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An increasing number of Vietnamese enterprises are proactively adopting strong passwordless authentication technologies as traditional methods prove insufficiently secure and fraught with issues. The passwordless future is anticipated to be a significant trend in the digital age.
Businesses No Longer Trust Passwords
Data is considered the lifeblood of businesses, yet not all companies are adept at safeguarding this valuable asset. In Vietnam, more than 1,000 cyberattacks target the IT systems of agencies, organizations, and enterprises each month, exploiting security vulnerabilities for illegal activities. Globally, 80% of financial institutions report data breaches, incurring average annual losses of millions of USD, according to a 2022 global finance report.
A study by Verizon revealed that 80% of data breaches and thefts are linked to weak or compromised passwords. Despite being around for over 60 years, passwords remain a basic security method heavily relied upon by many organizations, raising the question: “Is traditional password authentication still secure enough?”
Beyond the quantifiable damages, passwords also incur significant invisible costs. Issues like forgetting passwords, changing passwords, and resetting expired passwords consume considerable time and effort, reducing employee productivity and overall business efficiency. Statista estimates that organizations spend an average of $480 per employee annually to address password-related issues.
The Rise of Passwordless Authentication
The world is witnessing a shift to next-generation authentication, with 92% of enterprises having either adopted or in the process of adopting passwordless technology, according to the 2023 Authentication Report. Security experts globally have developed a new authentication technology—FIDO2—to reduce dependence on passwords, offering enhanced security and convenience.
FIDO2 transforms traditional authentication by creating unique security keys stored securely on user devices without sharing them with servers. These unique keys cannot be duplicated, ensuring that user information is difficult to counterfeit or attack. Without needing to enter a password, users authenticate using fingerprints, facial recognition, or PIN codes through FIDO2-compliant hardware or applications.
Launched in 2018 by the FIDO (Fast Identity Online) Alliance—which includes tech giants like Google, Microsoft, Apple, and Intel—FIDO2 marked the beginning of a “passwordless” era. FIDO2 has been rapidly adopted by global tech companies, financial institutions, and e-commerce giants like American Express, US Bank, and PayPal, with widespread implementation across Europe, the Americas, India, and regions like Thailand and Singapore.
According to Mr. Do Ngoc Duy Trac, CEO of VinCSS, a pioneering Vietnamese startup in FIDO2 solutions, passwordless authentication addresses all three crucial aspects of authentication: safety, cost-effectiveness, and user experience. It is the authentication technology of the future.
Faced with urgent cybersecurity requirements in the context of national digital transformation and international integration, Vietnam officially became the 10th governmental member of the FIDO Alliance in 2023, represented by the Authority of Information Security (Ministry of Information and Communications). Joining this global security alliance demonstrates Vietnam’s commitment to a secure digital environment by promoting strong passwordless authentication to users and businesses in line with global trends.
Pioneers in Passwordless Authentication
Despite being in the market for several years and becoming a global trend, FIDO2-compliant strong passwordless authentication is still in its nascent stage in Vietnam. However, it promises tremendous potential with growing interest and support from the business community for a safer authentication method.
VinCSS is one of Vietnam’s first representatives to join the FIDO Alliance. With a mission to pioneer and lead in cybersecurity, VinCSS has mastered world-standard FIDO2 security technology, successfully building the first strong authentication ecosystem in ASEAN. VinCSS’s FIDO2 security keys and solutions have been implemented in many Vietnamese and international enterprises, protecting hundreds of thousands of individuals and proving effective in enhancing security, reducing operational costs, and improving user experience.
On March 7th, VinCSS signed a cooperation agreement with the Vietnam Electronic Authentication Solutions Joint Stock Company (VEAS). VEAS will integrate VinCSS’s FIDO2 technology into its electronic transaction solutions. Notably, VEAS’s customer base includes financial institutions and banks, which face significant cybersecurity risks. By accessing VinCSS’s FIDO2 passwordless security technology, VEAS can strengthen security for online transactions and digital identification.
At the signing event, Mr. Nguyen Phi Kha, Deputy General Director of VinCSS, shared: “With our strengths in security technology, research and development capabilities, and a team of international experts, VinCSS is always ready to support partners in integrating FIDO2 technology into their products and services, shortening the path towards a ‘passwordless’ future with FIDO2. Vietnamese businesses have demonstrated their ability to innovate, adapt quickly to new technologies, and we expect this cooperation to bring internationally standardized security products to domestic and global customers.”
Mr. Tran Duc Viet, Deputy General Director in charge of Product Research and Development at VEAS, expressed: “We appreciate VinCSS’s support during our successful integration of FIDO2, providing safe and convenient authentication solutions to our users and financial institutions. We hope that leveraging VinCSS’s strong passwordless authentication technology will propel VEAS’s expansion into international markets in the near future.”
Learn more about VinCSS and its cutting-edge security solutions at VinCSS.
