© 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Passwords are an outdated method of security, especially when people are logging on to so many different sites.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
Pinsent Masons and Travers Smith Advise as Houlihan Lokey Buys Financial Adviser McQueen
Finance
31/07/2015Pinsent Masons and Travers Smith Advise as Houlihan Lokey Buys Financial Adviser McQueen

Pinsent Masons and Travers Smith Advise as Houlihan Lokey Buys Financial Adviser McQueen

Read Full PostRead - Eye Icon
Bridging Success in 2015
Strategy
31/01/2015Bridging Success in 2015

There is currently a huge appetite for short- and medium-term property loans across the UK, and Dragonfly Property Finance is leading the way.

Read Full PostRead - Eye Icon
Leading the Way in Aesthetic Dermatology
Innovation
06/05/2020Leading the Way in Aesthetic Dermatology

There are exceptional scientists in all fields, and then there are the truly outstanding specialists in their unique fields. Dr Desmer Destang is one such individual, having been highly regarded as one of the finest orthodontic and oro-facial orthopaedic speci

Read Full PostRead - Eye Icon
2016’s Most Innovative Hedge Fund Manager – USA/Europe
Finance
31/07/20162016’s Most Innovative Hedge Fund Manager – USA/Europe

The Prudent Group are a highly innovative company who provide working capital to the small and midsize corporate market segment sector. We spoke to Dennis Klemming, Chairman of Prudent Group, to find out more about their firm and the solutions they offer.

Read Full PostRead - Eye Icon
A Legal Support in Starting or Expanding Your Innovative Business in Italy
Innovation
06/09/2022A Legal Support in Starting or Expanding Your Innovative Business in Italy

For a few years now, Italy has introduced several measures aimed at incentivizing foreign investment in Italy, encouraging the growth of innovative startups. Since 2017, those who intend to invest in the venture capital of innovative startups can benefit from

Read Full PostRead - Eye Icon
ARX Equity Partners completes sale of Fincentrum to Swiss Life
Finance
25/10/2018ARX Equity Partners completes sale of Fincentrum to Swiss Life

Further to regulatory approval, ARX Equity Partners / https://www.arxequity.com (“ARX”) has successfully completed the exit of its investment in Fincentrum / https://www.fincentrum.com, a leading, independent financial advisory business operating in the Cz

Read Full PostRead - Eye Icon
Cyber-Security in the M&A Process
Legal
22/06/2016Cyber-Security in the M&A Process

During an M&A deal process huge amounts of sensitive data is shared in the cyber-space between buyers, sellers and their respective advisors. Infringement of this data’s cyber-security could leave parties open to significant claims.

Read Full PostRead - Eye Icon
Banking on DevOps
Finance
08/05/2018Banking on DevOps

Andy Cureton, Founder and Managing Director, ECS Digital, looks at how, in a competitive environment, banks and other organisations can use the latest IT and business methodologies to modernise their IT systems to meet customer expectations and comply with reg

Read Full PostRead - Eye Icon
8 Common Mistakes to Avoid When Building Your First App
Innovation
20/05/20248 Common Mistakes to Avoid When Building Your First App

The app market is developing faster than before. With over 23 million applications in the App Store and Google Play, you may only wonder how many people are creating them.



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