Microsoft To Delete Passwords in Authenticator App Starting August 1st

What Happened?

Beginning on August 1st, users of Microsoft’s Authenticator App will no longer be able to save or manage passwords, use two-factor authentication or auto-fill. In addition, Microsoft Authenticator will no longer manage passwords for users. 

The move comes after an announcement by Microsoft earlier in the summer that the company was moving from passwords to passkeys. A passkey is a credential created by the Fast Identity Online Alliance that uses biometric data or a PIN number to verify your identity and access your account. 

Why it Matters

Microsoft’s Authenticator App has over one hundred million users worldwide according to the company’s own data. The switch to a passkey provides extra security, because many people have a tendency to use the same password or very similar passwords for many different accounts. Which means if hackers or other malicious actors get access to one account, they can access them all.

Because users often have many different accounts all of which require unique password access, it can become difficult to remember them all. Applications like Authenticator solve that problem by storing them in a central and secure location so the user can automatically fill in their passwords when logging in to different accounts or sites. 

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Microsoft Authenticator lets users sign into all their Microsoft accounts using PIN numbers, facial recognition like Windows Hello or other biometric data such as a fingerprint. Authenticator has other features, such as verifying when a user is logging in if they forgot their password or using two-factor authentication as additional security for their accounts. In June, Microsoft stopped letting users add passwords to Authenticator.

A key difference between a password and a passkey is storage location. While passwords are stored on servers, passkeys are only stored on your personal device. Malicious actors such as hackers can access servers remotely, but it is more difficult for them to gain access to your personal device. 

According to a blog post by Microsoft on May 1, 2025, simply signing into a personal device with a password isn’t enough. To maximize digital security, people need a way to sign into any account without a password. As part of an industry-wide effort, Microsoft has collaborated closely with the FIDO Alliance, and with platform partners to develop passkeys: ‘a standards-based phishing-resistant authentication method that replaces passwords.’

How it Affects You

Because hackers have become more adept at compromising passwords, a new approach to digital security is warranted. For Microsoft Authenticator users, the following steps are required to transition from passwords to a passkey. 

In order to set up a new passkey, simply open the Authenticator app on your personal device and tap on your account and select ‘Set up a passkey.’ Then follow the prompt to log in with your existing credentials. After you're logged in, you can set up the passkey.