Preventing denial of service from locking user accounts after too many attempts

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It seems to be common practice to lock user accounts after enough failed attempts in a particular time window.

I am wondering how you prevent denial-of-service attacks since a malicious user who had the username of someone he wished to DoS could simply rapidly make logon attempts.

Is the remedy to lock the account for only the IP address of the user who exceeded the logon attempt count+window ?

Is there any better way?

EDIT:

I don't want to make my users solve a captcha on each login attempt.

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Wasafa1 On

You shouldn't block the user by its IP, because maybe it is a real user that forgot his pass and did the retries manually. The worst thing (business-wise) is that a real user will not be able to access your service.

So, your problem is actually "How do I know that the user is not a robot?".

One of the most popular ways to deal with this is to use a different mechanism for multiple login attempts. For instance, Google uses Captcha after about 3 trials, so an automatic bot will get stuck on this stage.

Of course it is possible to get the bot to read the captcha, but it's a start.

You can read more about captcha implementation in their official site: http://www.captcha.net/

Other alternative ideas here: http://econsultancy.com/il/blog/63144-six-alternatives-to-using-the-dreaded-captcha-images