Businesses Are Stuck in Password Purgatory: Why Passkeys Aren’t Taking Over Yet

Hot Take:

Passwords are like that old pair of jeans you refuse to throw away—even though they have holes and barely fit, they’re just too familiar. But it’s time to Marie Kondo those bad boys and make room for passkeys, the sleek, secure, and far less embarrassing alternative.

Key Points:

• Passwords are still shockingly common and often weak, leading to numerous security breaches.
• Passkeys offer a more secure and convenient alternative to traditional passwords.
• Consumer demand for passkeys is on the rise, with companies like Sony receiving positive feedback for their implementation.
• Regulators have been slow to adapt, but recent guidelines from NIST show promise for passkey adoption.
• Over 13 billion user accounts can now enroll with passkeys, indicating significant growth potential.

Password Fails: An Endless Loop of “123456”

Let’s face it: passwords are like that friend who always shows up to your party uninvited and brings nothing but trouble. According to a study, employees at top corporations are still using shockingly weak passwords like “password” and “123456.” And if that wasn’t bad enough, 32% of passwords in these businesses reference the company name, email domain, or products. It’s as if they’re handing the keys to the kingdom directly to the cybercriminals.

Passkeys: The Superhero We Need

Enter passkeys, the Batman to passwords’ clumsy Robin. Based on cryptographic keys and biometric authentication, passkeys offer a fortress-like security level. No more remembering complex strings of characters; just possess something (like your smartphone) and you’re in. As FIDO Alliance’s executive director Andrew Shikiar puts it, passkeys are immune to sophisticated phishing and social engineering attacks, making them the caped crusader of cybersecurity.

Customer Demand: The Plot Twist

Contrary to what many businesses believe, customers are not clinging to their passwords like Linus to his blanket. Case in point: Sony introduced passkeys for PlayStation and received rave reviews. According to the latest stats, the number of users opting for passkeys has skyrocketed, increasing tenfold between September 2023 and May this year. Shikiar predicts that this surge in passkey usage will not only enhance security but also boost revenue by reducing fraud.

Regulators: Playing Catch-Up

Regulators have historically been as slow to change as a dial-up connection. They haven’t fully embraced passkeys, mainly because their focus has always been on passwords. However, there’s a glimmer of hope. The National Institute of Standards and Technology (NIST) recently updated its digital identity guidelines to recognize that passkeys meet the multi-factor authentication requirements. This move could finally get regulators on board, making passkeys the new norm.

The Outlook: A Mixed Bag (For Now)

The future looks bright for passkeys, with over 13 billion user accounts ready to make the switch. However, we are still in a transitional phase where passwords and passkeys coexist. This dual existence means companies must maintain robust password security measures while also adopting new authentication solutions. It’s a balancing act, but one that will ultimately lead to a more secure digital landscape.