Password resets to cost FTSE over $156 million monthly

May 10, 2023 - TuxCare PR Team

According to a recent MyCena Security Solutions analysis, password resets may cost Financial Times Stock Exchange (FTSE 100) corporations more than $156 million every month.

According to the research, 56% of employees at FTSE 100 businesses change their passwords at least once a month. Given that the average cost of a password reset for firms is $70, this equates to a monthly cost of more than $156 million for the FTSE 100, or $1.7 billion yearly.

The high cost of password resets calls into doubt their effectiveness as firms seek cost savings amid the economic downturn. They bring little value to firms, reduce employee productivity, and come at a great expense. Businesses may now improve both their security and their bottom line by learning to eliminate password resets from their operations.

According to Julia O’Toole, CEO of MyCena Security Solutions, in order to prevent these expenditures, businesses must regain control of their access and passwords. When staff know passwords, businesses are exposed to breaches because they may be phished or hacked. Companies must develop strong random passwords for all systems and send them encrypted to employees to eliminate the possibility of passwords being lost, forgotten, or used in phishing schemes. Employees would no longer pose a security risk under this method.

Access segmentation and encryption management systems would allow businesses to control their own access keys, eliminating the need for people to know passwords. This equates to annual cost savings of more than $300 million for FTSE 100 firms alone.

Password resets are only an issue when employees create passwords to access systems and data. Employees, rather than employers, take on the role of gatekeeper, creating and keeping the keys to the kingdom. Password resets are just a sign of workers having access to these keys. Employees forget their passwords when they have hundreds of keys to remember, resulting in an increase in password resets.

The sources for this piece include an article in HelpnetSecurity.

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