By NHI Mgmt Group Editorial TeamBased on Axiad: “This Password Day, we think you deserve better.” (September 16, 2025)

TL;DR: Password-based authentication remains costly and risky, with the average employee managing 190+ passwords, over 40% of help desk calls tied to password issues, and more than 80% of data breaches linked to password problems, according to Axiad. The real issue is not convenience alone: password-centric IAM still depends on weak, reusable, and stealable secrets.


At a glance

What this is: This is an Axiad blog arguing that passwordless authentication reduces both identity risk and operational support load by removing dependence on weak, reusable credentials.

Why it matters: It matters because IAM teams still carry password reset burden, phishing exposure, and credential reuse risk, so authentication strategy directly affects both security posture and service desk capacity.


Context

Passwords remain a poor fit for modern identity governance because they are reusable, user-managed secrets that are easy to forget, reuse, or expose. In this article, Axiad frames passwordless authentication as a way to reduce the risk and operational drag created by password-centric access.

The governance issue is bigger than user convenience. When authentication depends on a secret humans must remember and defend across many applications, the control surface expands into phishing, help desk resets, and credential sprawl across endpoints and devices.


Key questions

Q: How should security teams implement passwordless authentication without weakening identity assurance?

A: Security teams should treat passwordless as the authentication layer, not the proofing layer. Keep strong issuance checks, device binding, and step-up verification for sensitive actions. Then review recovery and helpdesk flows, because attackers often target those paths when login is hardened but assurance is not. The goal is to verify the person, not just the credential.

Q: Why do passwords create so much help desk demand?

A: Because they fail in predictable ways: people forget them, reuse them, lock themselves out, or need resets after expiry. Each failure creates a service event and often a recovery step that is slower than authentication itself. When those events become frequent, authentication design is driving operational friction instead of reducing it.

Q: What signals show that passwordless adoption is actually working?

A: Look for fewer password resets, fewer help desk unlock requests, lower use of workarounds, and stable clinician throughput during login-heavy periods. If security improves but staff create new manual steps or avoid the control, the programme has only moved the problem, not solved it.

Q: What should security teams do when passwordless is only covering user logins?

A: Expand the design review to include devices, servers, applications, and secure communications, because attackers often pivot through whatever still depends on a long-lived secret. A narrow rollout may improve one login flow while leaving the rest of the identity estate exposed.


Technical breakdown

Why password-based authentication creates identity risk

Password authentication turns identity assurance into a memory problem. Users compensate with notes, spreadsheets, password managers, reuse, or predictable patterns, and each workaround widens the attack surface. Even strong password rules do not remove the core weakness: the secret is still transferable, stealable, and often reused across systems. In practice, this means the trust signal is the credential itself rather than a stronger binding between the user, the device, and the authentication event. Passwordless methods replace that brittle secret with a stronger factor set, but the governance value comes from reducing reliance on something attackers can capture and replay.

Practical implication: treat password removal as an identity risk reduction programme, not a user-experience tweak.

Why help desk load tracks password dependence

Password resets, one-time password requests, and lockout recovery consume disproportionate support time because the authentication model forces routine recovery events. The article notes that more than 40% of help desk calls are password-related, which shows that authentication design affects operating cost as much as it affects security. This is not just an efficiency issue. Every reset flow creates another path where identity assurance can weaken through social engineering, out-of-band recovery, or stale account state. Passwordless programmes reduce that recurring service burden by removing the most common failure mode from the authentication process.

Practical implication: measure authentication by support volume as well as login success rates.

Passwordless coverage must extend beyond the user login

The article is explicit that secure authentication has to cover more than a browser sign-in. It points to devices, servers, applications, IoT, and even secure email and document signing as part of the same identity problem. That matters because a passwordless strategy that stops at the human login leaves machine access, communication trust, and downstream identity assertions untouched. For IAM teams, the real architecture question is whether the organisation can bind identity assurance across the full set of assets and interactions that still depend on credentials.

Practical implication: scope passwordless design across users, devices, services, and signed communications instead of only replacing login prompts.


Threat narrative

Attacker objective: The attacker wants to obtain reusable credentials that can be replayed for account takeover and breach access.

  1. Entry begins when users rely on passwords that are reused, recorded, guessed, or intercepted across multiple services.
  2. Credential access follows through phishing, password theft, lockout recovery, or exposure in notes, spreadsheets, and poorly protected password managers.
  3. Impact occurs when stolen credentials let attackers impersonate users, trigger breaches, and amplify help desk and recovery overhead.
  • Co-op cyber attack 2025: Attackers linked to Scattered Spider tricked their way into a Co-op employee account and stole personal data of all 6.5 million members.

Read and download The State of NHI & AI Agent Breach Report 2026, covering 150+ breaches impacting Non-Human Identities including AI Agents.


NHI Mgmt Group analysis

Passwordless authentication is an identity-risk control, not a convenience feature. The article shows that the real problem is not only user friction but the security model built around reusable secrets. When the authentication factor is something humans must remember and re-enter, the organisation inherits phishing exposure, reuse pressure, and recovery complexity. Practitioners should treat passwordless as a way to shrink the attack surface of identity itself.

Help desk cost is a governance signal, not just an operations metric. More than 40% of password-related calls indicates that authentication design is pushing work into recovery rather than assurance. That is a sign the identity architecture is forcing the business to absorb recurring exception handling. Teams should read support burden as evidence that the current control model is misaligned with how users actually authenticate.

Password-centric IAM creates weak identity binding across the full access chain. The article rightly extends the discussion beyond user login to devices, servers, applications, IoT devices, and signed communications. That is the right lens because identity assurance is only as strong as the weakest credentialed interaction in the chain. Practitioners should evaluate whether their programme secures the whole identity flow, not only the first sign-in.

Ephemeral secret reduction is the real security gain. Passwordless methods matter because they remove the long-lived, human-managed secret from the authentication path. That changes the exposure window for phishing, reuse, and theft, and it reduces the number of places where a credential can be stored or lost. The key question for identity teams is whether they are reducing secret dependency or merely moving it elsewhere.

Machine and human identity controls are converging around the same trust problem. The article’s mention of devices, servers, applications, and email signing shows that the password question is no longer limited to workforce login. Organisations are increasingly facing a shared challenge: how to prove identity without depending on a secret that can be copied. The practical implication is to align human IAM, device trust, and machine identity policies under one authentication strategy.

What this signals

Passwordless authentication changes the control objective. Once the password disappears, the programme stops chasing secret protection and starts managing identity binding, recovery assurance, and device trust. That shifts the centre of gravity from memorised credentials to lifecycle-governed authentication.

Recovery is where passwordless programmes succeed or fail. If fallback flows still rely on weak verification, the organisation has only moved the problem sideways. The practical test is whether the replacement factor actually reduces exposed secrets across the identity journey.


For practitioners

  • Replace password-centric login paths Prioritise passwordless methods for high-volume employee authentication flows where resets, reuse, and phishing exposure are driving measurable risk.
  • Track help desk dependency as a control signal Measure password-related tickets, lockouts, and one-time password requests as a proxy for authentication design failure, not just support demand.
  • Extend passwordless scope beyond workforce login Map which devices, servers, applications, IoT devices, and signed communications still rely on passwords or other long-lived secrets.
  • Bind identity assurance to the full credential lifecycle Review how new credentials are issued, stored, protected, and recovered so passwordless adoption does not leave fallback paths weaker than the primary flow.
  • Reduce phishing exposure in recovery paths Audit reset and recovery processes for social engineering risk, especially where out-of-band verification still depends on knowledge-based checks.

Key takeaways

  • Passwordless authentication is valuable because it reduces dependence on reusable secrets that create both breach risk and recurring support work.
  • The article links password use to major operational drag, with more than 40% of help desk calls tied to password problems.
  • Teams should evaluate passwordless programmes across users, devices, services, and recovery paths, not just at the login screen.

Key terms

  • Passwordless Authentication: An authentication approach that removes passwords and uses a device-bound cryptographic key plus local user verification. It reduces phishing and replay risk, but it only improves assurance when enrollment, recovery, and revocation are tightly governed.
  • Authenticator Lifecycle Management: Authenticator lifecycle management is the governance of a credential from issuance to renewal, replacement, and retirement. For human identity programmes, it ensures that keys, smart cards, and certificates stay tied to the right user and are removed when the user, role, or device is no longer trusted.
  • Recovery Path: The set of backup methods, reset flows, and help-desk procedures that restore access when a user loses their primary credential. Recovery paths often become the weakest part of identity governance because they can reintroduce shared secrets, manual override, or inconsistent verification standards.
  • Identity Binding: The process of linking an external credential or login method to an internal account record. Strong binding prevents duplicate accounts, broken recovery paths, and unsafe merges when users authenticate through different identity sources or wallet-based credentials.

Deepen your knowledge

NHI governance, agentic AI identity, and machine identity lifecycle are core topics in our NHI Foundation Level course, the industry's only accredited NHI security programme. If you are building or maturing an IAM programme, it is worth exploring.
NHIMG Editorial Note
Published by the NHIMG editorial team on June 8, 2026.
Updated on October 7, 2026.
NHI Mgmt Group, the independent authority on Non-Human Identity, IAM, and Agentic AI security. nhimg.org