Account lockouts can signal a brute force attack, where an adversary repeatedly attempts username and password combinations until access is gained or the account is blocked. Account lockout policies limit login attempts to mitigate this risk.
Account Lockout Policy
If an adversary is trying a bunch of passwords on an account, then they could get account lockout. That would be another indicator.
There have been many times when I've had users forget their passwords. They remember vaguely what it was, and so they're trying different combinations. If we allow them to just keep trying combinations, this opens us up for risk. The reason why is because if they can try many times, many different combinations, so can an attacker. So can an adversary. They'll try as many times as it takes for them to get into the system.
So what we do is we develop an account lockout policy. An account lockout policy just says we're only going to allow them to try five times and then they can't log in, or four times, or three times, or whatever. Often that's accompanied with a policy that says then they have to wait five minutes. So if they've entered it in three times and got it wrong all three times, then they have to wait five minutes. This stops it from being really feasible for an adversary to try a ton of usernames and passwords and do that brute force attack.
This is why, if there is an account lockout, it could be a sign that there's an attack going on, that there could be somebody that's trying a bunch of different usernames and passwords to see what combination actually gets them into it. So much so that they try it so many times that they get locked out of their account and can't try anymore. So an account lockout could be an indicator that there's some sort of compromise or attack.
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