Credit Unions Can Bolster Member Security with Passkey Technology
Credit unions and other financial institutions count cybersecurity among their top business concerns amid an ever-changing technology landscape. Not only is cybersecurity foundational to operations, but it is also critical to maintaining customer trust. Traditional two-factor authentication methods (2FA), like one-time passcodes delivered via email or SMS, offer a layer of protection, but they have growing vulnerabilities. Phishing attacks can trick users into revealing these codes, and outdated technology can be susceptible to interception.
Enter passkeys, a new security frontier for credit unions. Google introduced passkeys to its users in 2022, and to date, more than 400 million Google users have adopted them. Passkeys are a powerful alternative to traditional two-factor authentication, eliminating the need for codes while offering credit union members a more secure and user-friendly login experience.
How Passkeys Work and the Advantages
Passkeys use public-key cryptography, which uses a pair of keys—a public key and a private key—to encrypt and decrypt data. Instead of using a password for an app or website, passkeys create a unique key pair for each user and device. A device creates a kind of secure keycard, except it is digital. Once a device is unlocked, it sends the passkey to the app or website in a way that verifies identity without the app or website being able to keep a copy of the passkey. This significantly reduces the risk of interception or social engineering scams.
Simply, passkeys offer better security and user experience. They provide a frictionless login process, fostering trust and satisfaction as well as greater adoption. When security measures are simple and quick, they can be offered on every login instead of just “high-risk scenarios,” thereby protecting against the many forms of fraud.
There are clear operational and financial benefits for credit unions, chiefly reduced fraud losses. More robust security translates to fewer fraudulent transactions, protecting credit unions and members. They can also reduce the headache of other 2FA methods. Logins are faster and simpler—no more waiting for codes or remembering complex passwords, which can be an extra headache if a user doesn’t have immediate access to their email provider.
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