The Mobile application user (as configured in the connection string in the Application Configuration) needs to have permission to change password for other users.
This is how the Password Reset functionality is accomplished.
Microsoft SQL Server
One way to accomplish this is to add the application user to the securityadmin database role.
EXEC master..sp_addsrvrolemember @loginame = N'username', @rolename = N'securityadmin'
(where username is the application user name)
Oracle
One way to accomplish this is to grant the ALTER USER privilege to the application user
grant alter user to username;
(where username is the application user name)
Additional Information
For additional information, refer to the following Dovetail Knowledgebase article: https://support.dovetailsoftware.com/selfservice/solutions/show/413
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