What is Passwordless Authentication?

Passwordless authentication is a verification method that allows users to login to sites and applications without passwords. Instead, users can enter other identifiers. These could be tokens, biometrics, chips and cards, magic links, and more. Unlike password authentication methods, which require the user to remember their password, passwordless authentication does not require the user to remember verification factors. In addition, the user is verified with a unique factor at every login.

In its strongest forms, passwordless security solves several of the most persistent cybersecurity gaps today - poor password hygiene and centralized storage of credentials. We found in our report The State of Passwordless Security 2024, that 89% of organizations believe that passwordless authentication provides the highest level of security, making it essential to both the security and efficiency of their business.  

In practice, the passwordless space is rapidly evolving, and the confusing terminology can make it difficult to understand what passwordless authentication is, the key principles, and how it functions in the enterprise. Whether you’re a seasoned security veteran or just getting started, this guide aims to simplify passwordless technology and will help you get started on your journey toward becoming a truly password-free organization.

Passwords are inherently vulnerable because simple “username and password” combinations are easy to hack. Attackers can steal or guess passwords, and it doesn’t help that 64% of us re-use passwords across numerous accounts, so one hack equals instant access to multiple logins. 

This means that passwords are a single point of failure that can be phished, brute-forced, or stolen in data breaches, opening the door to costly cyberattacks.
But even beyond security, the operational toll is significant: IT teams and employees spend valuable time on help desk support related to passwords, with some studies finding that password resets account for up to 40% of all calls.

Additionally, password management on the enterprise side often leads to centralized storage of credentials, requiring enhanced security controls such as hashing and other methods to prevent adversaries from breaking in and making use of these credentials. This burdens IT teams, wasting their time on issues that can be easily avoided. At the same time, it drains employee productivity since login issues delay work, de-focus employees from the task at hand, and harm morale.

• Brute force attacks: This involves an attacker attempting numerous passwords or passphrases with the aim of eventually guessing the correct one. Using automated attack tools, the attacker systematically tries all possible combinations of words, letters, and characters until a match is found. The longer and more complicated the password, the longer it takes. Often, they will use additional known data points, such as minimum password length or a requirement that it include certain characters, to increase their chance of success.
  
  
• Phishing: The practice of sending fraudulent emails, text messages, phone calls, or spoofed websites, disguised as legitimate ones, designed to persuade users to download malware or divulge personal information, such as a password or credit card number. Login credentials are the top target of phishing scams. Generative IA tools allow attackers to generate phishing lures that are highly personalized and convincing.
  
  
• Adversary-in-the-middle (AitM) attacks: In this attack, a perpetrator positions themself in a conversation between two parties — two users, two devices, or a user and an application or server — so that all communications are going to or through the attacker. Public WiFi is a popular vehicle for AitM. By breaching communications, the attacker can steal any shared credentials, payment card details, or other sensitive information.
  
  
• Credential stuffing: This type of attack leverages username and password combinations stolen in previous database breaches. Since many people reuse their passwords across different accounts, the attacker uses automation tools to inject the stolen username and password pairs into login forms en masse.
  
  
• Keylogging: Keystroke loggers capture keystroke information as a user types it in. They are often used in cyberattacks to steal sensitive information and credentials. When used maliciously, keyloggers are considered a type of spyware. However, keyloggers can also be used for legitimate purposes, such as troubleshooting issues on a device or monitoring children's computer use.
  
  
• SIM-swapping: Using personal information gathered through social engineering or other sources, the attacker convinces the victim's cell company to switch the phone number to a SIM card the attacker controls, usually by claiming the phone was lost or stolen. This means that attackers can use OTPs or account recovery information sent to that phone number to take over the victim’s accounts. 
  
  
• Account Recovery: Where password guessing and advanced methods covered above prove challenging, adversaries will seek to target the weakest links in the identity chain of trust. At times, this may mean automated password reset processes that fall back to sending a temporary access code to an individual's email or answering  knowledge-based questions. Calls to a helpdesk are also made to initiate a password reset cycle.

Passwordless authentication removes shared secrets or knowledge as an acceptable factor in the authentication process, as this category is most easily hacked. Instead, it only allows possession or inherence authentication factors. While it is possible for passwordless to be single-factor (ex, hardware security key), most passwordless solutions are multi-factor. 

While passwordless should, in theory, mean authentication is free from passwords, some solutions provide a passwordless experience but still actually use passwords at some point in the process. For example, the user may verify their identity with biometrics on the front end, which is linked to a password that gets transmitted to a server on the back end. 

Fully passwordless authentication solutions completely remove knowledge factors and shared secrets from authentication, and do not transmit or centrally store secret credentials.  

There are several distinct forms of passwordless security authentication, each with varying levels of security, implementation complexity, and user experience considerations.

• Biometric Authentication: Using fingerprints, facial recognition, or voice recognition to verify identity, whilst pasting in the end user’s saved password following successful biometric authentication

• Hardware Security Keys: Physical devices like USB keys that store cryptographic keys
• Mobile Authenticators: Smartphone apps that generate or store authentication credentials
• Smart Cards: Cards with embedded chips containing unique cryptographic information

• QR Code-Based Authentication: Instead of the traditional username entry in Step 1, users scan a QR code with their mobile device, which initiates the authentication flow directly
• Push Authentication: Authentication requests are sent directly to a pre-registered device, requiring only approval rather than active credential entry
• Context-Aware Authentication: Systems that evaluate multiple factors, including device, location, and behavior patterns, to authenticate without explicit user action
• Continuous Authentication: Ongoing verification throughout a session based on behavioral biometrics and usage patterns

The goal of “gold standard” true passwordless authentication, namely the Fast Identity Online (FIDO) specifications, is to completely remove shared secrets from the authentication process. Under FIDO and the expanded FIDO2 standards, authentication between the user and server is done through public key cryptography. 

Step 1: The user begins the login process, which sends an authentication request to the server.
Step 2: The authentication system challenges them to provide the required factors.
Step 3: A secure local action on the user's device, such as providing a face scan or thumbprint or using a security key, will unlock the private key.
Step 4: The private key is used to sign the challenge, proving user possession.
Step 5: The authenticating server verifies that the signature matches the stored public key.
Step 6: Upon a successful match, the user is authenticated for entry to the system.

In short, a user’s biometric features (inherence) unlock a private key on their device (possession) through an authenticator. Using cryptographic exchange protocols, this private key is matched with the public key of the partnership, verifying the user’s identity without sharing secrets or needing server-side databases.

There are multiple password-free authentication methods, some relying on software, some on hardware. As mentioned earlier however, some solutions provide login methods that seem to be passwordless but actually use some form of shared secret and therefore can be breached, hacked or intercepted. One-time passwords (OTPs), magic links and even some biometric authentication methods fall under this category and technically are not passwordless.

Common passwordless authentication methods include:

• Push notifications: Authentication via a push notification sent to a user’s registered device (usually via a mobile app), which the user approves or denies. This may or may not be phishing-resistant, depending on the implementation. 
• Biometric FIDO/FIDO2 Authenticators: Authentication via user biometrics (fingerprint, facial recognition) inputted at the device level and tied to a FIDO2 keypair.
• Passkeys:  Allowing the user to identify at the device level with biometrics, PIN code, or other device mechanisms.
• Hardware security keys: A physical key (like USB/NFC) that performs cryptographic authentication.
• Windows Hello Passwordless: Signing up to Windows with biometric or PIN-based login.Smart cards (PIV) -  Cryptographic cards issued by organizations (often government) that require card + PIN.
• Magic links:  The User receives a time-limited login link via email. Clicking the link authenticates them.
• QR code authentication: A QR code is scanned using a mobile app tied to a trusted device. Authentication happens via cryptographic exchange.

Passwordless authentication eliminates many of the challenges associated with legacy authentication methods. However, like any technology, it has pros and cons. Consider each when deciding if moving to passwordless technology is right for your organization.

Passwordless has several unique benefits over other types of authentication, including: 

• Enhanced security: Passwords are the root cause of most cyberattacks; per Microsoft, there are over 18 billion password attacks a year. Getting rid of passwords drastically lowers your authentication risk profile.
• Improved user experience: Forgetting passwords and going through password resets are major sources of user frustration. Modern passwordless solutions can securely authenticate a user in seconds with something they almost always have in their possession (a personal device or biometric feature).
• Reduced IT costs: Password-based systems place a heavy burden on security teams, who must set and inform users about policies, ensure high levels of security around storage, and manage resets. The costs are significant, with password resets and other password-related issues costing companies an average of $375 per employee annually.
• Increased productivity: Login processes, including failed attempts, trying to remember a password, and resetting passwords, take up an average of three working days per employee. Simplifying the process with a passwordless solution improves access times, condensing multiple steps into a single action.

As with any technology and any significant change, passwordless authentication can bring potential challenges. These will vary depending on the type of passwordless solution and the organization’s IAM and IT environment. Areas to consider include: 

Costs:  Passwordless authentication that relies on hardware security keys introduces costs for the security keys and their ongoing management. 

How to Solve This:  You can choose a passwordless solution that relies on a mobile app and FIDO rather than a hardware key. But it’s important to measure not only the tool cost, but expected ROI and productivity gains. For example, cost savings related to reduced help desk costs, fewer account lockouts and downtime, the lower risk of phishing, reduced MFA fatigue, heightened employee morale from the user experience, faster onboarding and access, and more.

Expertise: Many IT teams have years of experience troubleshooting password-based systems, which are relatively straightforward. 

How to Solve This:  Choose a passwordless authentication vendor that’s intuitive and IT-friendly. Look for solutions that integrate seamlessly with your existing identity infrastructure, offer a clean and navigable admin interface, and include strong documentation and support.

Change Management and Delayed Adoption:  Despite being a source of frustration, most people are comfortable with passwords. While passwordless authentication is more convenient in many ways, many people are not yet familiar with it, and there continues to be a perception that a password known to the end user is safely retained only in their memory, despite it being guessable by an adversary.Customers and employees will need time to transition to a new method of authentication.

How to Solve This:  Make sure your passwordless methods are easy to use, and employing a clear change management strategy will increase adoption rates. You can follow these methods:

1. Map Out Use Cases - Identify different teams, the systems, IdPs, devices and browsers they use, and their authentication requirements.
2. Plan for Legacy Systems and Challenges:  Evaluate compatibility with older apps and logins and prepare integration efforts.
3. Strategic, Phased Rollout - Start small with pilot groups including tech-savvy and non-tech users, with execs onboard early. Then, iterate gradually, fine-tuning based on feedback before wider deployment.
4. Communicate Clearly - Explain benefits and privacy practices, provide continuous training and use user-friendly messaging.
5. Onboard Users and Offer Support Ensure help desk readiness across time zones or for traveling staff. Track metrics like login speeds, help tickets, user satisfaction pre/post-launch.
6. Choose the Right Solution - Evaluate FIDO‑certified vendors and ensure comprehensive coverage, including recovery flows (lost/stolen devices, registration phases), and assess identity-proofing capabilities beyond initial authentication.

Scalability: A solution that works for 100 users may not scale securely and efficiently to thousands across multiple geos, platforms, and device types.

How to Solve This:

• Choose a federated identity platform that supports FIDO, enabling centralized policy control across geographies and device types.
• Automate user and credential lifecycle management to ensure efficient onboarding and recovery processes.
• Build scalable recovery flows and adaptive, risk-based authentication to help maintain security without creating friction.
• Continuously monitor adoption metrics and login performance for data-driven adjustments as the rollout expands

HYPR is the leader in passwordless identity assurance, delivering the industry's most comprehensive end-to-end identity security for the workforce. By unifying the strongest authentication, comprehensive risk monitoring, and enhanced identity verification, organizations can detect, prevent, and eliminate identity-related risks at every point in the user journey. 

HYPR’s Identity Assurance platform consists of:

• HYPR Authenticate: Industry-leading FIDO2 Certified passwordless authentication. This replaces passwords and shared secrets across all user populations, applications, and locations. HYPR 
• HYPR Adapt: Real-time risk assessment and adaptive security controls that assess risk from a broad and diverse set of sources, including user behavior, mobile, web, and browser signals, and changes in the overall threat landscape.
• HYPR Affirm:  Automated and ongoing identity verification integrated into identity management and help desk workflows, without using passwords.