• 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

robots
InnovationRobots
‘The question is really just how long it will take’: Over 2,000 gather at Humanoids Summit to meet the robots who may take their jobs someday
By Matt O'Brien and The Associated PressDecember 12, 2025
4 hours ago
Man about to go into police vehicle
CryptoCryptocurrency
Judge tells notorious crypto scammer ‘you have been bitten by the crypto bug’ in handing down 15 year sentence 
By Carlos GarciaDecember 12, 2025
5 hours ago
three men in suits, one gesturing
AIBrainstorm AI
The fastest athletes in the world can botch a baton pass if trust isn’t there—and the same is true of AI, Blackbaud exec says
By Amanda GerutDecember 12, 2025
5 hours ago
Brainstorm AI panel
AIBrainstorm AI
Creative workers won’t be replaced by AI—but their roles will change to become ‘directors’ managing AI agents, executives say
By Beatrice NolanDecember 12, 2025
5 hours ago
Fei-Fei Li, the "Godmother of AI," says she values AI skills more than college degrees when hiring software engineers for her tech startup.
AITech
‘Godmother of AI’ says degrees are less important in hiring than how quickly you can ‘superpower yourself’ with new tools
By Nino PaoliDecember 12, 2025
8 hours ago
C-SuiteFortune 500 Power Moves
Fortune 500 Power Moves: Which executives gained and lost power this week
By Fortune EditorsDecember 12, 2025
8 hours ago

Most Popular

placeholder alt text
Economy
Tariffs are taxes and they were used to finance the federal government until the 1913 income tax. A top economist breaks it down
By Kent JonesDecember 12, 2025
13 hours ago
placeholder alt text
Success
At 18, doctors gave him three hours to live. He played video games from his hospital bed—and now, he’s built a $10 million-a-year video game studio
By Preston ForeDecember 10, 2025
3 days ago
placeholder alt text
Success
Palantir cofounder calls elite college undergrads a ‘loser generation’ as data reveals rise in students seeking support for disabilities, like ADHD
By Preston ForeDecember 11, 2025
1 day ago
placeholder alt text
Arts & Entertainment
'We're not just going to want to be fed AI slop for 16 hours a day': Analyst sees Disney/OpenAI deal as a dividing line in entertainment history
By Nick LichtenbergDecember 11, 2025
1 day ago
placeholder alt text
Success
40% of Stanford undergrads receive disability accommodations—but it’s become a college-wide phenomenon as Gen Z try to succeed in the current climate
By Preston ForeDecember 12, 2025
9 hours ago
placeholder alt text
Uncategorized
Transforming customer support through intelligent AI operations
By Lauren ChomiukNovember 26, 2025
16 days ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • 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
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 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.