Proximity Cards Are a Liability: The Urgent Need to Modernize Access Control

The pace of data compromises shows no signs of slowing down. In 2024 alone, 3,158 incidents affected a staggering 1.3 billion individuals. 

Even more concerning, 52% of vulnerabilities identified in 2024 were related to initial access. Once an entry point is exploited, attackers can escalate quickly, often reaching sensitive systems and high-value assets in under an hour. 

The continued use of legacy authentication methods, like proximity cards, creates ideal conditions for bad actors to bypass access controls. Yet even with the growing risk, many organizations delay upgrades due to misconceptions about the cost, complexity and urgency of modernizing their infrastructure.

The longer proximity cards remain in circulation, the more exposed enterprises become. However, by proactively moving to modern authentication solutions, organizations can close off an entire class of vulnerabilities and secure their endpoints. 

Proximity Cards Are No Match for Modern Cyber Threats

Proximity cards have been a fixture in physical access control systems for decades. But today, they are one of the weakest links in enterprise authentication, despite their prevalence across industries.

Since proximity cards transmit fixed identifiers without encryption, they can be easily cloned using inexpensive, commercially available devices. An attacker only needs to be within short range of the card to extract and replicate its data. In many cases, cloning takes seconds and occurs without the cardholder’s knowledge. 

Armed with a cloned credential, an attacker can easily navigate from physical entry points to logical access endpoints. For example, after gaining access to an organization’s facilities, they can infiltrate critical business applications and execute account takeovers (ATOs) — all while appearing to operate under a legitimate user’s identity.

Though lost, stolen or cloned cards can be remotely deactivated, the process is not always immediate. By the time the compromised card is discovered, an entirely preventable security breach may be well underway. 

The Cost of Clinging to Legacy Authentication Methods

The transition from proximity cards to secure credentials is more than an IT infrastructure concern. As the threat landscape evolves, organizations that delay modernization efforts expose themselves to a growing web of risk. 

On the regulatory front, agencies including the Federal Trade Commission (FTC) and the European Data Protection Board are stepping up oversight and enforcement related to how organizations manage identity and access controls. Due to their lack of encryption, proximity cards can increase exposure under these evolving requirements.

Compliance concerns are especially heightened in sectors handling sensitive data. In the healthcare industry — which saw more than 133 million healthcare records exposed in 2023 — organizations face potential Health Insurance Portability and Accountability Act (HIPAA) violations and legal action if patient information is breached. 

Likewise, insecure authentication methods can create critical security gaps for financial institutions expected to safeguard consumer records under the Gramm-Leach-Bliley Act (GLBA). 

Beyond regulatory issues, proximity cards are an operational risk. Consider manufacturing environments, where non-secure credentials can enable bad actors to access and manipulate production systems, resulting in costly unplanned downtime.

Organizations often cite budget constraints to justify postponing authentication upgrades. Yet, the average cost of a data breach is rising each year, reaching a record $4.88 million in 2024. With the risk to an organization’s reputation and bottom line, the price of inaction is too high to ignore. 

3 Steps to Proactively Upgrade to Secure Credentials 

Retiring proximity cards is no longer a question of if, but when. Rather than wait for a breach or regulatory mandate to force action, organizations have an opportunity to transition to secure credentials preemptively.  

By starting the shift to secure credentials now, you can manage timing, cost and scope on your own terms.

1. Phase your migration to maintain business continuity

Many organizations postpone credential upgrades under the assumption it will require a full rip-and-replace of existing systems. In reality, it’s possible to plan and execute a phased rollout to secure existing systems without disrupting operations.

For example, an IT team might begin by deploying encrypted smart cards across shared workstations or sensitive production areas. Unlike proximity cards, encrypted smart cards offer advanced security features to prevent cloning and hacking. And because modern credential readers are often interoperable with both legacy and new credentials, an organization can gradually phase in encrypted smart cards while proximity cards are retired. 

Hesitancy around upfront investment is understandable. However, by phasing upgrades during low-risk periods, you can spread out costs over time and ensure upgrades align with business priorities.

2. Tailor Credential Types to Your Environment

A strong credential migration strategy allows you to select the best authentication fit for your environment. Rather than rushing to patch vulnerabilities after a breach, IT teams can evaluate existing infrastructure and align credential types to support secure access across key workflows.

Consider a healthcare organization, where staff need fast access to shared workstations, medical devices and electronic healthcare record (EHR) systems. An initial audit might reveal the need to replace proximity cards — and phase out passwords altogether. The organization could then opt to implement FIDO passkeys, which use cryptographic key pairs and device-based biometrics to verify identity. 

Passkeys enable passwordless, phishing-resistant login that can be deployed across shared workstation environments, allowing staff to move quickly between systems and reduce authentication delays. 

Since credentialing needs vary by environment, a proactive approach gives you time and flexibility to evaluate options thoroughly and ensure solutions are aligned with your operational and compliance demands. 

3. Drive Adoption with User-Focused Deployment Strategies

As you plan your credential migration, it’s important to account for the user experience. If an authentication process feels cumbersome, employees are more likely to bypass protocols and leave systems at risk. 

To ease the transition from proximity cards, many organizations turn to mobile credentials as a low-friction alternative. Wallet-based mobile credentials offer encrypted authentication and can streamline authentication across multiple endpoints, such as building entry, time clocks and secure printing. They also simplify onboarding by enabling IT teams to grant or revoke permissions remotely.

Most employees are accustomed to using smartphones and digital wallets in their daily lives, which can reduce friction during rollout. Nonetheless, running targeted training programs will help familiarize users with new workflows and boost user adoption. 

Don’t Wait for a Breach to Decide for You

In today’s threat landscape, proximity cards are an easy target for attackers — and a persistent source of risk for enterprises still relying on them. As cybersecurity threats grow more sophisticated and regulatory frameworks push toward zero-trust principles, the vulnerabilities of legacy credentials are becoming impossible to ignore.

Fortunately, organizations can reduce their attack surface and meet evolving compliance demands by adopting modern, encrypted authentication methods.

While modernization doesn’t have to be disruptive, inaction will be. No matter your industry, the time to upgrade to secure credentials is not after a breach, but before one ever occurs.