Yubico warns that while passkeys improve security, device-bound options are safer than cloud-stored ones.

Yubico, a leader in security keys, warns that while passkeys are replacing passwords with better security and ease of use, not all passkeys are equal. Synced passkeys, stored in the cloud, are convenient but less secure than device-bound passkeys, which are more protective but less flexible. The company advises organizations to demand configurability from identity providers, enforce device-bound passkeys, and remove insecure fallbacks to ensure robust security.