© Copyright Acquisition International 2026 - All Rights Reserved.

Article Image - Why are Passwords Bad for Business?
Posted 10th January 2022

Why are Passwords Bad for Business?

Would you believe that 87 per cent of internet users have found themselves locked out of an account at some stage? This surprising statistic highlights how passwords are the thorn in the sides of many people online.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Why are Passwords Bad for Business?

Business Password

Would you believe that 87 per cent of internet users have found themselves locked out of an account at some stage? This surprising statistic highlights how passwords are the thorn in the sides of many people online. The average person has more than 100 passwords, and they’d have to be a robot to remember them all. From a business perspective, when users forget their login credentials it can be highly detrimental as they may decide to move to a rival. It could be time to move away from passwords and onto newer methods of security.

 

What Happens When Customers Forget Passwords?

Judging by the statistic noted above, most people have been in a situation where they’ve forgotten their password. The whole point of a password is to provide a secure method of logging in somewhere, so if you click the button to say you forgot your password, it’s far from a simple process to get a new one. You may have to wait for an email, answer questions, or even phone the company in some circumstances. These roadblocks cause frustration and may make people question whether it is worth going through the hassle of getting a new password. Lost passwords can also lead to disastrous consequences. There are horror stories of would-be millionaires being locked out of their bitcoin fortunes after forgetting the credentials for their digital wallets. Stefan Thomas is the most famous example, and it was widely reported he only had a couple of guesses left to get his hands on his $220 million fortune.

 

What Alternatives are There to Passwords?

Passwords are an outdated method of security, especially when people are logging on to so many different sites. Nowadays, sites are asking for more complex passwords than ever, but only 30 per cent of internet users enable a password manager to handle them all. It’s time that businesses start to look towards more hi-tech methods of security, as these are expected to replace passwords in the future. Companies lose money on sales when customers forget passwords, with 92 per cent of people opting to abandon a purchase at some point in their lives rather than recover their password. There are knowledge-based authentication alternatives that could represent a more user-friendly way of entering a site, such as passphrases, knowledge-based questions and one time passwords. Considering the statsm having more options could be the way forward.

 

Should Businesses Offer Different Methods?

Instead of forcing customers to use a password, businesses could try to adapt to the changing landscape and offer them several alternative methods upon joining. One user may prefer to use a password with a password manager, while another could decide to use knowledge-based questions. It is also wise for business owners to investigate biometrics and see if these can be implemented. They provide heightened security and are much simpler than passwords.

The last thing you want as a business owner is for customers to flock to one of your rivals because they’ve forgotten their password and can’t be bothered to retrieve it. It’s time to incorporate alternative methods to appease as many people as possible.

Categories: News, Strategy


You Might Also Like
Read Full PostRead - Eye Icon
Alix Partners
Strategy
15/05/2015Alix Partners

The firm’s expertise covers a wide range of businesses and industries, whether they are healthy, challenged, or distressed.

Read Full PostRead - Eye Icon
How a Full HSE policy for a Growing Business Positively Impacts Employee Performance
News
21/09/2023How a Full HSE policy for a Growing Business Positively Impacts Employee Performance

If you’re growing a business, you likely have a long “to-do” list. Let’s look at why having a full Health, Safety and Environment (HSE) policy should be right at the top. Why do you need an HSE policy in place as your business grows, an

Read Full PostRead - Eye Icon
Alcumus Acquisition  of Safety Management  & Monitoring Services
Innovation
02/04/2015Alcumus Acquisition of Safety Management & Monitoring Services

Martin Smith, Chief Executive Officer at Alcumus, shares his vision for growth within the TIC and GRC markets.

Read Full PostRead - Eye Icon
How Your Business Can Gain A Competitive Advantage In Your Industry
News
18/08/2021How Your Business Can Gain A Competitive Advantage In Your Industry

Businesses of all shapes and sizes will all benefit from gaining a competitive advantage within their industry. Here’s how your business can start building for further success.

Read Full PostRead - Eye Icon
Questro Expands into Germany: Thorsten Schaus Joins Transfer Pricing firm Questro International
Leadership
11/02/2016Questro Expands into Germany: Thorsten Schaus Joins Transfer Pricing firm Questro International

Questro International announced the opening of a new office in Germany and the recruitment of Thorsten Schaus as their new TP Leader in Germany earlier this month.

Read Full PostRead - Eye Icon
What Makes Employee Experience Management Effective?
Leadership
21/03/2023What Makes Employee Experience Management Effective?

Employee experience management is the process of managing the experience of employees. It involves empathy and understanding employees' needs, which can help you improve business performance.

Read Full PostRead - Eye Icon
Euro Suffers Further Losses against the US Dollar
Finance
05/03/2015Euro Suffers Further Losses against the US Dollar

Mix of slightly weaker Eurozone numbers and decent US number widens gap between currencies.

Read Full PostRead - Eye Icon
July Winners’ Directory
Innovation
31/07/2016July Winners’ Directory

July Winners' Directory.

Read Full PostRead - Eye Icon
A Unique Hotel Experience
Leadership
07/06/2017A Unique Hotel Experience

Treehotel offers a unique hotel experience: treerooms with contemporary design in the middle of unspoiled nature. Here you can forget about the time constraints of everyday life, enjoy the serenity, and rejuvenate in a sophisticated yet familiar environment. F



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow