Passwords are knowledge-based authentication mechanisms that people have been using to sign in to their accounts and unlock their devices. However, despite being the most ubiquitous form of authentication for the past decades, passwords are among the leading causes of security breaches in this digital age.
According to the Verizon Data Breach Investigations Report, compromised and weak passwords have contributed to about 81% of hacking-related data breaches in 2020. Consequently, account takeover fraud (ATO) cases have surged by 282% from the second quarter of 2019 to 2020.
Passwords only enable access but do not verify the legitimacy of a person’s claimed identity. Thus, when a criminal uses a stolen password credential to hack into an account, the system will not detect that the individual using the platform is not the actual account owner.
When systems are compromised, enterprises are at risk of losing their reputation and revenues. Therefore, to eliminate password-related issues and reduce security risks, organizations must strengthen and streamline their operations’ security. It can be achieved by replacing password-based authentication with other authentication credentials. Such credentials are possession factors (something users own like a security token or a cryptographic key on their devices) and inherence factors (something users are, generally their biometric data).
Passwordless login credentials provide an efficient and more secure means of authentication. These allow users to securely authenticate into their accounts, applications, and devices, without the need to enter a password.
Furthermore, enterprises can reduce cybersecurity risks by implementing modern authentication solutions that comply with FIDO 2.0 standards.
The FIDO (Fast Identity Online) Alliance is an open industry association that aims to strengthen authentication standards, enabling enterprises to provide better security and services to their users. It has created open standards for passwordless authentication, and its most prevalent standard is FIDO 2.0, which leverages mobile devices for more robust and more convenient login.
FIDO2 authentication solutions replace passwords with stronger cryptographic login credentials that are not easily stolen or shared with other individuals. Additionally, these on-device credentials can only be unlocked with a second factor, such as a PIN code, a swipe pattern, or facial biometric authentication.
Aside from enhanced security, FIDO 2.0-compliant login credentials provide other advantages to enterprises. Employing a passwordless authentication solution can help organizations reduce password reset expenses.
Most companies deploy knowledge-based authentication to allow their users to change their passwords when their accounts get compromised. While the password reset procedure may be seen as an easy task for many, it can be complex and frustrating for some, mainly when they forget the answers to their security questions.
This common problem with password reset requests is an expensive burden to the organization. Forrester Research has revealed that companies spend an average of $70 for help desk labor costs for a single password reset. Accordingly, the Gartner Group also detailed that up to 50% of IT help desk tickets are for password resets.
Moreover, enterprises can lose about $5.2 million each year due to productivity loss attributed to password resets. Replacing conventional login processes with passwordless login solutions can reduce user friction, allowing employees to efficiently authenticate into their accounts and use their time on more important tasks instead of entering and resetting passwords.
Leveraging passwordless authentication credentials allows various organizations to reduce login time into their networks, improve convenience for a seamless user experience, and enhance their operations’ security. To know more information about the different benefits of modern authentication solutions to enterprises, see this infographic by Ipsidy.
