intervals. During a login process that uses a hard token, the user initiates a system login, enters an ID and password, followed by the number displayed on the token.

There are some circumstances where a hard token is required. For instance, if biometric authentication is used, a physical token that can take a thumb or eye scan is needed. In MFA, if one or both initial authentication factors are disabled or compromised, a hard token option might be used as backup.

Users logging into a soft token-based application follow much the same process as with a hard token. They enter their ID and password, and then must enter an OTP sent to their phone or email to complete the authentication process.

The security technology in a system generates a one-time passcode or password that's entered to complete the authentication process. New tokens are created for each access request, making them quite secure.

A hard token allows you to access software and verify your identity with a physical device rather than relying on authentication codes or passwords, but still uses multiple factors in authorizing access to software. You may have also heard hard tokens called key fobs, security tokens or USB tokens, among other names. The key is that hardware is used instead of software to increase security.

A core feature of hard tokens is a screen for inputting and requesting access. This action can be done through an authentication code, biometric data, fingerprints, cryptographic keys or a secure PIN. The types of tokens used can include USB tokens, Bluetooth tokens, smart cards and more. In general, hard tokens are small and designed to be easily carried on a keychain or in a pocket or purse.

Other types of hard tokens include connected tokens, which need a physical connection to automatically connect or transfer data and require host input services installed on the intended device. USB tokens and smart cards are common connected tokens that are still popular today.

Disconnected tokens are the most common types of hard tokens. They require two-factor authentication, usually including a PIN, before allowing access. While disconnected tokens don't need to be plugged into their intended device, authentication is manually entered through a small screen on the token itself.

Soft tokens don't so much have "types" in the same sense as hard tokens, as they perform a variety of authentication options based on the program or app you choose for your authentication method. This process usually incorporates two or more steps to ensure maximum security, and can include one-time passwords that last a limited time (often associated with RSA SecurID soft tokens, which allow for approximately one minute before generating a new one-time password to use). Authentication codes can also be sent to your smartphone or other connected device, or even use biometric data.

Hard tokens, while considered incredibly secure, do have their downsides. Carrying a small physical "key" for your access can lead to problems if it gets lost, for example. Also, hardware token batteries have a limited life and cannot be recharged, with the typical lifespan being between three and five years. For small businesses, this expense can add up: after all, hard tokens, being a physical object, are a monetary investment in terms of their procurement.

Soft tokens have some benefits and drawbacks worth considering as well. They tend to rely on apps on devices such as smartphones to work, so you have to make sure to always have your phone with you when you want to use these devices. Smartphone batteries tend to die much faster than hard token batteries, but your authentication needs can often be transferred between devices as needed.

Another consideration is the price. While hard tokens have come a long way in both convenience and security, they're an investment and one that may not be the most convenient for small businesses. However, that price gets you high-quality security and reliability without the security concerns of hacked devices or compromised software. Soft tokens, on the other hand, are usually free to use and compensate for potential security issues through multi-factor authentication methods that are often time-based.

In short, it depends on your business needs. To answer this question, you have several considerations to keep in mind: price, ease of use and confidentiality. For little to no cost, a simple SMS authentication or RSA soft token is the way to go, especially if there's not much need for securing private data. However, if the need for security of confidential information is high, contactless hard tokens are easily the best bet, as they do not store any of the user's data and are not subject to hacking.

If you're considering the use of biometric information in your security tokens, keep in mind that it's still quite costly to implement, though worth it if your business handles highly sensitive information. In many cases, two-factor authentication is a reliable solution for accessing software as needed. However, in case one or both authentication factors are compromised, a hard token backup is very secure and reliable.

Whether you're considering products like RSA soft tokens vs. hard tokens for your company's security needs, our experts are available to advise and help you with in-depth information about choosing security or authentication tokens that best suit your needs.

Because software tokens are something one does not physically possess, they are exposed to unique threats based on duplication of the underlying cryptographic material - for example, computer viruses and software attacks. Both hardware and software tokens are vulnerable to bot-based man-in-the-middle attacks, or to simple phishing attacks in which the one-time password provided by the token is solicited, and then supplied to the genuine website in a timely manner. Software tokens do have benefits: there is no physical token to carry, they do not contain batteries that will run out, and they are cheaper than hardware tokens.[2]

The shared secret architecture is potentially vulnerable in a number of areas. The configuration file can be compromised if it is stolen and the token is copied. With time-based software tokens, it is possible to borrow an individual's PDA or laptop, set the clock forward, and generate codes that will be valid in the future. Any software token that uses shared secrets and stores the PIN alongside the shared secret in a software client can be stolen and subjected to offline attacks. Shared secret tokens can be difficult to distribute, since each token is essentially a different piece of software. Each user must receive a copy of the secret, which can create time constraints.

Some newer software tokens rely on public-key cryptography, or asymmetric cryptography. This architecture eliminates some of the traditional weaknesses of software tokens, but does not affect their primary weakness (ability to duplicate). A PIN can be stored on a remote authentication server instead of with the token client, making a stolen software token no good unless the PIN is known as well. However, in the case of a virus infection, the cryptographic material can be duplicated and then the PIN can be captured (via keylogging or similar) the next time the user authenticates. If there are attempts made to guess the PIN, it can be detected and logged on the authentication server, which can disable the token. Using asymmetric cryptography also simplifies implementation, since the token client can generate its own key pair and exchange public keys with the server. ff782bc1db