Passwords are bad for online business
According to a report from Transmit Security, more than half of consumers have stopped using a website because of the login process and more than 87 percent have been locked out of an online account because of an error-ridden password process.
The survey of 600 US consumers finds organizations are losing potential customers and a substantial amount of revenue because of their dependency on traditional password systems and outdated customer authentication models.
It finds 55 percent of consumers have stopped using a website because the login process was too complex, and that 87.5 percent of consumers have found themselves locked out of an online account after too many failed login attempts. Worse for businesses is that 92 percent of users will leave a website instead of recovering or resetting their login credentials. In addition 66 percent of users will leave a website if the registration process is too complex, and 64.5 percent will abandon the site if they are simply asked to create a 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's 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 It's time to eliminate our dependency on outdated password technology and evolve to a place where passwords are no longer necessary."
The report also sheds light on poor security habits, more than 50 percent of participants admit they have shared a password to, at least, one of their online accounts with someone else and 41 percent say they share their passwords often.
The company is holding a webinar to discuss the findings on April 6 at 11am ET.