Phishing-Irrelevant Security: How dOISP Protocol Eliminates the Need for Passwords and MFA, Saving Over $2.9 Billion Annually

by Mykhailo Magal, PhD Ph.D., Head of Reserch and Development Iothic Ltd.

As cyber threats become more sophisticated, the weaknesses of password-based systems and Multi-Factor Authentication (MFA) have become evident. Despite its additional layer of security, MFA remains susceptible to phishing, credential-based attacks, and social engineering, resulting in significant financial losses.

?In 2023 alone, phishing attacks accounted for over $2.9 billion in losses, according to the FBI’s Internet Crime Complaint Center (IC3) (2023 Internet Crime Report). When combined with data breaches, credential theft, and the operational expenses tied to MFA and password-based systems, the aggregate cost burden becomes staggering.

Enter the Decentralized Open Interoperable Security Protocol (dOISP) — a cutting-edge approach to quantum-resistant authentication that also eliminates the need for passwords and MFA entirely, as well as protects from man-in-the-middle (MITM) and Replay attacks. By leveraging cryptographic keys unique to each session, dOISP not only enhances security but also offers massive financial savings.

The Flaws in MFA and Password-Based Systems

Despite the added layer of protection that MFA provides, it remains vulnerable to phishing, credential theft, and MITM attacks. Even with MFA in place, many organizations continue to suffer breaches, which are costly to mitigate. Credential theft, in particular, has become a lucrative attack vector for cybercriminals as they exploit weak passwords or intercepted MFA tokens to gain access to critical systems.

Organizations also face the operational burden of maintaining both MFA and password-based systems. This includes the costs of managing password resets, MFA tokens, and user education, which can run over $1 million annually per organization (Bleeping Computer). Given these persistent risks and costs, many are beginning to look beyond traditional security approaches to reduce their vulnerability.

How dOISP Makes Phishing and Credential Theft Irrelevant

The dOISP protocol eliminates the reliance on passwords, MFA codes, and other forms of static credentials that are vulnerable to phishing and theft.

Here’s how dOISP renders phishing and credential theft irrelevant:

Session-Based Authentication Keys

Unlike MFA, where users need to manually input passwords or one-time codes, dOISP automatically generates cryptographic keys that are unique to each session. These keys are never reused, stored, or exposed. Even if an attacker tries to intercept the authentication process, the key becomes useless after the session ends, making phishing and replay attacks futile.

No Reliance on SMS or External Devices

MFA often relies on external devices like smartphones or email to deliver authentication codes. These methods are susceptible to SIM swapping and phone cloning attacks, where attackers gain control of a user’s phone number and intercept MFA codes. dOISP eliminates the need for such external devices, ensuring that attackers cannot steal credentials through these channels.

Automated and Decentralized Key Management

One of the most significant benefits of dOISP is its built-in automated key management system. It continuously generates and rotates cryptographic keys without user intervention, removing the possibility of human error. Attackers cannot manipulate or socially engineer users into providing codes because there are no MFA codes to provide.

The dOISP Solution: A New Era of Security

dOISP redefines authentication by leveraging a decentralized Zero Trust authentication model and Zero Trust network segmentation, where authentication is based on dynamically generated cryptographic keys that are unique to each session. Unlike passwords and MFA tokens, these keys are not stored or reused, drastically minimizing the attack surface for phishing, credential theft, and replay attacks.

By automating key management, dOISP eliminates the reliance on passwords and static credentials, making it immune to many of the attacks that plague current systems. The protocol’s dynamic nature ensures that keys are refreshed for every session, rendering techniques like brute force, replay attacks, and social engineering obsolete.

The Cost of Traditional Authentication Failures

Phishing Attacks

Phishing attacks, especially Business Email Compromise (BEC), continue to be a major source of financial loss for organizations. In 2023, phishing accounted for $2.9 billion in direct losses (2023 Internet Crime Report). These attacks often succeed by tricking users into divulging passwords or MFA credentials, which can then be used to access sensitive systems.

Data Breaches

Beyond phishing, breaches involving compromised credentials cost organizations an average of $5 million per incident (IBM’s 2024 Cost of a Data Breach). These breaches are particularly damaging when attackers bypass MFA or use stolen credentials to move laterally within a network.

Operational Costs of MFA and Passwords

Maintaining MFA and password systems comes with significant operational costs. Businesses managing thousands of users spend approximately $1 million annually per organization on password management, MFA token distribution, and user training (Bleeping Computer). These costs add up quickly, especially in large organizations with complex security needs.

How dOISP Transforms Security and Costs

dOISP is transforming the way organizations approach security by removing the vulnerabilities inherent in password and MFA systems. Unlike traditional methods, dOISP operates on a decentralized Zero-Trust model. It dynamically generates cryptographic keys unique to each session, meaning there are no static credentials to steal or reuse.

The session-based keys used in dOISP ensure that phishing, credential theft, and replay attacks are rendered ineffective. dOISP’s automated key management replaces manual operations, reducing the burden on IT staff while enhancing security.

Phishing Mitigation

Since dOISP uses dynamic, one-session cryptographic keys, phishing attacks become irrelevant. There are no passwords or MFA tokens to steal, and each key is valid only for a single session. This eliminates the primary attack vector that caused $2.9 billion in losses in 2023 (2023 Internet Crime Report).

Preventing Credential Theft and Data Breaches

dOISP also prevents the kind of credential theft that often leads to data breaches. Without stored or reused credentials, techniques like credential stuffing, man-in-the-middle attacks, and password guessing are ineffective. With the average breach costing $5 million, dOISP’s approach could prevent billions in aggregate annual losses (IBM’s 2024 Cost of a Data Breach).

Operational Cost Reduction

By eliminating both passwords and MFA, dOISP removes the need for password resets, MFA token distribution, and ongoing user education. This can save companies over $1 million annually in operational costs (Bleeping Computer). For large enterprises, these savings multiply significantly as they scale across global operations.

The Future of Cybersecurity

dOISP provides more than just quantum-resistant authentication and secure data transmission with integrity and authenticity checks; it also offers significant cost savings by eliminating the vulnerabilities associated with password-based authentication and MFA. By transitioning to the dOISP cryptographic Zero Trust authentication and network segmentation model, organizations can effectively shield themselves from threats such as phishing, credential theft, and man-in-the-middle attacks, while also fortifying their defenses against future quantum threats.

In a world where every breach can cost millions and operational costs continue to rise, dOISP protocol provides a future-proof solution that addresses both the financial and security challenges faced by modern organizations. For those looking to safeguard their systems and improve their bottom line, dOISP protocol is the answer.

With this new approach, businesses can not only safeguard their systems but also achieve substantial cost savings, making dOISP the security solution of tomorrow, available today.