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How a Password Manager can Help Reduce Data Breaches

Published on October 18, 2022 by Jake Avery

Categories: Information Security

Over 80% of company data breaches are due to poor passwords. 

Weak, easy-to-crack passwords are one of the common causes of data breaches. Strong business password hygiene and practices are critical in order to avoid data breaches. However, traditional password management practices can be overwhelming for both employees and Admins. 

What is a password manager? 

A password manager is an online application that allows users to store, generate, and manage their passwords for local applications and online services.  It also assists in generating and retrieving complex passwords, storing those passwords in an encrypted database, or calculating them on demand. 

What are its benefits? 

A password management tool empowers your workforce by reducing friction for users and IT teams. Here’s a summary of its benefits: 

  • Saves time by simplifying employee password management while granting Admins actionable oversight, from advanced reporting to customizable security policies 
  • Eliminates users password reuse 
  • Allows you to manage passwords from one place 
  • Gives every user their own personalized vault, while maintaining oversight with a robust admin dashboard
  • Protects your sensitive data 
  • Keep everyone’s credentials, notes, and info safe using a zero-knowledge security model. 

What is Multi Factor Authentication (MFA) and how does it coordinate with a password manager? 

While passwords have been an invaluable tool for over half a century, they are not without their drawbacks. If a password is discovered by a third party, there is nothing to stop them from authenticating as that user. To prevent security breaches in our hyperconnected age, we need more than just a username and password. 

Multi-Factor Authentication (MFA) requires a user to provide means of authentication from two or more of the following areas: 

  • Something You Know (knowledge)
  • Something You Have (asset)
  • Something You Are (biometrics)
  • Somewhere You Are (location)

Here are some key benefits of using MFA and password manager

  • It gives you a higher level of authentication protection for user password vaults, single sign-on apps, VPNs, workstations, and identity providers. 
  • Enforce extra security protocols to reduce the risk of a data breach.
  • Increase IT control with contextual MFA policies, from geofencing to IP address policies. 
  • Improve security without impacting employee productivity. 
  • Removes one of the main risks of a data breach 
  • Sets security standards for logins 
  • Passwords are accessible on all devices 
  • Increases productivity 
  • Secures company credit cards 
  • Provides usage reports and activity logs 
  • Never get locked out if someone leaves the company. 

Have questions or want to learn more? 

Get in touch with us for a no-cost, no-obligation review of your password management system and see how using MFA and a password manager application could help your company.