rf IDEAS and Wavelynx have released the 2026 State of Authentication Modernization Report, finding that organizations face authentication modernization challenges that extend beyond security concerns to include operational inefficiencies, fragmented user experiences and increased administrative complexity.

The companies surveyed 500 IT and security leaders at mid-sized to enterprise organizations. The report found that 93% of respondents believe their organization’s authentication and security maturity is more advanced than peers in their industry. However, only 72% of managers, who are closer to day-to-day system execution, said authentication modernization is a high priority.

The findings also point to a gap between modernization priorities and actual progress. While 78% of respondents said authentication and security modernization is a high priority over the next 12 months, only 24% said their systems are largely modernized. More than half of respondents, or 53%, said they have not significantly updated their systems in at least three years.

Among respondents who prioritize modernization to any degree, 55% plan to allocate at least $500,000 to the effort.

“Organizations today are facing more threats than ever, and security leaders cannot become overconfident in their defenses,” said David Cottingham, President of rf IDEAS. “Our data highlights that many organizations are still using outdated systems, which puts them more at risk than they think. It’s critical for company leaders to prioritize authentication modernization and take a long-term approach to securing their systems.”

Authentication Upgrades Rank Behind Other Initiatives

The report found that 90% of respondents describe their security approach as proactive or mostly proactive. However, authentication-specific improvements ranked lower than other security initiatives.

Upgrading credentials and authentication methods was identified as an important initiative by 23% of respondents, placing it eighth overall. Investing in mobile credentials or digital identity solutions ranked ninth at 20%.

The report also identified uncertainty around return on investment as a factor slowing modernization. Twenty-seven percent of respondents cited unclear ROI as a barrier to modernization.

“Working with rf IDEAS on this data has shown that companies say they are prioritizing modernization, but they may not realize how timely a problem it is,” said Scott Lordo, CEO of Wavelynx. “While cost can be an issue, the implications of a breach can be far greater. It’s up to security leaders to ensure they prioritize modernizing systems to prevent emerging threats.”

The report further found that four in 10 respondents believe the total impact of a security breach involving unauthorized access would cost less than $1 million. The report noted that the global average cost of a data breach reached $4.4 million in 2025.

According to rf IDEAS and Wavelynx, the findings point to the need for organizations to take a broader approach to modernization that considers both logical and physical access rather than treating them as separate areas.