People have been using passwords to authenticate into their accounts and secure their devices for years. While passwords have been the most ubiquitous form of authentication for the past decades, these knowledge-based authentication mechanisms are one of the critical problems in cybersecurity in this digital age.
The Verizon Data Breach Investigations Report details that compromised and weak passwords contributed to approximately 81% of hacking-related data breaches in 2020. This is because passwords only authorize access to a system but do not verify the legitimacy of an individual’s claimed identity. Thus, the system will not be able to identify if the person trying to access the platform is the account’s actual owner or not.
To eliminate password-related issues and protect their operations while catering to customer needs, organizations must leverage advances in authentication and security technologies. Using passwordless authentication solutions, users can securely authenticate into their accounts, application systems, and devices without entering a password.
Accordingly, enterprises can implement modern solutions compliant with FIDO 2.0 standards for strong authentication, reducing security risks. FIDO 2.0’s cryptographic login credentials enable users to maximize mobile devices for streamlined authentication to access their accounts and other application systems in an omnichannel setting.
FIDO2 authentication credentials are not easily stolen. These bind the device to the relying party server, providing greater assurance that only that primary device can access a user account. Furthermore, these on-device credentials cannot be unlocked without a second factor such as facial biometric authentication.
Apart from reducing security risks, employing robust authentication solutions enables institutions to exercise stringent regulatory compliance. Organizations in regulated industries implement necessary measures for data protection, threat prevention, and compliance with regulations, such as Anti-Money Laundering (AML), Know-Your-Customer (KYC), and Payment Services Directives 2 (PSD2).
Moreover, companies can strengthen brand loyalty by using passwordless login credentials. Online businesses lose more than $18 billion annually due to shopping cart abandonment as purchasers often find the checkout procedure too tedious and complicated or the shopping site requires users to create an account to complete their transactions.
By using modern authentication credentials, online businesses can expedite their transaction processes while ensuring security among customers. A superior customer experience contributes to increased revenue and customer base expansion as it encourages purchasers to repeat transactions and drives brand loyalty.
For more information about the numerous advantages of passwordless authentication or login, see this infographic from Ipsidy.
