Read the full article here
Introduction
As payment threats increase in complexity, securing cardholder data becomes critical for any business in the payment ecosystem. The Payment Card Industry Data Security Standard (PCI DSS) 4.0 brings a new level of rigor to authentication — requiring modern, phishing-resistant solutions that go beyond legacy passwords. Passkeys, built on the FIDO2 and WebAuthn standards, are emerging as a best-practice approach for organizations striving to achieve PCI DSS 4.0 authentication, regulatory compliance and true risk reduction.
PCI DSS 4.0: What’s New for Authentication?
PCI DSS is the global benchmark for organizations handling payment card data. With version 4.0, published in March 2022, the PCI Security Standards Council has shifted to a risk-based framework focused on real security outcomes. New requirements will become mandatory from March 31, 2025. Key changes include:
- Emphasizing continuous, business-as-usual security processes
- Supporting customized security controls through risk justification
- Strengthening authentication requirements, especially around phishing resistance
Non-compliance can result in fines, legal penalties and reputational damage, making adoption of PCI DSS 4.0 authentication requirements a top priority for payment processors, SaaS vendors and financial services alike.
Strengthened MFA and Phishing-Resistant Authentication
One of the most significant changes in PCI DSS 4.0 is in authentication — specifically Requirement 8. Multi-factor authentication (MFA) is now mandatory for any access (not just admin or remote users) to cardholder data environments. MFA must use at least two independent factors — something you know, something you have and something you are. In addition, the standard requires all methods to be resistant to phishing and replay attacks.
For internal users, modern, phishing-resistant techniques like passkeys (FIDO2/WebAuthn) can replace traditional MFA. For administrative or remote access, these passkeys must be combined with another strong authentication factor for maximum security.
Passkeys: FIDO2 Security and Passwordless Convenience
Passkeys eliminate passwords entirely and rely on public-key cryptography for secure authentication. There are two primary forms:
- Synced Passkeys: Credentials are synchronized securely across devices using cloud services like Apple iCloud or Google Password Manager.
- Device-Bound Passkeys: Credentials reside exclusively on a physical authenticator (like a YubiKey) or user device, providing the highest assurance for sensitive environments.
With passkeys, a user authenticates by verifying locally (with biometrics or device PIN), and the device sends a unique, cryptographically signed challenge to the service. This method ensures credentials cannot be phished, stolen, or reused on fraudulent websites — fulfilling PCI DSS 4.0’s requirements for FIDO2 passkey security, replay resistance and robust payment card data security.
Benefits of Passkeys for PCI DSS Compliance
Implementing passkeys for PCI DSS 4.0 authentication brings several operational and security advantages:
- Satisfies MFA and phishing-resistant authentication mandates
- Simplifies compliance by reducing the need for complex password controls
- Lowers operational risk from account takeovers and credential stuffing
- Improves user experience for developers and end users
Organizations can use synced passkeys for most internal users and device-bound passkeys for admins or remote access. Qualified Security Assessors (QSAs) will often require evidence of factor independence and authenticator strength, especially for device-bound options.
Considerations for Implementation
While passkeys are transforming passwordless authentication for enterprises, deployment should consider both technical and compliance aspects. There are important implementation choices around device support, fallback methods, and auditing for PCI DSS Requirement 8 compliance. Companies are also closely watching how industry consensus forms around synced vs device-bound credentials.
Want to explore deeper technical details, compliance guidance, and implementation best practices? Find out more on https://www.corbado.com/blog/pci-dss-4-0-authentication-passkeys.
Top comments (0)