This year, the cyber-security and authentication landscape will be shaped by both an array of advancing threats and cutting-edge solutions.
With the start of 2025 well underway, it’s the perfect time to reflect on the major shifts — both positive and negative — that have defined the cyber-security and authentication space in 2024. It’s also the right moment to look ahead to what awaits us during this year.
With this in mind, let’s take a look at some of the biggest trends that are already shaping the cyber-security sphere of tomorrow. In addition to being aware of the current trends and evolving digital threats, it’s also important to use your knowledge to influence and adjust your approach to cyber-security.
1. More advanced social engineering attacks (and better ways to prevent them)
Rather than exploiting technical vulnerabilities, social engineering preys on weaknesses and tendencies within human psychology — for this reason, social engineering remains one of the most challenging threats to counter.
In addition to traditional email phishing, it’s likely that we’ll see a growing number of sophisticated smishing (via SMS) and vishing (via voice calls) attacks in the new year. Remote access attacks are another type of social engineering technique that will continue to require reliable authentication — specifically, an authentication method that’s resilient to desktop apps capable of stealing credentials. At the same time, it’s crucial to fortify your applications with a strong mobile app security solution.
Companies like O2 are getting creative with preventing social engineering attacks using AI-powered solutions, going as far as to create an “AI granny” to answer calls from fraudsters and keep them away from their valued customers as much as possible.
AI grannies aside, it’s important to invest in an advanced authentication solution to stop these attacks before they succeed. A great example is proximity-based authentication — by verifying that banking customers are physically near the device they’re using to log in or initiate transactions, you can equip your organization with enhanced protection against a range of social engineering attacks.
2. Evolving deepfakes
Gartner predicts that by 2026, 30% of enterprises will consider identity verification solutions unreliable due to AI-generated deepfakes.
With this being the case, it’s no surprise that deepfake technology already presents significant challenges for certain authentication systems in 2025. Synthetic identity fraud, in which cybercriminals use AI-generated deepfakes to impersonate users and bypass biometric authentication measures, is a growing concern. These attacks are especially problematic when it comes to financial systems, where fake identities can severely compromise customer trust and security. To counter these kinds of threats, advanced AI-driven detection tools will become essential.
Moreover, deepfakes also undermine the reliability of biometric data, which raises legal and ethical concerns around its collection and storage. We expect a number of emerging, GDPR-like regulations to address these challenges and ensure the protection of sensitive information while minimizing the risk of biometric data breaches.
3. The further rise of passwordless authentication
The transition away from traditional passwords and the implementation of passwordless solutions across multiple devices and services is becoming the norm.
While passwordless authentication has already been a hot topic during the past few years, it will only continue to gain momentum in 2025. Here’s what’s on the horizon:
- FIDO2 adoption: The aforementioned rise of phishing, malware, and AI-generated deepfakes highlights the critical need for advanced, phishing-resistant solutions. The FIDO2 standard — which powers robust authentication methods like hardware tokens (more on these below!) — will drive the use of passwordless authentication across industries.
- Wider use of passkeys: Passkeys, which are secure and user-friendly alternatives to traditional passwords, will see widespread implementation. They’ve already been implemented by a number of brands and multiple industries, and in 2025, we anticipate that passkeys will become more widely adopted by banks and fintech companies.
- Resurgence of hardware tokens: Regulatory requirements like PSD3 are driving the need for banks to offer alternative authentication methods that don’t rely solely on the possession of a smartphone. Hard tokens easily replace the use of weak credentials with strong hardware-backed cryptographic key pair credentials. As security-minded organizations look to future-proof their defenses, investment in physical hardware tokens is well-positioned to grow. For banks and fintech companies, this also represents a valuable opportunity to cater to forward-looking clients who prefer this authentication method.
4. Changes to authentication solutions in Europe
In 2025, Europe is set to remain as the leader in innovative authentication solutions. There are a few standout regulatory advancements and initiatives that will see Europe continue to blaze a trail in the authentication space. The EU Digital Identity Wallet, which is currently expected to be ready by 2026, will significantly simplify identity management and verification.
Furthermore, PSD3 compliance will become an important topic in 2025. Since its initial proposal in 2023, PSD3 has been increasingly gaining traction with organizations and regulators alike. In 2025, compliance with PSD3 will become more of an imperative — financial institutions will need to align with its updated regulations to enhance the security of digital payments and data.
5. Post-quantum authentication
Current authentication solutions use conventional cryptography, which leaves them susceptible to attacks via quantum computers. Although quantum computers haven’t yet fully materialized, their potential impact on cyber-security is undeniable.
Our top predictions and suggestions related to post-quantum authentication in 2025 include:
- Initial preparations for quantum breakthroughs: It’s imperative that banks and fintech companies prioritize post-quantum cryptography solutions to safeguard against future threats.
- Post-quantum investments: We hope to see organizations invest heavily in quantum-resistant algorithms to stay ahead of emerging risks. The new year is the perfect time to start thinking about the next practical steps to implement quantum-resistant solutions.
This year, the cyber-security and authentication landscape will be shaped by both an array of advancing threats and cutting-edge solutions.
Whether you’re combating deepfakes, adopting passwordless authentication systems, or taking steps to prepare for the post-quantum world, it’s crucial that your business remains proactive in its approach to stay ahead. By embracing cutting-edge solutions and aligning with the evolving trends that we’ve explored, your organization can safeguard its operations while maintaining customer trust.
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