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We propose a simple method for improving the security of hashed passwords: the maintenance of additional ``honeywords'' (false passwords) associated with each user's account. An adversary who steals a file of hashed passwords and inverts the hash function cannot tell if he has found the password or a honeyword. The attempted use of a honeyword for login sets off an alarm. An auxiliary server (the ``honeychecker'') can distinguish the user password from honeywords for the login routine, and will set off an alarm if a honeyword is submitted.
Juels et al. (Tue,) studied this question.