July 03, 2023

Anonybit Team

6 Factors For Choosing A Passwordless Customer Authentication Service


Are you tired of constantly forgetting your password or worrying about the security of your information? If so, you need to learn more about passwordless security. This new way of authenticating customers is the future of secure logins. Providing your customers with a passwordless login option gives them a quick and secure way to access their accounts. This blog will explore the benefits of passwordless customer authentication.

What Is Passwordless Authentication

person happy to use Passwordless Customer Authentication

In digital security, the paradigm is shifting away from traditional authentication methods, particularly those reliant on passwords, towards more sophisticated and secure mechanisms. Passwordless authentication represents this shift, offering a method to verify users’ identities without requiring them to enter a password. This innovative approach leverages various forms of inherently more secure and convenient verification, fundamentally transforming how secure access is granted and managed.

The complexities and strategic considerations involved in implementing passwordless authentication, such as the time-consuming and complicated nature of in-house development and the benefits of outsourcing to third-party providers for a more secure and up-to-date implementation, are key factors driving this transition.

Why Passwordless Authentication Is on the Rise

The primary drivers behind this shift include the desire to eliminate the weaknesses inherent in password-based systems, such as vulnerability to phishing attacks, password reuse, and the cognitive burden placed on users to remember complex passwords. As hackers become increasingly sophisticated, the need for stronger, more secure authentication methods has never been more critical.

Passwordless authentication is a comprehensive term encompassing various authentication methods designed to provide secure access through mechanisms other than passwords. This approach leverages multiple forms of evidence, or “authentication factors,” to establish a user’s identity, offering higher security and a more streamlined user experience.

The Benefits of Passwordless Authentication

The benefits of passwordless authentication are numerous, including increased security and user experience. By reducing reliance on passwords, organizations can effectively minimize the risks associated with data breaches and unauthorized access.

Passwordless authentication streamlines the user experience, eliminating the need for users to create and remember complex passwords. As a result, organizations can significantly reduce the number of support requests related to forgotten passwords, enhancing operational efficiency and reducing costs. Passwordless authentication can help organizations meet compliance requirements, such as those outlined in regulations like the GDPR. 

How to Implement Passwordless Authentication

Implementing passwordless authentication can be challenging, as it requires a significant degree of technical expertise and resources. Organizations must carefully consider the various implementation options available to them, weighing factors such as the level of security required, the complexity of the user experience, and the resources available for implementation. 

Outsourcing Passwordless Authentication for Efficient Implementation

In-house development is a common approach, but it can be time-consuming, expensive, and prone to security vulnerabilities if not implemented correctly. Alternatively, organizations can outsource their passwordless authentication implementation to third-party providers, who offer pre-built, secure, and up-to-date solutions that can be quickly integrated into existing systems and applications.

Passwordless Authentication in Digital Security

Passwordless authentication represents a significant shift in the digital security landscape, offering organizations a more secure and convenient means of verifying user identities. By moving away from traditional password-based systems, organizations can reduce the risks associated with data breaches and unauthorized access while improving the user experience. 

Strategies for Successfully Implementing Passwordless Authentication

Implementing passwordless authentication can be complex and challenging, requiring organizations to carefully consider their options and choose the best approach for their needs. By evaluating their requirements and available resources, organizations can successfully implement passwordless authentication and reap the benefits of enhanced security and user experience.

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How Does Passwordless Authentication Work?

how does it work - Passwordless Customer Authentication

Passwordless authentication works by replacing passwords with other authentication factors that are intrinsically safer. In password-based authentication, a user-provided password is matched against what is stored in the database.

In some passwordless systems, like biometrics, the comparison happens similarly, but instead of passwords, a user’s distinctive characteristics are compared. For example, a system captures a user’s face, extracts numerical data from it, and then compares it with verified data that has previously been recorded and associated with the user.

Common Methods of Passwordless Authentication

In other passwordless implementations, comparisons may happen differently. For example, a system sends a one-time passcode to a user’s mobile via SMS. The user receives it and enters it into the login box. The system then compares the user-entered passcode to the one it had sent.

The two most common passwordless authentication methods:

  • One-time-use authentication
  • Certificate-based authentication

Comprehensive Security Solutions with Decentralized Biometrics

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.

Why Your Business Need A Passwordless Authentication Service

AI powered Passwordless Customer Authentication

Implementing passwordless customer authentication is crucial for enhancing security, user experience, and cost-efficiency for both customers and businesses. Here are six reasons why passwordless authentication is beneficial:

1. Enhanced Security

Passwords are vulnerable to cyber threats like phishing, brute force attacks, and credential stuffing. By eliminating passwords and adopting passwordless authentication methods like biometrics or security keys, your customers’ accounts are better protected from unauthorized access and data breaches. Enhancing the security of your customers’ accounts is a top priority, and passwordless authentication solves this problem at its root. 

2. Improved User Experience

Passwordless authentication simplifies the login process for customers by eliminating the need to remember and enter complex passwords. This streamlined authentication method enhances user convenience, reduces friction during login, and provides a seamless and user-friendly experience. To simplify the login process for your customers, provide a passwordless authentication service that eliminates the need to enter complex passwords.

3. Reduced Risk of Credential Theft

With passwordless authentication, the risk of credential theft is significantly reduced. Customers no longer need to worry about weak or reused passwords, as passwordless methods like biometrics or one-time passcodes offer more secure alternatives for verifying their identity. Passwordless authentication ensures that your customers’ credentials are protected from potential theft, keeping their data secure at all times

4. Simplified Account Management

Passwordless authentication eliminates the need for customers to remember multiple passwords for different accounts. This simplifies account management, reduces the likelihood of forgotten passwords, and enhances overall account security and accessibility. Eliminating passwords simplifies account management for your customers, reducing the chances of forgotten passwords and boosting overall security.

5. Cost-Efficiency

Simplified Account Management: Passwordless authentication eliminates the need for customers to remember multiple passwords for different accounts. This simplifies account management, reduces the likelihood of forgotten passwords, and enhances overall account security and accessibility.

IT management resources are freed up for other initiatives because they are no longer burdened with enforcing company-wide password policies, monitoring anomalous password shares, or resetting forgotten and misplaced login credentials. In the end, it’s estimated that organizations can save roughly $1.9 million by going passwordless.

6. Cost-Efficiency

Implementing passwordless authentication can lead to cost savings for both customers and businesses. By reducing the need for password resets, help desk support, and security administration related to passwords, businesses can lower operational costs, while customers save time and effort associated with managing passwords.  Further, the average cost of resetting a password is in the $30 to $70 range. The report found that IT staffing costs could be slashed by $1 million by going passwordless. 

How Your Customers Benefit From A Passwordless Experience

person logging in with Passwordless Customer Authentication

Enhanced Security

By eliminating passwords, the risk of password-related breaches is significantly reduced.

Improved Ease of Use

Users no longer need to remember or manage a plethora of passwords. This simplifies the login process, leading to a more frictionless user experience.

Accelerated Process

Authentication becomes quicker, streamlining the user’s journey with just a click or a touch.

Higher Authentication Speed

Users can access services faster, without the delay of typing a password.

Enhanced User Retention

Easier login processes can lead to lower user drop-off rates.

Accessibility for All Users

Such methods can be more accessible for users with difficulty remembering passwords or physical disabilities that make typing challenging.

Lower Support Costs

A lack of passwords reduces the volume of password reset requests and related support issues, saving an immense amount of IT and support effort and cost.


Easily adapts to growing user bases and use cases without extensive change management. 

Reduced Risk of Internal Threats

Minimizes the risk of password theft or misuse by internal organizational actors.

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6 Factors To Consider When Choosing A Passwordless Customer Authentication

discussion on choosing Passwordless Customer Authentication

1. Passwordless: No passwords anywhere 

A passwordless customer authentication service should eliminate passwords completely throughout the authentication journey, including enrollment and account recovery. By removing passwords and all shared secrets, your business can mitigate risks and costs involved with passwords, which are the leading driver for security breaches and account takeovers.

2. Cross-channel on any device, app, or domain

Cross-channel authentication on any device, application, or domain ensures users a seamless and secure authentication experience across various platforms. This feature provides flexibility and convenience to users accessing their accounts from different devices and channels, reducing friction during the authentication process and enhancing customer satisfaction.

3. Authenticate Customers Instantly with One-Step Multi Factor Authentication

Instant authentication with one-step multifactor authentication streamlines the authentication flow. It incorporates multiple factors in a single step, enhancing security while providing a frictionless login experience for customers, removing the complexity of traditional multi-step authentication processes.

4. Flexible to Use with or Without an App

The service of choice should allow organizations to decide whether or not to be used with or without an app. The service must enable easy integration with the organization’s existing mobile app if the app route is taken. If the app-less route is taken, protocols such as WebAuthN and FIDO become crucial components in your technology stack, as passwordless can now be activated using common browsers already installed in a user’s operating system.

The flexibility to be used as an app or app-less is imperative to ensure that the passwordless service is aligned with the company’s mobile strategy. Organizations should have the option to offer the experience that customers want and the level of security they need. You may want your customers to have to download another app or integrate the passwordless service into your existing customer app. 

5. Easy to Integrate with Existing Security Systems 

Organizations usually have incumbent CIAM systems already in place, so adding a passwordless login experience for customers must be able to work with existing technologies.   Flexibility, agility and the capacity to easily integrate a passwordless service is crucial to sustaining existing authentication systems, lowering deployment risk and ensuring continuity of service. Augmenting with passwordless should not be complex, costly nor require undue effort.

As technology, security and customer expectations evolve, your organizations need solutions that can readily adapt to their ever-changing security and customer experience strategies. Any business must ensure identity systems are integrated to simplify management and also to have a holistic view of their entire identity stack 

6. Deploy Quickly 

The ability to deploy a passwordless authentication service quickly within weeks to months is essential for businesses to adapt to evolving security needs and customer expectations. Rapid deployment enables efficient implementation of secure authentication solutions,and compliance with requirements, and provides a seamless user experience, giving businesses a competitive edge in the market.

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

At Anonybit, we help companies to prevent data breaches and account takeover fraud with our decentralized biometrics features. With our passwordless authentication with decentralized biometrics, companies can use our passwordless login feature, 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 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 and 1:N matching for lookups and deduplication

Anonybit eliminates the tradeoffs between privacy and security.

The Importance of Preventing Account Takeover Fraud

Any business must prevent account takeover fraud, and Anonybit provides comprehensive solutions to address this challenge. With the rise of synthetic identity on the rise and privacy regulations tightening, it’s more critical than ever to safeguard user data and protect against unauthorized access. Anonybit’s decentralized biometrics offer a secure and reliable way to prevent account takeovers, enhance user experience, and achieve strong authentication. 

The Benefits of Passwordless Authentication with Decentralized Biometrics

Passwordless authentication with decentralized biometrics offers numerous benefits for businesses, including increased security, improved user experience, and reduced friction in the authentication process. Companies can effectively prevent data breaches and account takeover fraud by eliminating passwords and leveraging biometric data for user verification. The decentralized aspect of Anonybit’s biometrics ensures secure storage and protection of sensitive user data while enhancing the overall security posture.

Enhancing User Experience with Integrated Identity Management Platform

Anonybit’s integrated identity management platform is designed to enhance user experience across the enterprise. By offering secure and seamless authentication methods, businesses can improve the overall customer experience and reduce the likelihood of fraud. From wire verification to step-up authentication and help desk authentication, Anonybit provides a comprehensive suite of features to address the evolving security landscape and deliver robust protection against data breaches and account takeovers.

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