Phishing is the most common type of cybersecurity attack, according to the National Cyber Security Centre and the US Government Accountability Office. Software passkeys provide a convenient way for many organisations to protect their data and assets, but physical keys provide unmatched security, privacy and operational reliability. Unlike software passkeys, YubiKeys provide physical proof of presence and deliver the highest assurance phishing-resistant authentication, ensuring that only authorised users can access sensitive systems – no matter how sophisticated the threat.
“With software-stored secrets, there’s an exploit risk with malware, phishing kits and operating systems,” explains Jonathan Hanlon, senior partner marketing manager at Yubico. “YubiKeys operate outside of the host environment and are immune to these threats. For regulated sectors or high-risk roles, this physical boundary represents a gold standard for phishing resistance. By reducing reliance on cloud syncing and local storage – common dependencies of software-bound passkeys – organisations shrink their attack surface and establish a clean, auditable trust anchor in YubiKeys.”
This is critical in high-stakes environments where a single compromised credential could have serious consequences, such as unauthorised access to sensitive data, financial loss or disruption of critical operations.
“Many built-in security features are tied to the assumptions and architecture of the platforms they run on,” says Hanlon. “YubiKeys operate independently. As purpose-built hardware credentials, they deliver consistent protection across environments – without relying on the integrity of any single system. That autonomy helps organisations streamline deployment, maintain flexibility, and strengthen their overall security posture.”
“Organisations shrink their attack surface and establish a clean, auditable trust anchor in YubiKeys,” says Jonathan Hanlon, senior partner marketing manager at Yubico
In practice, this means IT departments gain a portable root of trust that is tamper-resistant by design, allowing organisations to manage authentication on their own terms without relying on opaque firmware updates or platform-specific policies.
The security benefits of hardware-bound passkeys extend beyond platform neutrality to phishing resistance.
“Hardware passkeys rely on origin binding and cryptographic challenge-response, meaning they only authenticate the correct site when intended, without ever revealing secrets,” says Hanlon.
Privacy is another critical differentiator. Cloud-synced credentials create metadata footprints, but hardware-bound passkeys do not generate centralised logs or telemetry.
“End users retain full custody of their authentication secrets, which is ideal for sectors like healthcare, government and finance,” says Hanlon. “Hardware passkeys aren’t just private by design; they’re also easy to explain, audit and enforce as policy. That distinction reinforces a core principle: true privacy means minimising exposure – not just encrypting it – and hardware-bound credentials offer a clean break from the surveillance surface of software-based authentication.”
Hardware passkeys also address practical challenges in hybrid work environments.
“YubiKeys are ecosystem-agnostic, working seamlessly across Windows, macOS, Linux, iOS and Android and hundreds of apps, devices and services your end users access every day,” says Hanlon. “They’re built for hybrid work realities. Whether employees use personal devices, shared kiosks or remote workstations, credentials remain portable and secure.
Plus, multi-protocol support – including Fast Identity Online 2 (FIDO2), Smart Card and one-time password – ensures teams can integrate hardware keys with both legacy and modern authentication systems. Additionally, with secure and seamless authentication to Entra ID, apps that are accessible through Security Assertion Markup Language or OpenID Connect access in Entra ID are, by extension, secured with YubiKey access.”
From an IT perspective, managing hardware keys at scale is straightforward. “Unlike platform-stored credentials, YubiKeys offer lifecycle control from the ground up: provisioning, revocation, inventory and auditability are all IT-friendly,” says Hanlon.
The alignment with Zero Trust architectures is another key consideration. “Zero Trust depends on explicit verification at every step,” says Hanlon. “YubiKeys contribute by enforcing strong identity proofing, device independence and context-aware authentication. By requiring user presence and cryptographic validation, hardware-bound passkeys support least privilege models, mitigate lateral movement and integrate seamlessly with cloud-native identity stacks like Microsoft Entra ID.”
Yubico is making the path to passwordless with hardware-bound passkeys a manageable journey for any organisation.
“Hardware-backed credentials will remain essential for anchoring trust, especially as organisations embrace mobility, cloud-first tools and federated identity,” says Hanlon. “Features like FIDO Pre-registration and enterprise-ready fulfilment workflows from Yubico mean organisations can equip users with phishing-resistant keys that are pre-registered, policy-aligned and ready for deployment on day one.”
Across verticals of all kinds, hardware-bound passkeys provide a tangible and resilient anchor in an increasingly complex identity landscape. For organisations balancing security, privacy and operational flexibility, the simple act of adding a physical key to the login process can make the difference between compromise and peace of mind.
Discover insights from these partners and more in the Autumn 2025 issue of Technology Record. Don’t miss out – subscribe for free today and get future issues delivered straight to your inbox.