This is a thought leadership article by PrimeGlobal member firm SIKICH which looks at passwordless authentication and the increased security benefits. 

Passwordless authentication? Typical reactions to this phrase include “how is that possible?” or “how is that secure?” Passwords have been around since the 1960s and have become a daily staple in everyone’s lives. For each system a person accesses, there generally is a password associated with it, and a user’s passwords should be unique across all systems. 

If you’re like me, then you have more passwords than could ever be remembered in a lifetime. A big step toward helping keep complex passwords secure was the arrival of password vaults like KeePass or LastPass. These vaults allow you to use one extremely strong password to protect all of your other extremely strong passwords without having to remember each one of them on your own.

Having passwords as the only factor of authentication leaves applications and systems vulnerable to credential stuffing and brute forcing from malicious actors. Internal users can cause trouble as well by reusing credentials and sharing credentials with other users.

The good news is, having a password serve as the sole factor for authentication is fading. Multi-factor authentication (MFA) has been on the scene for awhile now and helps reduce the risks involved with passwords being compromised. With MFA enabled, even if a malicious actor has a user’s username and password, they can be blocked on a majority of systems if they are unable to also provide the second authentication factor required, such as a one-time-password (OTP) or USB token.

What is Passwordless Authenitcation?

Passwordless authentication, simply put, removes the password from the authentication process and instead uses a different factor, such as an OTP, as the sole factor for authentication. Now, this does not need to be an OTP; it can be one of any number of factors. As a reminder, authentication factors fall into one of three categories:

  • Something you know (password, PIN, etc.)
  • Something you are (biometrics)
  • Something you have (cellphone, OTP token, etc.)

As an example, Microsoft Outlook now offers a passwordless authentication experience. Microsoft has developed a mobile application named Microsoft Authenticator. When a user goes to log in to Outlook, the login prompt will appear showing a number. The user then opens that mobile application on their device, where there will be three unique numbers displayed. Two out of the three numbers are random, but the third will match what was shown inside the login prompt. The user simply clicks on the correct number in the mobile application and then Microsoft logs them in.

Another quick example is an application that uses a simple mobile push. When a user goes to log in, the only item that the user will need to enter is their username. From there, a mobile push will appear on the user’s mobile device of choice, which the user confirms to continue the login process.

Increased Security Benefits

Moving away from passwords as a sole factor for authentication helps increase the security of an environment. In 2019, around 29% of breaches involved the use of stolen credentials. Passwordless authentication removes passwords completely, which means brute forcing, credential sharing, credential reuse and pass-the-hash attacks become things of the past. Many times, it is also more convenient for users as there are no passwords to memorize. As a note, this does not mean passwords will completely disappear. For privileged accounts, MFA should always be used, and passwords tend to be the easiest and most economical way to implement a second authentication factor.

So should your organization move to passwordless authentication? That is going to depend on the culture within your organization. There is little downside to moving from password-only to passwordless authentication. The challenge for many organizations is where this implementation will reside inside of the current priorities set for the organization. Most organizations have already gone through the growing pains of deploying MFA. If the vendor you utilized to implement MFA currently supports passwordless authentication, the amount of effort to deploy this change is low. However, if your vendor does not support passwordless authentication, your organization will want to do an analysis to make sure the costs associated with deployment are reasonable.

Content by:

Sikich LLP

Sikich LLP is a leading professional services firm specializing in accounting, advisory, technology and managed services. Founded in 1982, Sikich now ranks as the country’s 28th largest Certified Public Accounting firm and is among the top 10 of all enterprise resource planning solution partners in the country. From corporations and not-for-profits to state and local governments, we help our clients reach their long-term, strategic goals through a unique formula of products and services. Visit our website to discover how you can elevate performance in your organization.

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