With password breaches rampant, Yahoo! has announced an option for doing away with traditional passwords for their Yahoo! Mail service. Users that opt in to On-Demand Passwords will be sent an SMS text message with a one-time password to use to access Yahoo mail, instead of a static password.
SMS texts are often used with two-factor authentication, but this system is only one-factor since there is no other password required at the same time. You only have to be in possession of your phone. Of course, you need enough signal to receive a text message, and your phone needs to be charged! On the flip side, anyone in possession of your phone would now also be in control of your Yahoo! mail account.
What do you think? Will you try on-demand passwords?