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Lost Your Phone? Yahoo! Inc. (YHOO)’s ‘On-Demand’ Passwords May Compromise Your Email

 Yahoo! Inc. (NASDAQ:YHOO) has debuted a service called “on-demand passwords” which may just let anyone into your Yahoo Mail account if ever you lost your phone.

The new feature is being targets users who frequently forget their email passwords or just want an easier – though less secure in some situations – way to log into their Yahoo Mail accounts.

“Today, we’re hoping to make that process lessanxiety-inducing by introducing on-demand passwords, which are texted to your mobile phone when you need them. You no longer have to memorize a difficult password to sign in to your account – what a relief!” Yahoo Director of Product Management Christ Stoner said in the company’s announcement made on Tumblr.

For users who turn the feature on, Yahoo! Inc. (NASDAQ:YHOO) will send to these users’ phone a time-limited code which they can use to log in to their accounts. However, users will not be prompted to enter their password anymore. It’s like two-factor authentication, minus the first factor.

Yahoo, is YHOO a good stock to buy, email password, on-demand passwords,

This means that should your phone fall into a thief’s hands, for example, that person can log in to your email account using “on-demand passwords” if you have the feature turned on.

Nonetheless, Yahoo! Inc. (NASDAQ:YHOO)’s new account access system is arguably easier than memorizing a unique and hopefully strong password. It has its tradeoffs, of course.

For those who want to activate the feature anyway, Yahoo! Inc. (NASDAQ:YHOO) says that it can be found under the security setting after clicking on your name at the top right corner after you log into your account. Click the slider for “on-demand password” to opt in, enter your phone number and the company will send a code you should enter to your account.

The feature is now available for those in the U.S.

Christian Leone’s Luxor Capital Group owned about 9.22 million shares in Yahoo! Inc. (NASDAQ:YHOO) by the end of 2014. Representing 9.38% of Luxor Capital’s whole portfolio, the stake in the internet company was added to the firm’s portfolio during the last quarter of 2014.

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