What Do Businesses Need to Know About Password Managers?

We are not yet living in a passwordless world, but we are getting closer. We’re at the point where IT leaders need a central repository to securely store their login credentials without worry or stress.

Password managers solve this headache, and IT leaders should consider adding them to their broader portfolio of security solutions. In the last five years, usage of password managers has dramatically increased and now they are used by roughly 79 million Americans to protect and access their logins, according to recent research from Security.org. 

A password manager, part of privileged access management, allows organizations to adopt more secure data access policies. These tools can also auto-generate strong passwords every 90 days in accordance with security regulations. Each time, they are encrypted. With multi-factor authentication built in, these solutions enable you and only you to gain access.

Not only does this simplify the experience of entering systems, it also functions as a robust line of defense against cyberattacks. Here’s everything IT leaders need to know:

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Why Some Users Are Reluctant to Trust Password Managers

Roughly 65 percent of Americans “don’t trust password managers,” according to a 2022 survey by the National Cybersecurity Alliance. Experts say this is because some users are nervous to turn their passwords over to software in the form of apps or browser plugins.

But these tools improve protection since all of your data is encrypted, and each password is more powerful against hacks once composed of a long string of complex characters.

Still hesitant? Consider this: “If your one password gets stolen because of a breach, it becomes a skeleton key to your whole cyber life,” notes the Cybersecurity Alliance in a blog post. Make the switch and gain security.

The Practical Advantages of Password Managers

Password managers simplify your life. They save users time, work seamlessly across devices and operating systems, protect your identity, notify you of potential phishing websites, and send alerts if any password becomes compromised. 

But there is a bigger trio of security advantages that can bolster your systems overall. These include encryption, multifactor authentication and zero trust.

Encryption. Password managers encrypt all your logins, no matter the device or server you are using. When it’s time to create a new password, the configuration is encrypted, making it nearly impossible for a hacker to decode your logins. This level of protection makes your personal experience safer and serves as an overall line of defense.

DISCOVER: Find out how businesses are combatting password fatigue.

Multifactor authentication. The best password managers require multifactor authentication before you can gain access to any information inside the “password vault” of stored, secure keys. Each authentication, whether that be face recognition, a fingerprint ID or a text, “builds another wall around your passwords, so you know they are kept extra-secure,” notes the National Cybersecurity Alliance.

Zero trust. Password managers are a great way to establish a zero-trust policy in your business. Even if you are working on an organization’s server, company phone or laptop, zero trust allows only you to gain access through multifactor authentication. This truly protects the employee’s privacy.

How to Get Started with a Password Manager

Password managers are still underused, but the appetite for them is growing. In fact, 71 percent of people without password managers are open to signing up for services in the future, according to Security.org.

To get started with a password manager, organizations can work with a trusted partner to set up a license and maintenance schedule. You can also browse different systems to compare features that fit your business best or look at options from Google or Apple.

What’s most important to remember is that password managers are an effective tool in the suite of defenses that IT leaders should be using to fight cyberattacks.