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Passkeys, ATO Prevention, Better Registration to Redefine CIAM

By Brian Pontarelli, founder and CEO, FusionAuth

Customer Identity and Access Management (CIAM), a set of processes and technologies that organizations use to manage the identities and access of their customers, will continue to evolve in 2024. As companies gear up for the challenges and opportunities in the coming year, we anticipate the mainstream adoption of passkeys, a heightened focus on preventing account takeovers, and an increased demand for enhanced registration processes to redefine the CIAM landscape.

Here's how we can expect these three trends to play out in the coming year.

Mainstream passkey adoption will quickly rise

Passkeys are a relatively new security method, but they have proven more secure than traditional techniques. Additionally, it's an attractive option for consumers because it leverages the power of biometric methods (with a fallback to a PIN system if biometrics aren't available) to protect accounts and allow them to go passwordless. The term "passkeys" was first introduced and used by major tech giants, including Apple, Google, Microsoft and Best Buy, and we expect in the coming year for them to be rapidly and widely adopted.

Passkeys are gaining popularity because they remove the need for the user to create and remember complex - yet safe - passwords. Instead, the application stores a public key, and each user's device securely holds the corresponding private key. This makes it virtually impossible for hackers to get users' information. Even if a hacker gains access to the public key, the private key is safe because it never leaves the device. This will be a game changer for the future of authentication and password management because passkeys are decentralized, consumer-friendly, secure alternatives for protecting your data - and it's what consumers want - which is why we can anticipate it being used more widely in the coming year.

Preventing account takeovers will be a priority

Today, hackers now have access to many databases containing stolen credentials. In recent years threat actors have become increasingly sophisticated, carrying out more notable data breaches that have left a treasure trove of usernames and passwords exposed. This has resulted in more account takeover (ATO) attacks, an issue that is skyrocketing. In fact, by 2025, ATO fraud losses are expected to reach almost $17 billion globally. This validates the urgency for companies to make ATO fraud prevention a key focus in 2024 and ensure that the person behind the screen is who they say they are.

However, preventing account takeovers has been challenging in recent years because identity and login security aren't easy, and most internal authentication solutions fall short. As this trend continues to rise next year, we expect companies to look to outsourcing and implementing more advanced detection and prevention solutions. These solutions will better protect their customers' data from cyber attacks that prey on identity-related techniques.

Demand for a better registration process will be on the rise

As digital interactions increase, companies face the challenge of orchestrating secure yet seamless registration workflows. In 2024, consumers and companies alike will expect more from the registration process. Over the next year, vendors will be urged to address complex registration workflows such as Know Your Customer (KYC) protocols and seamless third-party integrations.

These upgraded registration processes will have immense benefits for users, allowing them to experience less UX friction, more transparency with federal legislation such as HIPAA, GDPR and CCPA, and more self-service options, among others. As new regulations come into play and digital services expand - especially in key industries such as finance, e-commerce, healthcare, real estate and cryptocurrency - KYC vendors will play an even bigger role in CIAM to verify identities, monitor transactions and ensure compliance in the coming year.

2024 promises to be a dynamic year in the CIAM space, and the trends we explored offer both business and user benefits that will enhance the CIAM landscape in the coming year. The bottom line is developers and organizations must remain agile and proactive to navigate the evolving landscape and implement strategies that align with emerging trends and challenges in order to see the most success.

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ABOUT THE AUTHOR

Brian Pontarelli is a technology entrepreneur currently solving login, registration, and user management challenges with FusionAuth. Brian started programming at the age of 8 and studied Computer Engineering at CU Boulder. During his early career, Brian worked as a software engineer at companies such as BEA and Orbitz. He started working on his own products nights and weekends and quit his day job after selling a few enterprise licenses. Brian still codes but spends most of his time doing sales, marketing and operations for the company.