Is Passwordless Authentication Secure?

When it comes to online security, protecting your data and personal information is crucial. Many people are curious about passwordless security and whether it is safe for them to use. This blog will dive into the details of passwordless authentication to help you understand the different approaches and make an informed decision on how to improve your enterprise security posture. By the end of the blog, you will have a better understanding of the security benefits of Passwordless Security and how to implement it in your enterprise correctly.

What Is Passwordless Authentication?

Passwordless authentication is a means to verify a user’s identity, without using a password. Instead, passwordless uses more secure alternatives like:

• Knowledge  factors (one-time passwords [OTP]
• Possession factors (registered devices or hardware tokens) 
• Biometrics (selfies, fingerprints, palm scans)

With Apple, Microsoft, and Google introducing passwordless authentication solutions, the end of the password is near for consumers. The enterprise world hasn’t followed suit despite credentials being responsible for nearly 50% of cyberattacks. Many initial passwordless offerings focused on the user experience, but now can enhance security as well. From biometrics to link-based access, there are many network access strategies security leaders can use to protect their network from threats.

3 Most Common Types Of Passwordless Authentication

Generally, authentication comes down to three types of factors – what you are, what you know, and what you have. Strong authentication will combine two of these factors.

1. Biometrics

Biometric authentication uses physical or behavioral traits for user identification. Physical traits like fingerprints or iris scans are unique to each individual, making them highly secure. Artificial intelligence advances are making some modalities easier to spoof, but with the right liveness detection techniques and privacy-preserving technologies to protect the data from being hacked or stolen, biometrics can be used very safely and are considered the strongest authentication factor, as it is the only one that can truly bind a person to their identity. Combining biometrics with another factor meets multi factor authentication requirements and provides an extremely high level of identity assurance. 

2. Possession Factors

This authentication method requires users to possess something, like a device or a hardware token. Generally, users will receive one-time passwords (OTPs) via SMS to this device. Possession factors offer enhanced security since they rely on something the user owns but they don’t take into account the increased prevalence of SIM swap fraud and the fact that these codes can be phished out of people, rendering them more like a knowledge factor.

3. Magic Links

With magic links, users enter their email addresses, and the system sends them an email with a link for access. This method eliminates the need for passwords completely, making it a secure and convenient alternative.

Once authenticated, Single Sign-On (SSO) streamlines the user experience for ongoing authentication.

Securing Identity 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.

Related Reading

• How Does Passwordless Authentication Work
• Fast Identity Online
• What Is Passwordless Authentication

How Does Passwordless Authentication Work?

Registration

The user registers their authentication factor (e.g., device, biometric) with the system during an initial setup process, enabling the system to verify the user’s identity without the need for passwords.

Authentication Challenge

A user’s login(or other activity) attempt triggers an authentication challenge from the system, setting the stage for secure access without cumbersome password entry.

User Authentication

The user authenticates themselves by unlocking their registered factor (e.g., capturing a selfie). If the selfie is registered into a system that is managed by the enterprise (i.e., bank), it is much stronger and safer than using the biometric registered on the person’s phone. 

Challenge Response

If implemented with FIDO, unlocking the user device is done via the biometric authentication, which triggers the device to digitally sign the authentication challenge using a private key, ensuring secure communication in the authentication process.

The system validates the signature using the user’s registered public key, verifying the user’s identity without the vulnerabilities associated with traditional passwords.

Enhancing Security with Passwordless Authentication

Passwordless authentication eliminates the need for passwords, which are vulnerable to various attacks like phishing, credential stuffing, and brute-force attacks. By using possession factors (e.g., security keys) or inherence factors (e.g., biometrics), passwordless authentication provides a more secure and user-friendly alternative to traditional password-based authentication.

The development of open standards like FIDO2 and WebAuthn has further promoted the adoption of passwordless technologies, as they enable seamless integration with existing systems. Leading tech companies and industry initiatives are actively working on improving architectures and practices to bring passwordless authentication to wider use.

Is Passwordless Authentication Safe? And Why Is It Considered So?

Passwordless authentication is harder to crack than traditional passwords, and it’s less prone to most cyberattacks. But, it’s not impervious to hacking. The most sophisticated attackers will always attempt to find a way. Implementing biometrics as a factor is the best way to protect against cyberattacks. 

Enhancing Authentication with Policy Evaluation

The tech continues to evolve into stronger and stronger authentication. Not only is the authenticator accepting (or rejecting) credentials, but it’s also evaluating them based on policies. Is the user in the same location they were the last time they authenticated? Are they accessing the same systems? Are they attempting to use an application they’ve not used previously? Layering biometric authentication with other risk signals helps to streamline the user experience and protect against cyberattacks.

Strengthening Security with Passwordless Logins

Passwordless logins are more secure than traditional passwords because they use a second factor of authentication, such as biometrics (ideally), that is more difficult for attackers to compromise.

Improving User Experience with Passwordless Authentication

In addition to being more secure, passwordless logins are also more convenient for users. Instead of having to remember a complex password, the user can simply use their biometrics or a code sent to their device to access their account. This makes it easier for users to access their accounts and eliminates the need for them to remember multiple passwords.

Related Reading

• Enterprise Authentication
• Passwordless Authentication Methods
• U2F Vs FIDO2
• Azure Ad Passwordless
• Passwordless Technology
• FIDO Standard Security Key
• FIDO2 Passwordless Authentication
• Implementing Passwordless Authentication
• Passwordless Authentication Examples
• Passwordless Multi Factor Authentication
• Benefits of Passwordless Authentication
• Passwordless SSO
• Passwordless vs MFA
• How To Implement Passwordless Authentication
• Common Authentication Vulnerabilities
• Passwordless Authentication UX
• Passwordless Authentication Benefits

How Does Passwordless Authentication Reduce The Risk Of Phishing Attacks?

Unique Authentication Methods

Passwordless authentication is resistant to many types of phishing attacks due to the unique methods used for user verification. Rather than relying on passwords that can be easily guessed or stolen, passwordless authentication uses alternative methods to verify a user’s identity. With biometrics especially, there is nothing that can be phished out of a person, making this the strongest authentication factor. Possession factors like hardware tokens are also silent authenticators that provide good security but they do need to be managed. 

Resistance to Brute-Force Attacks

Passwordless authentication eliminates the risk of brute-force attacks, as there are no human-readable passwords to crack. Since passwords are not used in this authentication model, cybercriminals cannot exploit weak or easily guessed passwords to gain unauthorized access to accounts.

Prevention of Credential Stuffing

With passwordless authentication, user credentials are not set by humans but rather generated automatically. This eliminates the possibility of credential stuffing attacks where cybercriminals use previously leaked credentials to gain unauthorized access to user accounts on various platforms, however it is important to note that any passwordless authentication that involves codes can be phished out of someone, introducing additional risk.

Mitigation of Keyloggers and Man-in-the-Middle Attacks

Passwordless authentication using asymmetric keys does not transmit any secrets during user verification. This prevents keyloggers from capturing sensitive information and also thwarts man-in-the-middle (MitM) attacks. By utilizing secure communication channels and encryption, passwordless authentication ensures that user data remains confidential and secure during the authentication process.

Users are less likely to need to reset passwordless authentication. It is common for users to forget or mistype their passwords. Passwordless authentication, on the other hand, relies on things users have or are and, therefore, only rarely needs to be reset — for example, only if their smartphone is lost or stolen. This can reduce the load on help desks and improve user satisfaction but if not reliant on biometrics, the reset process can also be a big attack vector for hackers.

Disadvantages of passwordless authentication

Passwordless authentication can be more complex or expensive than using passwords. These systems are still growing in popularity and are not as well understood. 

Unique Challenges of Biometric Authentication

Biometric authentication typically involves the active participation of the user – i.e., capturing a selfie, placing a fingerprint on a reader, providing a voice sample, etc. Educating consumers around this process takes time. In addition, there are a lot of privacy concerns around biometrics – where they are stored, how they are managed, how to ensure they will not be compromised, and so on. Employing privacy enhancing technologies helps to overcome these concerns. cannot be reset. 

Vulnerabilities in One-Time Password (OTP) Authentication

OTPs can be intercepted or stolen if users’ email accounts are hacked or if their phone numbers are stolen through a Subscriber Identity Module swap attack. In addition, hackers are getting very sophisticated in convincing people to hand over OTPs.

Why Is Passwordless Authentication More Scalable Than Relying On Passwords?

In a password-based authentication system, managing passwords can be a significant overhead for IT staff. This includes tasks such as resetting passwords, enforcing password policies, and managing password databases. Passwordless authentication eliminates many of these tasks, reducing the management overhead

Easier deployment

Passwordless authentication systems can be easier to deploy than password-based systems. For example, many passwordless systems use standards-based protocols such as OAuth or OpenID Connect, which can be integrated with existing systems more easily than custom password-based authentication systems.

User-friendly

Passwordless authentication systems can be more user-friendly than password-based systems. Passwordless systems often use biometric or token-based authentication methods that are faster and easier for users to use than typing in a password.

Reduced risk of password-related security breaches

Passwords can be weak, easily guessed, and vulnerable to hacking attacks. By eliminating passwords, passwordless authentication reduces the risk of password-related security breaches.

Passwordless authentication is more scalable than relying on passwords because it reduces the management overhead, is easier to deploy, is more user-friendly, and reduces the risk of password-related security breaches. This makes it a more attractive option for large organizations with complex authentication requirements.

Comprehensive Security Solutions by Anonybit

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.

How To Implement Passwordless Authentication In 4 Steps

1. Pick Your Modality

In implementing passwordless authentication, the first step is selecting the authentication factor that suits your organization best. Options range from selfies to voice scans, palm scans, fingerprints, and even iris scans,  to magic links and hardware tokens. The range of available options gives you the flexibility to choose what works best for your business needs.

2. Use Multiple Factors

It is advisable to incorporate multiple authentication factors with or without passwordless. Even if one factor seems secure on its own, it is not recommended to rely on a single factor of authentication. Using multiple factors ensures enhanced security.

3. Acquire Required Hardware/Software

Depending on the authentication factor you choose, you may need to purchase equipment to implement biometric-based passwordless authentication. For example, palm scans require special readers, while face recognition can utilize any standard cell phone camera. For other modalities like magic links or mobile OTPs, you may only need to procure software.

4. Provision Users

After selecting your preferred authentication mode, acquiring necessary hardware or software, and deciding on the number of factors to use, you can begin registering users on your authentication system. For instance, if implementing a face recognition system, you will need to scan the faces of all your employees or customers.

Implementing passwordless authentication in-house can be challenging and time-consuming. Due to this, many businesses prefer outsourcing to third-party security providers like Anonybit. Outsourcing accelerates the process and considerably reduces maintenance costs and concerns.

Related Reading

• Zero Trust Passwordless
• Passwordless Authentication Best Practices
• Passwordless Customer Authentication
• Passwordless Authentication Solutions
• Passwordless Authentication Companies
• Best Passwordless Authentication

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

At Anonybit, we help companies prevent data breaches and account takeover fraud with our decentralized biometrics technology. With our decentralized biometrics framework, companies can enable passwordless login, wire verification, step-up authentication, help desk authentication and more. 

Comprehensive Security Solutions for Companies

We are on a mission to protect companies from data breaches, account takeovers and synthetic identity on the rise, privacy regulations, and digital transformation. 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 authentication and 1:N matching for lookups and deduplication

Balancing Privacy and Security with Anonybit’s Integrated Platform

Anonybit eliminates the tradeoffs between privacy and security. Prevent data breaches, reduce account takeover fraud, and enhance the user experience across the enterprise using Anonybit. Book a free demo today to learn more about our integrated identity management platform.