Keyless Wins “Best of Show” at FinovateEurope 2025

 at FinovateEurope 2025 for our latest product demo that shows how users can 

 innovative banking and financial technology solutions 

shaping the future of the industries. During the conference, solution providers are invited to demo their products, with attendees voting for the most compelling and transformative technologies. 

 gave the demo, winning the Best of Show award for Keyless. This award recognizes how strong multi-factor biometric authentication can transform banking systems without compromising simplicity or privacy.

Revolutionizing Authentication in Three Simple Steps

Tobin began by enrolling on a device using his face. This can be done in seconds, instantly prove two authentication factors - a user’s face and their device - with a single glance. Proving two authentication factors is known as 

 and effectively confirms that the user authenticating is the same person that the user that enrolled.

Keyless enrollment also protects user privacy - a user’s biometric data is not stored anywhere - not on the device or the cloud.

Unlike Face ID, which locks a user into a single operating system, a user can enroll with Keyless through their banking app on an iPhone, and authenticate on an Android.

Step 2: Instant, Self-Service Account Recovery

Losing a phone can turn into a nightmare for users and a huge cost for businesses. Currently, banks rely on support centers / help desks, which are costly to maintain, SMS OTPs / text messages, which are easy to phish and therefore targeted by bad actors.

Instead, Tobin recovered his account in seconds on a new device by showing his face to the camera. Behind the scenes, his face was compared to the original face he presented when he enrolled.

While he had to use two devices with the same operating systems due to Finovate’s AV specifications, Tobin could have used an Android for enrollment and an iPhone for authentication.

Step 3: Frictionless Step-Up Authentication

In the final part, Tobin demonstrated how Keyless can protect payments and high-value transactions.

He attempted to send a large amount of money from one device to another, which again triggered an authentication attempt. 

As with account recovery, banks tend to protect payments with an SMS OTP or a local biometric check such as FaceID. 

While FaceID is convenient, many banks have no way of verifying the the original face behind the FaceID has been changed. And those that do often protect this change with an SMS OTP check, rendering it ineffective and insecure.

Payments are also required to meet PSD2 and PSD3 compliance, which mandate the use of Strong Customer Authentication (SCA). Keyless authenticates a user’s device and face simultaneously, meeting this compliance requirement.

At the end of the session, Tobin summarized why Keyless is redefining authentication for financial institutions:

 - Unlike passwords, SMS one-time passwords, or even Face ID, Keyless provides genuine identity assurance by authenticating two factors simultaneously, and uses passive liveness to make sure that the face infront of a camera is real and not a deepfake.

 - By eliminating password resets and other manual processes, Keyless significantly reduces helpdesk costs, allowing businesses to scale authentication without increasing the support overhead. 

He adds that authentication also happens in under 300 milliseconds, making it faster than typing in a password or receiving a one-time password, which results in a frictionless experience that improves retention and satisfaction.

 - Keyless takes a fundamentally different approach to biometrics. Unlike traditional solutions that store sensitive data in centralized databases or on-device, Keyless never stores biometric data anywhere. This ensures full compliance with GDPR, PSD2, and upcoming PSD3 regulations, eliminating data breach risks.

Winning “Best of Show” at FinovateEurope is a proud moment for Keyless, reinforcing our mission to eliminate passwords, stop fraud, and revolutionize authentication with privacy-preserving biometrics.

The Keyless Demo has been awarded "Best of Show" at FinovateEurope 2025. Watch our Product Director Tobin give the demo and showcase how privacy-preserving biometrics are changing the authentication industry.

Digital Identity Verification: Complete Guide 2025

Identity verification is essential for tasks like opening a bank account or checking in for a flight. While this used to be done manually, for years now, the process is conducted digitally—think scanning an ID card or other documents when creating an account.

Digital identity verification, as we know it today, has existed for over two decades and has been evolving. One of the recent studies shows that 

the number of digital identity verification checks surpassed 70 billion in 2024

. The move to using digital verification methods has significantly improved the speed and efficiency with which organizations, especially those in security-sensitive sectors like finance, onboard new customers and authenticate existing ones. 

In today’s guide, we will walk you through everything you need to know about digital identity verification. Our aim with this article is to help the different stakeholders, including users and businesses, understand the process of digital identity verification. We will also cover the different types of verifications, their benefits, and the challenges they present. Let’s start this discussion with the basics of digital identity verification.

Understanding Digital Identity Verification

Digital identity verification is primarily a remote method for collecting personal information that is used to identify and verify an individual trying to access a given service online. It is the digital alternative to real-world identity verification, allowing users to interact securely with online platforms and services. 

Some of the common types of digital identities that can be used for verification include the following: 

Common use cases of how digital identity verification is used in everyday life include:

Key benefits of having a digital identity include:

There are several methods used in digital verification, but the common ones include: 

Begin by securely gathering personal information and necessary documents from the user. Data collected at this stage can include names, dates of birth, and ID document information. Ensure to use encrypted platforms or secure web portals when collecting data to prevent data breaches.

Step 2: Cross-check Details Against Trusted Sources

After collecting the data, it is validated against reliable sources to ensure authenticity. For example, an uploaded ID can be checked against government records. In some cases, biometric data like a selfie can be matched with a photo on the uploaded ID document. This step eliminates any discrepancies or fraudulent submissions.

Step 3: Ensure Real-time Processing to Minimize Delays

Modern digital identity verification systems are designed for fast, automated checks. Real-time processing ensures users don’t have to wait long for approval. This has been made possible with AI tools that can instantly scan and verify IDs or perform facial recognition within seconds.

Some common use cases of digital identity verification in the finance sector include: 

Challenges in Digital Identity Verification

Despite its many benefits, the implementation of digital identity verification also comes with several challenges. The major ones include:

What to Look for in a Digital Identity Verification Service

When choosing a digital verification service, some of the factors that organizations must consider include the following: 

Best Practices for Digital Identity Verification

These are some of the best practices that businesses must follow when using digital identity verification solutions. 

Digital verification is vital in enhancing security, preventing fraud, and improving the user experience across various industries. Businesses must take the lead in adopting scalable, compliant, and innovative digital identity verification solutions to stay ahead of threats and meet evolving regulatory requirements. 

Identity verification is crucial for tasks like opening a bank account or boarding a flight. Once manual, this process has long been digital, involving ID scans and document uploads for account creation.

Digital identity login

The Role of Customer Due Diligence in Preventing Fraud and Cybercrime

Cyberattacks targeting financial institutions like banks surged in 2023, with a record 3,348 incidents reported worldwide (

). This represents an 84% increase compared to 2022. With the increase in attacks targeting financial institutions, it is obvious that players in this sector need to implement strategies to strengthen their cybersecurity, as the cost of recovering from such attacks is higher than ever.

often use to protect against cyberattacks is customer due diligence. The process of customer due diligence ensures that every new customer brought on board meets the minimum requirements set by the bank and regulatory authorities. If you want to learn more about how this works in the banking sector, keep reading.

Customer Due Diligence is a process that financial institutions implement to verify the identity of their clients and assess the potential risks associated with doing business with them. Some of the major processes involved include collecting, verifying, and analyzing information about clients to ensure they meet their requirements. One of the common requirements is compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.

CDD in the banking sector is very crucial for the following reasons: 

Banks implement CDD to ensure they meet legal requirements to know their customers, which is crucial for preventing illegal activity. Most regions have Know Your Customer (KYC) regulations that require these institutions to verify customer identities, a critical step to confirm that each new user is who they claim to be. 

Banks are also required to meet the requirements of Anti-Money Laundering (AML) regulations that are designed to detect and block money laundering and terrorist financing. CDD serves as a primary defense for complying with such regulations. At the end of the day, operating under these regulations allows financial institutions to avoid the risk of substantial penalties for non-compliance. 

By identifying and managing risk, CDD helps protect financial institutions from potential threats that could disrupt their operations. Through CDD, banks can identify high-risk customers who may be involved in illicit activities like fraud or terrorist financing, allowing them to take precautionary steps. 

CDD also enables institutions to assess and profile risk by analyzing customer information, so they can focus monitoring efforts on those who pose higher risks. The goal of these procedures is to prevent fraud by ensuring that only verified, legitimate customers are allowed to conduct business with the bank. 

Effective CDD demonstrates the bank’s commitment to ethical practices and compliance, which strengthens public trust and confidence. Furthermore, by proactively managing risks, institutions can avoid the negative publicity associated with financial crimes that could otherwise damage their brand and customer relationships. In this way, CDD helps institutions protect their reputation and maintain strong, positive connections with clients and other stakeholders. 

Conducting CDD gives banks valuable information about their customer base, which can inform strategic decision-making. For instance, understanding customer risk profiles allows banks to identify market segments or clients that align with their risk tolerance and compliance requirements. In the long run, this allows them to target the right customers, and manage resources effectively.

Reducing Insurance and Operational Costs: 

Banks and financial institutions with strong CDD programs can often reduce their insurance and other operational costs. By minimizing the risk of financial crime, institutions can lower the risk of losses, which may, in turn, lead to lower insurance premiums. Also, minimizing exposure to fraud and compliance failures results in fewer resources spent on remediation efforts, investigations, and legal battles, which ultimately lowers operating costs in the long term.

Conducting CDD allows banks to understand their customers better. The information gathered during this process enables financial institutions to provide personalized services, enhance customer satisfaction, and build loyalty. It is also important to note that when clients see that an institution values security and compliance, they may feel more secure and confident in continuing their relationship with that institution. 

What Does the Typical CDD Process Look Like?

The CDD process involves four key steps: customer identification, assessing customer due diligence requirements, risk assessment, and ongoing monitoring and screening. Let’s explain each of these steps in detail:

This is the very start step of the CDD process and it mainly involves verifying the customer’s identity. Banks require valid identification documents, such as government-issued IDs, to confirm a customer's identity. Most banks have also adopted biometric verification methods and electronic identity verification to make the process more secure, reliable, and efficient. These technologies reduce the likelihood of fraud by ensuring that customers are who they claim to be. 

Once the identity is confirmed, specific information is gathered to understand the customer’s financial background. Such information includes personal details (like name, address, and date of birth), information about the source of the customer’s funds and overall wealth, and the intended purpose for creating the bank account. These details help financial institutions understand the nature of the customer’s financial activities to ensure they align with regulatory requirements.

Assessing each customer’s risk profile is a key step in the CDD process. Proper risk assessment allows institutions to determine the level of risk the customer may pose to the organization. Factors considered when assessing risk include the customer’s occupation, geographical location, and typical transaction patterns. 

When put together, these factors indicate how likely the customer is to engage in high-risk activities like money laundering. Customers in certain high-risk industries or from high-risk locations may warrant additional scrutiny before being onboarded. By accurately assessing risk profiles, institutions can tailor their monitoring efforts, allocating more resources to customers with higher risk ratings.

CDD doesn’t end with onboarding; it requires continuous monitoring to catch any suspicious activity. This step involves using transaction monitoring systems such as Actimize by NICE to analyze customer transactions in real time. These systems automatically flag unusual patterns that may indicate potential fraud or illegal activities. 

Additionally, banks also do watchlist screening to check customer details against databases of known or suspected criminals. This step is critical for staying compliant with anti-money laundering and anti-terrorism regulations. By actively monitoring and screening customers, institutions can quickly respond to red flags. 

There are three main types of CDD and these include: 

Simplified Due Diligence is the least intensive level of customer due diligence, used for customers who pose a low risk to the bank. This type involves verifying basic identity information without detailed background checks. Using this type of CDD allows banks to onboard low-risk clients efficiently while still monitoring them to ensure they remain low-risk.

Standard Due Diligence applies to moderate-risk customers. This type involves collecting essential information such as personal ID and financial details to confirm identity and assess for any red flags. Using this approach helps banks meet regulatory requirements while understanding the customer’s general banking intentions and expected activities.

Enhanced Due Diligence is used for high-risk customers. It involves a deeper verification process that includes gathering additional information such as the source of funds and wealth history and examines business activities more closely. Some examples of the high customers that may require implementation of this type of CDD include politically exposed persons (PEPs) and customers from high-risk areas. 

Some of the red flags banks need to look out for when implementing CDD include: 

Keyless offers a comprehensive solution to streamline the CDD process, including:

Identity verification is a crucial step in CDD, and Keyless’s solution can verify customer identities in real time, reducing processing time and enhancing the customer experience. With technologies like 

, Keyless ensures that the sign-in process for verified users is both seamless and secure.

 capabilities strengthen security and reduce the risk of identity theft. Unlike most solutions, Keyless’s facial recognition technology includes advanced features such as liveness detection and robust encryption, minimizing facial spoofing attacks while protecting user privacy.

With the increasing number of cyberattacks targeting banks, Customer Due Diligence has become a critical component of risk management. By effectively implementing CDD practices, banks can mitigate the risks associated with financial crime, protect their reputation, and comply with regulatory obligations. Fortunately, advanced technologies, such as Keyless’ robust biometric verification and AI-powered solutions, have made it much easier to implement CDD processes. 

What is the difference between CDD and KYC?

KYC (Know Your Customer) is a part of CDD that focuses specifically on identifying and verifying a customer's identity. CDD is a broader process that includes KYC, but also involves other process such as assessing the customer’s risk profile, monitoring their activities, and more. 

The frequency of CDD depends on the customer's risk level and regulatory requirements. Low-risk customers may only require periodic reviews, while high-risk customers, such as those in certain industries or regions, may need more frequent monitoring. 

The costs of CDD can vary based on factors like the complexity of the process, the size of the financial institution, and the technology used. These costs typically include personnel expenses for compliance staff, technology investments in CDD software, and fees for third-party services like identity verification and background checks.

To find out how Keyless can help your organization prevent ATOs, improve UX, and protect your bottom line, schedule a 

Explore the critical role of CDD in modern banking, including its importance in compliance, risk management, and customer onboarding. 

What Does Customer Due Diligence Mean for Banks

How Spoofing Works and Why It’s a Growing Threat to Organizations

Strengthening an organization's security requires all the major stakeholders to be familiar with the common techniques attackers use. Spoofing is one of the techniques that attackers commonly use to tempt their target into sharing sensitive information. A recent study revealed that over 

84% of organizations faced at least one phishing attempt in 2022

, a 15% increase from the previous year, with most attacks using spoofing techniques to target victims.

To help protect organizations from these attacks, this article will explore everything you need to know about spoofing, including the common types, how it relates to phishing, and how you can prevent it using various solutions. Let’s start with the basics of spoofing to ensure we are all up to speed.

What is Spoofing? Definition and What Does It Mean

In simple terms, spoofing refers to the act of impersonating another individual or system to compromise targets into sharing the information needed by attackers. This fraudulent tactic has been around for more than two decades and is used by attackers to manipulate identity verification processes, often leading to unauthorized access to sensitive information of the victims. Such information can include login credentials to online accounts, credit card information, and more. 

To successfully execute a spoofing attack, hackers masquerade as a trusted source to trick victims into revealing personal details, clicking on malicious links, or downloading harmful software. This is usually done using several channels, including email, SMS, phone calls, and more. Understanding spoofing is crucial for implementing effective security protocols, especially in industries such as banking and finance, which have become major targets in the last couple of years. 

What is the Difference Between Phishing and Spoofing?

Phishing and spoofing are closely related tactics used by cybercriminals, but they have distinct differences. Phishing specifically involves fraudulent attempts to acquire sensitive information by masquerading as a trustworthy entity, often through emails or messages designed to lure victims into revealing personal data. 

On the other hand, spoofing includes a broader range of deceptive techniques, including the manipulation of caller ID, email headers, or IP addresses to impersonate legitimate sources. While phishing often uses spoofing methods to increase its effectiveness, not all spoofing is related to phishing. 

There are several types of spoofing, each using different methods based on what the attacker believes will be most effective for their targeted victims. Let’s explore the nine common types of spoofing that most organizations face. 

IP address spoofing is when an attacker changes the IP address to make it seem like their computer is trusted. This tricks other computers or networks into thinking the data comes from a safe source, allowing the attacker to gain access or avoid detection. Attackers use this technique to avoid being blocked by security systems that may have already blacklisted their IP addresses. 

This lets attackers get around security checks and launch denial-of-service attacks. A denial-of-service attack (DoS) floods a system with too much traffic, making it slow or unusable for real users. The first line of defense that most security tools use to deal with attacks like phishing is to blacklist the IP addresses that are known to be from malicious attackers. So, attackers use IP address spoofing to bypass such measures. 

MAC address spoofing is when the attacker changes the unique ID (called a MAC address) assigned to a device's network connection. This technique allows attackers to bypass security measures that rely on MAC address filtering, such as those used in corporate networks. For example, an attacker can alter their device's MAC address to mimic the MAC address of one of the devices on the internal network, potentially leading to unauthorized access and stealing sensitive information.

This type of spoofing occurs when an attacker corrupts the Domain Name System (DNS) cache of a device or server to redirect users to fraudulent websites instead of the legitimate ones they intended to visit. The goal of DNS spoofing is to make victims think they have accessed a legitimate website and then share their sensitive information, such as login information, when trying to create an account or payment information if the site involves some sort of payment. 

Email spoofing is a common technique where attackers send emails that appear to originate from a legitimate source but are, in fact, fraudulent. This method is commonly used in phishing attacks, where attackers try to deceive recipients into revealing sensitive information or clicking on malicious links. Real-world examples of email spoofing in banking include instances where customers receive emails that appear to be from their bank, prompting them to update their passwords or verify their accounts through fake links. 

SMS spoofing involves attackers sending text messages that appear to come from a legitimate source, such as a bank or financial institution. These messages often contain links or prompts that trick recipients into revealing personal information or downloading malicious software, which attackers can later use to steal data or even take control of the device. It is important to note that most companies in the banking sector still use SMS to update their users, so attackers exploit this to carry out spoofing attacks.

With this type of spoofing, attackers use sophisticated tools to manipulate the caller ID information transmitted to the recipient's phone, making it appear as though the call is coming from a trusted source. Once the victim is deceived, they may easily share sensitive information over the phone, such as banking details or personal identification numbers. Attackers often gather enough information about their victims to make the conversation seem more convincing.

Identity document spoofing is a tactic used by attackers to create counterfeit identification documents that appear authentic. This process often involves using advanced printing techniques and software to replicate the look of legitimate documents, such as driver's licenses or passports. Attackers may obtain personal information about their targets through social engineering or data breaches, allowing them to forge highly convincing documents. Attackers may then use these spoofed IDs to bypass identity verification processes at banks or financial institutions, allowing them to commit fraud, open accounts, or access sensitive information.

With this technique, attackers use high-quality photos, videos, or 3D masks of their victims to trick facial recognition systems into believing they are legitimate users. For example, an attacker might use a 3D mask that mimics their target’s face in front of a camera used for 

, hoping to gain access to secure systems or accounts. This can compromise security, especially in sectors like banking, where some organizations still use facial recognition systems that lack advanced features like liveness detection.

Voice biometrics spoofing involves techniques that attackers use to mimic a person's voice to bypass voice recognition systems. Attackers can execute these attacks by recording the target's voice and using audio manipulation software to recreate it or generating synthetic voice patterns using advanced algorithms. These spoofing tactics can pose significant challenges to maintaining security with voice recognition systems, particularly in financial institutions where voice biometrics may be used for customer authentication. 

Organizations can detect and avoid spoofing by implementing the following strategies:

Preventing spoofing requires organizations to adopt best practices that focus on strengthening their security frameworks, such as: 

We hope this article has helped you understand the basics of spoofing and how organizations can 

 to detect and prevent it. Recognizing the different types of spoofing is crucial for effectively combating these attacks. With this knowledge, organizations can adopt the appropriate strategies to address potential threats. For example, organizations that rely heavily on email communication should implement strict measures to ensure only legitimate emails reach their team’s mailboxes. Similarly, those using facial recognition for authentication should choose systems that incorporate liveness detection to prevent facial biometrics spoofing attacks.

Learn about spoofing techniques, including phishing and biometrics spoofing. Discover strategies like MFA and liveness detection to detect and prevent these evolving cyber threats.

What is Spoofing? Definition, Types, and Key Insights

Why Banks and Fintechs Are Moving Beyond One-Time Passcodes

Since the 2000s, One-Time Passcode (OTP) authentication has been a popular method for verifying online transactions in the banking, finance, and fintech industries. By generating a unique code for each transaction or login attempt, OTPs add an extra layer of security (usually in the form of two-factor authentication or 2FA) beyond traditional passwords. Another reason for the popularity of OTP was its convenience for users. 

However, as cyberattacks become more sophisticated, OTP authentication—particularly when delivered via SMS is becoming increasingly vulnerable to threats like SIM swapping. Recent data shows that SIM-swapping complaints to the 

 have doubled, increasing from 275 in 2020 to 550 in 2023. These growing risks raise concerns about the reliability of OTPs as a secure authentication method, especially in sensitive sectors like finance and banking. 

In today’s article, we will discuss the security vulnerabilities of OTPs. We will also explore why alternative authentication methods like biometric verification are a more secure solution for protecting sensitive transactions. Let’s kick things off with the basics of one-time passwords to ensure everyone is up to speed. 

OTP (One-Time Passcode) authentication is a security method used to verify a user's identity during online transactions. OTPs are typically used in combination with another authentication method like a password, making it a form of two-factor authentication (2FA). Unlike traditional passwords which remain the same until changed, an OTP is a unique code that is generated for a single use. 

To generate an OTP, a secure algorithm is used to create a random string of characters that are hard to guess. This code is then sent to the user through a delivery method such as SMS, email, or a dedicated app. Once the user enters this code, it becomes invalid and cannot be reused for future verification. These passcodes also have a time limit within which they can be used after which they become invalid—a feature that was introduced to further enhance their security. 

There are different ways OTPs can be delivered to users, each with its own advantages and limitations. Let’s explore some of the common methods used in the banking/finance industries:

Despite their popularity, one-time passcodes are associated with many risks, especially when delivered via SMS and email. Let’s explore the common risks associated with OTP authentication.

The Limitations of SMS-Based OTPs in Banking

SMS-based OTPs, though widely used in banking and fintech, come with significant limitations that reduce their effectiveness in securing financial transactions.

Due to security risks surrounding OTP authentication and other limitations like the high costs, efforts have been put in place over the years to come up with better alternatives. Two of the most promising alternatives are biometric verification and 

Biometric Verification with Liveness Detection

Biometric authentication uses unique human characteristics like fingerprints, facial recognition, voice patterns, or iris recognition to verify a user's identity. These methods offer higher security because they are based on traits that are unique to each individual and difficult to replicate. It has been proven that even twins have some differences in the physical structure of fingerprints, faces, or irises. Unlike OTPs, which can be intercepted or stolen, biometric data is much harder for attackers to compromise.

methods like facial recognition is that attackers can attempt to spoof biometrics using photos, videos, or voice recordings of legitimate users. This is where liveness detection comes into play. Liveness detection ensures that the biometric input is coming from a real person who is physically present at the time of authentication. Biometrics with liveness detection can be an effective and secure authentication method that can be used alone or in combination with passwords for 2FA. 

Passwordless authentication is an emerging security technique that allows users to verify their identity without the need for traditional passwords or OTPs. In a passwordless system, users authenticate themselves through methods such as biometrics, security keys, or links sent to trusted devices or apps. This eliminates the need to remember or manage passwords, which reduces risks like phishing attacks that are associated with passwords and OTPs. 

The Future of Secure Authentication in Banking

With the increasing threats associated with passwords and one-time passcodes, it’s clear that financial institutions need to adopt more advanced authentication techniques. Banks and fintech companies should consider moving from OTPs and passwords to adopt advanced authentication solutions like biometric verification and other passwordless authentication methods for both primary and multi-factor authentication (MFA). 

Multi-factor authentication, which requires users to provide two or more verification factors, offers a higher level of security. MFA can be used with adaptive intelligence—where authentication methods adjust based on user behavior, device information, or risk level. 

Players in the banking and fintech sectors can also adopt biometric verification with liveness detection. This method provides a robust defense against many of the current vulnerabilities faced by OTPs. The good news is that most of the modern consumer devices support fingerprint scanning and have advanced cameras that can be effective for facial recognition with liveliness. 

However, it is also crucial for different players to consider privacy and security concerns with biometrics in the event that attackers gain access to a user’s biometric data that is stored on servers. That’s where more advanced methods like 

 technology come in. With this technology, users can access their accounts using facial recognition but without having their data stored anywhere on the internet. 

One-Time Passcodes (OTPs) were once a popular and convenient method for securing online transactions. However, as cyberattacks have become more sophisticated, their vulnerabilities have become increasingly evident, particularly when delivered via SMS. Threats like SIM swapping and SS7 protocol attacks have made OTPs less reliable, especially for companies in sensitive sectors like finance and banking.

To address these risks, financial institutions should consider alternatives like biometric verification with liveness detection and passwordless authentication. These methods offer stronger security, improved user experience, and reduced costs compared to OTPs. By adopting advanced authentication techniques, banks and fintech companies can better protect their customer's sensitive information and stay ahead of evolving cyber threats.

Explore vulnerabilities like SIM swapping and phishing, and discover safer alternatives such as biometrics and passwordless authentication.

Understanding the Risks of One-Time Passcode (OTP) Authentication

Breaking Down Passwordless Authentication: Methods, Benefits, and Challenges

Verizon's 2023 Data Breach Investigations Report

, over 80% of data breaches are caused by weak or compromised passwords. This risk is even greater in industries like 

, which are frequent targets of cyberattacks. 

That's where passwordless authentication comes in. Several studies have proved that businesses using passwordless solutions can significantly reduce authentication-related breaches while also enhancing user experience. If you want to learn more about passwordless authentication and how it works, you're in the right place. By the end of this article, you will understand how passwordless authentication works and why it is the best solution for protecting your business's digital assets.

Passwordless authentication is a security method that allows users to access their online accounts and other digital assets without using traditional passwords. With passwordless authentication, users validate their identity through other methods such as using their fingerprints, facial recognition, and security keys. Passwordless authentication is considered more secure because it eliminates most of the knowledge-based risks associated with traditional passwords. 

How Does Passwordless Authentication Work?

 factors to verify a user's identity without requiring them to recall or input a password.

However, it doesn’t mean that knowledge factors can’t be used. Most organizations will still use a password or PIN as the first authentication factor, but then use a second, passwordless factor as an added security layer. This is known as multi-factor authentication (MFA).

Benefits of Passwordless Authentication 

Some of the benefits for the adoption of passwordless authentication solutions include: 

Challenges of Passwordless Authentication

Passwordless authentication can be implemented in various ways depending on the hardware options available to the target users. Let’s explore some of the popular types of passwordless authentication, along with their pros and cons.

Possession factors are authentication methods that rely on something the user physically has. Common examples include: 

Biometric authentication uses unique physical characteristics of the user to verify identity. Common forms include fingerprint, face, and iris recognition. These methods leverage the uniqueness of individuals to provide a high level of security. Let’s explore how each of these methods works. 

As discussed throughout this article, traditional passwords are becoming increasingly vulnerable to modern cyber threats. For this reason, passwordless authentication solutions have emerged as a powerful solution. Passwordless authentication eliminates the reliance on easily compromised passwords, providing enhanced security, improved user experience, and reduced costs for businesses. But just like another new technology, passwordless authentication solutions present challenges like adoption barriers and potential user privacy risks. However, their overall benefits significantly outweigh the drawbacks. 

Keyless are solving some of cybersecurity’s most complex challenges: 

Explore how passwordless authentication works and why it's the future of secure logins. This guide covers its benefits, types, and challenges, helping you protect your business from modern cyber threats.

Thank you for your submission

Thank you for your submission

All the resources you need to support you on your journey to zero trust

Keyless Wins “Best of Show” at FinovateEurope 2025

Digital Identity Verification: Complete Guide 2025

What Does Customer Due Diligence Mean for Banks

What is Spoofing? Definition, Types, and Key Insights

Understanding the Risks of One-Time Passcode (OTP) Authentication

How Passwordless Authentication Works: A Complete Guide

Passwordless is Just the Beginning.
The Future is Keyless.

Thank you for your submission

Thank you for your submission

All the resources you need to support you on your journey to zero trust

Keyless Wins “Best of Show” at FinovateEurope 2025

Digital Identity Verification: Complete Guide 2025

What Does Customer Due Diligence Mean for Banks

What is Spoofing? Definition, Types, and Key Insights

Understanding the Risks of One-Time Passcode (OTP) Authentication

How Passwordless Authentication Works: A Complete Guide

Passwordless is Just the Beginning.The Future is Keyless.

Passwordless is Just the Beginning.
The Future is Keyless.