It’s safe to say that data breaches and cyber attacks have become commonplace. In fact, 9 out of 10 IT leaders say cyber attacks are occurring more frequently today than in 2023. And the overwhelming majority (86%) of data breaches happened because of compromised user credentials.
One of the ways to enhance security and block unauthorized access to sensitive data and systems is user authentication. Just like a bouncer at the door of a nightclub, authentication makes sure users are who they claim to be, protecting access to data and systems. This article explores both traditional and advanced user authentication methods, providing insights for businesses and individuals looking to strengthen their cybersecurity strategies.
The Importance of Authentication
Authentication is the process of verifying a person’s or entity’s identity and determining who gains access to an organization’s resources. Serving as the first line of defense against unauthorized entry, strong authentication is essential to protect sensitive information and prevent breaches to sites and platforms. It also helps organizations meet data protection regulations and maintain user trust by keeping accounts secure.
Authentication methods are diverse, each using different techniques to verify the identity of a user or a device. Often viewed as an annoying nuisance, authentication is very important for data security. It prevents fraud, supports Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance, and, of course, protects against costly data breaches.
In 2024, data breaches cost an average of $4.9 million globally – a 10% increase from 2023. And financial companies spend even more – $6.08 million on dealing with data breaches, which is 22% higher than the global average. Source
Risks of Weak Authentication
Weak or ineffective authentication can lead to severe security risks, exposing organizations to fraud and unauthorized access to user accounts.
Stolen or weak passwords are a leading cause of breaches. Attackers exploit reused passwords through credential stuffing (using stolen passwords on other sites) or use automated brute-force attacks to guess weak passwords. Phishing attacks also target weak authentication systems, tricking users into revealing their credentials through fake login pages or deceptive emails, making even complex passwords vulnerable if users can be manipulated into giving them away.
The fallout can include account takeovers, data theft, and costly compliance failures. That’s why weak authentication is so dangerous, as it also has substantial financial costs: each password reset can cost an organization about $70 in IT support.
Types of Authentication Methods
The main types of authentication methods include those based on:
- Something users know: Passwords
- Something users have: Tokens
- Something users are: Biometrics
Digital or physical authentication systems ensure the identity verification of users trying to access systems. Understanding these methods can help organizations implement effective security solutions.
Authentication methods fall into several categories, each with unique advantages and use cases. Many modern systems combine these methods to enhance security.
Multi-Factor Authentication (MFA)
MFA is a highly effective security measure that requires users to complete two or more verification steps before gaining access. By combining factors such as passwords, tokens, and biometrics, MFA can block up to 99.9% of automated account takeover attempts.
One of the key benefits of the MFA method is the ability to customize security measures based on user roles or data sensitivity, allowing organizations to tailor their security approach to specific needs. Modern MFA solutions integrate with existing systems and aim to be user-friendly, often using push notifications to streamline the process.
Common methods of MFA include two-factor authentication (2FA), which typically combines a password and an authentication code verification. Push notifications are also widely used, allowing users to quickly approve login attempts via a simple prompt on their smartphone, streamlining the authentication process while maintaining robust security. Banks and FinTechs use MFA, combining passwords, SMS codes, and biometrics.
Biometric Authentication
Biometric authentication uses unique physical and behavioral traits to verify identity. Fingerprint scanning, known for its 99.9% accuracy, is widely used in smartphones and banking applications. Facial recognition offers hands-free authentication by analyzing features like the distance between the eyes and jaw structure, making it popular for secure payments and device access.
Advanced methods like iris and retina scanning, employed in high-security sectors, analyze eye patterns for verification. Voice recognition authenticates users based on speech patterns and is commonly used in virtual assistants and banking services. Behavioral biometrics, which track interactions like typing speed and gestures, offer continuous security by monitoring user behavior over time.
Token-Based Authentication
Token-based authentication relies on something a user has (a physical or digital token) to prove their identity. After an initial login, the user obtains a token that serves as their credential for subsequent access. Tokens can be physical, like a key fob that generates codes or a smart card, or software-based, like codes from an authenticator app or SMS.
Using a token means you don’t have to enter your password for every action. Also, tokens are often set to expire and can be tied to a specific device or session, so if intercepted, they’re usually of limited use to an attacker. To sum up: this method makes logins smoother and limits exposure of the user’s primary credentials.
Single Sign-On (SSO)
Single Sign-On (SSO) allows a user to access multiple applications with one set of credentials and one login action. In an SSO setup, you might sign in once to a central identity provider (say, your company’s login portal or Google account), and then that service authenticates you to all your other authorized apps without additional logins. Of course, this is very convenient and rather simple: you don’t need to manage dozens of passwords or repeatedly log in throughout the day – hence the popularity of this authentication method.
SSO’s key benefit is that users with fewer passwords are less likely to reuse weak passwords everywhere, and it’s easier to enforce strong security (like MFA) on that single login. But, on the flip side, if the SSO account is compromised it could grant access to many systems at once, so it must be protected, usually with MFA and monitoring.
Certificate-Based Authentication
Certificate-based authentication uses digital certificates and cryptography to confirm identity. A certificate, issued by a trusted Certificate Authority, contains a user or device’s public key and identifying info, and it’s linked to a private key that only that user/device holds. To authenticate, the user’s device will prove it has the private key, typically by signing a challenge message from the server, then the server will verify it with the public key in the certificate. If they match, the identity is confirmed.
Commonly used for corporate networks, VPNs, and Wi-Fi logins, this method is particularly effective in environments where secure access is critical, such as systems involving human users, servers, e-passports, and IoT devices. The strength of certificate-based authentication is that there’s no password to steal or phish – authentication relies on possession of cryptographic keys. The challenge is that organizations need a Public Key Infrastructure (PKI) to manage issuing and revoking certificates.
Passwordless Authentication
The passwordless authentication method allows a user to log in without using a traditional password. Instead of a secret password you have to remember, it uses other, more convenient and secure methods to prove you are who you say you are. It lets users log in without ever typing a password. Instead, it uses alternate factors such as one-time codes, trusted devices, or biometrics. The goal is to improve both security (no static password to steal) and usability.
Common methods include facial recognition, fingerprint scanning, proximity badges as physical tokens, and authenticator apps that generate one-time passwords via SMS or mobile applications.
Examples of how passwordless authentication replaces static passwords:
| Magic links | You get an email with a special, temporary link, by clicking which you can instantly log in, often without needing a password |
| Passkeys | A new and secure replacement for passwords that uses your device’s built-in security, like your fingerprint or face scan, to log you in. Passkeys are protected by cryptography and work across different websites and apps. |
| FIDO2 WebAuthn | A technical standard that enables things like Passkeys and security keys to work securely in web browsers. It uses advanced cryptography (public-key encryption) to verify your identity, making it highly resistant to phishing. |
Password-Based Authentication
Adaptive authentication method, also known as risk-based authentication, dynamically adjusts login requirements based on real-time risk factors, such as location (IP), device, and behavior for each login. If something unusual happens, like a login from a new country or device is detected, the system can require additional verification or block access. If everything looks normal, it allows login with fewer steps.
Continuous authentication extends this approach beyond the login moment. It continuously monitors user context and behavior during a session, verifying that the person using the account is still the legitimate user. For example, if a session becomes high-risk, due to sudden changes in network or atypical user actions, the user may be asked to re-authenticate or the session can be ended.
These adaptive authentication techniques balance security and user convenience by applying extra checks only when needed, and they align with Zero Trust principles of never assuming trust by default.
Authentication Protocols
Authentication protocols ensure secure communication between clients and servers during the authentication process.
Password Authentication Protocol (PAP)
A basic login process that uses unencrypted usernames and passwords. Its lack of encryption makes it vulnerable to interception.
Challenge Handshake Authentication Protocol (CHAP)
Employs a three-way exchange mechanism for user authentication, fortifying security by avoiding plain-text credential transmission.
JSON Web Token (JWT)
A secure information transfer protocol that is commonly used for API authentication.
- Encodes claims in a header, payload, and digital signature
- Ensures authenticity through digital signatures
Security Assertion Markup Language (SAML)
An XML-based protocol that enables Single Sign-On by allowing one system to vouch for a user’s identity to another system.
- When a user is trying to access an application, they get redirected to the organization’s Identity Provider (IdP), like Okta, Azure AD, and Google Workspace.
- The IdP creates a cryptographically signed SAML assertion that authenticates that you’re who you say you’re and then sends this assertion back to the application.
Emerging Authentication Trends
Passwordless and Passkeys Go Mainstream
The shift away from passwords is accelerating. Today, over 50% of workforce logins and 20% of customer logins are passwordless. Big tech companies are implementing passkeys as a default option, meaning password-based phishing attacks could fall dramatically.
Continuous Zero Trust Verification
More organizations are adopting Zero Trust security to continuously verify users rather than rely on one-time logins. Authentication systems are increasingly monitoring context and behavior in real time and will trigger re-authentication if something seems off, making it harder for intruders to maintain access unnoticed.
Biometrics and AI
Biometric login options, such as fingerprint, face scan, etc., are becoming standard on many devices and services. In addition, behavioral biometrics and AI-based analytics are now used to silently detect suspicious behavior and potential fraud. At the same time, anti-spoofing techniques are evolving to counter things like deepfake attacks against biometric systems.
AI-Enhanced Risk Scoring
Authentication is increasingly driven by real-time intelligence. AI algorithms analyze device signals, network data, user behavior, location, time-of-day and other context to generate a risk score on every login attempt. Organizations can then step up or relax authentication based on that score. For example, if a user logs in from an unfamiliar country on a new device, the risk score jumps and extra verification is required. Studies show this approach improves detection of anomalous behavior and reduces false positives significantly.
Decentralized Identity (DID)
DID (Decentralized Identifiers) allow users themselves to hold credentials and manage them in a self-sovereign fashion. DIDs reduce central points of failure, give users more control, and support cryptographic verification rather than relying solely on passwords or central databases. This is becoming more realistic for mainstream use in 2025 and beyond.
Biometric Fusion for Compliance and UX
Single-biometric systems, for example, a fingerprint, are increasingly giving way to multimodal biometric fusion – combining fingerprint, face, iris, voice, gait or other traits to make authentication both stronger and smoother for the user. This emerging trend brings stronger proof of identity and better user experience. Research shows that fusing modalities reduces error rates and improves spoof resistance compared to unimodal systems.
Factors to Consider When Choosing an Authentication Method
Selecting the appropriate authentication method means evaluating multiple critical factors that would not only fit your budget, but also strike a balance between security, usability, and operational efficiency.
So, what are the key ingredients of a solid authentication method for you?
Security comes first, because strong authentication is your best defense against unwelcome guests and cyber nasties. Good solutions stop breaches and keep your sensitive info safe.
Compliance is key, too. You’ve got to meet rules like GDPR or specific industry standards to make sure you’re handling and protecting data legally.
We should also make the user experience great. This means making user access and account management easy, taking the pain out of remembering complex passwords, and just generally making logins less annoying for everyone.
End-user preferences matter a lot, too. People are more likely to use an authentication method they’re already familiar with. So, solutions should be easy to use and work well with how people naturally behave.
Scalability is a must-have, especially if your business is growing. You need an authentication system that can handle more traffic and adapt to new security needs without slowing down.
Compatibility with your current tech stack is crucial. It keeps things running smoothly, avoids conflicts, and makes integration way easier.
Finally, don’t forget the cost. You need to factor in everything: setup, upkeep, and any supporting tools like recovery or fraud prevention. Thinking about all these points helps you pick a method that perfectly fits your security needs, operations, and budget.
Ondato’s Approach to Authentication
Ondato, as a provider of digital identity and authentication solutions, including biometrics and adaptive authentication, focuses on making digital identity solutions both secure and easy to use.
- Comprehensive identity verification. From document scanning to biometric face recognition, Ondato offers a wide range of methods to ensure that only verified, legitimate users gain access to data. Biometric factors (with liveness checks) are much harder to fake than passwords, so they provide an extra-strong layer of security while keeping the login process user-friendly.
- Compliance and data protection. Ondato tools align with regulations for data privacy and anti-money-laundering (AML) rules. The platform’s identity verification and authentication processes meet strict standards (e.g. GDPR, KYC/AML), meaning organizations can stay compliant while verifying users. Sensitive data is handled securely throughout the process.
- AI-driven fraud detection. Ondato employs artificial intelligence to spot fraud and suspicious patterns in real-time. For instance, it can spot fake ID uploads or detect if someone tries to bypass a selfie check with a photo. By catching these red flags automatically, Ondato adds an extra layer of protection on top of standard authentication steps, helping clients prevent fraud before it impacts their systems.
- Seamless integration. Ondato’s authentication solutions integrate smoothly with existing platforms and workflows. Whether you’re adding it to a mobile app or a web portal, Ondato can be implemented without major disruption to your systems or user experience, allowing businesses to upgrade their security without a heavy technical overhaul.
- User-friendly experience. Ondato simplifies the verification process. The platform uses intuitive, fast verification flows, like guided ID uploads, selfies, etc. to minimize user drop-off and frustration. In practice, users can often complete necessary identity checks in under a minute, which keeps the onboarding or login process smooth and efficient.
Simply put, Ondato’s approach to authentication is multi-layered and forward-thinking: robust verification measures, like biometrics and AI analysis, are combined with practical considerations, like compliance, easy integration, and user experience.
Final Thoughts
From passwords to biometrics to adaptive systems, each authentication method has its own strengths and weaknesses. The overall trend is toward stronger yet user-friendly options like MFA, biometrics, and passwordless login, because they greatly reduce the risks of compromised credentials.
But no single solution fits all situations. So, it’s best to layer security measures and tailor the authentication methods to your context. A bit of extra security during login can prevent devastating data breaches, and modern solutions show that high security can still come with a smooth user experience.
By choosing the right mix of authentication tools, you can keep your digital world safe without making things a headache for the people who actually belong there. After all, it all boils down to making absolutely sure that only the right people and devices get through the door. And this builds confidence and trust in everything we do online.
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