Why Passwords Are No Longer Enough

• Easy Targets: “123456” and “password” still rank among the most common login credentials.

• Phishing: Hackers trick employees into entering passwords on fake sites.

• Reuse: Employees often recycle the same password across personal and work accounts, multiplying risk.

How Passkeys Work

• Biometric Authentication: Employees log in with something they are (fingerprint, face ID) instead of something they know.

• Device-Based Security: Passkeys are stored securely on devices and can’t be typed, guessed, or stolen through phishing.

• Cross-Platform Support: Apple, Google, and Microsoft are building passkeys into their systems, making adoption more seamless.

Benefits for Small Businesses

• Stronger Protection: Eliminates the single biggest weakness in cybersecurity — bad passwords.

• Simplified Logins: Reduces IT headaches from forgotten passwords and resets.

• Regulatory Compliance: Helps meet growing cybersecurity requirements from insurers, regulators, and vendors.

What Businesses Should Do Now

1. Educate Staff: Awareness is still critical — employees should understand why passkeys are safer.

2. Work With Vendors: Check which platforms your business uses already support passkeys.

3. Talk to Your Insurer: Cyber insurance carriers increasingly ask about authentication methods. Using passkeys can strengthen your risk profile and potentially improve coverage terms.

The Bottom Line

Passwords are on the way out, and passkeys are moving in. For small businesses, this is an opportunity to adopt stronger protection with less hassle. By making the switch early, employers can stay ahead of cybercriminals and compliance requirements — while reassuring clients that their data is in safe hands.

Want to know how authentication affects your cyber coverage? Contact us for a cyber liability review tailored to your business.

Sources:

Google Security Blog — “The beginning of the end of the password” (Google announced passkey rollout in 2023).

Microsoft Security Blog — “The passwordless future is here for your Microsoft account”.

FIDO Alliance — Industry group behind passkey standards (Fast IDentity Online).

CISA (Cybersecurity & Infrastructure Security Agency) - Guidance on strong authentication methods.

From Passwords to Passkeys: The Future of Cyber Protection for Small Businesses

For decades, passwords have been the cornerstone of online security. But today, cybercriminals are breaking them faster than businesses can create them. Weak, reused, or stolen passwords remain the top cause of data breaches — and small businesses in Chicagoland are especially at risk.