© 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Passwords are an outdated method of security, especially when people are logging on to so many different sites.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
No More Hard-Sell: IT Needs to be a Gentler Business
News
24/07/2020No More Hard-Sell: IT Needs to be a Gentler Business

In the time of pandemic, vendors need to show their human side and empathise with customers.

Read Full PostRead - Eye Icon
How Vendor Due Diligence Protects Your Organization
News
24/02/2025How Vendor Due Diligence Protects Your Organization

Vendors play a crucial role in an organization’s success. They provide essential products and services that offer competitive advantages, access to new technologies, and enhanced quality.   However, these relationships also come with risks that

Read Full PostRead - Eye Icon
Copper sees continued industry momentum in CRM market across small and medium businesses
Leadership
28/11/2019Copper sees continued industry momentum in CRM market across small and medium businesses

Copper, a Google Cloud-recommended CRM for G Suite, has announced continued industry momentum following a flurry of new customer wins across small and medium businesses, in a year where the brand also raised $15M in Series C funding and appointed new CEO Denni

Read Full PostRead - Eye Icon
A Most Effective Way to Finance Working Capital
Finance
13/02/2024A Most Effective Way to Finance Working Capital

With a portfolio of more than 15,000 happy customers relying on it to aid in the optimisation of their working capital and the reduction of risk to their supply chains, eFactor Network SAPI de CV boasts a state-of-the-art financing platform that improves overa

Read Full PostRead - Eye Icon
2016’s Most Innovative Hedge Fund Manager, Singapore
Finance
01/07/20162016’s Most Innovative Hedge Fund Manager, Singapore

APS Asset Management was founded in 1995 by its CIO, Wong Kok Hoi, in Singapore. In what started as a pioneer among home-grown boutiques, the firm has continued to go from strength to strength.

Read Full PostRead - Eye Icon
Innovative Business Concepts to Save Money
Finance
30/06/2021Innovative Business Concepts to Save Money

The ultimate goal of any business is to turn a profit. Here are five innovative business concepts you should explore to save money.

Read Full PostRead - Eye Icon
Heart of Gold
Strategy
16/09/2020Heart of Gold

Gold is always in demand. It’s one of the world’s most sought-after materials, offering a wealth of different opportunities for use. The team at Kirkland Lake Gold are committed to producing the best quality product, alongside with generating superior valu

Read Full PostRead - Eye Icon
New Research Reveals Discrepancy Between Public and Business Ethics
Finance
08/06/2015New Research Reveals Discrepancy Between Public and Business Ethics

New research reveals 70% of people want to invest ethically but the financial services industry is failing to respond

Read Full PostRead - Eye Icon
HAYSTACKID Acquisition of FLEX Discovery Transaction
Innovation
29/02/2016HAYSTACKID Acquisition of FLEX Discovery Transaction

HAYSTACKID is an international end-to-end eDiscovery and forensics services and solutions provider.



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