Experts warn passwords no longer sufficient in AI era
What happened
Australian experts warn passwords are no longer sufficient as AI and credential-theft tactics scale attacker access. The article cites vendor research showing a measurable share of GenAI prompts carry high-risk data leakage and that unmanaged personal accounts drive much of the exposure. Watch whether organisations accelerate FIDO2/passkey adoption and require prompt-logging from AI providers
Buyer takeaway
Elevate passwordless and prompt-visibility requirements in procurements because passwords are shown to be ineffective against infostealers and AI-amplified prompt leakage
Cost / money
Expect integration and device-binding costs when adopting FIDO2 and updating SSO/endpoint processes; budget these as part of identity renewals
Supplier / commercial
Identity and access vendors may demand migration/support fees; require migration SLAs, rollback provisions and device-exemption policies in offers
Safety / operations
Credential compromise affects both IT and physical security; ops must have tested manual overrides and coordinated cyber-physical runbooks
What to watch
Watch vendor claims of 'phishing-proof' solutions; require pilot evidence and contractual rollback rights before committing
Key facts
- Vendor research: notable share of GenAI prompts flagged as high‑risk in recent sampling
- Majority of risky prompts submitted via unmanaged personal accounts, creating blind spots
Source excerpts
Physical impact New research from Genetec suggests physical security environments also face growing credential-related risks as systems connect to corporate networks
"Genetec encourages organisations to move beyond isolated credential controls and adopt a governance-first approach to identity management in physical security environments, including: Strengthen identity and credential controls: Organisations should eliminate default and shared credentials, enforce strong authentication such as passkeys and adopt multi-factor authentication to reduce common attack entry points
"Here are some ways organisations can defend themselves in 2026: Embrace passwordless and FIDO2: The only true defence against phishing and infostealers is removing the password entirely
