Industry executives and experts share their predictions for 2023.  Read them in this 15th annual VMblog.com series exclusive.

A Demand for Data Privacy and the Rise of Passwordless

By Jeff Shiner, 1Password CEO, and Steve Won, 1Password CPO

While 2022 saw huge strides in security, especially in tangible steps toward making a passwordless future a reality, it was also a year marked by a dramatic increase in the volume of phishing attacks compared to previous years, costing businesses an average of 4.91M to recuperate. From credential theft and similar attacks on big names like Uber and Twitter to school districts and healthcare providers, hackers continued to exploit security vulnerabilities and gain access to information that not only put companies at risk, but also the consumers that utilize their products and services. 

Now in 2023 - especially with recent breaches occurring - security is top of mind not only for industry professionals, but for the everyday consumer. As cybersecurity awareness and vigilance become part of the mainstream discussion - with rising calls for privacy, as well as a loss of trust in Big Tech and other companies that manage personal information and data - consumers are becoming more adept at spotting phishing attacks and other attempts to steal their personal data or unique login information. But as we know all too well, cybercriminals just need a potential victim to have one moment of oversight in order to strike - after all, 82% of breaches still involve human error. As cybercriminals become more sophisticated, businesses have a duty to step up their protection services. 

Looking at this landscape and what's next for security in the coming months, here's what we predict will dominate cybersecurity in 2023:

Data privacy by default will become the norm, not a security differentiator

Proving the success of educational campaigns around online privacy and security, even those from non-technical backgrounds are becoming increasingly conscious and protective of their data privacy. In response, from Apple's new encrypted iCloud backup option to Twitter's plan (at least for the time being) to encrypt direct messages, we're already seeing encryption and privacy by default becoming the norm. While some companies think that focusing on customer privacy means leaving money on the table, long-term user trust and loyalty outweigh any short-term monetization. We expect this trend will reach new heights in 2023, with data encryption and privacy no longer being an added perk, but a baseline expectation across industries. 

Hackers will continue to exploit psychological weaknesses, but passwordless will greatly stymie their efforts

In a survey of 2,000 adults, our 2022 State of Access Report, Distraction on overdrive: Security in a time of permacrisis," found 4 in 5 employees (79%) feel distracted on a typical work day, with 1 in 3 employees (32%) saying they're the most stressed they've ever been in their lives. This is a concerning reality, especially considering the negative impact distraction, stress and burnout can have on security. In 2023, hackers will continue to take advantage of this, with a particular focus on people's psychological weaknesses and preying on vulnerabilities by utilizing false urgency, greed, curiosity and authority bias. 

But there is good news: with passwordless, through passkeys, predicted to achieve critical mass in 2023 - especially with the FIDO Alliance and Big Tech's continued support - the attack surface level for impersonation attacks will decrease substantially. Passkeys replace passwords completely, which eliminates the risk associated with users creating weak passwords. Additionally, with passkeys, there are no sensitive credentials stored on a website's server that could be stolen by an attacker - passkeys are stored only on a user's device in a secure, private manner. Thanks to this technology, the cybersecurity industry has the potential to make a major dent in the fight against increasingly sophisticated social engineering attacks. 

Security is advancing and rapidly changing, and 2023 is likely to be one of the most transformative years yet. While new frontiers in technology will bring about new risks, they're also powering massive strides in simplifying the way in which we can protect businesses and end users online. Whether you're working within the security industry or simply an end user, 2023 is poised to usher in transformative changes to identity management and security.

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About Jeff Shiner

Jeff Shiner is the CEO of 1Password, the leader in human-centric security and privacy. 1Password is trusted by more than 100,000 businesses such as IBM, Slack, Snowflake, Shopify, and Under Armour and protects the most sensitive information of millions of individuals and families across the globe. Skilled in digital strategy, eCommerce, search engine marketing (SEM), digital marketing, and analytics, Jeff Shiner has a demonstrated history of growing businesses and working in the computer and network security industry. Prior to joining 1Password, Jeff was the Senior Development Manager of WebSphere Commerce at IBM Canada for eight years. He then led the 400-person technology division of Rosetta, a customer engagement services company. 1Password's passion for building customer-focused solutions is what prompted Jeff to join the company in 2013. When he's not busy being a CEO, Jeff runs a LEGO shop with his son on Bricklink - he's the proud owner of more than 1000 pounds of bricks!

About Steve Won

Steve Won is the Chief Product Officer at 1Password, leading the human-centric security and privacy leader's product team in expanding its portfolio of intuitive consumer and business security solutions and ensuring convenient and frictionless security for the company's more than 100,000 business customers and millions of individuals and families across the globe. Prior to joining 1Password, Steve Won served as Vice President of Product at e-commerce business, Shogun, where he oversaw the initiation of the product team as well as leading multiple high-impact partnerships programs. Previously, he was Head of Authentication Products at Duo Security. As an early employee, Steve contributed across Customer Success, Product Marketing, and Product Management disciplines as the company grew to become a leader in user authentication and was acquired by Cisco in 2018.