By Mr.Tapesh Bhatnagar
Introduction: The Challenge with Passwords in India’s Digital Landscape
India’s digitalization wave, particularly in banking and digital payments, has led to numerous conveniences but also a surge in frauds and scams. With 276 crore digital frauds reported in FY23, passwords’ susceptibility to breaches is a significant concern. According to Verizon, over 80% of data breaches involve weak or stolen passwords.
Passwords, though widely adopted as the first level of authentication in many Indian organizations, have proven to be susceptible to various security threats. They are easily phishable, often weak, and prone to theft. Regulatory bodies now mandate two-factor authentication (2FA) for financial transactions, but even methods like OTPs and PINs are not entirely foolproof. Beyond the security concerns, passwords also bring about inconveniences such as complexity and cost of frequent resets.
As digital technologies expand, we cannot rely on passwords for sustainable growth. We need better authentication methods that are reliable, phishing-resistant and globally accepted. One such concept developed by industry tech leaders is passwordless authentication.
What is Passwordless Authentication?
Passwordless authentication is a paradigm shift from traditional password-based authentication methods. It eliminates the need for users to remember and input passwords, relying instead on alternative authentication factors. These alternatives include biometrics (fingerprints, facial recognition), possession factors (smartcards, tokens), and magic links that enable secure and convenient access.
One notable player in the passwordless authentication landscape is the FIDO (Fast Identity Online) Alliance. It is committed to developing open standards for simpler and stronger user authentication. Major tech giants like Google, Apple, Microsoft and Amazon have embraced FIDO for passwordless authentication, signaling a broader industry shift towards more secure methods.
Top 5 Reasons to Go Passwordless:
- Seamless Customer Experience: Passwordless authentication reduces friction in the authentication process, providing a seamless user experience.
- Phishing-resistant Security: Biometric and possession-based methods are more secure, making it harder for malicious actors to gain unauthorized access. FIDO standards ensure cryptographic login credentials are unique and secure.
- Improved ROI: Passwordless authentication reduces the need for password-related support and maintenance, resulting in cost savings for organizations.
- Scalability: FIDO standards are integrated into various operating systems and browsers, providing flexibility and scalability to organizations.
- Low Reputation Risk: Organizations adopting passwordless authentication minimize the risk of successful cyberattacks and data breaches, enhancing trust among customers and clients.
How Fraud-Proof Is Passwordless Authentication?
With digital usage increasing, so does the creativity of fraudsters preying on gullible consumers. Phishing, malware, OTP frauds, and fake UPI links among other cybercrimes are becoming common and this calls for the need to reassess the authentication methods. These threats are counterbalanced through the adoption of passwordless authentication which primarily leverages biometric authentication.
As compared to traditional authentication methods, biometric authentication scrutinizes unique attributes like fingerprints or facial features to ensure robust security. The FIDO standard uses private and public keys in authentication processes and adds an additional layer of complexity for attackers, making it more challenging to crack. As the private key is stored on the user’s local device and can only be accessed using an authentication factor, e.g., a fingerprint, face, etc it becomes nearly impossible to hack. FIDO based authentication enables a fundamental shift from legacy, knowledge-based credentialing to modern, phishing resistant, possession-based credentialing.
The Future of Authentication is Passwordless
In the age of AI, trust is crucial. Financial institutions must consider innovative measures to provide optimal security. FIDO-based biometric authentication is poised to become a cornerstone in securing digital payments. By adopting passwordless authentication, India can lead the way in shaping the future of digital trust and identity protection in the payment ecosystem.
(The author is Mr.Tapesh Bhatnagar, and the views expressed in this article are his own)
