Passkeys in Microsoft 365 (Entra ID) – Secure and Passwordless

Passkeys offer several advantages that make their use particularly attractive and helpful. You can find the three most important aspects here.

Logging in with a Microsoft Passkey works simply via Face ID, fingerprint, or a device PIN, instead of a traditional password. The seamless login via your own mobile devices or Windows Hello is particularly practical. No more annoying guessing which password to use and whether it was typed correctly. How often have you had to reset your password because you couldn’t remember it?

With passwordless authentication, fewer helpdesk tickets are generated, as the “Forgot password” function becomes obsolete. The user experience is also significantly improved – whether on a smartphone, PC, or browser.

Microsoft Passkeys are cryptographic keys that cannot be transferred. This implies that there is no attack surface for phishing. In direct comparison with classic MFA, Passkeys perform significantly better, because OTPs (One-Time Codes) can be intercepted.

Because Entra ID verifies identity and the device (hardware binding), thus enabling significantly fewer account takeovers and better audit trails.

Passwordless authentication is based on the FIDO2 standard with the private/public key principle. The private key always remains on the user’s device, while only the public key is stored with Entra ID. The private key remains local and secret, for example, on your smartphone or laptop. The public key is public and is transmitted directly to Entra ID or Microsoft once during setup.

When a login occurs, it is only cryptographic, meaning codes and passwords are not transferred from one to another.

Because Entra ID verifies identity and the device (hardware binding), thus enabling significantly fewer account takeovers and better audit trails.

Many users are unaware that every password reset costs money; approximately €15-20 per ticket. Thus, requesting a password is not only cumbersome and disruptive for users but also has a negative impact from a cost perspective. Passwordless authentication is therefore more economical, as Passkey usage can save unnecessary expenses for tickets.

Another aspect is time savings, as users appreciate when logging in works quickly and easily. With Microsoft Passkeys, logging in takes just a few seconds and does not require several minutes, as is usually the case. The training effort for existing employees is kept as low as possible. They simply log in using familiar methods such as Face ID, fingerprint, or device PIN. Naturally, this relieves the burden on IT and support teams.

Passwordless authentication also simplifies the onboarding of new employees. Passkeys ensure immediate access to Microsoft 365 – it is not necessary to assign or distribute passwords. This makes the start relaxed and straightforward, much to the satisfaction of IT security and the new user.

You have now learned a lot about why Microsoft Passkeys are beneficial. This section focuses on the how. For maximum impact and full efficiency, you should use a concrete plan to get from the pilot project to eventual productive operation.

Crucial here are individual yet realistic goals, criteria for measuring success, and suitable device pools. Only then can a passwordless and secure future be achieved seamlessly.

A controlled rollout minimizes numerous risks, and secure planning increases user acceptance. Many companies make the mistake of activating Passkeys for everyone immediately. Suddenly, chaos and dissatisfaction prevail, and the workload is massively disrupted. Instead, it is advisable to plan the transition in several stages. This allows for a relaxed testing phase, and feedback leads to helpful optimizations.

Imagine all your employees working with Passkeys at once. The transition can lead to minor technical hurdles such as policies or device compatibility, or raise organizational questions. Suddenly, everyone needs help from the IT department. This approach would be absolutely counterproductive.

To avoid this, we recommend a rollout plan with the following steps:

There are several reasons to switch to Passkeys in Microsoft 365 now.

Contact us – we will support you with pilot, policy, and rollout, enabling you to pragmatically and quickly implement this promising passwordless strategy.