© Copyright Acquisition International 2025 - 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Passwords are an outdated method of security, especially when people are logging on to so many different sites.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
Siemens Acquisition of Magazino from HTGF
Finance
23/07/2015Siemens Acquisition of Magazino from HTGF

Siemens Acquisition of Magazino from HTGF

Read Full PostRead - Eye Icon
Leading M&A Adviser for 2016
Finance
29/06/2016Leading M&A Adviser for 2016

For Haitong International Securities Group Limited (“Haitong International”; 665.HK), mergers and acquisitions (M&A) is not only one of our key business segments, but the essence that makes us who we are.

Read Full PostRead - Eye Icon
A Leading Light in Law
Leadership
23/07/2019A Leading Light in Law

Ramni Taneja is an Indian Advocate, a sole practitioner, a litigator and also a transactional lawyer. Throughout her career, Ramni has accumulated experience, accolades and a wealth of loyal clients.

Read Full PostRead - Eye Icon
Maclay Murray & Spens Advises Phoenix Fund Services During Maitland’s Acquisition
Legal
07/05/2015Maclay Murray & Spens Advises Phoenix Fund Services During Maitland’s Acquisition

Maclay Murray & Spens Advises Phoenix Fund Services During Maitland's Acquisition

Read Full PostRead - Eye Icon
The Best in Oncology Research
Innovation
29/09/2016The Best in Oncology Research

Founded in 1997, MedSource is a full-service niche clinical research organisation (CRO), specialising in oncology programs and other complex clinical trials.

Read Full PostRead - Eye Icon
Insurance for Insurance – Barents RE Have It Covered
Finance
27/01/2020Insurance for Insurance – Barents RE Have It Covered

Over the course of twenty-four years, Barents RE have cultivated a presence across Europe, the Middle East, Latin America and Asia as one of the world’s most established independent reinsurance groups. Now, with up to six hundred reinsurance connections acro

Read Full PostRead - Eye Icon
World-leading Artificial Limb Maker, Touch Bionics, Acquired by Össur
Finance
11/04/2016World-leading Artificial Limb Maker, Touch Bionics, Acquired by Össur

Livingston-based Touch Bionics, the developer and manufacturer of world-leading upper limb prosthetic technologies, has been sold by its shareholders to Össur Hf, the Iceland-based provider of prosthetic, bracing and supports solutions, for a consideration of

Read Full PostRead - Eye Icon
6 Strategies to Drive Revenue for B2B Companies
Finance
23/11/20216 Strategies to Drive Revenue for B2B Companies

To keep your Business-to-Business (B2B) company running, you’ll need to increase your revenues. What’s more, it also indicates that your business has a good financial condition.

Read Full PostRead - Eye Icon
AI at Work: It’s Here and It’s Working, Whether You Know It or Not
Innovation
01/11/2023AI at Work: It’s Here and It’s Working, Whether You Know It or Not

Don’t call it a takeover, AI’s been here for years. A new global study from HR, payroll, and workforce management software provider UKG reveals that many people use AI daily both at home and at work, and it’s already making millions of jobs easier — em



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