What Does the Future Hold for Passwordless Authentication?
Passwordless authentication is rapidly gaining traction as major technology leaders such as Google, Apple, and Microsoft adopt passwordless standards. Traditional password systems, long burdened by poor user practices and vulnerability to modern cyber threats, are increasingly viewed as inadequate. With frequent password database leaks, businesses face significant security risks, while users grow frustrated with complex and often ineffective password requirements.
Passwordless authentication seeks to resolve these issues by eliminating the need for traditional passwords while maintaining robust security. Instead, users authenticate through methods like biometrics or one-time codes, offering a secure and seamless experience that benefits both businesses and individuals.
The Password Problem
The era of scribbled passwords on sticky notes has given way to advanced IT support solutions, yet the underlying problems with traditional password systems remain. Since their inception in the 1960s, passwords have seen little innovation, and users are still required to create and remember unique combinations for countless accounts.ts.
In 2020, the average person managed 150 online accounts—a figure projected to exceed 300 by 2024. Remembering unique, strong passwords for such a vast number of accounts is nearly impossible without external tools. As a result, users often reuse passwords or create weak ones, behaviours that significantly increase security vulnerabilities and contribute to frequent data breaches.
To improve password security, experts recommend:
Using 12–15 character passwords.
Avoiding common words, names, or predictable patterns.
Including a mix of randomised letters, numbers, and symbols.
Keeping passwords unique to each account.
Never writing passwords down.
While these measures enhance security, they place a substantial cognitive burden on users. Password management tools help alleviate this stress, but passwordless authentication eliminates the problem entirely.
How Big is the Problem?
In Australia, 42% of users admit to reusing passwords across multiple accounts, with 17% relying on just one or two passwords for all their online activities. This widespread behaviour creates a goldmine for cybercriminals, who exploit reused or weak credentials. Compromised accounts are responsible for 80% of all data breaches.
The website Have I Been Pwned reports over 11 billion stolen username-password pairs in circulation. This alarming statistic underscores why 95% of Australian IT leaders express concerns about password security and overwhelmingly support the adoption of passwordless systems to address these risks.
What is Passwordless Authentication?
Passwordless authentication replaces traditional passwords with secure, innovative methods based on possession, inherence, and behaviour factors. These align with the five key authentication factors:
Possession Factors: Something the user has, such as a smartphone or hardware token, used to receive one-time codes.
Inherence Factors: Unique biological traits, like fingerprints or facial recognition.
Behaviour Factors: Patterns such as typing rhythms or cursor movements.
Knowledge Factors: Information like PINs or answers to security questions, though these are less secure.
Location Factors: Verifying the user’s geographical location, often in conjunction with other factors.
How are Authentication Factors Used?
Multi-factor authentication (MFA) and single sign-on (SSO) are two prominent implementations of passwordless technology.
MFA enhances security by combining multiple authentication factors, such as a one-time password sent via text or email. Smartphones often auto-fill these codes, simplifying the process.
SSO allows users to log in once and gain access to multiple systems or applications without repeated authentication, improving both user experience and security.
5 Ways Passwordless Technology Benefits Businesses
1. Enhanced User Experience
Passwordless systems eliminate the frustration of password resets and recall. Customers benefit from streamlined login processes, improving satisfaction, while employees experience smoother workflows.
2. Higher eCommerce Conversion Rates
Simplified authentication reduces cart abandonment rates. By enabling quick and easy logins, passwordless systems encourage account creation and help businesses increase sales.
3. Improved Security
Passwordless technology eliminates the risks associated with weak or reused passwords. Even if credentials are stolen, they are rendered useless, reducing the likelihood of data breaches.
4. Reduced IT Support Costs
Password-related issues account for 20–50% of IT support requests. Adopting passwordless systems minimises these queries, freeing up IT teams to focus on higher-priority tasks and enhancing organisational productivity.
5. Stronger Internal Security
Employees often reuse personal passwords for work accounts, exposing businesses to significant risks. Passwordless authentication ensures secure access to sensitive data and reduces susceptibility to phishing attacks.
Conclusion
Gartner predicts that by the end of 2024, 60% of large enterprises and 90% of small and medium businesses will adopt passwordless authentication technologies. While challenges in implementation exist, the benefits—enhanced user experience, stronger security, and reduced costs—far outweigh them.
For businesses, embracing passwordless authentication is not just a technological upgrade but a strategic necessity for building a secure, efficient, and future-ready organisation.