• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechDigital Security

Yahoo says goodbye to passwords. Is it a good idea?

By
David Meyer
David Meyer
Down Arrow Button Icon
By
David Meyer
David Meyer
Down Arrow Button Icon
March 16, 2015, 11:15 AM ET
Yahoo's Headquarters In Sunnyvale, California
Photograph by Justin Sullivan—Getty Images

On Sunday at SXSW, Yahoo (YHOO) unveiled a new login procedure that does away with the need for remembering passwords. It’s a welcome advance for digital security, but no panacea.

In recent years, one of the most important developments in digital security has been two-factor authentication, which lets users prove their identity upon log-in by both knowing something (a password) and possessing something (a particular phone, to which the service provider sends a code).

Yahoo’s new log-in mechanism, currently available only for U.S.-based users, is a logical extension and simplification of two-factor authentication. Since the password is no longer king, it’s dispensed with in favor of relying solely on the “what you have” factor.

As people do tend to reuse passwords, and as truly-secure combinations of characters are hard to remember, evolving past the password is a welcome move. However, it does put a lot of emphasis on the handset itself as the modern identity card. If you lose your phone — or if you lack the signal coverage needed to receive that all-important text message with the authentication code in it — you’re in trouble.

There also are issues around the use of such mechanisms – and indeed, two-factor authentication systems — when you’re travelling abroad. The cost of roaming mobile services can be high, and many people get local or roaming SIM cards in the countries they’re visiting. As these are associated with different phone numbers, receiving the code for a Yahoo Mail login would mean reinserting one’s domestic SIM card and paying a quarter to take the SMS.

Nonetheless, these potential pitfalls don’t negate the benefits of moving past the password (which remains in place as an option, for now).

We’ll probably see this new model really take hold when wearables like smartwatches become more widespread. Such devices are even more likely than phones to be permanently in hand, and their biometric sensors could be capable of verifying identity through fingerprint, pulse or voice. If battery life can be extended and some safeguards can be put in place for broken/stolen/lost wearables, their use as new-age keys seems inevitable.

Encryption Advance

Yahoo also showed off its progress in developing a simple way to encrypt and decrypt emails. Like with the company’s new login procedure, it’s a caveat-laden step in the right direction.

When it comes to usability issues, the difficulty of remembering strong passwords has nothing on the trickiness of using the end-to-end email encryption technology known as PGP, or “Pretty Good Privacy”. For example, Edward Snowden confidant Glenn Greenwald almost missed the biggest story of his life because he couldn’t figure out how to get PGP running

So there’s a huge amount of interest in making PGP easier to use, particularly as it would let the big web firms off the hook when spies and law enforcement come knocking for the keys to their users’ encrypted communications. If end-to-end encryption is in use, the keys reside with the users themselves and, much to the chagrin of British Prime Minister David Cameron, there’s no other place to go if you want to decrypt those communications.

Google (GOOG) last year announced that it was working on a browser plugin that would allow Gmail-to-Gmail emails to be encrypted in this way. Yahoo came on-board in August, and on Sunday at SXSW showed off the progress it’s been making on its own plugin, which is based on Google’s work.

A video showed how the system would work once it rolls out by year-end, and Yahoo also quite smartly released the plugin’s source code so that security professionals can poke around and hopefully give it greater credibility by launch. This early release of the code also will help other webmail providers create compatible encryption systems, so people can mask their communications with more correspondents.

This trend is not limited to the big U.S. providers. One week ago, the largest German webmail providers, including Deutsche Telekom and United Internet, announced their own browser plugin for end-to-end PGP encryption, developed in conjunction with an open-source project called Mailvelope. This is intended for use with the cross-provider De-Mail system – a government-led initiative to promote identity-verified email over paper for official purposes – but again it sees end-to-end encryption hit the mainstream through the use of relatively simple-to-use browser plugins.

All of this may result in greater privacy to a large extent, but it’s important to realize that end-to-end email encryption has its limits. Today’s email technology is inherently leaky – you can encrypt the contents of the message, but you can’t encrypt the information about who is corresponding with whom and when. This metadata is in itself highly revealing and, until the next generation of email rolls around – perhaps the Dark Mail being developed by PGP creator Phil Zimmermann – no amount of encrypting the contents of an email will achieve full privacy for the correspondents.

David Meyer (@superglaze) is a technology writer based in Berlin, covering issues ranging from policy and privacy to emerging technologies and markets.

About the Author
By David Meyer
LinkedIn icon
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Lists Calendar
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Lists Calendar
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Fermi Inc. cofounders Toby Neugebauer, left, and former Texas Gov. Rick Perry, right, mark their Nasdaq IPO in early October for their AI power company plans.
Energypower
Feud between AI power startup Fermi and its fired CEO and top shareholder heats up over proposed sale
By Jordan BlumApril 21, 2026
3 hours ago
James Uthmeier
LawOpenAI
Florida launches criminal probe into OpenAI to see if ChatGPT is responsible for fatal Florida State shooting
By Mike Schneider and The Associated PressApril 21, 2026
9 hours ago
Sequoia partner Julien Bek sitting on a stool and holding a microphone while speaking to an audience. Behind him is a stage that looks like a forest.
AIEye on AI
Are services the new software? This venture capitalist thinks the future is in selling AI-delivered outcomes, not AI-powered products
By Jeremy KahnApril 21, 2026
9 hours ago
Polymarket CEO Shayne Coplan shakes someone's hand at the opening of Polymarket's temporary free grocery store in Manhattan
CryptoPolymarket
Investors are valuing Polymarket $7 billion less than archrival Kalshi—and crypto could be one reason why
By Jack KubinecApril 21, 2026
10 hours ago
Double exposure photograph of a portrait of Mark Zuckerberg and a telephone displaying the Meta group s artificial intelligence logo at Kerlouan in Brittany in France on April 11 2025. (Photo by Vincent Feuray / Hans Lucas / Hans Lucas via AFP) (Photo by VINCENT FEURAY/Hans Lucas/AFP via Getty Images)
AIMeta
Meta will start tracking employees’ screens and keystrokes to train AI tools
By Eva RoytburgApril 21, 2026
10 hours ago
Photo of Jeff Bezos (left) and Pete Hegseth before a sign that reads Freedom
PoliticsSpaceX
‘Something sinister could be happening’: FBI looks into dead or missing nuclear and space defense scientists tied to NASA, Blue Origin, and SpaceX
By Catherina GioinoApril 21, 2026
10 hours ago

Most Popular

$166 billion in tariff refunds just became available, but small businesses may already be at a disadvantage
Law
$166 billion in tariff refunds just became available, but small businesses may already be at a disadvantage
By Sasha RogelbergApril 20, 2026
1 day ago
Jeff Bezos once gave Eva Longoria and the admiral behind Osama bin Laden's capture $100 million—but she says you don't need wealth to give back
Success
Jeff Bezos once gave Eva Longoria and the admiral behind Osama bin Laden's capture $100 million—but she says you don't need wealth to give back
By Orianna Rosa RoyleApril 21, 2026
22 hours ago
The tables have turned: Florida and Texas are the biggest losers in the housing market as Ohio emerges a surprise winner
Real Estate
The tables have turned: Florida and Texas are the biggest losers in the housing market as Ohio emerges a surprise winner
By Sydney LakeApril 21, 2026
11 hours ago
'Something sinister could be happening': FBI looks into dead or missing nuclear and space defense scientists tied to NASA, Blue Origin, and SpaceX
Politics
'Something sinister could be happening': FBI looks into dead or missing nuclear and space defense scientists tied to NASA, Blue Origin, and SpaceX
By Catherina GioinoApril 21, 2026
10 hours ago
This talent CEO says laid-off tech workers are ignoring a $300K ‘white-collar trade job’ with 81K openings a year
Economy
This talent CEO says laid-off tech workers are ignoring a $300K ‘white-collar trade job’ with 81K openings a year
By Jake AngeloApril 20, 2026
2 days ago
Meet John Ternus, the 51-year-old former swimming champ who will succeed Tim Cook as Apple CEO
Big Tech
Meet John Ternus, the 51-year-old former swimming champ who will succeed Tim Cook as Apple CEO
By Dave Smith and Fortune EditorsApril 20, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.