A Pragmatic Path to Phishing-Resistant Self-Recovery
Imagine this: instead of replacing passwords, what if passkeys could rescue them?
That’s exactly what some of the world’s most security-conscious organizations from banks to telecoms are starting to do.
While the industry headlines scream “passkeys will kill passwords,” IAM leaders in legacy-heavy environments know it’s not that simple. Passwords aren’t going away tomorrow, especially not in regulated sectors with deep infrastructure, layered policies, and complex access needs.
But they can be tamed.
And passkeys can help, without ripping out your IAM stack.

Passwords aren’t dead. They’re a problem you still have to solve.
Let’s face it, financial institutions, critical infrastructure, and public sector organizations still rely on passwords for key workflows.
Why?
- Legacy systems (e.g., Active Directory, internal apps, SAP)
- Regulatory requirements enforcing certain password policies
- Complex user bases: contractors, field workers, temporary staff
- High cost of migration to fully passwordless IAM
So instead of full replacement, what’s the alternative path?
Let’s look at a common IAM pain point.
The Expensive truth behind password resets
In most large organizations, password resets still look like this:
Employee forgets their password → gets locked out → calls the helpdesk → regains access after 15 minutes
Now multiply that by hundreds of incidents per month.
Average helpdesk reset? €15–€30 per ticket.
It’s a hidden cost sink in time, budget, and user frustration.
A New pattern: passkeys as a self-recovery layer
Here’s the twist: instead of replacing passwords, augment them with passkeys, especially during:
- scheduled password changes
- account recovery after lockout
- onboarding or offboarding cycles
This is how the recovery setup with passkeys work:
- Enrollment phase: Employees proactively register a passkey from their phone (e.g., using Face ID or fingerprint).
- Lockout event: Employee is locked out of their Windows machine or web portal.
- Recovery flow: Login screen shows a QR code. Employee scans it using their phone.
- Passkey challenge completes, and the user is allowed to reset their password – without calling IT.
Result:
Self-service password reset using phishing-resistant passkeys.
No coding changes. No new applications. Full AD compatibility.

“Passwords meet passkeys” – A strategy that resonates
This hybrid approach works especially well for IAM teams in regulated industries, where:
- full passwordless migration isn’t feasible (yet),
- compliance mandates AD or password-based workflows,
- any user friction triggers security workarounds or support costs.
Think of it this way:
Passkeys don’t have to kill passwords.
They can fix the problem of passwords security, recoverability, and affordability.
Key benefits for IAM teams
- Reduced helpdesk load thanks to fewer password reset tickets
- Faster recovery for locked users even offline or in the field
- No disruption to existing IAM since it works alongside AD, LDAP, and legacy apps
- Improved UX without rewriting applications
- Measurable cost reduction per user per year
Is this right for you?
This model is ideal for organizations that:
- Still require passwords for some applications or users
- Operate in regulated environments (e.g., banks, telco, energy)
- Want to introduce passkeys without changing existing infrastructure
- Need fast wins to reduce support costs and friction

Final Thought
The industry loves black-and-white stories — passwords are bad, passkeys are good. But the reality for IAM teams in complex environments is more nuanced.
This isn’t a revolution. It’s a bridge from passwords that fail users, to passkeys that enable self-service and reduce cost.
And sometimes, that bridge makes all the difference.
Want to see how this works?
Schedule a quick discovery call here and let’s talk how passkey-powered self-recovery in an Active Directory environment can help your business.
No code. No app rewrites. Just smarter IAM.