When you take the watch off it locks and you then need to enter a PIN to unlock it again.
I've been playing the new Doom game, and one of their new variants on the old "find the blue key card to unlock the blue door" puzzle is now "Find the handprint to unlock the biometric console". Of course, it's Doom, so you find the dead technician's body, rip off the dead guy's arm, carry it to the console, and slap it on the handprint scanner. Same thing as the "find the blue key" puzzle from a mechanics perspective.
Wonder how long it'll be before someone breaks into a system that way in real life? I wonder
if the Apple watch keeps functioning if the wearer dies.
Without looking back at the launch announcement/review details,
my understanding is that the Apple watch sensors are looking for ongoing heartbeat via blood vessel pulsation. So no, a dead person still wearing the Apple watch doesn't count as 'authorized'.
My perspective is that we need to arrive at the stage where the password is no longer considered the ultimate authorization. Passwords have been a huge problem and security risk vector for decades. Any system that depends upon a password to resolve important trust/verification questions is rigged to fail, in my view.
As I understand it the iPhone fingerprint Touch ID sensor similarly is
supposed to scan the sub-surface layers for the finger pattern matching. I recall some experimenting with lifted/copied finger prints when the first generation Touch ID sensor was released but I have not seen any further testing with the most recent (and much faster) second generation of Touch ID sensor found on the on iPhone 6S.
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