This paper, we provide a framework in which to study the security of key pre-distribution schemes, propose a new key pre-distribution scheme which substantially improves the resilience of the network compared to previous schemes, and give an in-depth analysis of our scheme in terms of network resilience and associated overhead. Our scheme exhibits a nice threshold property: when the number of compromised nodes is less than the threshold, the probability that communications between any additional nodes are compromised is close to zero. This desirable property lowers the initial payoff of smaller-scale network breaches to an adversary, and makes it necessary for the adversary to attack a large fraction of the network before it can achieve any significant gain.