5 Reasons Why Passwords Are Trouble For Companies
… and why you should consider passwordless authentication.
We already talked about the inevitable need to opt for a passwordless future. Still, not enough businesses and organizations are considering an authentication method that is not password-based. Instead, they are stuck in a never-ending battle with increasing IT security expenses, financial damages from data breaches, data loss, and groaning IT support members who have to deal with resetting passwords over and over again.
Here are some numbers that show why passwords are more of a hassle than they are a security layer nowadays:
1. Most people have 60-80 passwords
According to various research by the password security specialists, an average person has 60-80 passwords. They also discovered that most people don’t put much effort into making them long and complex. A common, easy-to-guess password is no obstacle for a hacker. They have plenty of ways to crack it: brute force attacks, dictionary attacks, mask attacks are just some of them. Sometimes just simple guessing is enough, since people often rely on memorable phases, names of family members, pets, and important dates. All of this information is easy to find just by a bit of profile browsing.
2. 51% of people use the same passwords for work and personal accounts
More than half of surveyed people are not aware of the dangers of password reuse. They simply can’t remember separate login details for all of their accounts. By doing this, they are putting in danger both their own data and the organizations they work for. As TechRepublic reports, 53% of organizations rely on human memory when it comes to managing passwords. Since memorizing tens of different passwords is a nearly impossible task, this has led to even more issues.
3. The average cost of a single password reset is $70
… as estimated by Forrester Research. While this might seem like a big number, keep in mind that password reset issues are not something that occurs once in a month. It is a frequent, everyday problem that significantly slows down a company’s productivity. In fact, 20% to 50% of all customer support calls are just for password resets, as Gartner reports. Forrester also estimated that some large corporations allocate over £700,000 per year just for password-related costs. For a small business, this can be a huge financial burden.
4. 70% of customers would stop doing business with a company if it experienced a data breach
So, what after your business has suffered a data breach?
We’re not talking just about the loss of data, financial damage, and lost productivity. Think about bad press and your clients or customers turning away from you. And in the era of social media ‒ the bad press spreads like wildfire. A data breach will also make an impact on how your business is perceived by potential customers and affect your brand value and investor appeal. A survey of more than 10,000 customers, conducted by Gemalto in 2017, shows that 70% of customers would stop doing business with a firm following a data breach. 69% of them feel that businesses don’t take the security of customer data very seriously.
In addition, the study found that surveyed customers are not adequately securing themselves, with 56% still using the same password for multiple online accounts. Which again leads us to the conclusion that the root of the problem lies in passwords. If none of this sounds convincing, here’s another proof.
5. 4 out of 5 global data breaches are perpetrated from weak and stolen passwords
A recent report by the World Economic Forum has revealed how costly and difficult the knowledge-based authentication (passwords, PINs, passcodes) is to maintain. It also shows that the vast majority of cyberattacks are password-related. Passwords no longer provide the security that consumers demand.
Better authentication practices are not just possible they are a necessity
So, it’s time to move towards a more secure, passwordless method of authentication. Regzen platform enables users to sign-in without the need to remember or type any passwords, PINs, or usernames.
“With the growing availability of biometrics and next-generation technology consumers are demanding a better digital experience while wanting to be secure online,” said Adrien Ogee, Project Lead, Platform for Shaping the Future of Cybersecurity and Digital Trust, World Economic Forum. “Better authentication practices are not just possible they are a necessity.”
For organizations, it removes the need to store passwords and usernames, which leads to more safety, no data breaches, and lower support costs. Get started with passwordless MFA and forget these worrying headlines about cybersecurity incidents once and for all!