With the advent of digital transformation, the way we authenticate our identity has changed, shifting from having to remember a string of characters and physically enter them to having passwordless authentication. You can now do things like open bank accounts, sign contracts, and access sensitive information without ever having to meet someone face-to-face.
With this new era of convenience comes new risks. Fraudsters are constantly adopting new methods to steal personal information and use it for their own gain. That’s why it’s more important than ever to make sure your identity is protected.
One way to do this is through passwordless authentication. Previously, passwords were one of the primary methods to secure information. With a strong password you could be reasonably confident that only those aware of the password would be able to access your data.
In this blog, we’ll explore the concept of passwordless authentication, its benefits, and how Udentify can help you take advantage of this growing trend.
What Is Passwordless Authentication?
Passwordless authentication is a method used in identity verification and authentication that doesn’t require a password or verification of the identity document. In other words, it’s a way to authenticate your identity without having to remember a string of characters.
The technology behind passwordless authentication varies depending on the provider. But generally, it relies on something you have, such as a phone, or something you are, like your fingerprint or face.
In recent years, the demand for passwordless authentication has grown exponentially. In 2021, the passwordless industry reached an impressive $12.79 billion. That figure will surpass $53 billion by 2030 as people become more aware of the risks associated with passwords and seek better ways to protect their information.
Is Passwordless Authentication Safe?
With fraudsters becoming more sophisticated, passwords are no longer enough to protect your information. That’s where passwordless authentication comes in. It is a safe method to authenticate users and assess their authenticity. This method of authentication becomes safer when used with other techniques such as liveness detection.
This is because fraudsters may still spoof the user’s biometrics with things such as deepfakes and 3D masks, however if passwordless authentication is used with liveness detection, spoofing someones facial biometrics becomes impossible.
Passwordless Authentication Methods
There are a variety of passwordless authentication methods available, each with its own set of benefits and drawbacks. Here are some of the most popular:
One of the most used passwordless authentication methods is email. With this method, you receive a code via email that you must enter to log in. For instance, let’s say you want to log in to your bank account. You’d need to receive a code in your email address that you would then use to authenticate your identity and gain access to your account.
SMS
Another popular passwordless authentication method is SMS. With this method, you receive a code via text message that you must enter to log in. A good example of this is when you log in to a new Wi-Fi network and receive a text with a code to enter.
Biometrics
As fraud has increased, biometrics has become increasingly popular in recent years as a way to authenticate someone’s identity, with 41% of smartphone users now using biometrics to access their accounts and devices. An estimated 66% will do so by 2024.
With biometrics, your physical characteristics are used to verify and authenticate your identity. This includes anything from your fingerprint or iris to your face or voice. For instance, Apple’s iPhone uses Face ID, which uses facial recognition to unlock the device.
Having liveness detection on top on biometric verification and authentication is a great advantage as it is impossible for fraudsters to spoof someone’s live facial biometrics using techniques such as deepfakes or 3D masks.
Passwordless Authentication Examples
- One-time Codes
A one-time code is a unique code that is generated for each login attempt. This code can be sent via text message or email and is typically valid for a few minutes. A good example is when you log in to your online banking or crypto exchange wallet and receive a code to enter that is only valid for a few minutes.
- Push Notifications
Push Notifications can be received through a pop up message which the user can click on. You receive a notification on your device that you must approve in order to log in. This is similar to how some apps allow you to log in using your Google or Facebook account.
For instance, when you log in to the Udentify app, you receive a push notification on your phone that you must approve in order to access your account.
- Physical Tokens
Physical tokens are another example of passwordless authentication. With this method, you use a physical device, such as a USB key or fob, to log in. This is similar to how you might use a physical token to access a company’s VPN.
Benefits of Passwordless Authentication
Passwords may have been a mainstay in the world of authentication for many years, but users now seem to be increasingly wary of them. 61% of users now say they’d prefer to try alternative methods of authentication. Shifting to passwordless authentication comes with several benefits, including:
- Improved Security
Passwords are notoriously easy to hack, with 80% of all data breaches related to hacked passwords. Even strong passwords can be compromised if they’re reused across multiple accounts.
With passwordless authentication, there’s no need to worry about your passwords being hacked or stolen. This is because there’s no password to steal in the first place, instead personal biometrical characteristics are used to authenticate a user.
- Reduced Support Costs
Password resets are one of the most common support requests. In fact, In fact, over 40% of help desk tickets are related to password issues.
With passwordless authentication, there’s no need to worry about password reset requests. This is because there’s no password to reset. This can lead to significant savings for organisations that provide customer support.
- More Customer Satisfaction and less Customer Friction
Passwordless authentication is a much simpler and more user-friendly authentication experience. Users are less likely to get frustrated when they’re trying to log in, which can lead to a better overall user experience.
- Greater Flexibility
With password-based authentication, you’re typically limited to using one password for all your accounts. With passwordless authentication, you have more options and can use different methods for different accounts.
For instance, you might use biometrics to log in to your phone and a one-time code to log in to your bank’s website. This allows you to tailor the authentication process to each individual account.
- Increased Convenience
Passwords can be easy to forget, especially if you have a lot of them. In fact, 78% of people admit to forgetting passwords from time to time. This can lead to frustration when you’re trying to log in to an account and can’t remember your password.
With passwordless authentication, you don’t need to remember a password. This is because you can use another method, such as your face (facial biometrics) or a one-time code, to log in.
- Speedier Verification
When using traditional password-based authentication, you need to enter your username and password, which can take some time, especially if you have forgotten them. With passwordless authentication, you can use a method such as biometrics by using your face, which is much faster, as easy as ‘your face is your password’.
In a world where we expect things to happen instantly, passwordless authentication can be a major benefit.
- Lower Risk of Fraud
Fraud cases, such as phishing which involves tricking users into disclosing their personal information, such as passwords is a very common way of having your data compromised. This is usually done by sending an email that looks like it’s from a legitimate source, such as a bank or online retailer.
With passwordless authentication, there’s no need to worry about phishing attacks. This is because you’re not relying on a password to log in. Instead, you’re using a method that’s more difficult to spoof, such as biometrics or a one-time code.
Passwordless Authentication vs Multi-factor Authentication
Another practical way to boost security measures is to implement multi-factor authentication (MFA). This is where you require users to provide more than one piece of information to verify their identity.
MFA is often seen as an alternative to passwordless authentication. However, the two methods are quite different. Here’s a quick overview of two key differences between passwordless authentication and MFA:
- Password Requirement
A major difference between passwordless authentication and MFA is the password requirement. With passwordless authentication, no password is required. With MFA, you still need to enter a password as well as another piece of information, such as a one-time code that’s sent to your phone or email. Thus, there’s always the risk that your password could be compromised.
- Number of Factors
Another key difference is the number of factors that are used. As the name suggests, multi-factor authentication uses multiple factors. This could be a hassle for users, as they need to use multiple pieces of information.
Passwordless authentication, on the other hand, only uses one factor. This makes it much simpler for users and reduces the risk of forgetting their login information.
In Which Business Types Can Passwordless Authentication Be Used?
Passwordless authentication can be used in a variety of business types. Here are some industries where passwordless authentication is commonly used:
- Banking
Banks are a highly attractive target for cybercriminals. This is because they hold a large amount of sensitive customer data. In 2017, 47% of all financial data breaches targeted banks.
As such, it’s important for banks to have robust security measures in place. One way to boost security is to use passwordless authentication for online banking. This way, customers can log in by simply using their face. This makes it much more difficult for hackers to impersonate a customer and gain access to their account
- Cryptocurrency Exchanges
Cryptocurrencies, such as Bitcoin, are digital assets that use cryptography to secure transactions. They’re often stored in crypto exchange digital wallets.
Because cryptocurrencies are digital, they’re susceptible to cyber-attacks. In 2018, more than $1 billion worth of cryptocurrency was stolen from exchanges by fraudsters. That’s a massive loss for investors.
Password authentification can help to mitigate the risk of cyber-attacks. By using facial authentication, users can authenticate their identity without needing to remember a password. This makes it much more difficult for hackers to gain access to accounts and steal assets.
- Finance
With 90% of all hacks motivated by financial gain, it’s no surprise that finance is a prime target for cybercriminals. In recent years, we’ve seen a surge in attacks against banks and other financial institutions. Any institution that holds large amounts of money is at risk, and that includes not just banks but also hedge funds and credit card companies. Adopting passwordless authentication can help boost your defences as an institution.
- Insurance
The insurance industry is no stranger to data breaches. In 2017, Equifax, one of the three largest credit reporting agencies in the US, announced a data breach that affected 143 million people. The hackers accessed names, Social Security numbers, dates of birth, addresses, and driver’s license numbers. Since then, we’ve seen a string of attacks against several insurance companies.
In each of these cases, the hackers were able to gain access to sensitive customer information because the companies were using the username and password authentication. If these companies had adopted passwordless authentication, it’s likely that the breaches would not have been as severe.
Our Passwordless Authentication Solution – Udentify
As more internet users become aware of the dangers of using passwords, they are increasingly looking for alternatives. Organisations are also constantly improving their security measures to decrease fraud and offer more effective and faster services in order to keep their customer satisfied.
That’s where Udentify comes in. This passwordless verification and authentication platform reveals the real identity of a user, client, employee, or business partner in seconds.
Udentify is more than just a passwordless authentication system. It’s also a user onboarding platform. With its AI-powered facial recognition system and liveness detection, Udentify can verify a user’s identity quickly. That means you can quickly and easily onboard new users without having to worry about the security of their personal information.
Udentify is also an age verification platform. This is especially important for businesses that sell age-restricted products, such as alcohol, tobacco, and gambling. With Udentify, you can quickly and easily verify a user’s age without having to collect sensitive information like their date of birth.
There are six layers of security, ensuring that your system is impossible to breach. What’s more, Udentify seamlessly integrates with your current systems, so you don’t need to make any changes to the way you operate.
Udentify is perfect for a wide variety of industries, including banking, healthcare, crypto exchanges, e-commerce, gaming, and online dating. These businesses require especially high levels of security.
Boost Your Digital Security with Passwordless Authentication
As we become increasingly reliant on digital devices and services, the need for strong authentication methods becomes more critical. Passwords are no longer enough to protect our accounts and data. Passwordless authentication is a more secure alternative that is becoming increasingly popular.
Udentify is at the forefront of this trend, offering a passwordless authentication system that is secure, user-friendly, and easy to integrate. Get started with the platform today and enter the era of seamless identity authentication and reliable fraud prevention.
