Attackers know how to play on human nature, which makes authentication an easy target. Look at the Snowflake data breach – hackers got in using stolen customer credentials, many of which didn’t have multi-factor authentication (MFA). They breached accounts, stole sensitive info, and extorted several companies. This shows how one compromised credential can lead to serious problems.
Phishing scams, credential stuffing, and account takeovers thrive because authentication relies too much on people making security choices. No amount of training will ensure users don’t get tricked into giving away their credentials or downloading malware that steals their login info. It’s not really the users’ fault; it’s the system that places them as the last line of defense.
With agentic AI bringing more non-human identities into the mix, the IT landscape gets even messier. It’s time for businesses to rethink authentication and reduce user involvement as much as possible.
The way we handle identity and access management (IAM) is evolving. Nowadays, companies juggle numerous cloud environments and around 1,000 applications, making identity security more complex and critical. Attackers are quick to take advantage of this fragmentation. According to IBM’s 2025 Threat Intelligence Index, most cyberattacks last year were tied to criminals using stolen employee credentials to breach corporate networks. As AI-driven attacks ramp up, the risk of identity abuse is only going to rise. Large language models can automate spear-phishing campaigns, scraping billions of exposed credentials to launch identity attacks. Businesses urgently need to move away from credential-based security.
The future of secure authentication must shift the burden from users. We need to ditch passwords and knowledge-based security measures. Passwordless authentication, based on the FIDO (Fast Identity Online) standard, replaces traditional passwords with cryptographic keys tied to a user’s account. Instead of memorizing passwords, users authenticate with biometrics or hardware-backed credentials provided by their devices. These passkeys are protected by operating systems, browsers, and password managers, cutting down the risk of phishing attacks and credential theft. While this isn’t a brand-new idea, passwordless authentication is taking time to catch on due to perceived complexity. However, the FIDO Alliance just announced resources aimed at accelerating the use of passkeys, making them more user-friendly. Their proposed specifications help organizations smoothly transition passkeys and credentials across providers, offering more flexibility and removing vendor lock-in.
Digital credentials are another way to lighten the security load on users. While passwordless authentication secures access to resources, digital credentials, or verifiable credentials, allow sharing of private data without unnecessary risk. For instance, a digital driver’s license can verify a user’s age without revealing sensitive information like their home address or actual birthday. Likewise, digital pay stubs can confirm salary requirements without exposing the figure itself. This technology empowers users to choose what information they share and with whom.
Moving towards passwordless and digital credentials isn’t just about countering current threats; it’s about preparing for future challenges.
AI is already changing the game. Attackers use generative AI to craft phishing campaigns that can rival human-generated ones, automate social engineering, and slip past traditional security measures. Passwordless authentication tackles one of the biggest attack vectors by eliminating phishable credentials, making it harder for AI-driven attacks to succeed.
As agentic AI takes on more roles within enterprises, identity security must keep up. Digital credentials can authenticate non-human identities with the same cryptographic security used for human users, ensuring that AI agents interacting with corporate systems are legitimate and authorized.
Organizations need to start prepping for what’s to come. While passwordless and digital credentials aren’t the only solutions to combat the rise in identity attacks, adopting these technologies can modernize a faltering model. By lessening the security burden on users and enhancing the overall experience, IAM can reclaim its role as a gatekeeper.