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CybersecurityManagementSecurity NewswireCybersecurity News

Passwords are bad for business, frustrating for consumers

According to Transmit Security’s State of Customer Authentication report, 55% of consumers have stopped using a website because of the login process and more than 87% have been locked out of an online account because of an error-ridden password process.

password
March 30, 2021

Transmit Security has released “The Impact of Passwords on Your Business,” a State of Customer Authentication report that includes customer experience insights based on its survey of 600 U.S. consumers. According to the report findings, organizations are losing potential customers and a substantial amount of revenue due to their dependency on traditional password systems and outdated customer authentication models.

The report also underscores the challenges connected to password-sharing habits. More than 50% of the survey participants admit they have shared a password to, at least, one of their online accounts with someone else and 41% say they share their passwords often. Not only does password-sharing pose a severe security risk, it impacts businesses in a number of ways, from the amount of revenue they’re able to generate to their ability to monitor usage and personalize services.

Traditional passwords also significantly impact customer experiences. Transmit Security’s report revealed 55% of consumers have stopped using a website because the login process was too complex, and that 87.5% of consumers have found themselves locked out of an online account after too many failed login attempts. Worse, 92% of users will leave a website instead of recovering or resetting their login credentials.

In fact, for most customers the problems with passwords begin long before a failure. Transmit Security’s data shows that 66% of users will leave a website if the registration process is too complex. And 64.5% will abandon the site if they are simply asked to create a username and login.

“The number of consumers getting blocked from their online accounts because of poor password experiences is staggering. Customers are dropping out of transaction processes -- or failing to use a site at all -- due to overly complicated, and oftentimes error-ridden, password systems,” says Transmit Security CEO and Co-Founder Mickey Boodaei. “These horrible customer experiences are costing businesses an unimaginable amount of money, not to mention the revenue that’s lost due to password-sharing between consumers. The market is ready for change. It’s time to eliminate our dependency on outdated password technology and evolve to a place where passwords are no longer necessary.”

Boodaei, along with Transmit Security President Rakesh Loonkar, will present the report findings during a webinar on April 6th at 11:00 a.m. ET. Boodaei and Loonkar are both renowned cybersecurity entrepreneurs with more than two decades worth of experience in the security management space. During the webinar, they will share the findings from the report and demonstrate how organizations can deliver an improved customer experience, save money and create more secure systems using passwordless technology that leverages biometric-based security capabilities. You can register for Transmit Security’s webinar here.

KEYWORDS: authentication cyber security enterprise security passwords risk management

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