Microsoft is making a major shift in how users secure their accounts by officially retiring password support in the Microsoft Authenticator app. The company has announced that all stored passwords will be permanently deleted from the app on August 1, 2025, as it pivots toward passkey-based authentication — a faster and more secure login method using biometrics or PINs.

What’s Changing in Microsoft Authenticator?

Microsoft Authenticator has long supported both multi-factor authentication (MFA) and password management. But over the past few months, it has been transitioning away from passwords in a phased rollout:

• June 2025: Adding new passwords was disabled.

• July 2025: Autofill password feature is being turned off.

• August 1, 2025: All saved passwords will be removed permanently.

After this date, users will no longer be able to access or use saved passwords within the app. Microsoft is instead positioning Authenticator as a passkey vault, optimized for a passwordless future.

Why Is Microsoft Removing Password Support?

The shift to passkeys aligns with Microsoft’s long-term security vision. According to Attila Tomaschek, a CNET security expert, “Passwords can be cracked — reused, stolen, phished, or brute-forced. Passkeys, on the other hand, use public-private key encryption, which is far more secure because your private key never leaves your device.”

A CNET survey revealed that 49% of U.S. adults reuse passwords across multiple sites or use weak recovery hints — both of which make them vulnerable to hacks, data breaches, and identity theft.

Passkeys are more resistant to:

• Phishing attacks

• Credential stuffing

• Data leaks

• Social engineering

They also eliminate the need for remembering complex combinations or relying on third-party password managers.

What Is a Passkey?

A passkey is a modern sign-in credential created under the FIDO (Fast Identity Online) standard. It replaces your password with biometric login (like Face ID or fingerprint) or a device PIN. Unlike passwords, passkeys are:

• Stored locally on your device

• Not vulnerable to server breaches

• Easier to use across apps and devices

• Integrated with secure login flows

Think of it like using Face ID to unlock your bank account instead of typing out a password.

What You Need To Do Before August 1

If you're currently using Microsoft Authenticator to manage and autofill your passwords, here’s how to prepare:

1. Export your passwords now if you want to retain them.

2. Migrate them to another password manager like Microsoft Edge, 1Password, or Bitwarden.

3. Set up passkeys in Microsoft Authenticator (instructions below).

4. Verify your account recovery options in case you get locked out.

How To Set Up a Passkey in Authenticator

1. Open the Microsoft Authenticator app on your phone.

2. Tap the account you want to update.

3. Select "Set up a passkey."

4. Authenticate using your current method (password or one-time code).

5. Choose your preferred biometric or PIN sign-in option.

6. Done! Passkey is now your default login method.

According to Microsoft, it will automatically detect if you're eligible for a passkey and prompt you to enroll during your next sign-in.

Why This Matters

Microsoft’s password retirement is part of a broader Windows Resiliency Initiative, launched after the 2024 CrowdStrike outage that disrupted businesses and critical infrastructure globally. The goal is to make sign-ins more secure, user-friendly, and resistant to cyber threats.

While many users are comfortable with traditional passwords, this transition encourages safer habits — helping to phase out outdated login methods prone to leaks and attacks.

Final Word

August 1 is the final cutoff. If you still use Authenticator for storing passwords, act now to avoid losing access. This shift to passkeys may feel unfamiliar, but it’s a critical move toward building a safer digital ecosystem.

Say goodbye to weak passwords. Say hello to passwordless security.