What is the most secure method of sharing passwords with employees?
Breached or stolen passwords pose significant challenges to an organization’s cybersecurity. Password-related issues account for more than 80% of data breaches. Hackers gain unauthorized access by exploiting stolen, weak, or frequently reused (and easily compromised) passwords.
But passwords are a part of life. Technologies like biometrics or passkeys haven’t yet replaced them. We use them for websites, apps, and more. So, companies need a secure way to share passwords with employees. As well as help them manage those passwords more effectively.
There are many cybersecurity threats and protecting sensitive information is crucial. Managing passwords securely is a top priority. Employees now have more passwords to deal with than ever before. According to LastPass, the average person has 191 work passwords.
One possible solution to securely sharing passwords with employees is by utilizing password managers, which have become increasingly popular in recent years.
Next, we will explore the benefits of password managers and discuss why it is considered one of the most secure methods for sharing passwords with employees.
What are the benefits of using a business password management app?
Password managers provide a secure digital storage for protecting passwords. The business versions offer options for separating work and personal passwords, as well as additional administrative features to prevent companies from losing important passwords.
Here are some reasons to consider using a password manager for improved data security.
Centralized Password Management
Password managers have a key advantage in centralizing password management. They prevent the use of weak, repetitive passwords and discourage storing them in unsafe locations. Instead, all passwords are stored in an encrypted vault. This centralization improves security and simplifies the secure sharing of passwords within a team.
Password managers use strong encryption methods to safeguard sensitive data. End-to-end encryption converts passwords into unreadable text during storage and transmission. This ensures that unauthorized users have a near-impossible time accessing the information.
When sharing passwords with employees, encryption enhances security by maintaining data confidentiality during transmission.
Secure Password Sharing Features
Password managers frequently include secure password-sharing features that enable administrators to share passwords with team members, while keeping the actual password concealed.
Employees can access the required credentials without seeing the characters. This prevents direct access to sensitive information. It is especially helpful when onboarding new team members or working on projects that require access to specific accounts.
Multi-Factor Authentication (MFA)
Password managers often offer support for multi-factor authentication, which is considered an additional and vital security measure. MFA mandates the use of two or more verification methods prior to accessing an account.
MFA reduces the risk of unauthorized access. Microsoft says it lowers the risk by 99.9%. Businesses should use MFA to enhance password security, especially when sharing sensitive information with employees.
Password Generation and Complexity
Password managers have built-in password generators. These generators create strong, complex passwords that are hard to crack. Employers can use these generated passwords when sharing passwords with employees. This ensures that employees use strong, unique passwords for each account.
This feature helps to reduce the risk of security breaches by eliminating the common practice of using weak passwords and reusing passwords across multiple accounts.
Audit trails and activity monitoring are important aspects of data security.
Many password managers offer monitoring as a feature. This feature allows users to track their activity and access history. Admins can see who accessed specific passwords and when. This promotes transparency and accountability in the organization.
The audit trail serves the purpose of identifying any suspicious activities and enables companies to quickly respond, ensuring the security of shared passwords.
Sharing with third parties can be done securely.
Password managers provide secure ways to share login information with third-party collaborators or contractors. Companies can give these external parties restricted access to certain passwords without compromising security.
This functionality is useful for businesses, especially those collaborating with external agencies or freelancers on multiple projects, as it helps maintain control of passwords within the organization.
There is no need to worry about losing a password when the only employee who knows it departs.
Are you interested in trying a password manager for your office?
Password managers provide a secure and convenient method for sharing passwords with employees, making them an essential tool for businesses looking to improve their cybersecurity measures.
By implementing password managers, businesses can enhance the security of their sensitive information. Additionally, password management solutions help foster a culture of security awareness among employees, making it a proactive measure to safeguard valuable data.
If you need assistance with securing a password manager, please contact us to schedule a conversation.
Some tools we recommend for our clients:
Keeper One-Time Share allows users to share passwords and records with others for a set amount of time, regardless of if they have a Keeper account.
Anchor Text: Keeper One-Time Share
External Link: https://docs.keeper.io/user-guides/one-time-share
When sharing a password from within LastPass, the person you share the password with also needs a LastPass account. This restriction is due to the way LastPass’ encrypted sharing system works. Luckily, a LastPass account is free and won’t cost your friend or family member any additional dough.
Anchor Text: LastPass
External Link: https://www.lastpass.com/
The team at 1Password has provided a few ways to share passwords. If you are a member of a family or team account, you can share an entire collection of passwords, often referred to as a “vault.” However, they teach you how to share your passwords via a secure link whether or not they have a 1Password account.
Anchor Text: 1Password
External Link: https://1password.com/
Join other business owners just like and let us help you setup things properly to ensure your passwords are safe and are not stored in a spreadsheet 🙂