For decades, passwords have been the most ubiquitous form of authentication for accessing accounts and unlocking devices. The reuse of the same password by users across multiple systems and other weak authentication practices, however, are leading causes of security breaches. So as authentication and security technologies advance, enterprises operating in today’s digital world are seeking to replace passwords to strengthen and streamline the security of their operations.
Most experts agree that passwordless authentication is the next step in digital innovation. Additionally, touchless and frictionless solutions ranked among the top ten Security Megatrend predictions for 2021.
Other authentication credentials such as possession factors (something you own like a cryptographic key on a user’s device) and inherence factors (something you are like facial biometrics) have emerged as ideal password replacements. They provide a faster and more secure means of authentication and reduce friction at every turn.
Passwordless authentication or login provides organizations numerous advantages. Listed below are some ways it can benefit enterprises.
Reduce Security Risks
Passwords contributed to about 81% of hacking-related data breaches in 2020, as stated by the Verizon Data Breach Investigations Report. Account takeover fraud (ATO) losses, often precipitated by compromised password access, amounted to $16.9 billion in 2019, and cases surged by 282% in 2020.
This knowledge-based authentication does not verify the legitimacy of a person’s claimed identity and only authorizes access. When a criminal uses someone else’s password to hack into an account, the system cannot easily detect that the real account owner is NOT the individual using the platform.
Organizations can reduce security risks by implementing modern solutions compliant with FIDO2 standards for strong authentication. FIDO2’s cryptographic login credentials bind the device to the relying party server, providing increased certainty that only that device can access a network and a user account. Often these credentials cannot be unlocked without a secondary factor such as facial biometric authentication.
FIDO2 credentials are not easily stolen and cannot easily be shared with other individuals. Yet with all that added security, many passwordless solutions cannot deliver “user certainty”, since they do not verify the identity of the true account owner during device registration. A best practice in deploying passwordless solutions is to require the device owner to complete an identity verification process such as a facial biometric match of a selfie to a government-issued identity credential during account and device registration. This process of binding a known identity to a defined device provides the enterprise with greater assurance that only the real identity owner has access to the device and account.
Enable Stringent Regulatory Compliance
Regulatory bodies mandate organizations to implement necessary measures for data protection and threat prevention. Anti-Money Laundering (AML), Know-Your-Customer (KYC), and Payment Services Directive 2 (PSD2) are some regulations from across industries that require due diligence from affected entities.
With the robust security provided by passwordless authentication, institutions can exercise regulatory compliance at the highest level. It can encourage reduced friction between customers and partners and can strengthen the company’s reputation.
Reduce Password Reset Expenses
When accounts get compromised, users are instructed to change their passwords. Most enterprises today deploy knowledge-based authentication to reset passwords. This procedure may be easy for some, but for others, it can be complex and frustrating when users forget the answers to their security questions. This common problem can be expensive to the enterprise.
The Gartner Group reveals that password resets constitute up to 50% of IT help desk tickets annually. Moreover, Forrester Research states that a single password reset request can cost about $70.
With passwordless login, enterprises can save up on password reset and helpdesk support expenses. They can direct their funds to other more critical areas in their operations and make more worthy investments.
Strengthen Brand Loyalty through Superior Customer Experience
Companies lose more than $18 billion annually because of shopping cart abandonment. Baymard Institute’s recent study shows that 28% of purchasers do not complete transactions because the site requires the user to create or access their account. Similarly, 21% abandon their carts because they find the checkout process too tedious and complicated.
Online businesses can address these issues with passwordless authentication. By replacing passwords with modern login credentials like FIDO 2.0 cryptographic keys and mobile facial biometric identity verification, they can expedite processes while ensuring security among customers.
Superior customer experience encourages repeat transactions and drives brand loyalty, contributing to increased revenue and customer base expansion.
Improve Workforce Productivity by Reducing Friction
Conventional login processes can take time away from employees, time which they could have used instead on more important tasks. It has been estimated that companies can lose about $5.2 million each year due to productivity loss attributed to password resets. In addition, numerous corporate platforms create more user friction and drive expenses up, when they deploy multi-factor authentication (MFA) solutions that still rely on passwords and also require additional hardware or security fobs.
Institutions can improve workforce productivity through mobile solutions that enable low-friction authentication. On-device credentials reduce login time and provide better security. To gain increased assurance that only the device owner can access corporate systems, employees when performing FIDO2 registration, should complete an identity verification process such as a facial biometric match of a selfie to a government-issued identity credential. This process of seamless cryptographic binding of a known identity to a known device reduces risk and increases the assurance that only a known identity is accessing the corporate network.
Gain a Competitive Advantage with Digitization
Several institutions still refuse to let go of passwords as they may fear higher expenses and loss of customers. However, these assumptions have been debunked by multiple studies over recent years.
Optimistic enterprises do not fear change and continually innovate. They adapt to emerging trends and practices to keep their lead over other industry players. As passwordless authentication becomes the new face of digital innovation, it can help a business accelerate its market positioning and stand out from its competition.
Conclusion
Passwords are a thing of the past. There are far too many risks stemming from passwords, and corporations must begin to replace them.
The transition towards digitization calls for enterprises to leave behind legacy systems and adopt more effective authentication and security solutions. FIDO 2-compliant login credentials are ideal password replacements as they provide more robust and more seamless authentication.
When evaluating passwordless solutions, however, be sure to check whether the solution offers user certainty and verifies the identity of the device owner.
Verified by authID solves this critical problem by incorporating Identity Verification, to scan an identity document and automatically match an applicant’s selfie to the document photo. Verified offers a powerful, market-leading solution to establish a digital chain of trust between biometrically verified individuals, their accounts, and their devices.
Schedule a Demo with authID
authID.ai is a provider of an Identity Authentication platform that delivers a suite of secure, biometric identity solutions, available to any vertical, anywhere. authID‘s products enable enterprises across industries to eliminate passwords from their systems and implement stronger authentication. Contact authID today at 1 (516) 778-5639 or click here to schedule a demo.
