Breached or stolen passwords represent a significant cybersecurity risk for organizations. Astonishingly, over 80% of data breaches are due to compromised passwords, whether they are stolen, weak, or reused.
Astonishingly, over 80% of data breaches are due to compromised passwords, whether they are stolen, weak, or reused.
Since business passwords are used across websites, apps, and more, it’s crucial for companies to find secure methods to share and manage passwords effectively.
Managing passwords securely has become a top priority. The challenge is exacerbated by the number of passwords each employee must handle; LastPass estimates an average of 191 work passwords per individual.
Since eliminating passwords completely isn’t feasible, the focus shifts to how they can be shared with employees safely. In recent years, password managers have emerged as a popular solution for this problem.
Let’s delve into the advantages of password managers and why they are among the most secure methods for sharing passwords with employees below:
Why Use a Business Password Management App?
Password managers offer a secure digital vault for storing passwords. Business versions provide additional features, such as separating work and personal passwords and including administrative functions to ensure critical passwords are never lost. Here are the reasons to consider using a password manager for enhanced data security:
Centralized Password Management
A significant benefit of password managers is their ability to centralize password management. This capability prevents employees from using weak, repetitive passwords and storing them in unsecured locations. Password managers store all passwords in an encrypted vault, enhancing security and streamlining password sharing within a team.
End-to-End Encrpytion
Leading password managers employ robust encryption techniques to safeguard sensitive data. End-to-end encryption makes passwords unreadable when stored and transmitted, significantly reducing the likelihood of unauthorized access. This encryption adds an extra layer of security when sharing passwords with employees, ensuring data confidentiality even during transmission.
Secure Password Sharing Features
Password managers often include features that facilitate secure password sharing. These features allow administrators to share passwords with team members without revealing the actual password. As a result, employees can access necessary credentials without directly seeing sensitive information. This is particularly beneficial when onboarding new team members or collaborating on projects requiring specific account access.
Multi-Factor Authentication (MFA)
Many password managers support multi-factor authentication, adding an important layer of security. MFA requires two or more forms of verification to access an account, significantly reducing the risk of unauthorized access. Microsoft reports that MFA can reduce the risk of unauthorized access by 99.9%, making it an essential feature for businesses, especially when sharing sensitive information with employees.
Password Generation and Complexity
Password managers often include built-in password generators that create strong, complex passwords. When sharing passwords with employees, these generated passwords ensure that strong, unique passwords are used for each account. This practice eliminates the common use of weak or reused passwords, mitigating the risk of security breaches.
Audit Trails and Activity Monitoring
Many password managers offer the ability to monitor user activity and access history. Administrators can track who accessed which passwords and when, providing transparency and accountability within the organization. This audit trail helps identify any suspicious activities and allows companies to take prompt action, ensuring the security of shared passwords.
Secure Sharing with Third Parties
Password managers also provide secure methods for sharing credentials with third-party collaborators or contractors. Companies can grant these external parties limited access to specific passwords without compromising security. This functionality is especially useful for businesses working with external agencies or freelancers on various projects, maintaining control of passwords within the organization.
Ready to Try a Password Manager at Your Office?
Password managers offer a secure and convenient way to share passwords with employees, proving an indispensable tool for businesses looking to enhance their cybersecurity posture.
If your business is considering a password manager, Protek-IT is here to help. Our expertise in providing responsive, knowledgeable, and affordable professional IT services positions us perfectly to assist you in this crucial aspect of your cybersecurity strategy. Contact us today to schedule a discussion about how a password manager can bolster your business’s digital defenses.
Article used with permission from The Technology Press.
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