© 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Passwords are an outdated method of security, especially when people are logging on to so many different sites.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
Pamplona Capital Management Acquires Controlling Interest in Latham Pool Products
Finance
03/01/2019Pamplona Capital Management Acquires Controlling Interest in Latham Pool Products

Pamplona Capital Management (“Pamplona”), is pleased to announce that it has acquired a controlling interest in Latham Pool Products, Inc. (“Latham” or “the Company”) from Wynnchurch Capital (“Wynnchurch”), which will remain a significant inves

Read Full PostRead - Eye Icon
Rocket Lawyer Boasts $223m Investment in an Innovating Legal Industry
Innovation
22/04/2022Rocket Lawyer Boasts $223m Investment in an Innovating Legal Industry

Like with many industries, customers look to the web in search of ways to spend their money as opposed to the high street. Legal services, it seems, are following the same path. Last year, Rocket Lawyer announced a $223 million investment that was led by Vista

Read Full PostRead - Eye Icon
ACI Media Group Buys Minority Stake in MyDistrict.net
M&A
02/07/2015ACI Media Group Buys Minority Stake in MyDistrict.net

ACI Media Group Buys Minority Stake in MyDistrict.net

Read Full PostRead - Eye Icon
Leading Lebanese Accounting Firm Secures Success
Finance
13/01/2020Leading Lebanese Accounting Firm Secures Success

Having been named Lebanon’s leading taxation and assurance consultancy of the year in Acquisition International, Sarkis Sakr & Partners has secured its status as one of the country’s foremost accounting practices. Following the firm’s win in Acquisition

Read Full PostRead - Eye Icon
Accelerating Action this International Women’s Day: How hampers.com is Championing Gender Equality from the Top Down
Corporate Social Responsibility
04/03/2025Accelerating Action this International Women’s Day: How hampers.com is Championing Gender Equality from the Top Down

March 8th 2025 marks International Women's Day, and this year’s theme, Accelerate Action, calls for urgency in advancing gender equality.

Read Full PostRead - Eye Icon
Innovation in Mortgage: How CRM Solutions Drive Change
News
29/08/2023Innovation in Mortgage: How CRM Solutions Drive Change

Innovation in Mortgage: How CRM Solutions Drive Change The mortgage industry is ripe for innovation, and customer relationship management (CRM) solutions are at the forefront of driving this change. The use of CRM solutions by mortgage lenders has revolutioniz

Read Full PostRead - Eye Icon
How To Integrate Physical and Cybersecurity Into Your Business
Corporate Social Responsibility
31/10/2024How To Integrate Physical and Cybersecurity Into Your Business

Businesses today are juggling both physical and digital threats, often simultaneously. It’s not uncommon for companies to focus heavily on cybersecurity only to leave physical security as an afterthought. Integrating both physical and cybersecurity is about

Read Full PostRead - Eye Icon
King & Wood Mallesons Advise Parquest’s Acquisition of Clinique du Souffle
Legal
30/07/2015King & Wood Mallesons Advise Parquest’s Acquisition of Clinique du Souffle

King & Wood Mallesons Advise Parquest's Acquisition of Clinique du Souffle

Read Full PostRead - Eye Icon
What Small Businesses Need to Know About Safety Online
News
29/04/2022What Small Businesses Need to Know About Safety Online

As the internet continues to play an increasingly central role in our lives, it\’s no surprise that businesses are looking to cash in on its potential. Small businesses are especially vulnerable to online threats, as they often lack the resources of larg



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