2020 could see the “death of the password” according to the CEO of authentication platform Veridium.
According to a survey conducted by Google last year, two out of three people are guilty of reusing passwords for different services, despite frequent warnings of credential stuffing attacks.
With this in mind, many companies are now recognising the flaws in password-based security, and passwordless systems, such as biometric authentication are looking increasingly attractive.
James Stickland, CEO of Veridium, believes that as the number of cybersecurity incidents continues to increase and with global e-commerce fraud projected to cost $130 billion by 2023, businesses will need to look to alternatives:
“Passwords account for over 80% of data breaches, with resets costing firms a staggering $1.9 million a year. In 2020, the expansion of 5G – the wireless replacement for broadband that is up to 100 times faster than its predecessor – will escalate the volume and speed of data theft, empowering hackers to penetrate vital company data. As a result, more and more organisations are turning towards biometric authentication to mitigate against increasingly sophisticated cyber threats, whilst enhancing the user experience.”
In fact, Gartner predicts that by 2022, 70% of organisations will be using biometric authentication for employees via smartphone apps, with 60% of businesses cutting their reliance on passwords by half.
Although it will likely be a while before many businesses adopt biometric authentication, technological advances may make the transition easier:
“This year will also see mobile-first authentication strategies take precedence. Biometric facial recognition hardware will be present in 90% of smartphones by 2024, thus enterprises with a multi factor authentication strategy will provide increased security for their clients and the organisation and also an improved and more seamless user experience.”
As well as the security weaknesses associated with password reuse, Stickland explains that motivation to invest in alternatives due to the cost of password resets:
“Increasingly, companies and consumers alike are realising the weakness of passwords. Millions of people use the same password for multiple logins, leaving valuable personal data at risk. In addition, employees must remember an average of 27 passwords, which on top of costing businesses at least $70 per user per year to manage resets, also decreases productivity significantly.”