The idea of the protocol is to extend the traditional Kerberos, that supports only symmetric ciphers, with digital signatures and public key encryption in order to support stock smart cards. A use-case is, for example, logging in a windows domain using the smart card. The protocol itself doesn't mention smart cards at all, probably because it was thought as a deployment issue. Nevertheless, it was believed to be a secure protocol and several published papers provided proofs of security for all operational modes of the protocol.
However, the protocol has an important flaw. A flaw that makes insecure if used with smart cards. I wrote a detailed report on the flaw, but the main idea is that if one has access for few minutes to your smart card he can login using your credentials at any time in the future. You may think that an attack like that can be prevented by never lending your smart card to anyone, but how can you prove that no-one borrowed it for a while? Or if you believe the smart card PIN would protect from theft, how could you know that the reader you are inserting your card isn't tampered? And in a protocol with smart cards you'd expect the tampered reader not to be able to use the card after you retrieve it. This is not the case, making the protocol unsuitable for smart cards, its primary use-case.
What is the most interesting issue however, are the security proofs. The protocol was proven secure, but because the protocol never mentioned smart cards, researchers proved its security on a different setting than the actual use cases. So when reading a security proof, always check the assumptions, which are as important as the proof itself.
Few things went bad with the design of this protocol, none of which is actually technical. The protocol is hard to read, and in order to get an overview of it, you have to read the whole RFC. This is just bad. If you check figure 1 in the TLS RFC you get an overview of the protocol immediately. You might not know the actual contents of the messages but the sequence is apparent. This is not possible in the Kerberos protocol, and that discourages anyone who might want to understand the protocol using a high level description of it. Another flaw, is that the protocol doesn't mention smart cards, its primary use-case. Smart cards were treated as a deployment issue and readers of the RFC, would never know about it. The latter issue is occurring in many of the IETF protocols and the readers are expected to know where and how this protocol is used. As it was demonstrated by the security proofs on a different setting, this is not the case.
So, what can it be done to mitigate the flaw? Unfortunately without modifying the protocol, the only advice that can be given is something along the:
- make sure you always possess the card;
- make sure you never use a tampered smart card reader.