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Technology

Time’s Almost Up: Microsoft Will Delete Your Passwords on Aug. 1. What to Do ASAP

Nexpressdaily
Last updated: July 25, 2025 5:26 pm
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If you use Microsoft Authenticator to manage your passwords, the clock is ticking. 

On Aug. 1, the app won’t store or manage your passwords anymore. That means you won’t be able to save passwords or use two-factor authentication or auto-fill. 

And if the Authenticator app was your go-to password manager, you’ll need to find a new one. Microsoft is moving to a login method we’re becoming more familiar with: passkeys. Instead of a mix of letters, symbols and numbers, you’ll use PINs, fingerprint scans, facial recognition or a pattern on your device’s lock screen to log in to your accounts. Attila Tomaschek, a CNET software senior writer and digital security expert, believes it’s a safer option compared with the risky password practices we use. 

By the numbers, 49% of US adults have bad password habits, according to a CNET survey. Having a password you use for several accounts or that’s easy to guess can put you at risk of hackers stealing your data. 

There’s less than a week before the big switch. So it’s time to figure out how passkeys will work with Microsoft and to pick a new password manager. Here’s what you need to know to get started. 

Microsoft Authenticator will stop supporting passwords on Aug. 1

Microsoft Authenticator houses your passwords and lets you sign into all your Microsoft accounts using a PIN, facial recognition like Windows Hello, or other biometric data like a fingerprint. Authenticator can be used in other ways, such as verifying you’re logging in if you forgot your password, or using two-factor authentication as an extra layer of security for your accounts. In June, the company stopped letting users add passwords to Authenticator.

As of this month, you won’t be able to use the autofill password function. And next month, you’ll no longer be able to use saved passwords.

If you still want to use passwords instead of passkeys, you can store them in Microsoft Edge. However, CNET experts recommend adopting passkeys during this transition. “Passkeys use public key cryptography to authenticate users, rather than relying on users themselves creating their own (often weak or reused) passwords to access their online accounts,” Tomaschek said.

Why passkeys are a better alternative to passwords

So what exactly is a passkey? It’s a credential created by the Fast Identity Online Alliance that uses biometric data or a PIN to verify your identity and access your account. Think about using your fingerprint or Face ID to log into your account. That’s generally safer than using a password that is easy to guess or susceptible to a phishing attack.

“Passwords can be cracked, whereas passkeys need both the public and the locally stored private key to authenticate users, which can help mitigate risks like falling victim to phishing and brute-force or credential-stuffing attacks,” said Tomaschek. 

Passkeys aren’t stored on servers like passwords. Instead, they’re stored only on your personal device. More conveniently, this takes the guesswork out of remembering your passwords and the need for a password manager.

How to set up a passkey in Microsoft Authenticator

Microsoft said in a May 1 blog post that it will automatically detect the best passkey to set up and make that your default sign-in option. “If you have a password and ‘one-time code’ set up on your account, we’ll prompt you to sign in with your one-time code instead of your password. After you’re signed in, you’ll be prompted to enroll a passkey. Then the next time you sign in, you’ll be prompted to sign in with your passkey,” according to the blog post.

To set up a new passkey, open your Authenticator app on your phone. Tap on your account and select “Set up a passkey.” You’ll be prompted to log in with your existing credentials. After you’re logged in, you can set up the passkey.

Other password manager alternatives 

Since Microsoft will get rid of all of your passwords in two weeks, you’ll need a new place to store your passwords safely. Tomaschek has a few of the best password manager recommendations after testing and reviewing several. 

The top recommendation is Bitwarden for its transparency. It’s open-source and audited annually. From a price perspective, the free plan lets you store infinite passwords across unlimited devices. The free plan also includes features most password managers would charge for, including password sharing and a username and password generator. 

Bitwarden’s upgraded plans have other upgraded features that could be worth the cost, too. 

Personally, Tomaschek has been using 1Password for a while, and he likes the interface and family plan. Even though it’s second on the list, Tomaschek says it’s just as good as Bitwarden. 

Contents
Microsoft Authenticator will stop supporting passwords on Aug. 1Why passkeys are a better alternative to passwordsHow to set up a passkey in Microsoft AuthenticatorOther password manager alternatives 
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