Improving cyber security is of paramount importance for all entrepreneurs. This is to protect sensitive private data that they hold. Passphrases or passwords are not something new and have been in vogue since Roman times. It is used for distinguishing between enemies and friends. Computer password in modern times is being used for over six decades and has proven their worth. However, it is high time to bid adieu to it to enhance security posture. The world is now adopting a passwordless approach.
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Passwords found to be vulnerable toward account takeover
81 percent of all data breaches have been reported to be the result of reused or poor passwords. Social engineering breaches according to industry experts cause credential loss. These are then used in malware and hacking attacks. However, the recent Covid-19 pandemic has witnessed a sharp increase in cybercrime. Increasing Third Party Insurance is proof of this aspect. ATO (account takeover) related fraud resulted in a total loss amounting to $6+ billion in 2020. It is caused by bot-driven attacks such as credential stuffing, trying to leverage user credentials that were stolen previously. Even PII (personally identifiable information) was used for gaining access to the accounts of end users. Brute force attacks were also used. Hackers use automation bots and tools to guess passwords for gaining forced entry to bank accounts and personally identifiable information.
Passwords have become an ancient thing
Digital transformation has been rapid in recent times. The initial computer password was used way back in Massachusetts in 1961. However, the time-sharing system of MIT was considered to be the first system that suffered a data breach. Password since then became a complacent authentication form. However, from time to time, its weaknesses get exposed.
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Why the need to eliminate passwords?
Although passwords have a long history, their future is stated to be short-lived. These days, Passwordless Authentication is gaining popularity. The reason is that passwords are found to have lots of vulnerabilities to different types of attacks. It also reduces security. Besides this, passwords also create friction. It is tough to invent multi-number, multi-letter combinations always. They are tough to remember, can be guessed easily, and allow cracking and stealing of sensitive data.
Passwordless Authentication as a solution
MFA (Multi-factor authentication) with a passwordless authentication solution can help offer a better user experience to enable better access management. It is part of the digital transformation revolution. It encompasses almost every authentic technique not relying upon knowledge or password-based secret to enable secure access. Hence user’s identity proof relies upon other authentication factors. It includes biometric traits like facial or fingerprint scans or possession factors like OTP, hardware tokens, or mobile authenticator apps. Such solutions are found to be more secure when compared to password-based systems. It also reduces significantly attack vectors since passwords are not used that otherwise would get intercepted or leaked. It rather takes a multi-layered approach towards authentication and includes continuous fraud monitoring, device security, and app security.
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1. Deploying such advanced techniques can help enhance cyber security. There will be no passwords to compromise or phish. Thus chances of getting exposed to account takeover or phishing attacks are limited.
2. It also improves user experience and reduces Third Party Insurance Customers and employees can now access services with great ease and without having to remember tough, complex passwords.
3. Password management tends to eat up crucial resources. Passwordless options can help reduces costs that are otherwise associated with password monitoring and resets. Besides this, it also helps reduce attack vectors.
The Future of data security
It can be stated that Passwordless Authentication is here to stay and is undoubtedly the future! It is likely to be implemented by every type of business to reduce operational costs, attack vectors and to improve overall user experience.