Login error despite correct credentials

Currently using Basic HTTP Authentication to log in. When user consecutively fails to login successfully, user won't be able to login successfully despite correct credentials.

 

After investigation, I found out that CAPTCHA is triggered after several failed login attempts.

 

Questions:

1) Without changing the type of authentication (still Basic HTTP Auth), are there ways to prevent this scenario from happening?

2) If we are going to switch to OAuth, will CAPTCHA still be triggered?

 

Additional Note: Our JIRA is on the cloud

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