What if logging into your business systems could be both simpler and more secure? Learn about Microsoft business passkeys, a modern alternative to passwords.
What Are Passkeys?
Passkeys use cryptographic math instead of traditional codes. When you make a passkey, your device keeps a private key, and the website keeps a public key. With this setup, you only need to use biometrics or device-based authentication to log in. You never type a password, and your company’s servers don’t have to store one.
This modern form of verification brings many worthwhile advantages for businesses, including:
- Phishing resistance: Hackers generally can’t trick employees or customers into giving up a passkey on a fake website because it only works on the real, matching site.
- No password leaks: Since companies don’t need to store database passwords anymore, a server hack won’t expose customer or employee credentials.
- Fewer IT helpdesk costs: Staff spend much less time handling locked accounts and manual password reset requests.
- Faster customer checkouts: Instead of typing long codes, users can use biometrics to confirm transactions faster. This helps lower cart abandonment rates for online stores and services.
- No bad password habits: Passkey authentication stops your team from using weak passwords or reusing the same code across multiple work systems.
Microsoft Transitions to Passkeys for Entra ID
Does your company use Entra ID for its operations? Microsoft is making passkeys the default authentication experience for its service as part of a move toward phishing-resistant security.
Starting September 1, 2026, users who rely on Microsoft-managed SMS or voice authentication will begin receiving prompts to register passkeys during sign-in. Later, on February 1, 2027, the platform will retire its built-in SMS and voice call authentication service completely. If your business still prefers these methods, consider looking into replacements before this date.
Microsoft warns that today’s AI-powered environment demands stronger forms of authentication, as threat actors are actively using sophisticated technology to fine-tune their attacks. The company shares that the click-through rate of AI-assisted phishing emails is a staggering 54%, while traditional methods sit at 12%.
The Rise of Modern Authentication Techniques
Microsoft business passkeys might not completely deter data breaches, but they significantly reduce the risk of phishing because passkeys are tied to a specific website and the user’s device.
Businesses may also consider the following types of phishing-resistant authentication:
- FIDO2 security keys: Thanks to advanced cryptography, you can use small physical hardware devices, such as USB tokens or smart cards, to log into websites and apps.
- Biometric authentication: Biometric authentication uses fingerprints, facial recognition, and iris scans to verify identities and strengthen passwordless sign-ins.
- Multi-factor authentication (MFA): MFA creates an extra layer of protection, so when one factor becomes compromised, gaining access would still be difficult for attackers.
Cyberattacks will only grow more complex moving forward, but the transition to Microsoft business passkeys can help companies stay ahead. Many online services aside from Microsoft Entra ID already support passkeys, and more are adopting this passwordless authentication method every year.
