7 Benefits Of Passwordless Authentication For Organizations

Are you tired of constantly forgetting your passwords? Whether you feel frustrated by the hassle of remembering multiple credentials or are concerned about the security risks associated with traditional authentication methods, passwordless security aims to solve these issues. This innovative approach to user verification offers various benefits, such as enhanced security, improved user experience and, most significantly, reduced likelihood of hacking. Learn about the advantages of passwordless authentication here.

The Problem With Traditional Passwords

The use of passwords for authentication poses multiple security risks. Passwords can be easily guessed, stolen, or compromised through brute-force attacks or phishing. According to IBM, compromised credentials are the most common initial attack vector, representing 20% of all breaches, with an average cost of $4.37 million. Given these risks, many companies are rethinking their cybersecurity strategies to address these vulnerabilities and enhance security. 

Authentication Efficiency Factors

Three key factors determine the efficiency of authentication within an enterprise: ease of access for users, the level of security to protect business applications and user accounts, and the cost of implementing and managing authentication within the enterprise. Password-based authentication falls short in all these areas.

Users face the hassle of frequent password changes with complex rules for password creation, making it difficult to remember all passwords. This leads to frequent password reset requests, prolonging the login process and impacting the user experience.

Security Concerns with Password-Based Authentication

The security of password-based authentication is concerning due to various vulnerabilities. Cyber attackers often see passwords and knowledge questions as the weakest link in the authentication system. This understanding leads to various hacking methods focused on uncovering user passwords and other personal data for nefarious purposes. Phishing scams, brute-force attacks, keyloggers, and credential stuffing are some common techniques used by attackers to compromise passwords and gain unauthorized access.

Cost Implications of Password-Based Authentication

While the costs of implementing and managing password-based authentication may seem trivial, there are many other expenses associated with help desk inquiries for password resets and the potential cost of a data breach.

These costs can add up over time and significantly impact the overall cost of authentication within an enterprise. The cost of user downtime due to password-related issues can also impact productivity and add to the overall cost of maintaining password-based authentication systems.

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What Is Passwordless Authentication?

Passwordless authentication is a collective term used for various user identity verification methods that do not involve the use of passwords. Instead of relying on traditional password-based authentication, it employs alternative forms of validation, such as biometrics, magic links, authenticator apps, or similar methods. By utilizing these alternative methods, passwordless authentication offers a more secure and convenient way to log in to online accounts. 

Benefits of Passwordless Authentication

Enhanced Security

Passwordless authentication provides a more secure way to access online accounts than traditional password-based authentication. By using biometrics, magic links, or authenticator apps, users can safely authenticate their identities without the risk of password breaches or hacks.

User Convenience

Passwordless authentication simplifies the login process for users, eliminating the need to remember and manage multiple passwords. With biometrics or magic links, users can easily and quickly access their accounts without the hassle of entering complex passwords.

Reduced Risk Surface

Implementing passwordless authentication reduces the risk of credential-based attacks for applications. By eliminating passwords from the authentication process, companies can significantly reduce the surface area vulnerable to breaches and cyber-attacks.

Adoption and Delight

Applications that implement passwordless authentication can attract and delight more users by providing a frictionless and secure login experience. By offering a seamless and secure authentication process, companies can increase user adoption and satisfaction.

Comprehensive Security Solutions with Decentralized Biometrics

At Anonybit, we help companies prevent data breaches and account takeover fraud with our decentralized biometrics system design. With a decentralized biometrics solution, companies can enable passwordless login, wire verification, step-up authentication, and help desk authentication. We are on a mission to protect companies from data breaches, account takeover and synthetic identity fraud.

To achieve this goal, we offer security solutions such as:

• Secure storage of biometrics and PII data
• Support for the entire user lifecycle
• 1:1 biometric authentication and 1:N biometric matching to prevent duplicates, synthetics and blocklisted identities 

Anonybit eliminates the tradeoffs between privacy and security. Prevent data breaches, enable strong authentication for eliminating account takeovers, and enhance the user experience across the enterprise using Anonybit.

Book a free demo today to learn more about our integrated identity management platform.

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7 Benefits Of Passwordless Authentication

1. Improved User Experience

One of the primary passwordless authentication benefits is its enhanced user experience. By eliminating the need for passwords, users are relieved from the frustrations of creating and remembering complex credentials. 

2. Improved Security

Passwords are one of the most common targets for cyberattacks and data breaches. They can be easily guessed, stolen, or compromised through various methods such as:

• Brute force attacks
• Credential stuffing
• Account takeover

Enhanced Security Through Passwordless Authentication and MFA

The biggest security benefit of passwordless authentication is the elimination of passwords as a potential vulnerability, thus reducing the risk of password-related security incidents. Passwordless authentication can also offer stronger multi-factor authentication (MFA) mechanisms. MFA can significantly improve security by making it more difficult for attackers to gain unauthorized access even if they manage to steal one of the authentication factors.

It should be noted that different passwordless authentication methods have various levels of security. For instance, while SMS authentication can be compromised via SIM swapping and man-in-the-middle (MitM) attacks, solely biometric authentication based on more secure tech is virtually unphishable.

Recent events highlight the ongoing vulnerabilities in traditional authentication methods. According to court documents, Tomar and his co-conspirators spoofed the Coinbase Pro website by using a similar fake URL, CoinbasePro.Com, to deceive unsuspecting users. The fraudulent website mimicked the authentic site to trick victims into entering their login credentials. In some cases, victims were also deceived into providing their login and authentication information for the actual Coinbase website. Additionally, fraudsters gained remote access to victims’ computers by pretending to be Coinbase representatives and convincing victims to execute remote desktop software. They also impersonated Coinbase customer service representatives to trick users into providing two-factor authentication codes over the phone. Once the fraudsters accessed the victims’ Coinbase accounts, they swiftly transferred the victims’ cryptocurrency holdings to wallets under their control.

This incident underscores the need for robust authentication mechanisms, as sophisticated social engineering and phishing attacks can exploit traditional methods like passwords and SMS-based two-factor authentication.

3. Cutting Down Long Term Cost

By implementing passwordless authentication, businesses can significantly reduce long-term costs. With passwordless authentication, there is no need for password management and the associated support costs. Forrester reports that U.S.-based organizations allocate over $1 million annually just for password-related support costs. Now, combine that with the time and effort dedicated to identifying and combating password leaks, and you’ve got a hefty annual cost that only continues to grow over time.

This eliminates the resources and time spent on password resets and account lockouts. Businesses can avoid potential fines or legal issues by complying with password storage laws. By reducing the risk of financial fraud and the potential damage to client data or confidential IP, passwordless authentication helps businesses save costs in the long run. 

4. Simplified Account Management

Passwordless authentication simplifies account management by eliminating the need for password resets and account recovery hassles. Moreover, if biometrics are used as the authentication factor, there is a signature that is bound to each transaction, which helps to eliminate chargebacks and first party fraud. 

5. Highly Effective

Passwordless authentication is highly efficient compared to traditional password authentication. Passwords can be easily forgotten or lost, leading to a frustrating experience for users. With passwordless authentication, users can quickly and easily authenticate their identity using biometric data or other authentication methods. This streamlined process reduces the risk of user error, leading to a more efficient and user-friendly experience.

6. Convenience

According to one study, the average user now has around 100 passwords, and most of them are variations of the other. Who can remember them all if they’re all unique? User time is wasted in trying to recall them, in resetting them and in the various workarounds employed to know what password fits which site.

Post-It notes, computer files that list all the passwords or letting your browser remember all your passwords—these are common practices that can potentially open the door to cybercriminal exploitation. Going passwordless by using approaches such as biometrics saves users from having to remember passwords or from compromising their security through memory workarounds.

7. Greater Productivity

A quick, convenient login experience allows employees to dedicate the time they would’ve spent brainstorming or resetting passwords on other, more productive tasks. Implementing biometrics for passwordless authentication can also improve the customer experience and enable self service account recovery. 

Is Passwordless Authentication Flawed?

Besides the cost, the main flaw with passwordless security is that most passwordless methods aren’t truly passwordless. Most of these other methods rely back on pin/codes which can still be hacked. Passwordless authentication with FIDO2 is better than conventional password structures, but it too falls short when it comes to account recovery and multi device management or shared device scenarios. 

Device Trust and Migration

Establishing a high level of trust when a user switches to a new device is difficult. FIDO credentials are device-specific, and transferring these securely without compromising security is a significant challenge.

Secure Backup and Transfer of Credentials

Transferring sensitive cryptographic assets like FIDO keys without exposing them to potential threats during transit or storage is challenging. Ensuring secure backup and retrieval across different device manufacturers adds complexity.

Fortunately, new privacy-enhancing technologies that utilize multi-party computing and zero-knowledge proofs like Anonybit can help address these challenges. Anonybit’s approach of sharding biometric data into an anonymized form protects against data breaches while still enabling passwordless authentication.

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Book A Free Demo To Learn More About Our Integrated Identity Management Platform

At Anonybit, we provide companies with the necessary tools to prevent data breaches and account takeover fraud by using our decentralized biometrics features. Our passwordless authentication with decentralized biometrics allows organizations to implement a secure and efficient login process. With features such as passwordless login, wire verification, step-up authentication, and help desk authentication, Anonybit helps companies enhance their security posture while maintaining user privacy. 

Secure Storage of Biometrics and PII Data

Our platform offers a secure environment for storing biometrics and personally identifiable information (PII) data. By leveraging decentralized technologies, we ensure that sensitive data is protected against unauthorized access and misuse. With Anonybit, companies can rest assured that their users’ information is safeguarded from potential breaches.

Support for the Entire User Lifecycle

Anonybit provides support for the entire user lifecycle, from onboarding to identity verification and ongoing authentication. Our solution enables companies to implement a seamless and secure user experience while maintaining compliance with relevant privacy regulations. By offering a comprehensive set of features, Anonybit empowers organizations to protect their users’ identities at every stage of their interaction.

1:1 and 1:N Matching for Lookups and Deduplication

With Anonybit, companies can perform 1:1 and 1:N matching for lookups and deduplication, enhancing the accuracy and reliability of identity verification processes. By leveraging advanced biometric technologies, organizations can ensure that users are uniquely identified and authenticated, minimizing the risk of fraudulent activities. Anonybit’s matching capabilities enable companies to implement robust security measures while streamlining user interactions.

Eliminating Tradeoffs Between Privacy and Security

Anonybit’s ultimate goal is to eliminate the tradeoffs between privacy and security, enabling organizations to enhance their security posture without compromising user privacy. By leveraging decentralized biometrics and passwordless authentication, companies can prevent data breaches, eliminate account takeovers, and enhance user experience across the enterprise.

Anonybit’s integrated identity management platform empowers organizations to achieve robust security measures while maintaining compliance with privacy regulations.