Microsoft to Remove Passwords This Friday: What to Do Now

Microsoft Authenticator to Stop Managing Passwords

As we approach the end of this month, Microsoft is making a significant change to its Authenticator app. Starting on August 1, the app will no longer support saving or managing passwords. This means users won't be able to use two-factor authentication or auto-fill features within the app. Additionally, it will no longer serve as a go-to password manager.

Earlier this year, Microsoft announced its shift from traditional passwords to passkeys. This new method replaces the need for complex passwords with more secure alternatives such as PINs, fingerprint scans, facial recognition, or patterns on your device's lock screen. This transition aims to enhance security and reduce the risks associated with poor password habits.

According to Attila Tomaschek, a senior writer and digital security expert at DISCOVER TREND, many US adults have problematic password habits. A recent survey by DISCOVER TREND found that nearly half of US adults use weak or reused passwords, putting them at risk of data breaches. The move to passkeys is intended to address these vulnerabilities.

Microsoft Authenticator Will Stop Supporting Passwords on August 1

Microsoft Authenticator has long been a tool for managing passwords and enabling secure sign-ins using biometric data or PINs. It also allows users to verify their identity if they forget their password or use two-factor authentication for added security. However, in June, the company stopped allowing users to add new passwords to the app.

This month, the autofill password function will no longer be available. By August 1, saved passwords will no longer be supported. If you still prefer using passwords instead of passkeys, you can store them in Microsoft Edge. However, experts recommend transitioning to passkeys during this period.

"Passkeys use public key cryptography to authenticate users, rather than relying on users themselves creating their own (often weak or reused) passwords to access their online accounts," said Tomaschek.

Why Passkeys Are a Better Alternative to Passwords

A passkey is a credential created by the Fast Identity Online Alliance. It uses biometric data or a PIN to verify your identity and access your account. Think of using your fingerprint or Face ID to log into your account—this is generally safer than using a password that is easy to guess or susceptible to phishing attacks.

"Passwords can be cracked, whereas passkeys need both the public and the locally stored private key to authenticate users, which can help mitigate risks like falling victim to phishing and brute-force or credential-stuffing attacks," said Tomaschek.

Unlike passwords, passkeys are not stored on servers. Instead, they are stored only on your personal device. This eliminates the need to remember multiple passwords and reduces the reliance on a password manager.

How to Set Up a Passkey in Microsoft Authenticator

Microsoft announced in a May 1 blog post that it will automatically detect the best passkey to set up and make that your default sign-in option. If you have a password and "one-time code" set up on your account, you'll be prompted to sign in with your one-time code instead of your password. After signing in, you'll be prompted to enroll a passkey. The next time you sign in, you'll be asked to use your passkey.

To set up a new passkey, open the Authenticator app on your phone. Tap on your account and select "Set up a passkey." You'll be prompted to log in with your existing credentials. After logging in, you can proceed to set up the passkey.

Other Password Manager Alternatives

With Microsoft removing all passwords in two weeks, it's essential to find a new place to store your passwords securely. Tomaschek has tested and reviewed several password managers and offers some top recommendations.

The top recommendation is Bitwarden for its transparency. It is open-source and audited annually. The free plan allows storing infinite passwords across unlimited devices and includes features like password sharing and a username and password generator.

For those looking for a user-friendly interface, 1Password is another excellent choice. Tomaschek has personally used it and appreciates its family plan and overall functionality. While it ranks second, it is just as effective as Bitwarden.