Passkey

A passkey is a modern replacement for passwords. Instead of typing a password, users authenticate using something they already have (their phone, computer, or hardware security key) plus a biometric (fingerprint or Face ID) or device PIN. Behind the scenes, passkeys use public-key cryptography, making them resistant to phishing and credential theft.

Here’s how it works:

• When you create a passkey, your device generates two cryptographic keys:
  • A public key, which is stored by the website or application.
  • A private key, which never leaves your device.
• When you log in, the website sends a challenge that only your private key can sign.
• Your fingerprint, face scan, or PIN simply unlocks the private key—it is not sent to the website.

Unlike passwords, there is nothing for an attacker to steal from the website’s database that can be reused elsewhere.

Why Passkeys Matter for SMBs

Small and midsize businesses are frequent targets because they often lack large security teams. Passkeys help by:

• Eliminating weak and reused passwords.
• Preventing phishing attacks that trick employees into entering credentials.
• Reducing account takeover incidents.
• Decreasing password reset requests, lowering help desk costs.
• Making sign-in faster and easier for employees.

For an SMB, adopting passkeys can significantly reduce one of the most common causes of cyber incidents: compromised credentials.

Why Passkeys Matter for MSPs

For managed service providers, passkeys provide several advantages:

• Better protection for administrator accounts, which are prime attack targets.
• Reduced support tickets for forgotten passwords.
• Stronger security for customer portals and remote management tools.
• Easier compliance with cyber insurance and security frameworks that require phishing-resistant authentication.
• Lower risk of ransomware attacks that begin with stolen credentials.

MSPs should prioritize enabling passkeys for:

• Remote Monitoring and Management (RMM) platforms
• Password managers
• Microsoft 365 administrator accounts
• Cloud management portals
• Backup platforms
• Privileged administrator accounts

Passwords vs. Passkeys

Passwords	Passkeys
Can be guessed or stolen	Cannot be guessed
Vulnerable to phishing	Phishing-resistant
Often reused	Unique for every site
Stored on servers (hashed)	Private key stays on your device
Require resets	Rarely need resetting
Can be leaked in data breaches	Server breaches don’t expose your private key

The Bottom Line

Passkeys represent one of the biggest improvements in authentication in decades. For SMBs, they reduce the risk of credential theft while making login easier for employees. For MSPs, they help secure privileged accounts, reduce support overhead, and protect both the provider and its clients from phishing-based attacks.

While passwords are likely to remain in use for some legacy systems, organizations that begin adopting passkeys now will be substantially better protected against the most common forms of credential compromise.

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Additional Reading:

CyberHoot does have some other resources available for your use. Below are links to all of our resources, feel free to check them out whenever you like:

• Blog
• Cybrary (Cyber Library)
• Infographics
• Newsletters
• Press Releases
• Instructional Articles (HowTo) – very helpful for our Super Admins!

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