Goodbye Passwords: How Passkeys Are Transforming Enterprise Security

Let’s face it, the password era has been a bumpy ride. We’ve all been there – wrestling with a jumble of letters, numbers, and symbols, desperately trying to remember which variation belongs to which account. This reliance on easily guessed, frequently reused, and alarmingly phishable passwords has long been the Achilles’ heel of enterprise security. The online landscape is littered with the costly consequences of compromised credentials, from data breaches to reputational damage. But the winds of change are blowing. A modern, sturdier alternative has arrived, promising to finally relegate passwords to the history books: Passkeys.

Passkeys are paving the way for a seismic shift in how security is managed at a corporate level, offering a more secure, user-friendly option that is now increasingly being adopted by enterprises. This transformative technology not only counters the limitations of traditional passwords but also aligns with the advancing of digital threats.

Join us as we explore how passkeys are setting the stage for a safer, more efficient future in enterprise security.

What Exactly Are Passkeys?

At their core, passkeys represent a significant leap forward in authentication, moving beyond traditional passwords to a more secure and user-friendly system built upon the principles of public-key cryptography, a cornerstone of the FIDO2 standard. Imagine it as a highly secure and convenient digital handshake, far surpassing the vulnerabilities of typed passwords. When you create a passkey for a website or application, your device generates a unique pair of cryptographic keys: a public key and a private key. The public key is securely registered with the online service, while the private key remains exclusively on your device – whether it’s your laptop, phone, or a dedicated security key.

The authentication process, powered by FIDO2’s WebAuthn API and the CTAP protocol for communicating with hardware security keys and platform authenticators (like fingerprint or facial recognition), unfolds seamlessly during login. Instead of typing a password, the website or app sends an authentication challenge. Your device then uses your private key to generate a unique digital signature, effectively proving your identity. This signature is then verified against the stored public key. A crucial security advantage is that your private key never leaves your device, and the generated signature is uniquely tied to both the specific service and the login attempt, making passkeys inherently resistant to phishing. Even if you were to be tricked into visiting a fraudulent site, the attacker would not be able to steal your passkey, as it is cryptographically linked to the legitimate origin.

It’s important to note that passkeys were initially designed with a strong consumer focus, prioritising user privacy and control. This design often assumes a personal device context where the user has direct and exclusive access to their authenticators (e.g. their own phone’s fingerprint scanner). This emphasis on individual user control and the inherent privacy of keeping the private key solely on the user’s personal device, while beneficial for consumers, can present complexities when applying passkeys in a large-scale enterprise environment. Managing and ensuring consistent access across a diverse range of employee devices, handling device turnover, and maintaining the necessary level of administrative oversight can require careful consideration and potentially different implementation strategies compared to a purely consumer-first model.

Despite these considerations, the fundamental security and usability benefits of passkeys, particularly their resistance to phishing and the potential for seamless cross-device access, still hold significant promise for enterprises looking to strengthen their security and improve the employee login experience. While the consumer-first design necessitates a thoughtful approach to enterprise deployment, the core technology offers a powerful foundation for the future of secure authentication.

Why Enterprises Are Making the Leap

For years, passwords have been the gatekeepers to our online presence, but their inherent weaknesses have become increasingly apparent and problematic for enterprises. The fundamental issue lies in their human element. We are asked to create complex and unique strings, yet we often fall back on easily guessable variations or, even worse, reuse the same password across multiple accounts. This predictable human behaviour makes passwords prime targets for cybercriminals. Weak passwords are easily cracked through brute-force attacks, while reused passwords create a domino effect – a breach on one less-secure site can compromise numerous other enterprise accounts.

Perhaps the most insidious vulnerability of passwords is their susceptibility to phishing. Sophisticated social engineering tactics can trick even vigilant employees into divulging their credentials on fake login pages, granting attackers direct access to sensitive corporate data. The financial and reputational damage resulting from such breaches is a growing concern, leading to rising pressure from both regulations and cyber insurance providers. These entities are increasingly mandating stronger authentication measures, pushing enterprises to move beyond outdated password-based systems to qualify for coverage or comply with data protection laws.

Beyond the security risks, the burden of password management takes a significant toll on employees. The constant need to remember complex and ever-changing passwords leads to employee frustration and security fatigue. Strict password policies, while intended to enhance security, often result in employees resorting to insecure workarounds like writing down passwords or using simple variations, ultimately undermining their effectiveness. This friction not only impacts productivity but also fosters a sense of resentment towards security protocols. The combination of these factors results in inherent security flaws, external pressures, and internal user dissatisfaction – painting a clear picture: the password era is no longer sustainable for the security and efficiency of modern enterprises. The transition to stronger and more user-friendly authentication methods like passkeys is not just an option; it’s becoming a necessity.

Unlocking the Benefits of Passkeys

For enterprises, passkeys offer a compelling array of advantages. They deliver stronger security by eliminating phishable passwords and relying on cryptographic keys tied to devices. This translates to an improved user experience with seamless, passwordless logins. The reduced reliance on password resets and lockouts also significantly lessens the helpdesk burden and associated costs. Furthermore, passkeys facilitate easier compliance with increasingly stringent zero-trust and multi-factor authentication (MFA) mandates.

Finally, the inherent link to devices streamlines quicker onboarding and offboarding processes through device-based credential management, making passkeys a powerful asset for modern enterprise security.

Navigating the Transition: Challenges and Considerations

While the advantages of passkeys for enterprise security are compelling, organisations must carefully consider the complexities inherent in transitioning away from traditional password-based authentication. Successful adoption hinges on effective employee training programs and strong change management strategies to ensure a smooth shift in user behaviour. Furthermore, meticulous planning around device trust and BYOD (Bring Your Own Device) policies is essential to guarantee secure passkey utilisation across the diverse range of devices employees may use. The evolving landscape of vendor support also necessitates strategic technology selections to ensure long-term compatibility and functionality.

One crucial aspect to consider, particularly given passkeys’ initial consumer-focused design, is the need for credential management within an enterprise setting. Unlike individual consumers managing their personal devices, enterprises require centralised control and comprehensive oversight of authentication credentials. This is where implementing a dedicated Credential Management System like MYID CMS can be invaluable. These systems offer end-to-end lifecycle management for passkeys, and secure access with devices you want to use. This includes features like secure provisioning and enrolment of passkeys across employee devices, streamlined self-service and the ability to enforce enterprise-wide security policies related to passkey issuance and lifecycle management. By providing this centralised management layer, enterprises can effectively mitigate the inherent complexities of deploying a consumer-first technology at scale, ensuring the security, manageability, and auditability required in a corporate environment.

Complementing this, Enterprise Attestation plays a vital role with FIDO passkeys where this process allows the enterprise to verify the authenticity and trustworthiness of the device being used for authentication. When a passkey is created, the device generates an attestation certificate that cryptographically proves its identity and characteristics. Enterprise Attestation gives the ability to include device specific information (e.g. serial number) in the certificate. This ensures that only devices sanctioned by the enterprise can be used to create and utilise passkeys for corporate resources, significantly enhancing security and mitigating the risks associated with unauthorised or compromised devices. By verifying the device’s legitimacy, Enterprise Attestation adds a critical layer of assurance that the strong security of passkeys is not undermined by untrusted endpoints.

The Dawn of a Passwordless Future

Passkeys undeniably represent the future of enterprise authentication, offering a compelling vision for enterprise security: stronger protection, enhanced user convenience, and streamlined IT management. While the transition may require thoughtful effort, the payoff is significant – a substantial strengthening of security and a noticeably improved user experience. By embracing passkeys, enterprises can fortify their defences, empower their employees, and step confidently into a more secure online environment.

To stay ahead of evolving threats and position themselves for a more secure future, enterprises should begin evaluating their passkey readiness today. The passwordless revolution is underway – don’t get left behind.

If you are looking for a more secure and convenient way to authenticate users in your enterprise, our MyID family of products could be the solution that fits the precise needs and requirements of your organisation. MyID MFA is a secure login and password replacement solution that can be deployed in record time, ensuring a simple user experience. MyID CMS can issue and manage high assurance credentials simply, securely and at scale.

Get in touch today to arrange a demo.