September 24, 2023

Anonybit Team

4-Step Guide On How To Implement Passwordless Authentication


Are you looking to enhance your online security with Passwordless Authentication? Discover the latest trends in Passwordless Security and learn how to implement them effectively. Let’s explore how to protect your online privacy and reduce the risks associated with password-based authentication methods.

How Does Passwordless Authentication Work?

how does it work - How To Implement Passwordless Authentication

One of the most common consequences of cracked credentials is a data breach, the average cost of which has skyrocketed to $4.24 million. This threat is amplified by an overreliance on just email and passwords for accessing hundreds of apps — and the fact that 81% of people reuse their passwords. Even without the added pressure of cybercrime, passwords represent a major headache for productivity and customer satisfaction — 25% to 40% of internal IT help desk calls are attributed to password issues, swallowing up millions in paid time per year. This is precisely why passwords are becoming obsolete — they represent a major security vulnerability.

Today, to break the vicious cycle of inconvenience and security risks, organizations need to restructure their account verification architecture completely. This is achieved through Passwordless Authentication. According to the FIDO Alliance’s 2023 Workforce Authentication Report, 92% of businesses plan to move to passwordless technology, while 95% currently use some form of passwordless experience at their organization. 

How Passwordless Authentication Works

I am often asked how passwordless authentication works. Passwordless authentication replaces the need for passwords with other types of significantly more secure authentication factors. In password-based authentication, a user-provided password is matched against what is stored in a database, which can lead to vulnerabilities and security risks. Passwordless technology completely restructures account verification architecture.

The comparison is similar in “true” passwordless systems, such as biometric authentication, but a user’s distinctive characteristics are compared instead of passwords. For instance, if a system captures a user’s face using facial recognition, it then extracts numerical data from it and compares it with verified data present in the database.

Other passwordless implementations involve sending a one-time passcode to a user’s mobile device through SMS or authenticator apps. While this method is relatively secure, it’s not completely safe since hackers can access these one-time codes. The goal is to enhance security and reduce the likelihood of data breaches.

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What Are The Options For Passwordless Authentication?

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1. Biometric Authentication

This method uses physical characteristics such as fingerprints, facial recognition, or iris scans to authenticate users. It is considered true passwordless and more secure. Not all users may have the necessary hardware, such as fingerprint scanners or cameras.

2. Email Magic Links

This option sends a one-time link to the user’s email, which they can click to log in. Despite its convenience, this method faces phishing risks. Users might fall victim to phishing attacks if they are not careful about the links they click in emails.

3. One-Time Passwords (OTPs)

OTPs are one-time passwords sent via SMS, email, or an authenticator app. SMS-based OTPs can be intercepted through SIM swapping or other attacks.

4. Hardware Tokens

This method involves physical devices like USB security keys or other hardware tokens to authenticate users. Although secure, these hardware tokens can be expensive to produce, distribute, and replace. There is also the risk of loss or theft, requiring additional steps for recovery.

5. Mobile Push Notifications

This option sends a push notification to the user’s registered mobile device for approval. If the mobile device is compromised, the push notifications can be intercepted.

Decentralized Biometrics for Enhanced Security and Fraud Prevention

At Anonybit, our decentralized biometrics system design helps companies prevent data breaches and account takeover fraud. 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 takeovers, 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 to eliminate 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.

What Should I Look For In A Passwordless Provider?

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Storing passwords is inherently risky: one data leak could severely compromise the safety and security of swathes of customers, irreparably damaging your brand. By removing the necessity to store passwords, credential theft becomes nigh impossible—thieves can’t steal what you don’t have. Ensure biometrics are saved on secure systems that make data breaches impossible.


Security may be the core focus of identity access management, but convenience defines the user experience. Consumers are increasingly frustrated with creating endless online accounts, for good reason — there’s nothing more annoying than managing endless password replacements.

An effortless and adaptable verification process—whether with your webcam, fingerprint sensor, or mobile device—removes a major source of churn in your customer purchase funnel. Passwordless authentication allows for sleek navigation throughout your tech stack for your colleagues, improving productivity and reducing the workload on your IT team.


Your passwordless solution must be as flexible and adaptable as your brand. It needs to integrate smoothly and hassle-free with your current assets and adapt to your proofs-of-concept and reconfigurations in your journey toward total password freedom.

A 4-Step Guide On How To Implement Passwordless Authentication

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1. Pick your mode

I recommend choosing your preferred authentication factor from various options, including facial scans, magic links, and hardware tokens. Biometrics are highly recommended given their high level of security. Other modes, like magic links or mobile OTPs, could be more suitable depending on your organization’s specific requirements.

2. Complete a Risk Assessment and Prioritize

After selecting the authentication mode, conduct a risk assessment to analyze the risks associated with each information system in your organization. Understanding a breach’s probability and potential effects is crucial for prioritizing your efforts when implementing passwordless authentication.

3. Buy the required hardware/software

Depending on the authentication mode chosen, you may need to procure hardware for biometric-based passwordless authentication. Other modes like magic links or mobile OTPs may require software purchases instead. Ensure you have all the necessary equipment and software before proceeding to the next step.

4. Provision users

With the necessary hardware and software, it’s time to start registering users on your authentication system. For example, if you’re using a face recognition system, you’ll need to scan the faces of all your employees to provision them for passwordless authentication. This step ensures all users can access the system seamlessly without traditional passwords.

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4 Passwordless Implementation Challenges

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1. Cost of deployment

Implementing passwordless authentication in organizations can attract extra costs, including the need for training, new software, and hardware, which may pose financial challenges.

2. Accepting change

Overcoming resistance to change is a significant challenge, as some users may be reluctant to transition from traditional password-based authentication to passwordless methods, requiring effort to facilitate a smooth transition.

3. Security constraints in passwordless authentication

While passwordless authentication is more secure than traditional password-based methods, it is not completely immune to cyber threats. Cybercriminals may exploit vulnerabilities using malicious methods like malware and trojans, necessitating strong security measures to prevent attacks.

4. User Experience

Ensuring a seamless and user-friendly experience with passwordless authentication can be challenging, as the implementation must balance security requirements with ease of use to maintain user satisfaction and adoption.

5. Integration Complexity

Integrating passwordless authentication into existing systems and workflows can be complex, especially in organizations with diverse IT environments or legacy systems. Ensuring seamless integration and compatibility with various platforms and applications poses a challenge during implementation.

6 Best Practices For Implementing Passwordless Authentication

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1. Review current authentication processes

Before implementing passwordless authentication, you must thoroughly examine your current authentication methods. This includes understanding how your organization, which provides for employees, contractors, and partners, authenticates users. You should clearly understand legacy authentication methods to determine what can be replaced with passwordless authentication.

2. Implement a beta program

Deploying passwordless authentication in small test groups is essential to ensure a smooth transition. This beta program should include participants representing a diverse community across job roles, demographics, age, and business functions. This allows for a thorough evaluation of the impact of passwordless authentication on different user groups.

3. Assess beta program feedback

After the beta testing period, gather input from participants involved in the program. This feedback should help you determine whether the passwordless authentication strategy was effective and efficient or requires adjustments. The insights from the beta program will guide you in refining your passwordless implementation strategy.

4. Be patient with users

When transitioning to passwordless authentication, anticipate an increase in help desk requests, internal communications about the new method, and users looking for ways to bypass passwordless. Initially, users might exhibit resistance due to inertia and familiarity with password-based schemes. To encourage user adoption, consider creating engaging videos, conducting simulated phishing attacks, and enlisting influential employees as passwordless evangelists.

5. Increase privacy awareness

With growing regulatory and consumer focus on privacy, it is crucial to acknowledge the increased amount of user data stored and accessed by implementing biometric authentication methods like fingerprints, facial scans, and retina scans. This also extends to personal devices, introducing new privacy and security considerations. To mitigate risks, raise user awareness, conduct regular risk assessments, and ensure compliance with privacy regulations.

6. Consider cost control

To manage costs effectively, stay within the targeted budget for implementing passwordless authentication. The shift to passwordless may introduce complexities, mainly when dealing with legacy applications. Plan for future technology adoption, such as drones, robots, and metaverse systems, where passwordless authentication will be required. Estimating and projecting costs for these scenarios is essential for long-term budget planning.

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

Anonybit helps companies prevent data breaches and account takeover fraud through its decentralized biometrics features. With our decentralized biometrics authentication, companies can leverage our passwordless login feature, wire verification, step-up authentication, and help desk authentication.

By offering secure storage of biometrics and PII data, support for the entire user lifecycle, and 1:1 and 1:N matching for lookups and deduplication, Anonybit eliminates the tradeoffs between privacy and security. By leveraging Anonybit’s security solutions, companies can prevent data breaches, enable robust authentication to prevent account takeovers and enhance the user experience across the enterprise.

How Does Anonybit Help Companies Address the Rise of Synthetic Identity Theft and Privacy Regulations?

Anonybit is committed to protecting companies from increasing incidents of synthetic identity theft and the requirements of privacy regulations. Anonybit enables companies to prevent data breaches and account takeover fraud by providing an integrated identity management platform.

Through its decentralized biometrics features, Anonybit supports secure storage of biometrics and PII data, essential for compliance with privacy regulations. By offering 1:1 and 1:N matching for lookups and deduplication, Anonybit helps companies prevent synthetic identity theft.

How Can Companies Prevent Data Breaches and Account Takeover Fraud with Anonybit?

With Anonybit’s decentralized biometrics features, companies can prevent data breaches and account takeover fraud. By leveraging Anonybit’s passwordless authentication using decentralized biometrics, companies can incorporate features like passwordless login, wire verification, step-up authentication, and help desk authentication.

Anonybit offers secure storage of biometrics and PII data, support for the entire user lifecycle, and 1:1 and 1:N matching for lookups and deduplication. By eliminating the tradeoffs between privacy and security, Anonybit enables companies to prevent data breaches, enable robust authentication to prevent account takeovers and enhance the user experience across the enterprise.

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