Why passkeys are replacing passwords and what businesses need to know

For decades, passwords have been the primary method of securing online accounts. From email and cloud applications to financial systems and business platforms, organisations have relied on passwords as the first line of defence against cyber threats.

However, passwords have also become one of the weakest links in modern cyber security.

Password reuse, weak passwords, phishing attacks, credential theft and human error continue to contribute to data breaches across organisations of all sizes. Despite significant investment in password management, multi factor authentication and user education, attackers continue to find ways to gain access to sensitive information through compromised credentials.

As a result, technology providers including Microsoft, Google and Apple are increasingly promoting passkeys as the foundation of a password free future.

For businesses, understanding how passkeys work and what they mean for cyber security is becoming increasingly important.

If you are reading this because you have experienced a cyber incident and are unsure how to respond, contact Zensec immediately.

Why traditional passwords are becoming a problem

Passwords were originally designed for a much simpler digital world.

Today, users often manage dozens, if not hundreds, of accounts across multiple devices and applications. Remembering complex passwords for every service is unrealistic, which often leads to poor security practices.

Common challenges include:

• Password reuse across multiple accounts
• Weak or predictable passwords
• Forgotten passwords requiring password resets
• Credentials stolen through phishing attempts
• Password sharing between users
• Reliance on password managers to maintain security

Even organisations that enforce strong passwords and traditional multi factor authentication continue to experience security incidents linked to compromised credentials.

Attackers know that targeting users is often easier than attacking technology directly.

Why passwords remain a favourite target for attackers

Many cyber attacks begin with stolen or compromised credentials.

Attackers frequently use phishing attacks to trick users into entering passwords on fake websites. Others use credential stuffing attacks, attempting previously leaked passwords against multiple services.

Traditional passwords create a security challenge because the same secret must be shared between the user and the service being accessed.

If an attacker obtains that password, they may be able to gain access to the account regardless of how strong the password itself appears.

This problem has become particularly significant as cyber threats continue to evolve and organisations become increasingly dependent on cloud services and remote access.

What are passkeys?

Passkeys are a modern authentication method designed to replace passwords entirely.

Unlike passwords, passkeys rely on public key cryptography rather than shared secrets.

When a user creates a new account that supports passkeys, the user’s device generates a pair of cryptographic keys:

• A private key stored securely on the user’s device
• A public key stored by the service provider

The private key never leaves the device and cannot be viewed or copied by the website or application.

When the user signs in, the service verifies that the device possesses the correct private key without ever transmitting the key itself.

This approach significantly improves security while simplifying the user experience.

How passkeys work

The process is designed to be both secure and user friendly.

When users enable passkeys, authentication is typically completed using:

• Face recognition
• Fingerprint authentication
• A secure PIN
• A device PIN
• A hardware key or security key

Rather than entering a password, the user simply confirms their identity using their preferred authentication method.

Because passkeys are tied to a specific domain, phishing websites cannot trick users into authenticating with fraudulent services.

Even if a user visits a fake website, the passkey will not work because it recognises that the domain does not match the legitimate service.

This makes passkeys highly phishing resistant.

Why passkeys are more secure than passwords

The biggest advantage of passkeys is that they remove many of the weaknesses associated with traditional passwords.

Unlike passwords, passkeys:

• Cannot be reused across accounts
• Cannot be guessed through brute force attacks
• Cannot be stolen through most phishing attempts
• Eliminate password reuse risks
• Reduce the need for password resets
• Protect against credential stuffing attacks

Because the private key remains securely stored on the user’s device, attackers cannot simply steal credentials from a database and use them elsewhere.

This makes passkeys particularly effective against modern cyber attacks.

How passkeys compare with traditional multi factor authentication

Many organisations currently use traditional multi factor authentication as an additional layer of security.

This often involves:

• SMS codes
• Authentication apps
• Email verification
• One-time passwords

While traditional MFA significantly improves security, it still relies on passwords as the primary authentication method.

Attackers have increasingly developed techniques to bypass traditional MFA through phishing kits, session hijacking and MFA fatigue attacks.

Passkeys combine strong authentication and phishing resistance into a single solution.

This means they can often provide stronger protection than traditional multi factor authentication while creating a simpler user experience.

For this reason, many security experts view passkeys as the natural evolution of multi factor authentication MFA.

Microsoft’s role in the move towards passkeys

Microsoft has been one of the major supporters of passkey adoption.

Users can now use passkeys with a Microsoft account and authenticate through:

• Microsoft Authenticator
• Windows Hello
• Hardware security keys
• Biometrics such as fingerprint or face scan technologies

Microsoft continues to expand support across its ecosystem as part of its broader vision for a password free future.

As adoption grows, more organisations are beginning to evaluate how passkeys can support their own cyber security strategies.

What businesses should consider before adopting passkeys

Although passkeys offer significant advantages, organisations should approach implementation carefully.

Important considerations include:

Compatibility

Not all platforms currently support passkeys.

While major platforms and modern browsers increasingly support passkeys, some legacy systems may continue to rely on traditional authentication methods.

User education

As with any new technology, user education remains essential.

Employees need to understand how passkeys work, how to use passkeys safely, and how authentication differs from traditional passwords.

Device management

Because passkeys are linked to devices, organisations should consider how authentication will work across multiple devices and different operating environments.

Recovery processes

Businesses should establish secure recovery procedures for situations where users lose devices or require access from a different device.

Planning for these scenarios helps ensure secure access without creating unnecessary disruption.

What passkeys mean for Cyber Essentials

The UK’s Cyber Essentials framework continues to emphasise strong authentication and access controls.

While passwords remain widely used, passkeys align closely with the broader goal of reducing reliance on weak credentials and improving account security.

As authentication technologies continue to evolve, organisations pursuing Cyber Essentials certification should pay close attention to developments in passwordless authentication and phishing resistant access controls.

Are passwords disappearing completely?

Despite growing momentum, passwords are unlikely to disappear overnight.

Many organisations continue to operate legacy systems that do not yet support passkeys, and some business applications may take years to transition fully.

For the foreseeable future, most businesses will operate a hybrid environment that includes:

• Traditional passwords
• Password managers
• Multi factor authentication
• Passkeys
• Security keys

However, the direction of travel is clear.

Major technology companies are investing heavily in passwordless authentication, and passkeys are increasingly viewed as the long-term replacement for passwords.

Preparing for a password free future

Cyber security is constantly evolving, and authentication remains one of the most important areas of defence against cyber threats.

While passwords have served organisations for decades, they continue to create security challenges that attackers actively exploit.

Passkeys offer a more secure, phishing resistant and user friendly alternative that addresses many of the weaknesses associated with traditional passwords.

Although adoption will take time, businesses should begin evaluating how passkeys fit into their broader cyber security strategy.

Organisations that embrace stronger authentication methods today will be better positioned to reduce cyber risk, protect sensitive information and support a more secure future for employees and customers alike.

How Zensec can help

Strong authentication is a critical part of any cyber security strategy. Whether you are reviewing access controls, implementing multi factor authentication, preparing for Cyber Essentials certification, or evaluating passwordless technologies such as passkeys, Zensec can help.

Our team works with organisations to strengthen identity security, improve cyber resilience and reduce the risk of credential-based attacks.

Contact Zensec today to discuss how we can help secure your organisation’s authentication and access management strategy.