Between the dizzying requirements, memorization, and sheer amount of passwords that employees need to try to keep track of in the modern workplace, managing passwords has become a distracting juggling act for employees.
Yet passwords are the frontline defense for protecting your business’ vital information from devastating cyberattacks. As day-to-day password use ultimately falls on your employees, it’s crucial that they have the know-how to manage their work-related passwords securely.
The modern struggle of password management
We’ve all been there, struggling to remember which lengthy password you need to log into one of the many applications you need to complete necessary work tasks. In fact, according to LastPass, employees on average handle a staggering 191 password logins. And with remote work remaining the norm for many industries, that number looks like it will only continue to rise.
Something has got to give, right?
But password management for employees doesn’t need to be so convoluted and overwhelming. There are numerous tips, tricks, and tools to help employees securely manage their passwords, and therefore improve their companies’ cybersecurity and their own productivity at the same time. Equipping your employees with knowledge of proper password management, and the reasons why it’s important, is the first step.
The importance of secure passwords
Passwords are the individual safeguards of our information and are unique to every user. They are also one of the major weak points that could allow an attacker to break into a system or not. Using secure passwords can often be the difference between a fortified, smooth-running operation and a vulnerable data breach waiting to happen.
Data breaches are among the greatest concerns of weak password management. According to a report by IBM and the Ponemon Institute, the average data breach cost for businesses with fewer than 500 employees is $2.98 million, and the average cost per breached record is $164. With data breaches on the rise, not only is the financial risk enormous, but the loss in brand trust weighs heavy on companies who succumb to hackers and malware.
Conversely, using strong passwords builds trust in your systems and the employees who use them. Requiring strong passwords will help maintain order and cultivate a cybersecurity culture amongst employees. The best way to enforce this is with an effective password policy.
How to create an effective password policy at your business
Password policies provide structured guidelines for employees to follow regarding their password use. A strong password policy is a set of rules designed to strengthen computer security by encouraging users to create and implement secure passwords. It’s a part of an organization’s official security policy and should be included in all security trainings and employee onboarding.
The key to an effective password policy lies in the details. For users who have zero background on creating safe passwords, concise instructions will go a long way. Utilizing a clear password policy is essential to get all employees on the same page about network security.
Tips for an effective password policy
Password complexity and length are vital to a password policy. One method to accomplish this is by using passphrases. A passphrase is a longer password containing letters, spaces, symbols, and numbers that can be remembered as a sentence instead of a string of random characters.
The National Institute of Standards and Technology recommends that organizations require a minimum password length of eight characters when protecting sensitive information. Utilizing passphrases ensures that employees meet or exceed this requirement.
Enabling two-factor authentication (2FA) or multi-factor authentication (MFA) is another way to add security to your password policy. This extra step of verification through mobile devices and apps ensures that even if your password has been leaked, it’s unlikely that a cybercriminal could log in without the authorized user’s device. For an even deeper layer of security, you can employ a virtual private network (VPN) when logging into secure networks.
Also make sure that your password policy includes a requirement to change all employee passwords after any security compromise. It used to be common practice to change passwords every three months, but research has shown that these practices were not effective.
On top of users creating nearly identical passwords just so they could remember them, organizations were required to keep a history log of all previous passwords to deny duplicates. If breached, this database would be a credential goldmine for hackers. Although many organizations still require employees to change passwords every 60 to 90 days, it’s always best to change passwords primarily when there’s been evidence of a security breach.
Password policies should be proactively updated, and employees kept informed. With technology constantly changing, your password policy needs to be continuously tested and improved; complacency is the enemy when it comes to security.
One solution is to outsource cybersecurity services to stress test your system, running phishing tests and other ways of seeing if your password management policy is holding up to real-world threat scenarios.
However you decide to handle your password policy, remember to follow these Dos and Don’ts.
Dos and Don’ts for password policies
- Do require passwords to include letters (upper and lowercase), numbers, and special characters.
- Do use a different password for every account.
- Do have employees change their passwords periodically (especially if there’s been a security breach!).
- Do allow users the freedom to change their passwords at any time.
- Don’t reuse passwords or portions of passwords for multiple accounts.
- Don’t keep passwords written down, whether on pen and paper or a digital sticky note.
- Don’t share your passwords with anyone.
- Don’t include personal information in your passwords.
Password management tools
Password management tools have gained popularity in recent years, easing the burden of trying to memorize numerous passwords for countless logins. When implemented alongside a strong password policy, these tools can help bolster an already sturdy password protection system that your entire company can follow.
How do password management tools work?
Password management tools are applications or services that help to create, securely store, and quickly autofill passwords when required. Given the array of solutions on the market, it can be difficult to keep track of the different features included in these tools.
A basic password management tool is included with most modern web browsers. These bundled tools typically have a password function that can store and fill in passwords as a simple ease-of-use feature.
On a more advanced level, some password management tools can create complex passwords on demand, using a master passkey to associate all passwords with particular accounts and then storing them securely through encryption.
In general, password management tools automate the control of our passwords and keep credentials secure across devices.
Benefits of password management tools
The benefits of password management tools are double fold in terms of facility and security. Employees only have to remember one master password, with password managers securely storing their additional created passwords on any site. Since these tools store passwords, it allows users to create highly complex and unique passwords without having to worry about remembering them weeks and months later. Many of these tools can even generate highly complex, random passwords for you.
Some password managers also encrypt each and every stored password, adding an additional level of security. This means that even if someone did manage to steal your passwords, they wouldn’t be able to read them.
On top of that, it’s common for password management tools to autofill your passwords whenever you visit a site that requires a login. By just clicking on a username field, a list of credentials will appear for you to choose from, giving employees faster accessibility to the systems they rely on most.
Another benefit that password managers are incorporating is the ability to securely store additional data like phone numbers, birthdates, addresses, credit card number, and more. It works the same as the password autofill feature but is scaled up to handle even more of those cumbersome forms many websites ask you to fill in.
By establishing a decisive password policy and leveraging password management tools, employees can feel confident and secure when using the many platforms that have become essential in the workforce.
Although cyberthreats will always be a concern, preemptive action can help keep them at bay. Employees no longer have to sacrifice practicality for security when it comes to managing their work-related passwords.
How IT service providers can help your small business
As cybersecurity continues to evolve, small businesses may not have the capacity to properly manage all of the complex factors that go into employee password management, let alone the expertise. And if staying on top of password policies and password management tools seems daunting, that’s only the tip of the iceberg.
Companies should also be regularly checking to see if employee data is for sale on the dark web, where hackers most commonly acquire login credentials which can spur phishing attacks and network breaches.
Many small businesses don’t have the resources to staff an entire in-house cybersecurity team. But IT service providers specialize in all types of businesses and industries, offering as few or as many services and protective measures as needed. To better understand these services and whether they’re a fit for your business, check out our article on How To Hire a Cybersecurity Company.
A trusted service provider is a sound way to keep your password management and cybersecurity up to date. Once you know the ins and outs of what you’re looking for, you can browse and compare an expansive list of top-rated IT service providers on UpCity.