Since the dawn of business, banking has been one of the services that have required the most security. Whether preventing physical cash from being robbed or ensuring that cheques are legitimate, banking relies on trust and security to facilitate financial transactions.
Now, in a digital age, where identity theft is an ongoing concern, the traditional password system is losing its luster, and more banks are turning to more advanced security systems like passkeys.
What Is A Passkey?
A traditional password is a single security point. If a user knows the required password and inputs it correctly, access is granted to a device or account. A passkey is a multifactor authentication system that uses more than one means of verification. Passkeys are password free, usually requiring a device such as a smartphone or a laptop to act as a primary interface and Bluetooth proxy when needed. This means that a user will first access their phone using different means, such as facial recognition, a fingerprint, voice recognition, PIN, or even a swipe pattern to validate their device.
Once this is done, the device then uses additional verification through a Bluetooth connection that sends a unique “public key” to the account associated with that device and matches it with a “private key.” This portion of the verification is done automatically, with no additional actions required from the user. Once the keys have confirmed validity, the user may now access the account from that device. If the user needs to use another device, the QR code is required to transfer verification processes to that new device instead of using the primary one.
The convenience and security of a passkey system is an effective alternative to traditional password systems. Groups like the Fast Identity Online or FIDO alliance have worked closely with major technology companies such as Apple and Google to integrate the standards and protocols for passkey systems and make multifactor authentication an easier and more secure means of securing data.
The use of more than one verification system, combined with password-free authentication systems like biometrics, means users no longer have to memorize long, difficult strings of random alphanumeric characters. Storing the biometric data on a device such as a phone or a laptop also ensures that the data itself remains private and the credentials can’t be stolen online. If you’re interested in passkey systems for agile, increased security integrating a more convenient password-free verification system using FIDO standards, read here to learn more.