At CyberStreams, we help small and medium-sized businesses secure their systems against evolving cyber threats. For decades, passwords have served as the cornerstone of digital security. But today, they’ve become one of the weakest links, easily compromised through phishing schemes and brute-force attacks. Enter passkeys, a new, phishing-resistant authentication method that’s rapidly gaining traction. The question is, are they ready to replace passwords in your business?

Passkeys, backed by the FIDO Alliance, use public-key cryptography. A private key is stored on your device, while a public key is saved on the server. This eliminates the need for shared secrets like passwords, which are highly susceptible to hacking. Unlike passwords, passkeys can’t be typed, guessed, or stolen via phishing. They rely on device-based biometrics or secure PINs, making them significantly harder to exploit.

The stakes are high. In 2024, 40% of data breaches involved stolen credentials, costing small and medium businesses an average of $4.3 million per incident (IBM X-Force, 2025). One notable 2023 phishing attack reported by Zscaler compromised 10,000 customer records at a major retailer all due to weak passwords. If passkeys had been implemented, that breach might never have occurred, since passkeys require device-based authentication.

Social media buzz reflects growing interest. IT administrators have praised passkeys for their simplicity and robust security. However, others voice concerns about adoption challenges. In 2024, Google, Apple, and Microsoft rolled out support for passkeys. This move triggered a rush among leading password managers to adopt the new standard and stay relevant. Still, obstacles remain. Not every platform supports passkeys yet, and syncing them across devices continues to be a challenge, an opportunity password managers are racing to solve.

Government guidance supports the shift. NIST Special Publication 800-63-3 recommends passkeys for high-security applications. However, a NIST report found that 70% of SMBs lack the infrastructure to make the transition. Legacy systems, technical debt, and a lack of employee training often hinder widespread adoption.

Passkeys represent a future where phishing could be virtually eliminated, but the transition requires strategy and planning to minimize disruption. CyberStreams is here to guide SMBs through that journey securely.

Three Key Takeaways and Next Steps

1. Assess Passkey Readiness
   Evaluate your systems for passkey compatibility to replace weak passwords. CyberStreams’ Cyber Fit Assessment can help identify gaps in your IT infrastructure.

2. Pilot Passkey Deployment
   Start small. Deploy passkeys on high-risk accounts, such as those used by IT administrators. Expand to power users, and then organization-wide once processes are refined.

3. Delete Your Passwords
   You’re only as secure as your weakest authentication method. After enabling and enforcing passkeys, it's essential to remove passwords completely. If passwords remain active, attackers can still exploit them, rendering the added security meaningless.

Conclusion

Passkeys offer a game-changing opportunity to eliminate phishing risks and strengthen your authentication strategy. However, like any significant shift in technology, successful implementation requires preparation, training, and the right partner.

At CyberStreams, we specialize in helping small and medium businesses transition to secure, future-ready systems. By assessing your readiness, piloting smart deployments, and fully committing to a passwordless future, your business can stay ahead of evolving cyber threats and out of the headlines.