diff --git a/management/server/account.go b/management/server/account.go
index fbbd6800c..17d18f0fc 100644
--- a/management/server/account.go
+++ b/management/server/account.go
@@ -1580,7 +1580,6 @@ func (am *DefaultAccountManager) OnPeerDisconnected(ctx context.Context, account
 	if err != nil {
 		log.WithContext(ctx).Warnf("failed marking peer as disconnected %s %v", peerPubKey, err)
 	}
-	am.loginFilter.removeLogin(peerPubKey)
 	return nil
 
 }
diff --git a/management/server/loginfilter.go b/management/server/loginfilter.go
index 1b2a2a163..850ad94e5 100644
--- a/management/server/loginfilter.go
+++ b/management/server/loginfilter.go
@@ -2,6 +2,7 @@ package server
 
 import (
 	"hash/fnv"
+	"math"
 	"sync"
 	"time"
 
@@ -9,44 +10,44 @@ import (
 )
 
 const (
-	filterTimeout = 5 * time.Minute // Duration to secure the previous login information in the filter
-
 	reconnThreshold   = 5 * time.Minute
-	blockDuration     = 10 * time.Minute // Duration for which a peer is banned after exceeding the reconnection limit
+	baseBlockDuration = 10 * time.Minute // Duration for which a peer is banned after exceeding the reconnection limit
 	reconnLimitForBan = 30               // Number of reconnections within the reconnTreshold that triggers a ban
-	metaChangeLim     = 3                // Number of reconnections with different metadata that triggers a ban of one peer
+	metaChangeLimit   = 3                // Number of reconnections with different metadata that triggers a ban of one peer
 )
 
 type config struct {
-	filterTimeout     time.Duration
 	reconnThreshold   time.Duration
-	blockDuration     time.Duration
+	baseBlockDuration time.Duration
 	reconnLimitForBan int
-	metaChangeLim     int
+	metaChangeLimit   int
+}
+
+func initCfg() *config {
+	return &config{
+		reconnThreshold:   reconnThreshold,
+		baseBlockDuration: baseBlockDuration,
+		reconnLimitForBan: reconnLimitForBan,
+		metaChangeLimit:   metaChangeLimit,
+	}
 }
 
 type loginFilter struct {
 	mu     sync.RWMutex
 	cfg    *config
-	logged map[string]metahash
+	logged map[string]*peerState
 }
 
-type metahash struct {
-	hash       uint64
-	counter    int
-	banned     bool
-	firstLogin time.Time
-	lastSeen   time.Time
-}
-
-func initCfg() *config {
-	return &config{
-		filterTimeout:     filterTimeout,
-		reconnThreshold:   reconnThreshold,
-		blockDuration:     blockDuration,
-		reconnLimitForBan: reconnLimitForBan,
-		metaChangeLim:     metaChangeLim,
-	}
+type peerState struct {
+	currentHash           uint64
+	sessionCounter        int
+	sessionStart          time.Time
+	lastSeen              time.Time
+	isBanned              bool
+	banLevel              int
+	banExpiresAt          time.Time
+	metaChangeCounter     int
+	metaChangeWindowStart time.Time
 }
 
 func newLoginFilter() *loginFilter {
@@ -55,55 +56,94 @@ func newLoginFilter() *loginFilter {
 
 func newLoginFilterWithCfg(cfg *config) *loginFilter {
 	return &loginFilter{
-		logged: make(map[string]metahash),
+		logged: make(map[string]*peerState),
 		cfg:    cfg,
 	}
 }
 
-func (l *loginFilter) addLogin(wgPubKey string, metaHash uint64) {
-	l.mu.Lock()
-	defer l.mu.Unlock()
-	mh, ok := l.logged[wgPubKey]
-	if !ok || mh.banned || (mh.hash != metaHash && mh.counter > l.cfg.metaChangeLim) {
-		mh = metahash{
-			hash:       metaHash,
-			firstLogin: time.Now(),
-		}
-	}
-	mh.counter++
-	mh.hash = metaHash
-	mh.lastSeen = time.Now()
-	if mh.counter > l.cfg.reconnLimitForBan && mh.lastSeen.Sub(mh.firstLogin) < l.cfg.reconnThreshold {
-		mh.banned = true
-	}
-	l.logged[wgPubKey] = mh
-}
-
 func (l *loginFilter) allowLogin(wgPubKey string, metaHash uint64) bool {
 	l.mu.RLock()
 	defer l.mu.RUnlock()
-	mh, ok := l.logged[wgPubKey]
+	state, ok := l.logged[wgPubKey]
 	if !ok {
 		return true
 	}
-	if mh.banned && time.Since(mh.lastSeen) < l.cfg.blockDuration {
+	if state.isBanned && time.Now().Before(state.banExpiresAt) {
 		return false
 	}
-	if mh.hash != metaHash && time.Since(mh.lastSeen) < l.cfg.filterTimeout && mh.counter > l.cfg.metaChangeLim {
-		return false
+	if metaHash != state.currentHash {
+		if time.Now().Before(state.metaChangeWindowStart.Add(l.cfg.reconnThreshold)) && state.metaChangeCounter >= l.cfg.metaChangeLimit {
+			return false
+		}
 	}
 	return true
 }
 
-func (l *loginFilter) removeLogin(wgPubKey string) {
+func (l *loginFilter) addLogin(wgPubKey string, metaHash uint64) {
 	l.mu.Lock()
 	defer l.mu.Unlock()
-	delete(l.logged, wgPubKey)
+
+	now := time.Now()
+	state, ok := l.logged[wgPubKey]
+
+	if !ok {
+		l.logged[wgPubKey] = &peerState{
+			currentHash:           metaHash,
+			sessionCounter:        1,
+			sessionStart:          now,
+			lastSeen:              now,
+			metaChangeWindowStart: now,
+			metaChangeCounter:     1,
+		}
+		return
+	}
+
+	if state.isBanned && now.After(state.banExpiresAt) {
+		state.isBanned = false
+	}
+
+	if state.banLevel > 0 && now.Sub(state.lastSeen) > (2*l.cfg.baseBlockDuration) {
+		state.banLevel = 0
+	}
+
+	if metaHash != state.currentHash {
+		if now.After(state.metaChangeWindowStart.Add(l.cfg.reconnThreshold)) {
+			state.metaChangeWindowStart = now
+			state.metaChangeCounter = 1
+		} else {
+			state.metaChangeCounter++
+		}
+		state.currentHash = metaHash
+		state.sessionCounter = 1
+		state.sessionStart = now
+		state.lastSeen = now
+		return
+	}
+
+	state.sessionCounter++
+	if state.sessionCounter > l.cfg.reconnLimitForBan && now.Sub(state.sessionStart) < l.cfg.reconnThreshold {
+		state.isBanned = true
+		state.banLevel++
+
+		backoffFactor := math.Pow(2, float64(state.banLevel-1))
+		duration := time.Duration(float64(l.cfg.baseBlockDuration) * backoffFactor)
+		state.banExpiresAt = now.Add(duration)
+
+		state.sessionCounter = 0
+		state.sessionStart = now
+	}
+	state.lastSeen = now
 }
 
 func metaHash(meta nbpeer.PeerSystemMeta, pubip string) uint64 {
 	h := fnv.New64a()
 
+	if len(meta.NetworkAddresses) != 0 {
+		for _, na := range meta.NetworkAddresses {
+			h.Write([]byte(na.Mac))
+		}
+	}
+
 	h.Write([]byte(meta.WtVersion))
 	h.Write([]byte(meta.OSVersion))
 	h.Write([]byte(meta.KernelVersion))
diff --git a/management/server/loginfilter_test.go b/management/server/loginfilter_test.go
index fe838e62d..3137dac87 100644
--- a/management/server/loginfilter_test.go
+++ b/management/server/loginfilter_test.go
@@ -2,6 +2,7 @@ package server
 
 import (
 	"hash/fnv"
+	"math"
 	"strconv"
 	"strings"
 	"testing"
@@ -12,13 +13,12 @@ import (
 	nbpeer "github.com/netbirdio/netbird/management/server/peer"
 )
 
-func testCfg() *config {
+func testAdvancedCfg() *config {
 	return &config{
-		filterTimeout:     20 * time.Millisecond,
 		reconnThreshold:   50 * time.Millisecond,
-		blockDuration:     100 * time.Millisecond,
+		baseBlockDuration: 100 * time.Millisecond,
 		reconnLimitForBan: 3,
-		metaChangeLim:     1,
+		metaChangeLimit:   2,
 	}
 }
 
@@ -28,113 +28,131 @@ type LoginFilterTestSuite struct {
 }
 
 func (s *LoginFilterTestSuite) SetupTest() {
-	s.filter = newLoginFilterWithCfg(testCfg())
+	s.filter = newLoginFilterWithCfg(testAdvancedCfg())
 }
 
 func TestLoginFilterTestSuite(t *testing.T) {
 	suite.Run(t, new(LoginFilterTestSuite))
 }
 
-func (s *LoginFilterTestSuite) TestFirstLogin() {
+func (s *LoginFilterTestSuite) TestFirstLoginIsAlwaysAllowed() {
 	pubKey := "PUB_KEY_A"
-	meta := uint64(4353457657645)
+	meta := uint64(1)
 
-	s.True(s.filter.allowLogin(pubKey, meta), "should allow a new peer")
+	s.True(s.filter.allowLogin(pubKey, meta))
 
 	s.filter.addLogin(pubKey, meta)
 	s.Require().Contains(s.filter.logged, pubKey)
-	s.Equal(1, s.filter.logged[pubKey].counter)
+	s.Equal(1, s.filter.logged[pubKey].sessionCounter)
 }
 
-func (s *LoginFilterTestSuite) TestFlappingPeerTriggersBan() {
+func (s *LoginFilterTestSuite) TestFlappingSameHashTriggersBan() {
 	pubKey := "PUB_KEY_A"
-	meta := uint64(4353457657645)
+	meta := uint64(1)
 	limit := s.filter.cfg.reconnLimitForBan
 
-	for range limit {
+	for i := 0; i <= limit; i++ {
 		s.filter.addLogin(pubKey, meta)
 	}
 
-	s.True(s.filter.allowLogin(pubKey, meta), "should still allow login at the limit boundary")
-
-	s.filter.addLogin(pubKey, meta)
-
-	s.False(s.filter.allowLogin(pubKey, meta), "should deny login after exceeding the limit")
-	s.True(s.filter.logged[pubKey].banned, "peer should be marked as banned")
+	s.False(s.filter.allowLogin(pubKey, meta))
+	s.Require().Contains(s.filter.logged, pubKey)
+	s.True(s.filter.logged[pubKey].isBanned)
 }
 
-func (s *LoginFilterTestSuite) TestBannedPeerIsDenied() {
+func (s *LoginFilterTestSuite) TestBanDurationIncreasesExponentially() {
 	pubKey := "PUB_KEY_A"
-	meta := uint64(4353457657645)
+	meta := uint64(1)
+	limit := s.filter.cfg.reconnLimitForBan
+	baseBan := s.filter.cfg.baseBlockDuration
 
-	s.filter.logged[pubKey] = metahash{
-		hash:     meta,
-		banned:   true,
-		lastSeen: time.Now(),
+	for i := 0; i <= limit; i++ {
+		s.filter.addLogin(pubKey, meta)
 	}
+	s.Require().Contains(s.filter.logged, pubKey)
+	s.True(s.filter.logged[pubKey].isBanned)
+	s.Equal(1, s.filter.logged[pubKey].banLevel)
+	firstBanDuration := s.filter.logged[pubKey].banExpiresAt.Sub(s.filter.logged[pubKey].lastSeen)
+	s.InDelta(baseBan, firstBanDuration, float64(time.Millisecond))
 
-	s.False(s.filter.allowLogin(pubKey, meta))
+	s.filter.logged[pubKey].banExpiresAt = time.Now().Add(-time.Second)
+	s.filter.logged[pubKey].isBanned = false
+
+	for i := 0; i <= limit; i++ {
+		s.filter.addLogin(pubKey, meta)
+	}
+	s.True(s.filter.logged[pubKey].isBanned)
+	s.Equal(2, s.filter.logged[pubKey].banLevel)
+	secondBanDuration := s.filter.logged[pubKey].banExpiresAt.Sub(s.filter.logged[pubKey].lastSeen)
+	expectedSecondDuration := time.Duration(float64(baseBan) * math.Pow(2, 1))
+	s.InDelta(expectedSecondDuration, secondBanDuration, float64(time.Millisecond))
 }
 
 func (s *LoginFilterTestSuite) TestPeerIsAllowedAfterBanExpires() {
 	pubKey := "PUB_KEY_A"
-	meta := uint64(4353457657645)
+	meta := uint64(1)
 
-	s.filter.logged[pubKey] = metahash{
-		hash:     meta,
-		banned:   true,
-		lastSeen: time.Now().Add(-(s.filter.cfg.blockDuration + time.Second)),
+	s.filter.logged[pubKey] = &peerState{
+		isBanned:     true,
+		banExpiresAt: time.Now().Add(-(s.filter.cfg.baseBlockDuration + time.Second)),
 	}
 
-	s.True(s.filter.allowLogin(pubKey, meta), "should allow login after ban expires")
-
-	s.filter.addLogin(pubKey, meta)
-	s.Require().Contains(s.filter.logged, pubKey)
-	entry := s.filter.logged[pubKey]
-	s.False(entry.banned, "ban should be lifted on new login")
-	s.Equal(1, entry.counter, "counter should be reset")
-}
-
-func (s *LoginFilterTestSuite) TestDifferentHashIsBlockedWhenActive() {
-	pubKey := "PUB_KEY_A"
-	meta1 := uint64(23424223423)
-	meta2 := uint64(99878798987987)
-
-	for range s.filter.cfg.metaChangeLim {
-		s.filter.addLogin(pubKey, meta1)
-	}
-
-	s.filter.addLogin(pubKey, meta1)
-
-	s.False(s.filter.allowLogin(pubKey, meta2))
-}
-
-func (s *LoginFilterTestSuite) TestDifferentHashIsAllowedAfterTimeout() {
-	pubKey := "PUB_KEY_A"
-	meta1 := uint64(23424223423)
-	meta2 := uint64(99878798987987)
-
-	s.filter.addLogin(pubKey, meta1)
-
-	s.Require().Contains(s.filter.logged, pubKey)
-	entry := s.filter.logged[pubKey]
-	entry.lastSeen = time.Now().Add(-(s.filter.cfg.filterTimeout + time.Second))
-	s.filter.logged[pubKey] = entry
-
-	s.True(s.filter.allowLogin(pubKey, meta2))
-}
-
-func (s *LoginFilterTestSuite) TestRemovedPeerCanLogin() {
-	pubKey := "PUB_KEY_A"
-	meta := uint64(4353457657645)
-
-	s.filter.addLogin(pubKey, meta)
-	s.Require().Contains(s.filter.logged, pubKey)
-
-	s.filter.removeLogin(pubKey)
-	s.NotContains(s.filter.logged, pubKey)
-
 	s.True(s.filter.allowLogin(pubKey, meta))
+
+	s.filter.addLogin(pubKey, meta)
+	s.Require().Contains(s.filter.logged, pubKey)
+	s.False(s.filter.logged[pubKey].isBanned)
+}
+
+func (s *LoginFilterTestSuite) TestBanLevelResetsAfterGoodBehavior() {
+	pubKey := "PUB_KEY_A"
+	meta := uint64(1)
+
+	s.filter.logged[pubKey] = &peerState{
+		currentHash: meta,
+		banLevel:    3,
+		lastSeen:    time.Now().Add(-3 * s.filter.cfg.baseBlockDuration),
+	}
+
+	s.filter.addLogin(pubKey, meta)
+	s.Require().Contains(s.filter.logged, pubKey)
+	s.Equal(0, s.filter.logged[pubKey].banLevel)
+}
+
+func (s *LoginFilterTestSuite) TestFlappingDifferentHashesTriggersBlock() {
+	pubKey := "PUB_KEY_A"
+	limit := s.filter.cfg.metaChangeLimit
+
+	for i := range limit {
+		s.filter.addLogin(pubKey, uint64(i+1))
+	}
+
+	s.Require().Contains(s.filter.logged, pubKey)
+	s.Equal(limit, s.filter.logged[pubKey].metaChangeCounter)
+
+	isAllowed := s.filter.allowLogin(pubKey, uint64(limit+1))
+
+	s.False(isAllowed, "should block new meta hash after limit is reached")
+}
+
+func (s *LoginFilterTestSuite) TestMetaChangeIsAllowedAfterWindowResets() {
+	pubKey := "PUB_KEY_A"
+	meta1 := uint64(1)
+	meta2 := uint64(2)
+	meta3 := uint64(3)
+
+	s.filter.addLogin(pubKey, meta1)
+	s.filter.addLogin(pubKey, meta2)
+	s.Require().Contains(s.filter.logged, pubKey)
+	s.Equal(s.filter.cfg.metaChangeLimit, s.filter.logged[pubKey].metaChangeCounter)
+	s.False(s.filter.allowLogin(pubKey, meta3), "should be blocked inside window")
+
+	s.filter.logged[pubKey].metaChangeWindowStart = time.Now().Add(-(s.filter.cfg.reconnThreshold + time.Second))
+
+	s.True(s.filter.allowLogin(pubKey, meta3), "should be allowed after window expires")
+
+	s.filter.addLogin(pubKey, meta3)
+	s.Equal(1, s.filter.logged[pubKey].metaChangeCounter, "meta change counter should reset")
 }
 
 func BenchmarkHashingMethods(b *testing.B) {
@@ -182,6 +200,12 @@ func BenchmarkHashingMethods(b *testing.B) {
 func fnvHashToString(meta nbpeer.PeerSystemMeta, pubip string) string {
 	h := fnv.New64a()
 
+	if len(meta.NetworkAddresses) != 0 {
+		for _, na := range meta.NetworkAddresses {
+			h.Write([]byte(na.Mac))
+		}
+	}
+
 	h.Write([]byte(meta.WtVersion))
 	h.Write([]byte(meta.OSVersion))
 	h.Write([]byte(meta.KernelVersion))
@@ -193,8 +217,9 @@ func fnvHashToString(meta nbpeer.PeerSystemMeta, pubip string) string {
 }
 
 func builderString(meta nbpeer.PeerSystemMeta, pubip string) string {
+	mac := getMacAddress(meta.NetworkAddresses)
 	estimatedSize := len(meta.WtVersion) + len(meta.OSVersion) + len(meta.KernelVersion) + len(meta.Hostname) + len(meta.SystemSerialNumber) +
-		len(pubip) + 5
+		len(pubip) + len(mac) + 6
 
 	var b strings.Builder
 	b.Grow(estimatedSize)
@@ -213,3 +238,14 @@ func builderString(meta nbpeer.PeerSystemMeta, pubip string) string {
 
 	return b.String()
 }
+
+func getMacAddress(nas []nbpeer.NetworkAddress) string {
+	if len(nas) == 0 {
+		return ""
+	}
+	macs := make([]string, 0, len(nas))
+	for _, na := range nas {
+		macs = append(macs, na.Mac)
+	}
+	return strings.Join(macs, "/")
+}