© 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Passwords are an outdated method of security, especially when people are logging on to so many different sites.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
Aurum and Humavox Sign Agreement for Merger
M&A
27/06/2016Aurum and Humavox Sign Agreement for Merger

Aurum, Inc has announced that they have entered into a binding term sheet with the shareholders of the Israeli company Humavox Ltd, who create wireless charging solutions.

Read Full PostRead - Eye Icon
What Type of Compensation Can You Seek After a Car Accident?
Legal
20/06/2023What Type of Compensation Can You Seek After a Car Accident?

If you are injured in a car accident, you could claim compensation. Here are the different types of compensation that you may be able to seek.

Read Full PostRead - Eye Icon
Transforming Career Paths: The Rise of Tech-Driven Real Estate Roles
News
26/04/2024Transforming Career Paths: The Rise of Tech-Driven Real Estate Roles

Real estate isn’t just about square footage and location anymore; it’s evolving rapidly, with technology at the helm. Think virtual property auditors and blockchain specialists – positions once nonexistent are now on the rise. This surge in t

Read Full PostRead - Eye Icon
The Many Changes & Challenges Headed For The Retail Banking Industry
News
01/02/2024The Many Changes & Challenges Headed For The Retail Banking Industry

Source – https://unsplash.com/photos/blue-and-white-unks-coffee-shop-signage-0O2Pp6-mOkY Over the course of this decade, the retail banking industry is set to witness more twists and turns than a rollercoaster at Six Flags. Plenty of changes, challenges,

Read Full PostRead - Eye Icon
Franklin advises Altice for the sale of stakes
M&A
25/06/2018Franklin advises Altice for the sale of stakes

Franklin advises Altice for the sale of stakes in its French and Portuguese telecom tower business

Read Full PostRead - Eye Icon
Digital Bootcamps: What Are They And How They Create A Future-Ready Workforce
News
27/07/2022Digital Bootcamps: What Are They And How They Create A Future-Ready Workforce

Digital Bootcamps: What Are They And How They Create A Future-Ready Workforce The workforce is undergoing tremendous change. Rapid digitization and automation are giving rise to new workforce challenges. The shelf life of the skillset has already been reduced

Read Full PostRead - Eye Icon
Strategic Financing: How Secured Loans Can Transform Your Business Landscape
Finance
09/08/2023Strategic Financing: How Secured Loans Can Transform Your Business Landscape

Financing remains an essential pillar for any business's growth and sustainability. How you finance your business can dictate its operational flexibility, scalability, and profitability.

Read Full PostRead - Eye Icon
Looking to Obtain Dual Citizenship? 4 Important Things to Consider
Legal
15/05/2023Looking to Obtain Dual Citizenship? 4 Important Things to Consider

With the world becoming increasingly connected, it's no surprise that more and more people are considering dual citizenship. In fact, if you want to obtain citizenship in the Caribbean, St Kitts and Nevis passport is one of the easiest to apply for.

Read Full PostRead - Eye Icon
2016 Fund Awards FAQ
Finance
24/11/20152016 Fund Awards FAQ

2016 Fund Awards FAQ



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