9 Challenges and Risks of Going Passwordless: What You Need to Know

Transitioning to passwordless authentication can bring significant benefits, but it's not without its challenges. This comprehensive guide explores the potential risks and obstacles organizations may encounter, along with strategies to mitigate them.
Passwordless Authentication
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September 20, 2024
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2 min read

Going passwordless has been the latest trend across the tech world. Regardless of industry or location, the world is seeing a shift towards passwordless authentication — whether it’s contactless transactions, biometrics, or OTPs. 

While everyone is moving towards this, however, it’s quite rational to be skeptical. Are there risks to going passwordless? 

in this article, we’ll cover everything you need to know about the risks of going passwordless in the 21st century. 

What is Passwordless Authentication?

Passwordless authentication is the process where individuals and organizations are authenticated without the use of one specific password. 

Passwordless authentication can be achieved through biometrics, Two-factor authentication (2FA), or RFID cards. With technology becoming more advanced, however, Identity and Access Management software like SSOs allows users to access files, tools, and data with a single sign-on across multiple devices.

However, like any technology, it's not without its quirks and potential pitfalls. Biometric authentication and physical devices can be compromised based on hardware. Also, there are always new ways developed to circumvent security - some of which we’ll cover below.

9 Risks of Passwordless Authentication

  1. Reliance Entirely on Devices for Authentication

Passwordless authentication sounds convenient, but a lot of the time (not always) it ties our access to a single gadget.

What happens if your device breaks or gets stolen? Suddenly, you're cut off from your accounts, work, and personal data. Just like having a highly secure house with only one key – if you lose it, you're locked out for quite some time.

Although entirely hypothetical, this is something worth considering when it comes to biometrics. That said, SSOs provide a workaround for this a lot of the time being accessible on the cloud or through the network. However, when switching to passwordless authentication this is one aspect worth considering.

  1. Usage of Deepfakes in Biometrics

The risk of someone hacking into your account using deepfake is a lot more real than you’d imagine. With technology advancing at lightning speed, biometric authentication isn't as foolproof as it once was. This goes especially with the higher odds of using AI-generated voice clips or manipulated videos to bypass voice or facial recognition systems.

Between security experts and cybercriminals - the idea of only using biometrics may carry some risk. To navigate this, using two-factor authentication or SSO platforms can add an extra level of security. However deep fakes are a definite risk when it comes to going passwordless.

  1. Limited Backup Authentication Methods

Limited backups for authentication are one definite disadvantage when it comes to passwordless authentication. If your primary method fails – say, your fingerprint sensor stops reading properly – you might find yourself in a digital lockout.

While this may be unlikely, when it happens, it can lead to delays in delivery or hamper the workflow for a whole department. Some solutions worth considering would be implementing a customized IAM or CIAM framework with OpenID connect or SAML2 that allows flexibility while staying secure.

  1. Possibility of Devices Being Hijacked

Think your device is secure? Think again. Whether it’s your credit card or laptop, the likelihood of third parties taking advantage of your RFID or smartphone. Hackers are constantly devising new ways to gain control of smartphones and computers.

When it comes to this, a compromised device could lead to unauthorized access across multiple accounts, financial fraud, or identity theft. When it comes to going passwordless this is one risk to navigate away from. Companies having frameworks that let you know when a device is compromised and also having reliable IAM or CIAM software can definitely help with this.

  1. Security Keys Can Be Stolen

While physical security keys seem foolproof, they're not immune to old-fashioned theft.

That’s why. It’s no surprise that these small devices can be easily misplaced, lost, or stolen. In these cases, having a framework in place like two-factor authentication or a robust security protocol framework helps keep sensitive information from falling into the wrong hands.

A lot of the time, by the time you realize it's missing, all the damage could already be done. That’s why opting for security software with robust security protocols or zero-trust architecture can mitigate this risk before it even happens.

  1. Dependence on Vendors

A lot of the time, when going passwordless you have to rely on software that is overpriced and vendors to make changes through a customer support framework. While this may not seem like a huge risk or challenge, it hampers operations and can be annoying to deal with when running your business.

For anyone in the data engineering space or handling confidential information, making sure you choose a software vendor that’s affordable and with fast turnaround helps manage this. Aside from this, you can also curate your IAM software so that changes can be made by authorized personnel quickly and without reliance on any customer service representatives.

  1. Increased Chances of Being Locked Out

Passwordless systems can be overzealous in their security measures. Imagine your phone not recognizing your face because you grew a beard, or your fingerprint scanner failing due to a small cut. While

It's like your own house refusing to let you in because you got a new haircut. These systems, while secure, can be inflexible and unforgiving. A simple change in appearance, environment, or device behavior could trigger a lockout.

  1. Theft of Biometric Data

Your password can be changed, but your fingerprint or face? Not so much. If biometric data is stolen, it's compromised for life.

Imagine cybercriminals getting hold of your fingerprint data – this information can unlock the accounts you create later on forever. While this may seem like a leap, the odds of you needing to use your biometrics for authentication are constant and inevitable.

This permanence makes biometric data an attractive target for hackers. A breach could have long-lasting consequences, when it comes to going passwordless, in companies, it can pose a potential liability in the case of any security breaches from both employees and customers.

That said, SSOs offer anonymity and mitigate this issue altogether making it both a versatile and safe choice for different industries - that said you’ll need to look into your company's specific security requirements to see if they’re a right fit.

  1. Phishing Attacks

Think passwordless means you're safe from phishing? That’s not completely true at all - with phishing, hackers look for new and creative ways to steal your information.

Some may trick you into approving a login attempt on your device, thinking it's legitimate. While this is accuracy is rare, it does happen and it’s also a risk that occurs when going passwordless.

These attacks exploit human psychology rather than technical vulnerabilities. A moment of inattention or a cleverly disguised request could lead to unauthorized access.

Is Going Passwordless Risky for Businesses?

While the transition to passwordless authentication might raise concerns, Infisign's decentralized passwordless solution offers a secure and reliable alternative. Our innovative approach overcomes the potential risks associated with traditional password-based authentication, providing a robust and scalable solution for businesses of all sizes.

Key Advantages of Infisign's Passwordless Solution:

  • Enhanced Security: Our decentralized architecture eliminates the single point of failure often associated with centralized password management systems.
  • Reduced Vendor Reliance: Infisign's solution empowers organizations to maintain control over their identity data, minimizing dependency on third-party vendors.
  • Scalability: Our platform is designed to handle the demands of growing businesses, ensuring seamless scalability and performance.
  • Compliance Adherence: Infisign's passwordless solution helps organizations meet industry regulations and standards, such as GDPR and CCPA.
  • Seamless Integration: Our solution integrates seamlessly with your existing systems and workflows, minimizing disruption.

Choose Infisign for a Passwordless Future

By partnering with Infisign, you can confidently embrace passwordless authentication without compromising security or convenience. Our innovative solution offers a secure, scalable, and user-friendly approach to identity management.

Curious to know more? Get your free trial and find out.

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Judah Joel Waragia
Content Architect

Judah Joel Waragia specialize in crafting engaging and informative content on cybersecurity and identity management. With a passion for simplifying complex technical topics, Judah excels at creating content that resonates with both technical and non-technical audiences. His ability to distill complex ideas into clear and concise language makes him a valuable asset to the Infisign team.

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