jerel writes "Carnegie Mellon University researchers have developed a prototype authentication system which keeps attackers in the dark during authentication, potentially reducing the risk of attackers hacking users' credentials via a keylogger or spyware. It also is effective against the common "shoulder surfing" technique to grab a PIN. The so-called Undercover system, which was built by Carnegie Mellon University faculty member Nicolas Christin and two CMU graduate students, approaches authentication differently: It hides the authentication challenges rather than the user's input or password during the authentication process." Link to Original Source
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