The Power of Passkeys in the Age of Cybercrime

With cybercrime increasing and costing companies millions of dollars, businesses must prioritize robust security measures. One technology gaining traction in the fight against cyber threats is passkeys. Passkeys offer a secure way to share data and access accounts, replacing traditional passwords and eliminating common threat vectors. Here's what you need to know about how passkeys can help protect your business.

What are passkeys?

Passkeys offer a form of passwordless authentication. Rather than entering a username and password to log in every time, users register their passkey with the web app or service, and verification happens behind the scenes the next time the user wants to log in. The user verifies their identity with the encrypted passkey stored on their trusted device rather than proving it through static (and vulnerable) factors like passwords.

How do passkeys work?

Passkeys are also known as cryptographic key pairs and function on the principles of public-key cryptography. They consist of two unique, generated digital keys: a public key that can be shared openly with web services and a private key that is kept secret on a user's device. When someone wants to send you encrypted data or verify your identity, they use your public key. The service decrypts the data or grants access only when the correct private key matches the public key. This public-key cryptography offers an advanced authentication method for safe access and data encryption that hackers can't easily replicate or reverse-engineer. This method ensures secure communication and access control.

Are passkeys more secure than passwords?

Passkeys offer many advantages over passwords and eliminate common weaknesses of credential-based authentication.

• No passwords to steal: Unlike passwords, passkeys don't rely on a static secret that can be stolen or guessed.
• No forgotten passwords: Once created, passkeys work behind the scenes to authenticate a user from a trusted device without requiring the user to remember or enter a password.
• Public-private key pair: Using two keys adds an extra layer of security. Even if the public key is compromised, without the private key, it's useless to an attacker.
• Reduced risk of phishing: Passkeys are immune to phishing attacks since the private key never leaves the user's device.
• No password reuse: Hackers commonly use credentials stolen from one web service to try logging in on another, but passkeys eliminate that possibility.
• Strong encryption: Passkeys employ robust encryption algorithms by default, unlike web services that may store and transmit passwords unencrypted or in poorly secured databases.
• No password resets: Passkeys eliminate the need for regular password changes, which can lead to weaker passwords and risky password behaviors.

In summary, passkeys avoid typical hassles caused by traditional passwords while offering improved authentication and access security to strengthen against cyber attacks.

The costs of the compromised credential crisis

The widespread issue of stolen or compromised usernames and passwords can lead to successful data breaches and financial damage for organizations. Compromised credentials contribute to 80% of data breaches, as poor password practices continue to haunt organizations. With billions of stolen credentials amassed in databases on the dark web and increasingly sophisticated social engineering attacks, hackers can take advantage of human psychology and the inherent weaknesses in passwords to breach an organization's defenses. Financial losses can be tremendous. Over the last three years, the cost of a data breach has increased 15%, bringing the global average to $4.45 million in 2023. Financial losses can include direct loss of money through unauthorized financial transactions or ransom demands, plus legal fines, regulatory penalties, lawsuits, remediation efforts, and reputational damage, leading to loss of revenue and clients. Stolen passwords and login details are often sold on the dark web, leading to further data breaches, identity theft, and financial fraud. Dealing with the aftermath of a compromise can also divert time and resources from other business or personal activities, impacting productivity and potential growth. The total cost of a breach can vary widely depending on the scale and the sensitivity of the data involved, the effectiveness of the incident response, and the industry's legal and regulatory framework. Organizations need to take proactive steps to protect their credentials and reduce the risk of compromise, as the consequences of a security breach can be severe and long-lasting.

Why passkeys are more needed than ever

The compromised credentials crisis is a threat to businesses, as it can lead to enormous disruptions in operations and finances. Passkeys offer organizations a way to remove passwords, reducing password-related threats and vulnerabilities. Passkeys are particularly effective against social engineering attacks, such as phishing. Phishing attempts often rely on tricking users into revealing their passwords. Since passkeys aren't shared or entered like passwords, they are impervious to this form of manipulation. Passkeys are also highly resistant to brute-force attacks and ransomware. The combination of a strong key pair that remains inaccessible during use makes passkeys an excellent defense against brute-force attacks. Ransomware often spreads through phishing attacks or exploiting system vulnerabilities, and strong authentication with passkeys can help block these initial access points. Also, ransomware typically encrypts files and demands a ransom for the decryption key. If a user already encrypts data with a passkey, the attacker's ransomware won't have any meaningful impact.

Go passwordless with passkeys

Replacing passwords with passkeys as part of a broader cybersecurity strategy can help businesses better prepare for escalating global cybercrime. Passkeys provide enhanced security, reduce the threat of compromised credentials, and offer robust protection against common cyber attacks. By providing a seamless and secure user experience, passkeys will be an indispensable tool in the fight against cybercrime. Learn more about how LastPass is helping companies go passwordless.