© 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Passwords are an outdated method of security, especially when people are logging on to so many different sites.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
US Unique in the World as to Its Bankruptcy Laws
Legal
30/11/2016US Unique in the World as to Its Bankruptcy Laws

The United States is unique in the world as to its bankruptcy laws. No other country gives its ordinary citizens the ability to start fresh, without debt, without stripping them of almost all their possessions.

Read Full PostRead - Eye Icon
The Future of Salon Management: Embracing Technology for Better Results
Innovation
03/03/2023The Future of Salon Management: Embracing Technology for Better Results

Salon management has changed drastically in the past few decades. From the adoption of modern technologies to more efficient operational systems, salons have made significant strides in improving their services.

Read Full PostRead - Eye Icon
Merkle’s Acquisition of Periscopix
M&A
21/05/2015Merkle’s Acquisition of Periscopix

Merkle's Acquisition of Periscopix

Read Full PostRead - Eye Icon
Changing of the Guard
Leadership
02/12/2019Changing of the Guard

Changing of the Guard The London Internet Exchange (LINX) was established in 1994, using a donated piece of equipment no larger than a set-top box, no legal contracts and five founding members wanting to keep traffic local and avoid transatlantic fees. Now spr

Read Full PostRead - Eye Icon
How One Office Fruit Company Planted 19 Million Trees: A Corporate Responsibility Case Study
News
07/10/2024How One Office Fruit Company Planted 19 Million Trees: A Corporate Responsibility Case Study

When businesses talk about corporate responsibility, actions speak louder than words. Few companies demonstrate this better than Fruitful Office, whose initiatives stretch from local communities to international environmental projects. Their approach offers va

Read Full PostRead - Eye Icon
Why an E-Commerce Website Could be Perfect for your Small Business
Strategy
18/08/2020Why an E-Commerce Website Could be Perfect for your Small Business

Although we are now seeing lockdown measures begin to ease, and we are heading towards our “new normal” – there is no doubt that COVID-19 has been a great challenge for many small business, however it has given them the opportunity to adapt, pivot and em

Read Full PostRead - Eye Icon
Cimarron Energy Acquires Diverse Energy Systems Assets
M&A
01/02/2016Cimarron Energy Acquires Diverse Energy Systems Assets

Cimarron Energy announced that it has closed on the acquisition of substantially all of the assets of Diverse Energy Systems today.

Read Full PostRead - Eye Icon
Simplifying Processes and Increasing Efficiency
Strategy
27/01/2020Simplifying Processes and Increasing Efficiency

USA Staffing Services, LLC is a back office operational partner specifically designed to help Recruitment Firms to start-up and run their Temporary Staffing Division. Recently, we caught up with Founder, Matthew Kolinski who provided us with a glimpse into one

Read Full PostRead - Eye Icon
Delivering Excellence in the Coaching Sector
Innovation
04/01/2017Delivering Excellence in the Coaching Sector

2b Limitless as a professional coaching organisation focused on strengths, engagement, performance and transformation. We are focused on c-suite executives, senior leaders, entrepreneurial leaders and high performance teams. Our core business is built around e



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