The Future of Password Policies

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The Evolution of Password Policies and Why It’s Time to Go Passwordless

For decades, organizations have relied on password policies to presumably keep systems and data secure. Over time, those policies have grown increasingly intricate, with requirements for longer passwords, special characters, and frequent resets. Yet, the added demands don’t quite amount to added security. In fact, they often do more harm than good, leading to predictable passwords, higher rates of reuse across sites, and a false sense of security that leaves systems vulnerable to modern, sophisticated cyber threats. The reality is that stronger, more adaptable authentication methods are becoming essential.

What’s Wrong with Passwords?

The traditional password has become more of a liability than a safeguard, and password complexity alone doesn’t make it any safer. For users, complexity often results in predictable patterns like “Password1,” “Password2,” and so on, which attackers easily exploit. Predictability, coupled with the common practice of reusing passwords, makes systems vulnerable to “password stuffing” attacks, where a single compromised password can be used across multiple accounts.

Brute force and dictionary attacks are also easier for cybercriminals to carry out on password patterns. In brute force attacks, attackers try many combinations until they find the correct one, while dictionary attacks rely on common words and phrases that people often use as passwords. 

Meanwhile, frequent password resets and intricate requirements drain IT time and resources. IT teams are burdened by constant reset requests, account lockouts, and troubleshooting—tasks that divert attention from more proactive security measures, like monitoring and responding to real-time threats.

Are Password Managers and SSO Viable Solutions?

Organizations looking for alternatives often turn to password managers and Single Sign-On (SSO) systems, both of which offer notable security advantages but also have limitations. Password managers allow users to generate long, complex passwords unique to each account, making brute force attacks more difficult. They do, however, require a master password. If the master password is compromised, all stored passwords become vulnerable, creating a single point of failure.

SSO systems simplify the authentication process by allowing users to log in once and gain access to multiple platforms, minimizing the need for multiple passwords. SSO can integrate with identity providers like Microsoft Entra, centralizing access to services from email to databases. But, SSO solutions also require a high level of security. Without robust, phishing-resistant authentication layers, the single access point to multiple services could potentially grant attackers access across platforms.



What Is Passwordless Authentication?

The weaknesses of password-based authentication and even advanced password alternatives like SSO are prompting a shift toward passwordless security. A passwordless approach relies on cryptographic methods rather than alphanumeric strings, which eliminates the need for users to remember and update passwords. Hardware-based authentication can verify a user’s identity through a unique cryptographic response, allowing secure access without a vulnerable password or stored phrase. 

Passwordless authentication is highly resistant to phishing because it removes the need for user-entered credentials that could be captured by attackers. Hardware-based methods and cryptographic responses help ensure that even sophisticated phishing attempts struggle to access systems without the physical authentication factor. Passwordless solutions improve both security and operational efficiency, simplifying access for users and reducing strain on IT teams.

What Is Phishing-Resistant MFA?

Phishing-resistant multi-factor authentication (MFA) works hand-in-hand with passwordless authentication to deliver a comprehensive, secure solution against common and emerging threats. While passwordless methods eliminate the need for traditional passwords, adding MFA provides an additional layer of security by requiring users to verify their identity in multiple ways. Unlike SMS-based codes that can be intercepted through phishing or SIM-swapping, hardware tokens verify a user’s identity through a unique cryptographic response, requiring the user’s physical presence to complete authentication.

This hardware-based approach is particularly important for industries with high compliance needs and sensitive data. Even if a cybercriminal obtains login details, they would still need the physical token to gain access, making hardware-based MFA a highly effective defense. Passwordless authentication reinforced with phishing-resistant MFA offers organizations a practical solution to reduce both risk and reliance on passwords.

Embrace Change, Enhance Security

FSET is helping Canadian organizations move beyond outdated password-based security. By implementing phishing-resistant MFA and passwordless solutions, we’re supporting critical sectors like law enforcement, municipal government, and others in adopting more robust, adaptable security. Our collaboration with the Ontario Provincial Police (OPP) integrates YubiKey tokens with PKI certificates, enabling officers to securely access systems like Niche RMS without relying on passwords. In the City of Kenora, YubiKeys provide both logical access to municipal systems and physical security for facilities.

As threats evolve, so must our approach to cybersecurity. Contact us to explore how a passwordless, phishing-resistant framework can support your organization’s unique security needs.

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