© Copyright Acquisition International 2024 - 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Passwords are an outdated method of security, especially when people are logging on to so many different sites.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
5G Endless Opportunities and Possibilities
Innovation
31/08/20235G Endless Opportunities and Possibilities

There has been a lot of noise recently about AI but the real game changing technology that will revolutionise services and industries is 5G standalone that will deliver faster speeds, lower latency, and increase reliability ensuring we are always connected.

Read Full PostRead - Eye Icon
AIMCo Announces Acquisition of HSBC Bank
M&A
28/02/2017AIMCo Announces Acquisition of HSBC Bank

Alberta Investment Management Corporation, on behalf of certain of its clients, is pleased to announce the successful acquisition of HSBC Bank Place and Enbridge Place, located in Edmonton, Alberta. The transaction closed on February 27, 2017.

Read Full PostRead - Eye Icon
5 Ways to Spot a Phishing Email: A Guide to Cyber Awareness
News
20/08/20245 Ways to Spot a Phishing Email: A Guide to Cyber Awareness

Phishing is nothing new, it’s been around for years and is the most common form of cyberattack. You’d think by now the world would be wise to phishing emails and online scams to such an extent that they’d become extinct. Yet phishing has morphed into inc

Read Full PostRead - Eye Icon
China’s Crisis Poses Major Threat to Global Economy, Says IMF
Finance
08/09/2015China’s Crisis Poses Major Threat to Global Economy, Says IMF

China's slowdown in economic growth may have further repercussions for the global economy, the International Monetary Fund has warned.

Read Full PostRead - Eye Icon
Best Corporate Finance Advisory Firm 2021
News
19/07/2022Best Corporate Finance Advisory Firm 2021

With a reputation for delivering best-in-class investment banking services, InvestBank Corp. provides expert investment banking advice to government, public, and private entities worldwide.

Read Full PostRead - Eye Icon
A New Dawn for Britishvolt and the UK’s Electric Vehicle Battery Industry
Innovation
02/03/2023A New Dawn for Britishvolt and the UK’s Electric Vehicle Battery Industry

With efforts being made globally to phase out the use of petrol and diesel-powered vehicles in the coming years, several companies have stepped up to research and develop innovative technologies for electric vehicle expansion.

Read Full PostRead - Eye Icon
JP Morgan Advises Opko’s Acquisition of Bio-Reference Laboratorie
Finance
06/08/2015JP Morgan Advises Opko’s Acquisition of Bio-Reference Laboratorie

JP Morgan Advises Opko's Acquisition of Bio-Reference Laboratorie

Read Full PostRead - Eye Icon
HOMETAINMENT Acquires Nomad Chefs: A Scalable Business Model In The Culinary And Entertainment Industry
News
10/06/2024HOMETAINMENT Acquires Nomad Chefs: A Scalable Business Model In The Culinary And Entertainment Industry

HOMETAINMENT, the leading home and office entertainment and hospitality provider, has announced its acquisition of Nomad Chefs.

Read Full PostRead - Eye Icon
Technology M&A – Shifting Paradigms
Innovation
15/07/2016Technology M&A – Shifting Paradigms

M&A in the technology, media and entertainment (TME) space has boomed over the last 24 months and while Brexit may dent confidence and activity, arguably this sector is better placed than most to remain buoyant.



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 14 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