Is Passwordless Authentication Safe? Pros, Risks, and What You Need to Know

If you’ve logged into a website recently using your fingerprint, face, or a one-time code sent to your mobile, you’ve already dipped your toes into the world of passwordless authentication. It sounds like something out of a futuristic movie, but it’s becoming more and more common in workplaces across Australia. So, is it actually safe? And should your business dive in headfirst, or tread a bit more carefully?

What is Passwordless Authentication?

Passwordless authentication lets users log in to systems, apps, or services without entering a traditional password. Instead, it relies on things like biometrics (fingerprint, facial recognition), hardware tokens (like a YubiKey), or magic links and one-time passwords (OTPs) sent to your email or phone.

In theory, it gets rid of one of the biggest headaches in cybersecurity—passwords that are easy to guess, reused across systems, or written on sticky notes under keyboards (yes, it still happens!).

Why Go Passwordless?

Here at Gray Area Consulting, we’ve seen plenty of businesses struggle with password-related issues—everything from lockouts to breaches. Here are some solid reasons to consider going passwordless:

• Better Security: No password means there’s nothing for hackers to steal or phish. Biometrics and device-based methods are much harder to replicate or intercept.
• Improved User Experience: Logging in becomes quicker and less frustrating, especially for staff juggling multiple platforms throughout their day.
• Lower IT Support Costs: You’d be surprised how many helpdesk calls are about forgotten passwords. Reducing or eliminating passwords cuts down on those tickets.

But Is It Safe?

Like any technology, passwordless authentication isn’t bulletproof. There are a few things to keep in mind:

1. Biometric Data Is Sensitive

If a password leaks, you can change it. If your fingerprint or face scan is compromised, well, that’s a bit trickier. That’s why it’s critical to store biometric data securely and locally on the device, rather than in a central database.

2. Device Dependency

If someone loses their phone or security key, they could be locked out. Businesses need to have a clear backup process in place—whether that’s using another verified device or having a secure fallback method.

3. Phishing Isn’t Gone Yet

While passwordless methods reduce phishing risk, they don’t eliminate it. For example, someone could still trick a user into approving a login they didn’t initiate with social engineering tactics. Multi-factor authentication (MFA) layered on top adds an extra safety net.

To learn more about the importance of MFA, we covered it in depth in our Tech Talk Episode 1.

Real-World Example: A Small Business in Brisbane

We recently worked with a local design agency in Brisbane that was struggling with password resets and security breaches. After a security review, we helped them roll out passwordless logins using Microsoft 365’s built-in options like Windows Hello and Authenticator app approvals. Not only did their support tickets drop, but staff loved the faster logins. Plus, with ongoing innovations in Microsoft 365, they’re future-proofing their setup.

Tips for Transitioning to Passwordless Safely

• Start Small: Trial it with one team or system before rolling out company-wide.
• Use Strong Device Security: Ensure your staff use devices with PINs, biometrics, and encryption.
• Have Backup Methods: Always include a secure fallback option, like a recovery email or admin override.
• Educate Your Team: Make sure everyone understands how the new system works and what to do if something goes pear-shaped.

Where Does It Fit in Your Cybersecurity Strategy?

Passwordless authentication can be a strong part of a broader cybersecurity plan. But it’s just one piece of the puzzle. From endpoint protection to network monitoring and data backups, you need a holistic approach. We’ve broken this down in our guide to cybersecurity plans.

If you’re not sure where to start, or if your current systems are up to scratch, we’re happy to have a yarn. Get in touch and we’ll help you figure out what’s best for your business.

Wrapping Up

Passwordless authentication isn’t just a trend—it’s a practical response to the real-world problems of password security. Done right, it can make your business more secure and your team more productive. Like anything in IT, it’s all about the implementation, the planning, and the people behind it.

Curious about how your team can make the shift? Let’s chat—no tech jargon, just practical advice.