Why B2C Auth is Fundamentally Broken

Introduction

In 2024, traditional B2C authentication methods are fundamentally flawed. Despite the widespread adoption of Multi-Factor Authentication (MFA) and password management solutions, security breaches remain rampant. This article explores why B2C authentication is broken and how innovative solutions like passkeys can revolutionize the landscape.

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The Challenges of Traditional B2C Authentication

1. The Ineffectiveness of Complex Passwords

Despite guidelines urging users to create strong, unique passwords, the reality is far from ideal. Users often resort to predictable patterns, making even complex passwords vulnerable to breaches. Storing passwords in browsers adds another layer of risk, as they are easily phished or stolen.

2. Password Managers: Addressing Symptoms, Not Causes

Password managers help, but they don’t solve the core problem. Many users still reuse weak passwords or ignore security warnings from these tools. Adoption rates are low, and even tech-savvy individuals can fall victim to social engineering attacks.

3. The Frustrations of MFA

While MFA is a crucial security measure, it is unpopular among users due to the additional steps required for authentication. This inconvenience leads to low adoption rates, with many users opting to stay logged in to avoid repeated MFA prompts.

4. The High Costs of MFA

Implementing MFA, especially via SMS OTP, is costly and complex. Recovery processes for lost or changed MFA settings are labor-intensive, driving up operational expenses. These costs can be prohibitive for many businesses, particularly smaller B2C companies.

5. Risk-Based Authentication: A Complicated Solution

Risk-based authentication attempts to balance security and user experience by applying additional measures only when necessary. However, this approach can result in false positives, degrading the user experience, and can be expensive to maintain.

The Promise of Passkeys

1. Simplifying the Authentication Process

Passkeys offer a simpler, more secure alternative to traditional passwords and MFA. They eliminate the need for passwords entirely, reducing the risk of phishing and data breaches. By leveraging hardware security modules in everyday devices, passkeys provide a seamless and secure user experience.

2. Enhancing Security Without Compromising UX

Passkeys fit the requirements of B2C environments perfectly. They enhance security without adding complexity or friction to the user experience. This makes them ideal for the vast number of B2C accounts that prioritize ease of use over stringent security measures.

3. Reducing Operational Costs

By eliminating the reliance on costly MFA methods, passkeys can significantly reduce operational expenses. Automated processes for passkey management minimize the need for manual recovery efforts, further cutting costs.

Conclusion

The flaws in traditional B2C authentication methods are clear. Complex passwords and MFA, while important, are not enough to secure consumer accounts effectively. Passkeys present a revolutionary solution, offering enhanced security and a better user experience at a lower cost.

To explore the full potential of passkeys and how they can transform your authentication processes, visit our full blog post.