Password Manager vs. Passkey Security: Which Offers Better Security?

Smooth navigation through the digital landscape involves dealing with enormous amounts of data, and managing such vast volumes of data digitally makes them vulnerable to cyber threats. Reports have shown that over 16 billion passwords leaked in a massive data breach across 30 databases, impacting major platforms like Facebook, Google, Apple, and government agencies. This exposure highlighted the importance of having a robust defense mechanism against such drastic cyberattacks.

Today, many people and organizations are switching from password-protected security to passkey security. In this article, we will explore how each approach works, weigh their strengths and weaknesses, and see which one truly stands guard against modern threats. But, before that, let us take a glance at the biggest data breach that shook billions.

The Biggest Data Breach Ever

Researchers confirmed an unbelievable exposure of 16 billion login credentials, including passwords, a work of multiple information stealers. The exposed dataset comprised previously leaked login credentials with recent information extracted from devices through infostealer malware. 

Password leaking leads to account compromise, and account compromise leads to the compromise of everything crucial to you in this tech-driven world. If cybercriminals access someone’s login credentials, they can steal identities, hack social media accounts, launch phishing attacks from a personal email account, and cause severe financial loss as well. It’s why Google is urging billions of users to replace their passwords with passkeys, which are much more secure compared to passwords. Stolen passwords are being sold on the dark web in exchange for a small amount of cash. Vilius Petkauskas at Cybernews has said, “30 exposed datasets containing from tens of millions to over 3.5 billion records each.”

Followed by this incident, the effectiveness of passwords in combating cyberattacks is coming under scrutiny, encouraging people to replace passwords with passkeys. Let’s understand password manager and passkey security, their limitations, and their effectiveness in securing user accounts online. 

What is Password Manager? How Does it Work?

A password manager is a software program that securely stores login information, including usernames and passwords, and autofills this information on websites and applications. Acting as a digital vault, it helps users create and manage strong and unique passwords for their accounts with a single password. Below are the features of a password manager-

• Offers ‘Secure Storage’ by encrypting and storing user credentials in a digital vault securely.

• Allows to creation of long, unique, and complex passwords for individual online accounts.

• It provides ‘Autofill’ convenience, as it can automatically fill in login details on apps and websites, saving users from memorizing and typing them each time they log in to their accounts.

• Gives the benefit of a ‘Single Master Password.’ Users only need to remember one strong master password to access the entire password vault. 

Pros and Cons of Using Password Managers

Though all password managers are not the same, we have listed a few general benefits of using a password manager.

1. Free From the Hassle of Resetting Passwords

Resetting passwords is time-consuming. However, with a password manager, users are no longer bothered to reset their passwords.  

2. Single-Sign On (SSO) and Multi-factor Authentication (MFA)

SSO offers a seamless login experience for users. It can also manage credentials well, with fewer login portals, fewer passwords, and fewer apps to handle. Additionally, MFA requires users to submit additional verification when they login. This extra layer of security prevents malicious activities to a certain extent.  

3. Easy Administration of Credentials

The right password manager lets users view, manage, and access end users' passwords through a single portal.

4. Reduced Risk

The unique and complex passwords of individuals reduce the risk of data breaches, ensuring password hygiene.

The Cons of Using Password Managers

A password management tool has its own set of challenges. The following are some of the drawbacks associated with this tool-

1. One Point of Failure

The master password is extremely crucial, and it has one point of failure. If any user loses their master password, they could lose access to all of their passwords at once. 

2. Requires Support of Devices and Browsers

Different password management tools support different devices and software, and it is important to choose a password manager that suits one’s needs. 

3. Gives a False Sense of Security

Many security solutions give a false sense of security. As such, the users do not feel the need to scrutinize their habits. For instance, users may stop practicing phishing awareness, thinking that their accounts are protected. While password managers are beneficial, they still require the need for other cybersecurity measures.

4. Some Tools Fail to Support All Websites

Some password managers do not support all websites. Thus, end users must choose them carefully according to their requirements.

5. Poor Protection

They can be a security threat if they do not encrypt their data. Cyberattackers know that compromising a password manager is like getting access to a chamber full of wealth. 

Exploring Passkey Security

Think of passkeys as a modern digital lock opener: they use two unique cryptographic keys, one registered with the website or app and the other kept safe on your device. To unlock your account, these two keys must come together. The biometric authentication tools on one’s device empower passkeys. For example, with fingerprint scanners or face ID, one can pair the two keys, eliminating the need for passwords or other authentication factors. Passkeys can significantly boost security by reducing the risk of password theft. 

Advantages and Disadvantages of Using a Passkey

Difference Between Password and Passkeys

When it comes to password manager vs. passkey security, many prefer using passkeys over passwords. Despite the familiarity associated with passwords, they impose a range of security risks on the users’ accounts. Passwords can be easily forgotten, guessed, or stolen through phishing attacks. On the other hand, passkeys use biometric authentication to add an extra layer of security, which passwords lack. As passkeys use public key cryptography and the private key remains secure in one’s device, it is comparatively beneficial to use them for robust security.

As The Silicon Journal aims to empower readers with all the happenings of the digital world, it features well-researched articles and blogs on countless topics associated with the modern-day world, specifically the business world.