Stop the Leak: Why Passwords Are Your Perimeter’s Biggest Liability

Stop the Leak: Why Passwords Are Your Perimeter’s Biggest Liability

The renewed focus on passwordless authentication is more than just hype; it directly addresses the two major failures of passwords as a security measure: high vulnerability and high friction.

Passwords are the single greatest vulnerability in the digital network perimeter, constantly susceptible to phishing, credential stuffing (due to reuse), and malware, leading to the majority of data breaches. According to the Verizon 2024 Data Breach Investigations Report, data breaches as a result of hacking web applications via stolen credentials (include passwords) tops the list at 77%, followed by hacking passwords by brute force at 21%.

Operationally, they generate massive costs through help desk resets. In terms of experience, passwords drive away legitimate consumers due to password fatigue and complicated login processes. According to Akamai’s 2025 Digital Banking Performance Metrics report, digital applications for banking products have an abandonment rate of 67%.

Passwordless methods solve both issues simultaneously, offering superior, phishing-resistant security while delivering a seamless, effortless experience that is essential for modern digital trust and high conversion rates. It’s no wonder enterprises are moving away from passwords to prove identity and authenticity.

The Next Era of Trust: Smart Authentication for the Digital Age

With this reality in mind, Zumigo designs our identity verification and authentication solutions to be passwordless by design, ensuring seamless first-time and returning sign-ups. This approach prevents redundant password entry while dramatically enhancing account security.

The Zumigo solution comprises a suite of authentication methods leveraging real-time, authoritative identity intelligence. These methods can be used together, individually, or as a complement to existing authentication solutions:

1. Silent Network Authentication (SNA)

SNA verifies that the consumer has possession and ownership of their mobile device as the first step in establishing trust. When a consumer initiates an action requiring authentication (like a first-time sign-up), their mobile number is provided or extracted to validate the active cellular session against the associated records with the Mobile Network Operator (MNO). This confirms that the device attempting the action is linked to the claimed phone number on the carrier network. SNA can also be used to silently confirm that a person calling a customer service specialist is indeed calling from the phone number registered on the account.

2. SIM-Based Authentication (SBA)

Set to be rolled out by MNOs over the next year, SIM-Based Authentication (SBA) leverages the inherent cryptographic security of the Subscriber Identity Module (SIM) to verify that the mobile number and device belong to the consumer during a session. SBA addresses distinct security gaps in:

• OTPs: It avoids interception and bypass via phishing and SIM-swap attacks.
• SNA: It does not require Wi-Fi to be disabled thus improving consumer experience.

SBA works across both Android and iOS platforms, requiring consumer consent to initiate the background authentication process. Zumigo will roll out SBA via a phased approach starting in Q4 of 2025.

3. FIDO-Based Passkeys

Passkeys can be installed on the mobile device after authenticating that the device is under the control of the owner. The Zumigo SDK generates an asymmetric cryptographic key pair (public and private keys). The private key is stored securely within the device’s hardware secure enclave, while the public key is registered on the server. For future logins, the private key signs an authentication challenge, which the server verifies with the corresponding public key. For closed-loop security, these keys can be unenrolled automatically when device changes are detected (including porting, SIM swap, or de-activation).

4. Verified Device Trust Transfer

This feature allows the consumer to access web sessions on computers and tablets without a password. The consumer enters their username on the web interface, and the associated mobile number is sent to Zumigo for verification via SNA. Upon successful mobile identity verification, Zumigo generates a unique, time-sensitive QR code displayed on the computer screen. The consumer then scans the QR code with their authenticated mobile device (one containing the Zumigo SDK and private key) to sign the authentication request. Zumigo signals the web server to grant access, providing a secure, passwordless login for desktop users.

5. Social Log-in

For a simplified approach, consumers can sign in with their social media credentials from platforms like Google, Apple, or Facebook for faster, password-free access.

Passwordless is the New Standard: Don’t Get Left Behind

The move to passwordless authentication is no longer a matter of technological convenience; it is a fundamental shift required to secure the digital economy. By eliminating the password, businesses resolve the devastating duality of high security risk and high customer friction. Zumigo advocates a multi-layered approach that integrates verification and authentication on different aspects of a consumer’s digital identity, including mobile, email, payment, and other digital and personal information. This approach is built on real-time authoritative identity information and cryptographic security to reduce false negatives and/or positives, providing superior defense against phishing and credential stuffing, while simultaneously enabling a seamless, effortless consumer journey.

Ultimately, passwordless authentication is the key to minimizing operational costs, maximizing conversion rates, and building the resilient foundation of trust essential for all digital interactions.

Yu-Ting Huang is Sr. Director of Marketing at Zumigo. Comment or questions? Find her at on LinkedIn @yutinghuang.