Data breaches that include sensitive information like passwords are the bane of an organization’s cybersecurity. According to an estimate by LastPass, 81% of confirmed breaches are due to weak, reused, or stolen passwords.
Furthermore, as Statista reports, the number of data breaches in the US alone stood at 3205, in which over 164M records were exposed and 353M individuals were affected. This number also includes data leakage and exposure from unauthorized channels.
While this breach is from three different events, it is essential to note that the outcome of these events was common- sensitive information being accessed by an unauthorized threat actor.
Regardless, passwords are an integral part of our digital life. We use email, social media, and online banking regularly. While large-scale businesses with more considerable revenue may have replaced them with passkeys and biometrics, small and medium-scale businesses are yet to replace them. Therefore, they need to establish a secure means for password sharing arises. Moreover, since 41% of internet users report managing passwords for 10-25 websites, there is also a need to define how to manage these passwords more effectively(source).
By now, you do understand that it would be challenging to go around passwords without a password manager app. So, let’s explore how password managers can be the perfect cybersecurity solution – helping you share passwords with employees in a secure manner.
Business Password Management Apps
As mentioned, employees have too many passwords to manage on their own. Someone working at a small or medium-scale business has over 85 passwords to keep track of on average. This number is significantly lower at a larger corp, with an employee dealing with only 25 passwords. With so many passwords to manage, it’s no wonder that employees tend to reuse passwords. But what if we tell you there’s a better, more secure way around this problem? Yes, password managers!
Password managers give you a secure digital vault for safeguarding passwords. The business versions have setups for separating work and personal passwords. They also have special administrative functions so companies never lose a critical password. With a robust admin dashboard built into the app, managing too many passwords simultaneously becomes easier.
Here are some additional reasons you should consider getting a password manager for your small or medium-scale business:
Centralized Password Management
A primary advantage of password managers is their ability to centralize password management. They keep employees from using weak, repetitive passwords. And from storing them in vulnerable places. Instead, a password manager stores all passwords in an encrypted vault. This centralized enhances security. It also streamlines the process of sharing passwords securely within a team.
Leading password managers use robust encryption techniques to protect sensitive data. End-to-end encryption scrambles passwords. It turns them into unreadable text when stored and transmitted. This makes it nearly impossible for unauthorized users to access the information. When sharing passwords with employees, encryption provides an extra layer of security. It helps ensure that the data remains confidential even during transmission.
Secure Password Sharing Features
Password managers often come with secure password-sharing features. They allow administrators to share passwords with team members. And to do this without revealing the actual password.
Instead, employees can access the required credentials without seeing the characters. This ensures that employees do not have direct access to sensitive information. This feature is handy when onboarding new team members. As well as when collaborating on projects that require access to specific accounts.
Multi-Factor Authentication (MFA)
Many password managers support multi-factor authentication. This adds an extra and important layer of security. MFA requires two or more forms of verification before accessing an account.
MFA significantly reduces the risk of unauthorized access. According to Microsoft, it lowers the risk by 99.9%. This makes it an essential feature for businesses looking to enhance password security especially when sharing sensitive information with employees. Be warned of push-bombing though.
Password Generation and Complexity
Password managers often come with built-in password generators. They create strong, complex passwords that are difficult to crack. When sharing passwords with employees, employers can use these generated passwords. They ensure that employees are using strong, unique passwords for each account.
This eliminates the common practice of using weak passwords as well as reusing passwords across many accounts. This feature mitigates the risk of security breaches.
Audit Trails and Activity Monitoring
Monitoring is a valuable feature offered by many password managers. It provides the ability to track user activity and access history. Admins can track who accessed which passwords and when. This provides transparency and accountability within the organization.
This audit trail helps identify any suspicious activities. It also allows companies to take prompt action. This ensures the security of the shared passwords.
Secure Sharing with Third Parties
Password managers offer secure methods for sharing credentials with third-party collaborators or contractors. Companies can grant these external parties limited access to specific passwords. They can do this without compromising security.
This functionality is handy for businesses. Especially those working with external agencies or freelancers on various projects. It keeps control of the passwords within the organization.
You also never have to worry about losing a password when the only employee who knows it leaves.
The Final Verdict
Password managers offer a secure and convenient way to share passwords with employees. They’re an indispensable tool for businesses aiming to enhance their cybersecurity posture.
By adopting password managers, businesses can protect their sensitive information. They also promote a culture of security awareness among employees. Investing in password management solutions is a proactive step toward safeguarding valuable data.
Need help securing a password manager for your business? Give us a call and schedule a consultation today!
This article was posted by the cybersecurity experts at MOATiT. MOATiT is a preferred managed IT services provider in Southeast Idaho, focusing primarily on Idaho Falls, Rexburg, and Pocatello areas. Our team of IT professionals can solve your IT nightmares once and for all. We are partners with Microsoft, Lenovo, Dell, and other leading companies in the IT industry and provide reliable and future-proof setups at economical prices. Explore more about our services at moatit.com.
This Article has been Republished with Permission from The Technology Press.