The pitfalls of password-based authentication

Most things in the tech world have a cycle of a decade or two before they are rendered obsolete by something more advanced. Floppies holding mere MBs, giving way for TB-holding hard drives. MSN Messenger, giving way for more dynamic platforms like WhatsApp and Telegram.

However, somehow bucking the trend, passwords have been a staple ever since the emergence of the digital era back over 6 decades ago. Yet today, in the midst of extremely advanced emerging threats, they are also threatening to be obsolete. Overwhelmed by password sprawl, users either use weak or repeating passwords across platforms, and that is a recipe for potential disaster. A recent study by IBM Institute found that compromised passwords and credentials were the most common attack vector at 16%. By having passwords in your organization, you are opening yourself up to debilitating threats like brute force attacks, credential stuffing, phishing, malware-enabled key logging and MiTM attacks. 

Apart from all the security risks, passwords could also prove to be a crutch when it comes to your customers. In an increasingly competitive business landscape, retaining your existing customers becomes as essential as gaining new ones, and one factor that significantly impacts retention rates is the digital authentication & verification process. 

This authentication process will differ significantly from the ones your employees undergo – while they may tolerate friction, consumers are driven purely by convenience. Granted, they have to juggle multiple passwords and forgetting them is common. But if they face difficulties with login, the frustration can drive them away. A survey by Prove found that 62% of consumers would abandon trying to log into an account after just 3 failed password attempts, and 34% would switch providers completely if they’re unable to log into their account easily.

 In addition, consumer-focused authentication solutions must also prioritize:

• Seamless omnichannel experiences
• Flexibility to authenticate on any device
• Robust privacy management
• Consistent, user-friendly interface

Therefore, you need a solution beyond passwords that gives you increased security while improving user experience. What if you told you that you can also add streamlining your IT operations to the fray? You will get all this, and more, by integrating passwordless solutions to your organizational architecture. 

The rise of passwordless authentication and its benefits

Passwordless authentication is a method that allows users to gain access to systems and applications without entering a password or answering security questions. The latter two parameters don’t necessarily need the user to be present. An attacker can obtain your password and login themselves much later, without you even knowing. On the other hand, passwordless authentication mandates presence, to ensure users are who they say they are. This can be achieved by verifying unique physical characteristics through biometrics, either through mechanisms inbuilt in user devices or through hardware tokens and smart cards. Thankfully, most of the devices we possess today have some scanner or the other to verify biometrics. Either way, a possession check is complete and access to allowed resources is granted through a seamless linkage with your IAM systems. 

For added security, you can add it as one of the factors of your MFA strategy, along with another factor like OTP. And according to the situation, you can adapt it to optimize your operations. For example, if a remote employee is logging in from their usual home network, only biometrics can serve as the authentication factor because of familiarity. But if they’re logging in from a location they haven’t logged in from yet, you can introduce an additional factor like OTP for added security.

This will result in a quicker, more streamlined login process for your consumers. And, on the other hand, it will eliminate all the risks associated with passwords by reducing all those attack vectors. 

But naturally, with every new organization-wide product integration, you will be faced with challenges in terms of tech costs, potential vulnerabilities and facilitating a simplified access process. 

The key to this is to start with evaluating your organization’s specific needs and challenges. If, let’s say, you’re a healthcare company, your main prerogative will be to find a secure place to keep all your patients’ sensitive PHI. Then, if you’re a financial organization facilitating transactions for high net-worth clients, ensuring complete verification validity for your clients will be your goal. Some other pressing needs include complete adherence to compliance regulations (GDPR, HIPAA), scalability to accommodate your growing business in the future and staying in front of tomorrow’s prevalent security threats. Once you have identified your foremost objectives, the next step is to choose a technology provider that totally aligns with them. 

1Kosmos solutions for passwordless customer authentication

We have recently partnered with industry leaders 1Kosmos to provide the best passwordless customer authentication service in the market. 1Kosmos solutions facilitate cutting-edge customer security through non-biased & objective identity verification and fraud prevention.

BlockID, a product originating from the iValue-1Kosmos partnership, possesses several cutting-edge methods leading to completely secure authentication:

• We incorporate a variety of advanced biometrics methods that can be selected according to your particular use case, including LiveID, FaceID and device biometrics.
• Our identity proofing software ensures 99% accuracy when it comes to verifying identity anytime, anywhere and on any device.
• Our identity-based authentication emphasizes the individual, not the device, through measures like credential triangulation & identity verification. This approach leads to near flawless authentication. 
• Through our distributed identity architecture, we comprehensively practice privacy by design.
• Storing biometrics in a centralized location can create major ethical and security challenges. We possess a private and permissioned blockchain that contain distributed ledgers safely storing all your customer data.
• Finally, we have the best onboarding process for your new passwordless authentication team to get up to speed quickly. 

Through the strengthened security and seamless access you will be providing your customers through our solution, increased retention rates are surely on the cards. 

So, contact us now to discover the future of customer authentication with 1Kosmos!