As the internet has evolved, many of us find ourselves managing numerous passwords, which has unfortunately also led to increased security risks. In response, the industry is beginning to embrace passkeys as a promising solution for enhancing security and accessibility.
According to Andrew Shikiar, executive director and CEO of the FIDO Alliance, in a FinextraTV interview, "the vast majority of data breaches stem from passwords because cybercriminals can guess, steal, or phish them. Any human-readable shared secret transmitted over a network is susceptible to attacks. With passkeys, we eliminate this vulnerability through a fully encrypted communication process that uses a user-friendly virtual key pair, significantly improving security."
The shift towards passkeys is particularly resonating in consumer-focused sectors, where anxiety over passwords and the likelihood of forgetting them is prevalent. Shikiar notes that "over 12 billion consumer accounts now have the option to use a passkey, with hundreds of millions of users actively utilizing them. We are witnessing significant early adoption in e-commerce, content, and hospitality, where ensuring robust access is crucial."
Nonetheless, some sectors, like banking, are exercising caution regarding this new technology. While many neobanks are quick to adopt these innovations, larger, traditional banks remain hesitant.
Shikiar further elaborates on why passkeys are vital for the future: "We have long discussed the demise of passwords, but we now possess technology that is both highly secure and user-friendly. This advancement has garnered the backing of the entire industry, from payment networks to leading governments and regulators. The universal support for our initiatives at the FIDO Alliance will enable us to transition away from password reliance toward a safer, simpler future for user authentication."
Shikiar emphasizes the need for a balance between usability and security, positioning passkeys as a superior alternative to traditional passwords. While still a novel concept for many, the simplicity of passkeys may initially seem complex. The main challenge lies in instilling confidence within more cautious sectors and addressing the skepticism surrounding this technology.