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Cached credentials is not a new bug
Many years ago back in the Windows XP era, there was a security story indicating that you could log into a system with expired credentials. The issue relates to something that has to be balanced all the time. Security. Useability.
Seeing a recent story in Ars Technica RDP lets you log in using revokes passwords is touching on exactly the same problem.
If you need absolute security, especially in a domain/network setting, all of us should be setting a value to disable cached credentials. The idea behind this if you cannot connect to the domain controller, you shouldn’t be able to log onto the system. BUT. There’s that time when the Internet is down or there’s a configuration problem.
Even more important for laptops is the need for a way to logon when offline. As noted in the ITpro article,
“Don’t set the number of logons to cache to 0 on mobile users’ laptops. These users would then be unable to log on with their domain credentials when away from the office. Although the CachedLogonsCount registry key doesn’t appear in the registry by default, Windows NT caches a set of 10 domain credentials by default. The maximum value for CachedLogonsCount is 50. When credential caching is disabled and no DC is available, a user can still log on to a machine via a local machine account.”
Folks, the sky is not falling. Microsoft isn’t making stupid security choices (at least not here). This is, like many, one of the choices you have to make in a network to balance out the ability to do your job with being secure. Sometimes there are no absolutes.
Does this impact consumers? No. And if you have a local account with no password, you can’t RDP into that box in the first place. Also, I do not recommend opening up RDP to the open world in the first place. Does this impact businesses? Yes. But it’s not the threat or risk you think it is and it’s honestly nothing new.