© 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Passwords are an outdated method of security, especially when people are logging on to so many different sites.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
Secure Business Payments now available from PaymentEvolution
Finance
30/07/2015Secure Business Payments now available from PaymentEvolution

Pay suppliers, vendors and any open invoice directly to any bank account.

Read Full PostRead - Eye Icon
Exeter-Based Simpleware Eyes Further Development Following Recent Acquisition by Silicon Valley Soft
Innovation
16/11/2016Exeter-Based Simpleware Eyes Further Development Following Recent Acquisition by Silicon Valley Soft

Exeter-based 3D image, data visualisation and analysis specialist Simpleware is eyeing further expansion following its recent acquisition by Synopsys, Inc., the world’s 15th largest software firm.

Read Full PostRead - Eye Icon
ICAP Acquires ENSO Financial Analytics
M&A
14/04/2016ICAP Acquires ENSO Financial Analytics

ICAP plc (IAP.L), a leading markets operator and provider of post trade risk mitigation and information services, announces today that it has acquired ENSO Financial Analytics (ENSO).

Read Full PostRead - Eye Icon
Cryptocurrency Trends for 2022
Finance
19/01/2022Cryptocurrency Trends for 2022

While the crypto market has experienced an incredibly volatile year, it has also seen significant price hikes and sustained growth over the course of the previous 12 months.

Read Full PostRead - Eye Icon
Business Automation Solutions
Innovation
05/10/2022Business Automation Solutions

Square 9 Softworks, the ‘Most Innovative Digital Transformation Software Provider’ for 2022, has developed a stellar international reputation for simplifying common business tasks with a complete overhaul of its clients’ business processes.

Read Full PostRead - Eye Icon
The Art of Service
Innovation
11/04/2016The Art of Service

Versatility, flexibility and a broad range of products and services ensure cost effective purchase and quality services in a challenging business environment.

Read Full PostRead - Eye Icon
What to Do After a Workplace Injury
Legal
22/04/2022What to Do After a Workplace Injury

Following an injury at your workplace, you have the right to workers' compensation benefits to cater for your medical bill, lost wages, and possible disability. Nevertheless, it's challenging to know what to do when you're ill or injured.

Read Full PostRead - Eye Icon
Transcosmos Acquires 100% Ownership of Social Gear, a Social Media Operational Support Company
M&A
20/05/2016Transcosmos Acquires 100% Ownership of Social Gear, a Social Media Operational Support Company

transcosmos inc. has made additional investment in SOCIAL GEAR PTE LTD (Headquarters: Singapore; CEO: Shunsuke Sato; hereafter, Social Gear), a company which provides social media operational support, and acquired 100% ownership of the company.

Read Full PostRead - Eye Icon
TelOne Signs Contract Extension with Avanti Communications
Strategy
23/04/2015TelOne Signs Contract Extension with Avanti Communications

Avanti Communications announced that TelOne, the Zimbabwean national telco, has signed an immediate extension to its major connectivity contract.



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