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Microsoft’s new “passwordless by default” is great but comes at a cost

  • Starting in 2025, all newly created Microsoft accounts will automatically use password-free sign-in methods as the standard security option.
  • This change follows Microsoft joining the passkey movement alongside Apple and Google to enhance account security.
  • New users will have multiple passwordless sign-in options, including passkeys, push notifications, and security keys, without needing to enroll a password.
  • Microsoft reported nearly a million passkeys are registered daily and passkey users achieve a 98 percent sign-in success rate compared to 32 percent for passwords.
  • This initiative aims to reduce password attacks like phishing by encouraging users to adopt stronger authentication and eventually eliminating password use altogether.
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microsoft.com broke the news in on Thursday, May 1, 2025.
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