Why Businesses Are Moving from Passwords to PINs

Written by Resitek Team | Jan 7, 2026 5:57:59 PM

Why Is Everything Asking for a PIN All of a Sudden?

If you feel like you are suddenly being asked to set up PINs everywhere, you are not alone. Windows prompts you for one. Your laptop asks you to replace your password with one.  Your IT provider recommends it.  Your login screens look different than they did a year ago.

For many business owners, this raises a fair question. Is this actually more secure, or is this just another tech trend that makes things more complicated? After more than 25 years supporting Canadian businesses across Toronto, Montreal, and nationwide, we can say this clearly. The move toward PINs is not about convenience. It is about reducing the damage caused when passwords are inevitably stolen.

The Real Problem with Passwords:

Passwords are not failing because people are careless. They are failing because the system they rely on is outdated.

Passwords can be:

  • Phished through fake emails and login pages

  • Reused across multiple services

  • Stolen in data breaches

  • Guessed or brute forced

  • Shared without oversight

Once a password is compromised, it can usually be used from anywhere in the world. According to the Verizon Data Breach Investigations Report, stolen credentials continue to be one of the most common ways attackers gain initial access to business systems. This is not a training issue. It is a structural one.

Learn how we help Canadian businesses reduce credential-based attacks and strengthen login security.

Learn More

 

What People Get Wrong About PINs

Most people hear the word PIN and think of a four digit number protecting a debit card. That is not what modern business PINs are.  In business environments, PINs are usually part of a passwordless or near passwordless login system, most commonly through platforms like Windows Hello for Business.   A modern PIN does not replace your identity.  It unlocks it on a specific device.

That difference is critical. The Single Most Important Thing to Understand here is the part most people are not told clearly. A properly implemented business PIN only works on the device where it was created. If someone learns your PIN but does not have your device, it is useless. This is fundamentally different from a password, which can be typed in anywhere.

Microsoft confirms this directly in their Windows Hello for Business documentation. The PIN unlocks a cryptographic key stored securely on the device. That key never leaves the device and is what actually proves identity.  This is why you must set up a PIN separately on each device you use.

 

Why This Improves Cybersecurity

Attackers do not want your laptop. They want your credentials. Passwords are valuable because they can be reused remotely. PINs are not.

When a PIN is used correctly:

  • It is never sent across the internet

  • It cannot be phished through a fake login page

  • It cannot be reused on another device

  • It requires physical access to the device

This significantly reduces the impact of credential theft. IBM security research continues to show that credential misuse is one of the most common and costly causes of data breaches. Reducing how often credentials can be reused directly lowers risk.

 

Why Businesses Are Being Pushed Toward PINs Now

This shift feels sudden because several things are happening at once. First, major platforms like Microsoft, Apple, and Google are actively moving away from password based authentication. Second, businesses are adopting cloud identity systems that support device bound authentication by default. Third, attackers have become extremely effective at stealing passwords through phishing and malware.

Security models had to adapt. PIN based authentication is part of that adaptation. Are PINs Always Better Than Passwords? No. And this is where many explanations fall apart. PINs are more secure only when implemented correctly.

PINs work well when:

  • Devices are company managed

  • Disk encryption is enabled

  • Multi factor authentication is still required

  • Devices can be remotely locked or wiped

  • Cloud identity is properly configured

PINs are not a magic fix. They are one layer in a modern security model. If devices are unmanaged or shared, passwords may still be necessary. Should Businesses Switch Everything to PINs? This is not an all or nothing decision.  Most businesses benefit from reducing password usage, not eliminating passwords entirely.

PINs are well suited for:

  • Logging into company laptops

  • Accessing email and collaboration tools

  • Day to day work on managed devices

Passwords are still required for:

  • Account recovery

  • Legacy systems

  • Certain administrative functions

The goal is to limit how often a reusable secret can be stolen and reused.

 

Why Employees Often Like PINs More Than Passwords

Security only works when people use it. Businesses that implement PIN based logins correctly often see:

  • Fewer password reset requests

  • Faster sign ins

  • Less frustration

  • Better compliance with security policies

When security aligns with how people actually work, it becomes more effective.

 

What This Means for Canadian Small and Mid Sized Businesses

For businesses with 20 to 80 employees, this shift is especially relevant.

You likely rely on:

  • Microsoft 365

  • Cloud applications

  • Remote or hybrid work

  • Multiple devices per user

Reducing password exposure lowers risk without adding complexity.  This is why many MSPs, including Resitek, now recommend PIN based authentication as part of a broader identity strategy.

 

A Quick Reality Check About Online PINs

One important clarification, not every PIN you see online works this way. Some websites use the word PIN when they really mean a short password stored on their servers. That is not the same thing.  The security benefits discussed here apply to device bound PINs used in modern identity systems like Windows Hello for Business.

This distinction matters. Is This Just a Trend, or Is It Here to Stay? This is not a passing trend.  The industry is moving toward passwordless authentication because passwords no longer provide sufficient protection on their own. Gartner research indicates that passwordless strategies will continue to expand as organizations seek to reduce credential based attacks.

PINs are one step in that direction.

 

So, Is This Actually a Good Cybersecurity Move?

When implemented correctly, yes.

PINs:

  • Reduce the value of stolen credentials

  • Limit the impact of phishing

  • Improve usability without weakening security

  • Support modern identity and device based protection

They are not weaker than passwords, they solve a different problem. The Bottom Line, if you are seeing PIN prompts everywhere, it is not because security is being relaxed.  It is because security is becoming more realistic.The question is not whether PINs are better or worse than passwords in theory.  The question is whether they reduce real world risk. In most modern business environments, they do.

 

Ready to Review Your Login Strategy?

If you are unsure whether PIN based authentication makes sense for your business, or how to implement it safely, we can help.

Resitek has been supporting Canadian businesses for over 25 years, with teams in Toronto and Montreal serving clients nationwide.

Book a consultation with Resitek to review your current setup and make sure security improvements actually improve security.

 

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