The MSP’s Guide to Passwordless Authentication

Passwords were invented to protect things; to make systems more secure. 

But today? That is no longer the case. 

Instead of a reliable defense, passwords have become one of the weakest links in cybersecurity. Managed service providers (MSPs) face this struggle more than most. They manage countless user credentials, endless reset requests, and defend against password-related breaches across their clientele. 

Cybercriminals are getting smarter. Their ability to exploit weak or reused passwords is a growing threat to the integrity of client systems. Luckily, passwordless authentication provides a more secure alternative to using traditional passwords. Let’s explore why passwords are problematic for your business, how you can benefit from passwordless authentication, and how to implement it successfully.

Why Passwords are a Problem for MSPs

Can you guess the most common password in the world? 

Your guess is probably right. According to Cybernews it is “123456”. While it’s almost impossible to use such a password today due to password policies, weak passwords still lead to data breaches for many users.

In fact, weak passwords were the reason why 30% of internet users have experienced data breaches. For MSPs, making sure this never happens to their client is often the part of the deal. However, cyberattacks are more sophisticated than ever, which makes traditional password-based systems inefficient and risky. 

Some of the key reasons why as an MSP you should start rethinking about your password strategy for your clients:

Weak password practices

Many users continue to use weak passwords. Despite password policies, clients often reuse passwords across multiple platforms. They also create new ones that don’t meet security standards. If a system or app isn’t managed, the MSP may not have any control over the matter. This leaves gaps in client security postures that open the door to brute-force attacks and credential stuffing.

Credential theft and phishing attacks

57% of organizations go through phishing attempts on a weekly or daily basis.

Passwords are often the primary targets for attackers. They focus on credential theft largely through phishing attacks. Therefore organizations that don’t implement passwordless authentication are under higher risk of these attacks. Regardless of the amount of security training you put in place, passwords will always be a risk if they are still in the equation.

Password-related support ticket overload

Managing client password resets, account lockouts, and other passwords-related tickets consumes a significant amount of an MSPs’ time. This could be used for more critical tasks and strategic IT management instead.

Compliance risks

Compliance regulations like HIPAA, PCI-DSS, GDPR, and SOX mandate stringent guidelines around password policies. Ensuring all client environments meet these requirements can be a challenge, especially when each regulation has its own set of rules. On top of that, if you have multiple clients across different industries, it becomes even more difficult.

Security gaps due to human error

To err is human. Even when password policies are in place, human error leads to security risks. End users might bypass your policies (e.g. using personal information or predictable patterns in passwords) or fall victim to phishing attacks.

Suggested reading: Best Practices for IT Password Security

What is Passwordless Authentication?

Passwordless authentication is a security method that allows users to access applications, systems, and data without the need for a traditional password. Instead of requiring password input, passwordless authentication relies on alternative, more secure methods to verify user identities. These include biometrics, hardware tokens, email or SMS-based one-time passcodes (OTPs), cryptographic keys, and Single Sign-On (SSO).

Passwordless authentication typically relies on multi-factor authentication (MFA) principles, using something the user has (a hardware token or device) or something the user is (biometrics) instead of just something they know (passwords).

Common passwordless authentication methods include:

• Biometrics (fingerprint, facial recognition, iris scanning)
• Hardware tokens (USB security keys, smart cards)
• Mobile authentication apps (authenticator apps, push notifications)
• Email or SMS verification (magic links, one-time passcodes)
• Social login (OAuth)

Benefits of Passwordless Authentication for MSPs

Reduced Operational Costs

Implementing passwordless authentication substantially reduces the time spent on password management, help desk support, and password-related security administration,. This helps MSPs lower their operational costs. For example, the time spent on password resets can be converted into more productive tasks that result in an optimized budget and improved service delivery.

Improved Security for Your Client Base, A Compelling Selling Point

Passwords are the weak link in your client’s security chain. By removing that risk from the equation, you also eliminate the vulnerabilities associated with them. Many users still rely on easily guessed or reused passwords. Transitioning to passwordless methods like biometrics or hardware tokens minimizes the risk of credential theft and unauthorized access. 

As an MSP, this shift helps you better protect your clients’ sensitive information from potential data breaches and cyber threats. Providing passwordless authentication capabilities like biometrics for your clients not only secures their data but also creates a compelling selling point for clients looking for top-tier security measures.

Greater Value for Clients, Differentiating in the MSP Market

Going passwordless offers MSPs the opportunity to deliver greater value to clients. It does this by boosting productivity and user convenience, making it a key differentiator in the competitive MSP market. By eliminating the hassles of traditional password management, such as forgotten passwords and frequent resets, clients experience fewer disruptions and a more seamless experience. 

The reduction in login friction allows employees to focus on their work. Without the constant need for password resets or support requests, end user (and thus client) satisfaction increases. MSPs that leverage passwordless authentication stand out in the market, offering a solution that not only improves security but also adds measurable operational value for clients.

Reduced Help Desk Overhead

According to Gartner, an estimated 40% of IT help desk tickets are password-related, e.g. requests to reset forgotten or lost passwords. Considering that the average cost of an L1 support ticket is between $8 and $18, an organization with 210,000 support tickets a year could end up spending between $672,000 and $1,512,000 only to reset user passwords!

This statistics paints a clear picture of how much you can save on a yearly basis only by going passwordless and eliminating the password-related IT support tickets.

Scalability and Flexibility

As you expand your services and client base, managing authentication across multiple and diverse environments can become increasingly complex. Passwordless solutions scale better. With them MSPs can implement and secure access across various platforms and user bases. This level of flexibility is key for accommodating the unique security needs of each client while ensuring a consistent approach.

How to Implement Passwordless Authentication

Transitioning to a passwordless environment requires careful planning and execution. MSPs should consider the following steps for a smooth implementation:

Step 1. Assess Client Infrastructure and Needs

Start the passwordless authentication implementation process by assessing the client’s IT infrastructure, the applications they use and the security risks they face. Map out the different departments, stakeholders, and workflows they interact with to understand unique use cases. This clear overview helps ensure that the solution fits within the client’s broader security and operational strategy. 

More importantly, by mapping out potential security risks that your client might face due to password-related issues, you can make a stronger value offer and inform them about the importance of passwordless authentication.

Step 2. Choose The Right Passwordless Authentication Method

Once the customer use case is clearly defined, it’s time to identify the best passwordless methods for them. This could mean biometrics, hardware tokens, or mobile-based authentication. Each method has its pros and cons depending on the client’s infrastructure, security needs, and user preferences. For example, biometrics offer a high level of security and convenience but might require special hardware. 

It’s also  equally important to opt for a solution that is MSP-friendly – offering ease of deployment, cross-platform compatibility, and ongoing maintenance. This will save time for you in the long run.

Step 3. Educate Clients, Train End Users

As you prepare to fully deploy your passwordless solution, it’s important to educate your clients about the advantages of this technology. Inform them about how passwordless authentication boosts security, reduces the risk of phishing attacks, and increases employee productivity by eliminating the need to memorize or manage passwords. 

Providing a clear context will not only help clients understand the value of the transition but also fade out any concerns they might have about moving away from traditional methods. 

Once you educate the client, start training the users especially in early stages, to help them adjust to the new process. Making the transition smooth will encourage adoption and reduce any resistance that may come up. As a bonus, try to collect user feedback to fine-tune the process.

JumpCloud Go™: Switching to Passwordless is as Easy as 1,2,3

JumpCloud unified open directory platform makes passwordless authentication a breeze for IT admins and MSPs. JumpCloud Go is a feature within the JumpCloud platform that specifically enables passwordless authentication for users accessing JumpCloud-protected web resources. 

JumpCloud Go simplifies the transition to passwordless authentication by providing an integrated platform that supports a variety of authentication methods, including biometrics and mobile-based verification. (Windows Hello or Touch ID). It streamlines user access across different devices and applications, ensuring a seamless and secure login experience

• Ensure passwordless login experience across multiple platforms
• Minimize phishing attacks
• Let users log in quickly and securely using their trusted devices. 
• Manage cross-platform user authentication from a single platform
• Streamline compliance audits by meeting regulatory requirements for a strong authentication

Ready to see how JumpCloud helps you go passwordless? Go ahead and try JumpCloud for free!

Passwordless Authentication FAQ