Should your business invest in a password manager?

If your company is like most companies today, you probably have a lot of passwords — and it has probably gotten to the point where you can’t keep track of them all. This can be troublesome and it’s why a password manager is vital for businesses like yours.

What is a password manager?

A password manager is a program that stores and generates passwords for all of your accounts. It functions like a digital wallet in that it keeps your passwords in a secure place and allows you to access them with a single master password. A good password manager will also include other features, such as password breach notifications, password resets, password syncing across devices, and more.

Why do I need a password manager?

If you have passwords for emails, online bank accounts, project management applications, etc., it can be difficult to keep track of them all, especially if you have unique passwords for dozens of accounts. Using a password manager removes the risk of you forgetting or leaking your passwords.

Also, a password manager can help you generate strong, unique passcodes for each of your accounts. This will make it nearly impossible for hackers to gain unauthorized access to your accounts and confidential data.

Related reading: Cybersecurity: Always keep in mind its human component

Is a password manager safe?

Yes, a password manager is safe, and it’s a lot safer to use one than to try to remember all of your passwords, list them on a spreadsheet, or note them down on paper. When you use a password manager, your passwords are encrypted and stored in a secure location that only you can access.

Additionally, most password managers like Keeper, Dashlane, 1Password, and a few others include two-factor authentication and encryption. Most password managers use AES encryption, which is the industry standard. AES 256, in particular, is the strongest level of encryption that is indecipherable to third parties.

Why should you invest in a quality password manager?

Here are several reasons your business should ditch password spreadsheets and start using a password manager:

• It is simple to use and can be accessed from any internet-connected device.
• It is infinitely more secure than your “Passwords” Excel file, which is easily hackable and not as handy as a password manager.
• It can save you a lot of time because instead of having to remember or look up multiple passcodes or passphrases, you can simply use a single master password to log in to an account or app. Additionally, a password manager can autofill online forms, so you don’t have to enter usernames and passwords every time you log in.
• It’s affordable. There are free and paid password managers, and for the security they give you, investing in one will eventually save you money in the long run.
• Some password managers enable you to share passwords with coworkers, which makes it easier to keep your team’s or organization’s information safe.

Some caveats

A password manager can offer you a lot of advantages, but you should also keep in mind certain things when using one.

• Make sure you never forget your master password! If you do forget your master password, you won’t be able to access your passwords. You could get into a lot of trouble if you do, and your password manager cannot help you if you forget the master password. It’s still necessary to choose a difficult-to-guess password, but it should be one that you will remember.
• A hacked password manager could be catastrophic. If for any reason, hackers get their hands on your master password, they’ll have access to your other accounts as well. But as long as you choose a strong, unique master password and enable two-factor authentication, you can rest assured that your passwords are safe.

If you’re looking for an affordable way to improve your business’s security, a password manager is a great option. And if you’re interested in other cybersecurity solutions to boost the security of your company’s data, talk to our IT professionals today.