Why You Should Be Using a Password Manager to Store Your Passwords

Why You Should Be Using a Password Manager to Store Your Passwords

Passwords remain one of the most vulnerable parts of a company’s technology infrastructure

You can have the strongest IT security measures around, but if someone is logged in as a legitimate user, it’s often hard to catch them before they can access sensitive data or plant malware.

The use of stolen credentials, along with phishing, is one of the biggest causes of data breaches. And often, passwords aren’t too hard to breach.

Users tend to know they should be using good password safety, but they fall into bad habits because there are just too many passwords they have to remember on a daily basis.

Bad password habits that make things easier for hackers include:

  • Reusing passwords on multiple accounts
  • Using weak passwords (ie. “password123”)
  • Not properly protecting passwords (i.e storing them in a plain text document)
  • Sharing passwords with colleagues

58% of companies don’t know how their employees are managing their passwords.

Employees aren’t the only ones with bad password practices. Many organisations aren’t doing great on their end either when it comes to password management.

  • Only 28% of companies require minimum password lengths
  • 22% of companies don’t have any password security practices in place
  • Just 38% of companies prohibit reusing passwords

How to Solve the “Too Many Passwords” Problem with a Password Manager

The biggest reason for poor password practices is the volume of passwords that employees have to remember on a weekly basis. This makes it nearly impossible for someone to create strong passwords that are unique for every login and be able to remember them all.

A cloud technology that’s solved the “too many passwords” problem with IT security is a password manager.

What’s a Password Manager?

A password manager is an application that acts as a password vault and can store long, complicated and unique passwords for any login you use. Rather than having to remember all your passwords, the password manager remembers them all for you and you only need to remember one strong password to access all the others.

Password managers are invaluable in a number of ways.

Creates Strong Password for Every Login

Strong passwords with a combination of letters, numbers, and symbols can be generated at the click of a button with a password manager. Each password is also unique, solving the problem with password reuse.

Users only have to remember a single password, the one to get into their password vault.

Passwords are Stored Securely

Password management applications use AES256-bit encryption and use salted hashes to ensure logins are stored securely. Encryption keys are locally generated on a user’s device.

This encryption and decryption at the device level, means that even the password management vendor doesn’t have access to your passwords.

No Longer Get Locked Out of Company Accounts

When an employee leaves abruptly, it can cause issues if they were the only one with a login to a particular cloud service your company uses.

When you have a business account with a password manager, you can have a master admin that can access employee passwords to any business account when needed. This ensures you’re never locked out.

Access Your Passwords on Any Device or Site

Password managers can be used via an app or through a browser extension. You can also access your password vault across different devices, so you’ll be able to login when and where you need to.

Simplify Multi-Factor Authentication

Multi-factor authentication (MFA) is one of the most effective protections against password hacks. But many people don’t use it on all their accounts, because they find it too time consuming.

Using a password manager allows you to streamline the process of using MFA. You only need to use it once to get into your password manager and from there can access all your logins.

Use a Password Manager with Other Sensitive Information

You can use the security of a password manager to store many other types of sensitive data, such as company credit card details or WordPress logins.

Rather than risking having that information in plain text in a document or in an Outlook contact, storing it in a password manager keeps the data encrypted and secure.

Improves Productivity

Lost and forgotten passwords mean going through a time-consuming password reset process, which can eat up valuable time and reduce productivity. 25% of users forget one of their passwords at least once a day.

Using a password manger eliminates the need to continually reset forgotten passwords, which eliminates stress and wasted time.

Improves Your Organisation’s Cybersecurity

Perhaps the biggest benefit of using a password manager to store your passwords is that it greatly reduces the risk of a data breach due to hacked login credentials.

With unique and strong passwords for every login, it’s much more difficult for passwords to become compromised and lead to a breach.

Do You Need a Cybersecurity Check-up?

From password security to mobile device management, there are multiple areas of a company network that can leave you vulnerable. Don’t stay in the dark! Get a cybersecurity check-up from GKM2.

Contact us today for a free consultation. Call +61 2 9161 7171 or reach out online.