© 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Passwords are an outdated method of security, especially when people are logging on to so many different sites.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
Silverfleet Capital to Acquire Sigma Components
M&A
04/05/2016Silverfleet Capital to Acquire Sigma Components

Silverfleet Capital, the European private equity firm, has today announced its agreement to acquire a majority stake in the aerospace division of Avingtrans Plc (“Sigma Components” or “Sigma”), a UK precision engineering components manufacturer for the

Read Full PostRead - Eye Icon
Machine Learning Will Make Almost 70% of Total AI Market Value in 2024
Innovation
19/03/2024Machine Learning Will Make Almost 70% of Total AI Market Value in 2024

The surging demand for AI-driven solutions across industries continues fuelling machine learning market growth, helping it reach a new record valuation and further increase its market share in the artificial intelligence landscape.

Read Full PostRead - Eye Icon
Immigration and the Brexit Debate
Finance
03/06/2016Immigration and the Brexit Debate

Immigration is one of the most hotly debated topics in the lead up to the EU referendum, not least because of the uncertainty surrounding the UK’s ongoing relationship with the EU post-Brexit.

Read Full PostRead - Eye Icon
How Corporate Social Responsibility Can Prevent Workplace Accidents: A Legal Perspective
News
30/08/2024How Corporate Social Responsibility Can Prevent Workplace Accidents: A Legal Perspective

Corporate social responsibility (CSR) is fundamental to a company’s long-term relationship with its employees, the communities it operates in, and the protection of the environment. The role of CSR in preventing workplace accidents is increasingly being

Read Full PostRead - Eye Icon
Evraz Highveld Files for Business Rescue: What Will Be the Impact on the Vanadium Market?
Finance
17/04/2015Evraz Highveld Files for Business Rescue: What Will Be the Impact on the Vanadium Market?

Whilst there have been no details released about the likely impact on short-term production, the news could have a profound impact on the vanadium market.

Read Full PostRead - Eye Icon
Towers Watson Acquires  Saville Consulting
M&A
08/05/2015Towers Watson Acquires Saville Consulting

Acquisition expands Towers Watson’s leadership and talent management offering and strengthens its position as a leading Human Resources (HR) software provider.

Read Full PostRead - Eye Icon
Is Call Tracking Your Marketing Saviour?
Innovation
09/01/2023Is Call Tracking Your Marketing Saviour?

If you’re looking to revitalise your company’s marketing and boost your business success, there’s one tool that’s perfect for the job — call tracking software.

Read Full PostRead - Eye Icon
An Innovative Approach
Innovation
29/09/2016An Innovative Approach

Romulo Law Firm are a general practice law firm, founded in 1902, and is a pioneer in intellectual property (IP) practice in the Philippines region.

Read Full PostRead - Eye Icon
Intelligent Information Management
Innovation
21/07/2022Intelligent Information Management

M-Files provides a modern approach to information management that enables a smarter way to work. It connects people with the content that they need, when they need it, regardless of where it is stored, to increase the productivity of knowledge workers, ensure



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