Report: As Passwords Lose Credibility, 72 Percent of Companies Plan to Ditch them by 2025

Security pros name behavioral biometrics and two-factor
authentication (2FA) as leading strategies to address deficiencies in
password-only account security

LOS ANGELES–(BUSINESS WIRE)–TeleSign,
the leader in mobile identity solutions, today released a new report Beyond
the Password: The Future of Account Security
. The study found that
69 percent of security professionals believe usernames and passwords
alone no longer provide sufficient security and a majority (72 percent)
predict passwords will be phased out within nine years. The report also
shows that security professionals are increasingly turning to effective,
easy to implement technologies such as behavioral biometrics and
two-factor authentication (2FA) to secure user accounts.

“The vast majority of security professionals no longer trust the
password to do its job,” said Ryan Disraeli, Co-Founder of TeleSign.
“Thankfully, most companies aren’t resigning themselves or their users
to password-only account security. They are implementing two-factor
authentication in droves and newer technologies such as behavioral
biometrics are emerging to address many of the concerns developers have
around adding new tech to their applications.”

More key findings from TeleSign’s The Future of Account Security Report
include:

  • Trust in passwords is waning, most companies plan to do away with
    them

    • Sixty-nine percent of security professionals believe usernames and
      passwords alone no longer provide sufficient security
    • Seventy-two percent believe their company will do away with
      passwords by 2025.
  • Poor security can lead to increases in fraud, having multiple
    impacts

    • Ninety percent of companies experienced fraud in the past 12
      months, of which 97 percent felt the impacts.
    • Seventy-nine percent are extremely or very concerned about account
      takeovers (ATOs), and with good reason. Costs were higher for
      companies who had experienced ATOs in the past year — with 51
      percent experiencing financial losses, 42 percent experiencing
      loss of customers or users, 42 percent experiencing damage to the
      company brand and 45 percent experiencing increased employee time
      to correct the fraud.
  • Behavioral biometrics and 2FA increase account security and are on
    the rise

    • Nine in 10 companies say behavioral biometrics would be extremely
      or very valuable for increasing security and 8 in 10 say it would
      increase security without degrading the user experience.
    • More than half of companies (54 percent) plan to implement
      behavioral biometrics in 2016 or later.
    • Eighty-five percent of companies will be using 2FA within the next
      12 months, with four in ten already using it for their consumer
      accounts and another four in ten planning to adopt it in the next
      year.
    • Ninety-two percent of security pros agree two-factor
      authentication significantly increases account security on top of
      passwords.

Online fraud remains a top concern for companies, with 86 percent
reporting they are extremely or very concerned about authenticating the
identity of web and mobile app users. In the past year, 9 in 10
companies have experienced fraud and almost 8 in 10 (79 percent) are
concerned about account takeovers (ATOs). ATOs occur when unauthorized
access is gained to a web or mobile end-user account – often due to
stolen credentials, weak passwords or bot-based attacks. Overall, the
impact of fraud remains high, with 42 percent of companies saying they
experienced financial losses and 45 percent experiencing increased
employee time to correct the fraud.

“The business of fraud has become public enemy number one for mobile and
online companies,” Disraeli continued. “Cybercrime such as account
takeover is affecting businesses of all sizes by incurring financial
losses, loss of customers and users and ultimately brand damage. In
order to address the failing password, enterprises need to add
additional account security technologies to keep user accounts safe.
Behavioral biometrics technology and two-factor authentication are
emerging as leading candidates to bridge the gap.”

Commissioned by TeleSign and conducted by Lawless Research, the study
surveyed 600 security professionals across 15 industries in the U.S. and
revealed that securing consumer accounts is a top concern for businesses.

Additional resources:

The Future of Account Security Report: https://www.telesign.com/resources/research-and-reports/beyond-password-future-account-security/

The Future of Account Security Infographic: https://www.telesign.com/resources/infographics/future-account-security-report-infographic

About TeleSign

TeleSign is the leader in mobile identity solutions, helping customers
secure more than 3.5 billion end user accounts worldwide and prevent
registration fraud, while improving user experience and managing costs.
TeleSign delivers account security and fraud prevention with two-factor
authentication based on each user’s mobile identity (phone number,
device and behavior) and driven by real-time, global intelligence,
including reputation scoring and device data. To find out more, visit http://www.telesign.com
or follow us on Twitter – @TeleSign.

Contacts

TeleSign
Sondra Magness, 310-742-8252
smagness@telesign.com