© 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Passwords are an outdated method of security, especially when people are logging on to so many different sites.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
The Wallet of the Future
Finance
30/11/2016The Wallet of the Future

Allied Wallet is a world leader in payment processing and merchant services, enabling consumers to transact with merchants at a very low rate.

Read Full PostRead - Eye Icon
November Winners’ Directory
Finance
02/12/2016November Winners’ Directory

November Winners’ Directory

Read Full PostRead - Eye Icon
An Asset to the Industry
Finance
13/10/2017An Asset to the Industry

An Asset to the Industry

Read Full PostRead - Eye Icon
Could the Extinction of the Paper Receipt Cause a Change in Your Spending Habits?
Innovation
06/01/2020Could the Extinction of the Paper Receipt Cause a Change in Your Spending Habits?

Paper receipts account for 1.5 billion pounds of environmental waste each year in the United States alone. So, is it time for paper receipts to become extinct? As a way of reducing the amount of waste you are producing this seems like the way forward for most

Read Full PostRead - Eye Icon
Love Success – You’re Hired!
Strategy
01/12/2016Love Success – You’re Hired!

With a London HQ and a nationwide presence, Love Success steps up as the UK’s leading recruitment consultancy.

Read Full PostRead - Eye Icon
10 Industries That Must Adopt The Use Of e-Signatures In 2023
Innovation
13/04/202310 Industries That Must Adopt The Use Of e-Signatures In 2023

Electronic signatures (e-signatures) are becoming increasingly important across various industries as the world becomes more digitized and environmentally conscious. E-signatures are more convenient and secure, saving time while simultaneously reducing your ca

Read Full PostRead - Eye Icon
How to Buy Bitcoin
Finance
10/11/2021How to Buy Bitcoin

Learning how to buy bitcoins involves learning how to buy them in the first place. You can either get it online or from a broker, but learning how to buy them both involve different approaches and methods.

Read Full PostRead - Eye Icon
A New Dawn for Britishvolt and the UK’s Electric Vehicle Battery Industry
Innovation
02/03/2023A New Dawn for Britishvolt and the UK’s Electric Vehicle Battery Industry

With efforts being made globally to phase out the use of petrol and diesel-powered vehicles in the coming years, several companies have stepped up to research and develop innovative technologies for electric vehicle expansion.

Read Full PostRead - Eye Icon
Connecting Brands with People
Innovation
07/01/2019Connecting Brands with People

RuStyle is an award-winning London-based PR company with an independent full-service public relation, consulting and development agency specialising in leading luxury fashion, jewellery, beauty, lifestyle, health and fitness brands. We caught up with the RuSty



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