Data Snacks

The password problem and the biometric fix

  • Password habits may be a main culprit behind why consumer accounts get compromised as over a third of people admit to using weak and repeated passwords across sites.
  • Given the vulnerability and inherent friction of passwords, some companies like Mastercard and American Express are moving decidedly in another direction: biometrics. 

Email a Friend

The password problem and the biometric fix

Last month Payoneer customers in Argentina were hit with a phishing attack that started from receiving a link for a password reset and resulted in customers losing their funds. A spokesperson from the company said that the attackers were able to target a “limited” number of customers but that the company acted quickly to contain the attack surface. 

But passwords leading to account takeovers and loss of funds is a problem Americans can relate to, since 46% report having their password stolen in 2023. Password habits may be a main culprit in why consumer accounts get compromised as 35% of consumers state they use weak passwords and 30% admit to repeatedly using a password across platforms. 

Once bad actors are in, customers are likely to lose an array of personal information. 24% of customers report losing their social security number and 25% losing their credit card number in attacks. 

Source: Forbes

Considering that users tend to lose money and personal information, why do consumers use weak passwords or use them repeatedly across platforms? 

One answer may be that passwords are a design problem, not just a security one. 

subscription wall for TS Pro

0 comments on “The password problem and the biometric fix”

Data Snacks

Venmo and Cash App competitor Zelle is closing in on its $1 trillion payments volume target

  • Even though Zelle arrived to the market seven years later than its competitors, its adoption and growth has surpassed incumbents like Venmo. 
  • In 2023, Zelle enabled $806 billion in transaction volume across 120 million consumer and small-business accounts.
Rabab Ahsan | March 08, 2024
Data Snacks, Getting the rules right, Member Exclusive

Risk on the mind: Shadow bank loans and AI may be a risk to the financial system

  • Data by the Federal Board of Governors revealed that lenders in the US have loaned upwards of $1 trillion to non-deposit-taking financial companies.
  • Along with loans to shadow banks, regulators are also eyeing AI and its possible negative impacts on the financial system.
Rabab Ahsan | February 13, 2024
Data Snacks, Member Exclusive

Consumers’ relationship with debt is changing as the Fed flip flops on further rate hikes

  • 6% of consumers expect to increase their borrowing in case of income loss, which is the highest number of people eyeing debt as a cushion in times of an employment crisis since 2015.
  • This Financial Wellness Month, we look at how consumers' relationship with debt is in flux, where their dollars are going, and how inflation is affecting their financial health in 2024.
Rabab Ahsan | January 22, 2024
Data Snacks

Natural disasters are disastrous for consumers’ financial health

  • 2 in 5 Americans live in states where losses due to natural disasters are higher than the national average.
  • But those in high-loss states are not covered by residential insurance at the same rate as those who live in low-loss states, which may leave consumers more financially vulnerable in the event of a natural disaster.
Rabab Ahsan | September 05, 2023
Data Snacks, Lending

46% of student loan borrowers aren’t ready to start making payments

  • Borrowers will be expected to start making student debt payments in October, but many report not being prepared for the end of forbearance.
  • Even though the government's Student Debt Forgiveness program was struck down by the Supreme Court, the government has introduced "on-ramp" policies that should ease the load of student debt payments in the first year. But many borrowers don't understand what these policies entail.
Rabab Ahsan | August 07, 2023
More Articles