Microsoft Sets Passwordless Sign-In as Default for New Accounts to Enhance Security

Microsoft has officially transitioned all new user accounts to be passwordless by default, a strategic move aimed at strengthening account security and minimizing risks associated with traditional passwords, such as phishing, brute-force attacks, and credential stuffing. This initiative follows Microsoft’s ongoing efforts, which began in March 2025, to streamline sign-in and sign-up experiences across web and mobile platforms with a focus on passkey-first authentication.

According to Microsoft executives Joy Chik and Vasu Jakkal, users creating new accounts will no longer be required to set passwords. Instead, they will be prompted to use one of several passwordless options, such as biometrics (fingerprint or facial recognition) or other passkey-based solutions. Existing account holders are also encouraged to transition by removing their passwords via account settings.

Microsoft’s approach automatically selects the most secure and appropriate passwordless method for each user and sets it as default. The company has observed a more than 20% reduction in password use as a result of this transition and anticipates even further reductions as adoption of passkeys grows.

The tech giant, a board member of the FIDO Alliance, has already integrated support for passkeys through features like Windows Hello and continues to develop WebAuthn capabilities for broader compatibility with third-party providers. This move underscores Microsoft’s commitment to a future where passwords are obsolete.