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Passkeys and the Passwordless Shift: What's Real

Jayden

Analyzes global supply chains, industrial policy, and technology issues.

Published

Key points

  • In May 2025 Microsoft began creating brand-new accounts with no password at all, and Google had already made passkeys a default option for personal accounts — the first time the largest platforms changed the default rather than waiting for users to opt in.
  • A passkey is FIDO2/WebAuthn public-key cryptography: the private key never leaves your authenticator and is bound to one origin, so a look-alike phishing site cannot elicit a valid signature. NIST and the UK's NCSC — not only vendors — call this phishing-resistant.
  • The scale figures measure availability, not habit. The FIDO Alliance counted more than 15 billion accounts that could use passkeys by the end of 2024; its 2025 survey found 69% of consumers had enabled one somewhere, but only 38% of active users enable them whenever possible.
  • Speed and success-rate claims are mostly company telemetry. Microsoft reports about 98% sign-in success against roughly 32% for passwords, but early adopters may simply be more capable users — a confound no vendor dashboard can rule out.
  • The unresolved part is recovery. FIDO2 has no built-in recovery flow, so losing every device usually falls back to an email reset link — the exact phishable channel passkeys were meant to retire, and the place the NCSC expects attackers to move next.

In May 2025, Microsoft quietly changed a default that had held for decades: every brand-new Microsoft account is now created without a password at all [source: Microsoft, 2025]. Google had already made passkeys a default option for personal accounts, and by late 2024 the FIDO Alliance counted more than 15 billion online accounts that could be signed into with a passkey [source: FIDO Alliance, 2024]. After years of "the password is dead" predictions, the largest platforms have started to act as if it were true. But availability is not the same as adoption, and a phishing-resistant login is not the same as a solved problem. This is what the 2025–2026 shift actually amounts to — and what it leaves unresolved.

What this article covers

  • Why the password is cracking now, in 2025–2026
  • What a passkey actually is, and why it resists phishing
  • The adoption numbers — and the gap between "supported" and "used"
  • The security case: what is proven versus what is marketing
  • The hard parts: recovery, device lock-in, and portability
  • What to watch next

Why the password is cracking now

The case against passwords is not new, but the pressure has become measurable. In its 2025 Data Breach Investigations Report, Verizon found that stolen credentials remained the single most common way attackers first got in, involved in roughly 22% of breaches, with phishing behind another 16% [source: Verizon, 2025]. About 60% of breaches involved a human element — someone clicking, reusing, or being tricked — and stolen credentials showed up in the large majority of basic web-application attacks [source: Verizon, 2025]. Microsoft, for its part, says it now observes on the order of 7,000 password attacks every second, more than double the rate it reported in 2023 [source: Microsoft, 2025].

Passwords fail for a structural reason: they are a shared secret. You type the same string the server stores, which means the string can be phished, reused across sites, leaked in a breach, or guessed. Every mitigation layered on top — complexity rules, rotation, SMS codes — adds friction without removing the underlying weakness. That is the backdrop against which Microsoft, Google, Apple, and a long list of consumer services have moved passkeys from an option to, increasingly, the default path.

The "why now" is the convergence of three things: breach data that keeps pointing at credentials, a standard that is finally shipping on every major operating system and browser, and platform owners deciding to change defaults rather than wait for users to opt in.

What a passkey actually is

A passkey is an implementation of the FIDO2/WebAuthn standards, built on public-key cryptography. When you create one, your device generates a key pair. The public key goes to the website; the private key never leaves your authenticator — your phone, laptop, security key, or a synced credential manager. To sign in, the site sends a challenge, your device signs it with the private key after a local check (a fingerprint, face scan, or PIN), and the site verifies the signature against the public key it stored.

Why it resists phishing

The property that matters most is not the biometric — it is that the private key is bound to the origin, the specific website domain, and never transmitted. A phishing site at a look-alike domain cannot elicit a valid signature, because the browser will only release a passkey to the exact origin that registered it. There is no secret to type, so there is nothing to hand to an attacker who has built a convincing fake login page. This is why standards bodies, not only vendors, describe passkeys as phishing-resistant. NIST's 2024 supplement to its digital identity guidelines recognized syncable authenticators — FIDO passkeys — as phishing-resistant, and the 2025 revision of that framework folds passkeys into its higher assurance levels [source: NIST, 2024]. The UK's National Cyber Security Centre puts it plainly: passkeys "can't be guessed" and "can't be phished" [source: NCSC, 2025].

That is a genuine, structural improvement over a typed password, and it is the strongest part of the case for passkeys. Everything after this point is more contested.

The adoption numbers — and what they don't say

The headline figures are large. The FIDO Alliance reported that by the end of 2024, more than 15 billion online accounts could use passkeys, roughly double the year before [source: FIDO Alliance, 2024]. Google said 800 million of its accounts had used passkeys, with more than 2.5 billion passkey sign-ins over two years; Amazon reported 175 million passkeys created for signing in to its site [source: FIDO Alliance, 2024]. A 2025 FIDO survey found that 74% of consumers were aware of passkeys and 69% had enabled one on at least one account [source: FIDO Alliance, 2025].

These numbers are real, but they answer narrower questions than they appear to. "15 billion accounts can use passkeys" is a statement about availability — how many services support the option — not about how many people rely on it. "800 million accounts have used passkeys" counts accounts that created or enabled at least one passkey, not accounts that sign in with one every day. The same 2025 survey that found 69% enablement also found that only 38% of active users said they enable passkeys "whenever possible" [source: FIDO Alliance, 2025]. The distance between "I turned it on once" and "this is how I log in" is where the real adoption story lives, and it is smaller than the top-line figures suggest.

A skeptical read, offered in mid-2026 by 9to5Mac, is worth holding alongside the milestones: even a security-attentive user can go a full week authenticating mostly with ordinary passwords, and large consumer services — the piece names Instagram, Spotify, and Netflix among them — still lacked passkey support [source: 9to5Mac, 2026]. Fragmented coverage means most people cannot go passwordless even if they want to. Availability is climbing fast; day-to-day reliance is following more slowly.

The security case: proven versus marketing

It helps to separate two kinds of claim that often arrive bundled together.

What is independently supported

Phishing resistance is the verified part. It follows from how WebAuthn binds credentials to an origin, and it is endorsed by non-commercial authorities — NIST and the NCSC among them — rather than resting on vendor assertion alone [source: NIST, 2024][source: NCSC, 2025]. Because there is no reusable secret, credential-stuffing and password-reuse attacks — the very patterns the Verizon report flags as dominant — do not apply to a passkey login in the same way [source: Verizon, 2025].

What is vendor telemetry

The convenience and success-rate figures are a different category. Microsoft reports that passkey sign-ins succeed about 98% of the time versus roughly 32% for passwords, and are "eight times faster" than a password plus multifactor step [source: Microsoft, 2025]. Google cites a 30% higher sign-in success rate and about 20% faster sign-ins [source: FIDO Alliance, 2024]. The NCSC's own estimate is roughly 8 seconds for a passkey versus 69 seconds for password-plus-MFA [source: NCSC, 2025]. These are plausible and directionally consistent, but they are company telemetry, not independent audits, and comparisons can be confounded: users who adopt passkeys early may be more technically confident, which would inflate the success gap on its own. The right way to read them is as strong signals of a better experience, not as precise, externally verified constants. The FIDO Alliance's 2025 Passkey Index, which aggregates deployment data from Amazon, Google, Microsoft, PayPal, Target, TikTok and others, is an attempt to move these benefits toward measured, multi-operator evidence rather than single-vendor marketing [source: FIDO Alliance, 2025].

The hard parts: recovery, lock-in, and portability

If phishing resistance is the strongest argument for passkeys, account recovery is the weakest link — and critics from consumer press to national security agencies agree on it.

Recovery is the new attack surface

The FIDO2 standard has no built-in recovery flow of its own. If you lose every device that holds your passkeys, the fallback is usually an email reset link or a support process — the exact phishable channel passkeys were meant to retire [source: 9to5Mac, 2026]. The NCSC makes the same structural point: as passkeys frustrate direct attacks, adversaries will "increasingly shift their focus" to weaker account-recovery paths [source: NCSC, 2025]. A login is only as strong as the way you get back in when you are locked out, and today that back door often remains a password or a code.

Device dependence and lock-in

Device-bound passkeys — those that never leave a single phone or hardware key — offer the strongest isolation but the least portability: lose the device and you can lose the account. Synced passkeys solve that by copying the private key across a vendor's "sync fabric," such as iCloud Keychain or Google Password Manager, which NIST permits at its AAL2 assurance level [source: NIST, 2024]. But syncing trades device isolation for dependence on the cloud account holding the keys, and it tends to lock you into one ecosystem. Moving passkeys between Apple, Google, and third-party managers is, in the NCSC's words, "currently challenging" [source: NCSC, 2025]. Industry work on a Credential Exchange Protocol aims to make that portable, but until it is widely live, switching platforms can turn "passwordless" into a different kind of lock-in [source: 9to5Mac, 2026].

Fragmentation and the unfinished transition

There are quieter frictions too. Different platforms use different words for the same passkey flow, which the NCSC notes can confuse users [source: NCSC, 2025]. Enterprises hesitate because recovery and lifecycle management are harder to standardize at scale [source: 9to5Mac, 2026]. And because coverage is uneven, most services keep the password field as a backup — which means the phishing surface a passkey closes on the front door is often still open at the side entrance.

What to watch

The direction of travel is clear enough: passwords are being demoted from the default to the fallback, and the cryptography underneath passkeys is sound and independently endorsed. The open questions are not about whether the math works but about the plumbing around it. Watch three things over the next year. First, whether usage — habitual sign-ins, not one-time enablement — closes the gap with the headline availability numbers, and whether reports like the FIDO Passkey Index give us measured rather than announced figures. Second, whether the Credential Exchange Protocol and cross-vendor portability mature enough that a passkey feels like something you own rather than something your platform holds. Third, whether recovery gets re-engineered so that the way back into an account is as phishing-resistant as the way in — because until it is, the password's ghost lingers at exactly the point where accounts are most often lost. Passkeys are the most serious challenge to the password in a generation. Whether they finish the job depends less on adoption slogans than on those unglamorous details.

Charts

How breaches begin, Verizon 2025 DBIR

How breaches begin, Verizon 2025 DBIRStolen credentials (top initial access vector) 22% of breaches, Phishing (initial access vector) 16% of breaches22% of breachesStolen credentials (top initial access vector)16% of breachesPhishing (initial access vector)
Approximate shares reported for initial access. Verizon separately reports the human element in about 60% of breaches and stolen credentials in about 88% of basic web-application attacks — different denominators, so they are not plotted here.Verizon, 2025 Data Breach Investigations Report (opens in a new tab)

Consumer awareness of passkeys, FIDO Alliance surveys

Consumer awareness of passkeys, FIDO Alliance surveys2022 39% of consumers aware, 2024 57% of consumers aware, 2025 74% of consumers aware39% of consumers aware202257% of consumers aware202474% of consumers aware2025
The 2022 and 2024 figures come from the FIDO Alliance's December 2024 adoption release; the 2025 figure comes from its separate World Passkey Day survey, fielded 13–14 April 2025. Different instruments, so read the direction rather than the exact step size.

Enabled once, or used by habit? FIDO Alliance 2025 survey

Enabled once, or used by habit? FIDO Alliance 2025 surveyAware of passkeys (all consumers surveyed) 74%, Have enabled one on at least one account (all consumers surveyed) 69%, Enable them whenever possible (share of active users only) 38%74%Aware of passkeys (all consumers surveyed)69%Have enabled one on at least one account (all consumers surveyed)38%Enable them whenever possible (share of active users only)
The first two bars share a base — everyone surveyed. The third is drawn from a narrower base, active passkey users, so the bars are not stages of one funnel; the qualifier is written into each label. The same release reports that 48% of the world's top 100 websites offer passkeys.FIDO Alliance, World Passkey Day 2025 (opens in a new tab)

Sign-in success rate, as reported by Microsoft

Sign-in success rate, as reported by MicrosoftPasskey sign-ins 98%, Password sign-ins 32%98%Passkey sign-ins32%Password sign-ins
Company telemetry, not an independent audit. Users who adopt passkeys early may be more technically confident, which would widen this gap on its own — read it as a strong signal, not a verified constant.Microsoft Security Blog, 2025 (opens in a new tab)

How long a sign-in takes, NCSC estimate

How long a sign-in takes, NCSC estimatePasskey 8seconds, Password plus multi-factor step 69seconds8secondsPasskey69secondsPassword plus multi-factor step
Approximate figures from the UK's national cyber security agency rather than from a platform operator — the same direction as the vendor numbers, from a party with nothing to sell.UK National Cyber Security Centre, 2025 (opens in a new tab)

Timeline

  1. Google makes passkeys a default option for personal accounts — the largest real-world deployment up to that point.

    FIDO Alliance (opens in a new tab)
  2. NIST issues a supplement to SP 800-63B giving interim guidance on syncable authenticators — FIDO passkeys — and recognizes them as phishing-resistant.

    NIST (opens in a new tab)
  3. The FIDO Alliance reports that adoption roughly doubled over the year: more than 15 billion online accounts can now use passkeys, with 800 million Google accounts and 175 million passkeys created at Amazon.

    FIDO Alliance (opens in a new tab)
  4. The FIDO Alliance fields its World Passkey Day consumer survey on 13–14 April: 74% aware, 69% enabled somewhere, 38% of active users enabling whenever possible.

    FIDO Alliance (opens in a new tab)
  5. Microsoft makes brand-new accounts passwordless by default, and reports roughly 7,000 password attacks per second and nearly a million passkeys registered daily.

    Microsoft Security Blog (opens in a new tab)
  6. SP 800-63B-2 is withdrawn as the 2025 revision, SP 800-63-4, takes over: device-bound and syncable passkeys are folded into AAL2/AAL3 and phishing-resistant authentication becomes the baseline.

  7. The FIDO Alliance publishes its Passkey Index 2025, aggregating deployment data from Amazon, Google, LY Corporation, Mercari, Microsoft, NTT DOCOMO, PayPal, Target and TikTok — an attempt to move from announced to measured benefits.

    FIDO Alliance (opens in a new tab)
  8. A skeptical review notes that passwords still dominate daily life, that major consumer services including Instagram, Spotify and Netflix still lack passkey support, and that FIDO2 has no built-in recovery flow.

    9to5Mac (opens in a new tab)

Analysis

Availability and adoption are different measurements

"More than 15 billion accounts can use passkeys" counts services that support the option. "800 million Google accounts use passkeys" counts accounts that created or enabled at least one. Neither counts a person who signs in with a passkey every day. The survey figure that comes closest to habit — 38% of active users enabling passkeys whenever possible — is the smallest number in the set, and it is the one the headlines rarely lead with.

The phishing resistance is the part that is actually verified

It does not rest on telemetry. It follows from how WebAuthn works: the private key is bound to a specific origin and never transmitted, so a look-alike domain cannot obtain a valid signature and there is no secret to type into a fake page. NIST's 2024 supplement and the NCSC's blunt "can't be guessed" and "can't be phished" are recognitions from bodies with nothing to sell. Everything downstream of this — speed, success rates, satisfaction — is softer evidence.

Company telemetry is a signal, not an audit

The 98%-versus-32% success gap, the "eight times faster" claim and Google's 30% success and 20% speed improvements all come from the operators themselves. They are plausible and point the same way, but they carry a selection effect nobody has controlled for: people who enable passkeys early tend to be more technically confident, and that alone would widen the gap. The FIDO Passkey Index, which aggregates data across nine large operators, exists precisely because single-vendor figures are not enough.

Recovery is where the attack moves next

FIDO2 specifies how to authenticate, not how to get back in. Lose every device holding your passkeys and the fallback is usually an email reset link or a support process — the phishable channel passkeys were designed to retire. The NCSC states the consequence directly: as direct attacks get harder, adversaries will shift focus to weaker recovery paths. Until recovery is re-engineered, an account is only as phishing-resistant as its back door.

Synced and device-bound are a trade, not a ladder

A device-bound passkey never leaves one phone or hardware key: strongest isolation, least portability, and losing the device can mean losing the account. A synced passkey is copied across a vendor's sync fabric — iCloud Keychain, Google Password Manager — which NIST permits at AAL2, but that swaps device isolation for dependence on the cloud account holding the keys. Neither is simply better; they fail in different directions.

The fallback field keeps the old surface open

Because coverage is uneven — the 2025 survey found 48% of the top 100 websites offering passkeys, and large consumer apps still missing — most services keep a password field as backup. A phishing surface closed at the front door and left open at the side entrance is not closed. This is also why moving between ecosystems is fraught: portability between credential managers is, in the NCSC's phrase, currently challenging.

Comparison

Every headline number in this story, and what kind of claim it is
FigureWho reported itWhat it measuresType of claim
About 22% of breaches began with stolen credentials; phishing about 16%Verizon, 2025 DBIRInitial access vector across investigated breachesIndependent industry report
Passkeys phishing-resistant; folded into AAL2/AAL3NIST (2024 supplement; SP 800-63-4)Standards recognition, not a measurementGovernment standards body
About 8 seconds versus about 69 seconds to sign inUK NCSC, 2025Estimated time for passkey versus password plus MFAGovernment estimate
98% versus 32% sign-in success; eight times fasterMicrosoft, 2025Its own sign-in telemetryVendor-reported, not audited
30% higher success; about 20% fasterGoogle, via the FIDO AllianceIts own sign-in telemetryVendor-reported, not audited
More than 15 billion accounts can use passkeys; 69% have enabled one; 38% use them whenever possibleFIDO Alliance, 2024 and 2025Availability, one-time enablement, and habitual useIndustry body: mix of platform data and consumer survey
Device-bound and synced passkeys fail in different directions
Device-boundSynced
Where the private key livesNever leaves a single phone or hardware keyCopied across a vendor's sync fabric, such as iCloud Keychain or Google Password Manager
If you lose the deviceYou can lose the accountThe keys survive on other devices signed into the same cloud account
PortabilityLowest — the key is the deviceMoving between Apple, Google and third-party managers is, per the NCSC, currently challenging
NIST treatmentIntegrated into AAL2/AAL3 in SP 800-63-4 alongside syncable passkeysPermitted at the AAL2 assurance level
Main exposureDevice loss, and whatever recovery path the service falls back toDependence on the cloud account holding the keys, and ecosystem lock-in

Process

  1. Ask whether the number counts support or use

    "Can use passkeys" is a statement about how many services offer the option. It says nothing about how many people sign in that way.

  2. Find the denominator

    74% and 69% are shares of everyone surveyed; 38% is a share of active passkey users only. Percentages from different bases do not belong on the same ladder.

  3. Identify who produced it

    Sort the figure into vendor telemetry, government estimate, independent breach report, or standards recognition before deciding how much weight it carries.

  4. Look for the selection effect

    Early passkey adopters may be more technically confident than the average password user, which would inflate a success-rate gap without any change in the technology.

  5. Check the recovery path

    If losing your devices lands you on an email reset link, the phishable channel is still there — the account is not passwordless, only passwordless at the front door.

  6. Check whether the password field is still on the page

    Uneven coverage means most services keep the old input as a fallback, which keeps the old attack surface open alongside the new one.

Sources

  1. Microsoft Security Blog — Pushing passkeys forward: Microsoft's latest updates for simpler, safer sign-ins (2025-05-01).View source (opens in a new tab)
  2. FIDO Alliance — Passkey Adoption Doubles in 2024: More than 15 Billion Online Accounts Can Leverage Passkeys (2024-12-11).View source (opens in a new tab)
  3. FIDO Alliance — FIDO Alliance Champions Widespread Passkey Adoption and a Passwordless Future on World Passkey Day 2025 (2025).View source (opens in a new tab)
  4. FIDO Alliance — Passkey Index 2025 (2025-10-14).View source (opens in a new tab)
  5. NIST — Giving NIST SP 800-63B a Boost: Supplement for Incorporating Syncable Authenticators (2024-04).View source (opens in a new tab)
  6. UK National Cyber Security Centre — Passkeys: they're not perfect but they're getting better (2025).View source (opens in a new tab)
  7. Verizon — 2025 Data Breach Investigations Report (2025).View source (opens in a new tab)
  8. 9to5Mac — Security Bite: Passkeys were supposed to have killed the password by now (2026-07-10).View source (opens in a new tab)

Tags

  • #passkeys
  • #passwordless
  • #fido2
  • #webauthn
  • #phishing-resistant
  • #account-security