Windows Domain Authentication With YubiKey

YubiKey’s are low cost authentication tokens which can operate as personal identity verification (PIV) smartcards for Windows authentication.

This post provides a quick guide to configuring a Windows 2012 domain to authenticate using a Yubikey instead of a standard password.

Driver Installation
Download and install the YubiKey driver on all systems which will be using 2FA:
https://www.yubico.com/products/services-software/download/smart-card-drivers-tools/

Unpack and install the driver:

(Right click on the C:\ykmd\ykmd.inf and select install)

Create Smart Card Certification Template

Open certtmpl.msc on the server.

Find the SmartCard Login template, and select duplicate. Set the new name to “YubiKey”.

On the “Security” tab make sure users who will be using smart card authentication have permissions:

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Change the options as below:

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Add the created Certification Template to the CA

  • Open certsrv.msc
  • Select Certification Templates
  • Right click in a blank area on the right side and select “New” > “Certificate Template to issue”
  • Select the “YubiKey” template and click OK.

Active Directory Auto Enrollment Configuration

Create a new GPO called YubiKey and configure the following options:

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Enrull new certtficates. 
centficates 
expired certficates, process pending certficate requests and removerevoked 
Update and manage centficates that use certficate templates frum Active Directoy 
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Ensure the GPO is applied to users who will be using smart card authentication.

Client Configuration

Force the client to apply the group policy changes:

gpupdate /force

Verify the registry changes have been made:

The AEPolicy key should be set to 0x7 in both instances.

After applying the settings, Windows should prompt for certificate Enrollment:

Certificate Enrollment 
Before You Begin 
The following steps will help you install certificates, which are digital credentials used to 
connect to wireless networks, protect content, establish identity, and do other 
security related tasks. 
Before requesting a certificate, verify the following: 
Your computer is connected to the network 
You have credentials that can be used to verify your right to obtain the certificate 
Cancel
Certificate Enrollment 
Request Certificates 
The following certificates are available. Click 'Enroll' to start enrollment. 
Active Directory Enrollment Policy 
YubiKey 
STATUS: Enrollment required 
Enroll 
Cancel
Certificate Enrollment 
Certificate Installation Results 
The following certificates have been enrolled and installed on this computer. 
Active Directory Enrollment Policy 
YubiKey 
STATUS: Succeeded 
Finish

Go to the certificates MMC on the system and ensure the certificate is listed. In active directory users and groups, set smart card required for interactive login:

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When the user logs back in, they should now be prompted for the SmartCard PIN to authenticate to the domain.