Password reset woes could cost FTSE 100 companies $156 million each month

2023-04-28 04:00

Password resets could unnecessarily cost FTSE 100 businesses over $156 million every month, according to MyCena Security Solutions.

There are currently almost four million employees within the FTSE 100 companies, and research reveals 56% of employees reset their passwords at least once every month in 2022.

If you set that figure alongside data, which says that the average cost of a password reset to businesses is $70, this reveals the true cost of password resets on businesses.

"When employees know the passwords, businesses are vulnerable to employees getting their passwords phished, which is the leading cause of breaches. Removing passwords from users' knowledge eradicates the cost of password resets while significantly strengthening security. This minimises any further cost associated with any data breach, such as GDPR fines which can cost up to 4% of annual turnover for failing to control access keys," O'Toole continued.

"People should stop using World Password Day to promote regular password changes and single access tools. These are remnants of an old belief that people need to know their passwords, which is untrue and undermines security. Passwords are just keys. They don't need to be created or known by humans. Just as no one needs to know or cut out the grooves of their keys to go home. They just need to be able to safely use them. Instead, World Password Day should be used by organisations to raise awareness of the need to control their own access keys, review their password reset records, and regain access control where it has been lost," added O'Toole.

"The only way for organisations to eliminate those hefty passwords reset costs is by taking back control of their access and passwords. If organisations in the FTSE 100 started doing this, their security would improve, their password reset costs would be completely eradicated and millions would be added their bottom line. It's time to take action," O'Toole concluded.

News URL

https://www.helpnetsecurity.com/2023/04/28/password-resets-cost/