Microsoft Deletes Billions of Passwords: The Future of Login
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TLDR
Microsoft is deleting billions of stored passwords and removing password autofill from Authenticator. This marks a tipping point in the shift to passkeys. But simply swapping passwords for user-bound passkeys is not enough for regulated industries. Device-bound passkeys give organizations more control, security, and compliance readiness. Now is the time to evaluate vendors, update user experiences, and prepare for a passwordless future that meets higher security standards.
Microsoft’s Password Purge
Microsoft announced it will remove password autofill from the Authenticator app and delete billions of stored passwords. This is not just a product change but a clear signal that the company is moving away from passwords altogether. By promoting passkeys, Microsoft is accelerating the industry’s transition to passwordless authentication.
Passwords have long been the weakest link in security. Phishing, credential stuffing, and password reuse have created massive risks. Microsoft’s decision underscores that these risks are no longer acceptable at scale.
Why This Is a Landmark Shift
This is a landmark moment because it reflects the larger industry move away from passwords. When Microsoft stops supporting them in such a visible way, it sets the tone for the rest of the ecosystem.
For consumers, it may feel like a simple change: one fewer password to remember. But for organizations, particularly in regulated industries, this is not just a user-experience update. It changes how security and compliance must be managed.
The Risk of Oversimplifying Passkey Adoption
Passkeys are a big improvement, but most implementations are user-bound, tied to platforms like iCloud or Google. These are convenient but they give organizations less control.
If a user loses a device, leaves a company, or is targeted through account recovery, the organization’s security can be weakened. Regulated industries cannot treat user-bound passkeys as a one-to-one replacement for passwords.
Why Device-Bound Passkeys Matter
Device-bound passkeys anchor credentials directly to hardware and allow organizations to enforce their own policies.
This approach gives:
- Stronger control over provisioning and revocation
- Lower recovery risk in cases of device loss or employee departure
- Better alignment with regulatory and compliance requirements
For banks, healthcare providers, and payment platforms, this model is critical to meeting both security and compliance needs.
Preparing for a Passwordless Future
Microsoft’s announcement should be seen as a catalyst for preparation. Steps organizations can take now include:
- Evaluate authentication vendors that support device-bound passkeys.
- Update user experience to make passkey adoption seamless.
- Focus on regulated use cases where compliance demands higher assurance.
- Build hybrid plans since passwords will linger during the transition.
The Bigger Picture
Deleting billions of passwords is not just Microsoft’s move away from legacy systems. It is the signal that password retirement is officially here. For consumers, this makes passkeys the new default. For organizations, it is the chance to leap forward into stronger, more controlled authentication models. Those that prepare now will be ready to deliver both seamless and secure experiences in a passwordless future.
Sources
- https://techcommunity.microsoft.com/t5/microsoft-entra-blog/microsoft-authenticator-to-remove-password-autofill/ba-p/4215423
- https://www.microsoft.com/en-us/security/blog/2021/09/15/the-passwordless-future-is-here-for-your-microsoft-account/
- https://fidoalliance.org/passkeys/