I've experienced the same problem on a fully patched 16.04 LTS. 
This issue only occurred in the last few weeks & may have corresponded to when 
I added 3 new users to the machine.
I have previously used the first option in 
https://askubuntu.com/questions/859581/how-to-change-the-unity-lockscreen-wallpaper
 to modify my lock screen wallpaper.
After this recent "Authentication failure" issue occurred I recompiled the 
Greeter Schema as per the link above (sudo glib-compile-schemas 
/usr/share/glib-2.0/schemas) which has cured the problem on my machine at least.

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https://bugs.launchpad.net/bugs/1733557

Title:
  Login screen showing Authentication Failure Switch to greeter...

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