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What Is Password Management and Why Is It Important?

by Emma Wilson

Cybercrime is on the rise more now than ever. In 2005 the Bureau of Justice Statistics reported that out of the 7,818 businesses surveyed, 60% detected at least one form of a cyber attack.

This shocking percentage is a result of desperate times. It is also a result of the increased use of digital technology in the business world. 

One of the most tried and true ways to protect your business from cybercrime is password management. Keeping your password secure the biggest thing you can do to keep your digital information safe.

So what is password management and how can your business use it to keep itself secure? This guide will have all the answers you need to find the best password management solutions.

Password Management in a Nutshell

Password management is a set of sustainable guidelines that keeps passwords secure. These guidelines manage passwords from their conception until discontinuation.

Every computer user is familiar with some sort of password management. This includes things like keeping your password a secret or using alphanumeric characters. 

These two examples are the tip of the iceberg when it comes to password management. Password management services can take your password security to the next level.

A successful password manager uses state of the art password management software to keep your data safe. Finding the right password manager for your business or personal life can be a challenge. 

Types of Password Managers

There are a few types of password managers that could be applicable to any individual based on their preference.

Browser-based password managers are ones that your internet application uses to protect your information. They are usually the least secure form of password manager.

portable password manager is stored on a device like a phone. You specifically need this device to access your passwords.

For some users, keeping their information off the cloud is a priority. For this, a desktop-based password manager would be most appropriate. A desktop-based password manager is one that stores all of your passwords locally on your device.

This would not be appropriate for individuals that want to sync their passwords across multiple devices. It also would not allow a user to access their passwords from anywhere in the world. 

For this, a user would want a cloud-based password management system. The following are the benefits of a cloud-based password management service.

Benefits of Cloud-Based Password Management

A password manager is a service or software program that stores and manages your password credentials. A cloud-based password manager does this by keeping them in a secure online cloud database.

The online database itself is kept secure with a master password. There are a host of benefits attributed to using a cloud-based password management service.

1. Less to Remember

Using a cloud-based password manager cuts down on the number of passwords you need to remember. This is because the master password allows you access to the password vault.

A cloud-based password manager effectively eliminates the need for you to remember countless other passwords. This is a big deal in a world where people are expected to remember 70-80 passwords.

But the benefits of using a cloud-based password manager aren’t merely limited to alleviating the burden of passwords on your memory. There are many other benefits to them as well.

2. Increased Security

Passwords generated by a cloud-based password manager are also more secure. This is particularly true if a user selects an autogenerated password. The combinations of letters and numbers produced are virtually impossible to guess.

The days of using your birthday or the name of your favorite pet as your password are long gone. A password manager will help keep your sensitive data safe by creating the complex password the modern age demands.

3. Access Your Passwords Anywhere

A cloud-based password management service stores your passwords on its network. This means that no matter where in the world you log into it from, you will be able to access your passwords.

You can also access your passwords with multiple different devices. All this hinges of course, on you remembering the master password.

4. Protect You From Scams

Scams like phishing try to acquire your personal info by sending fake emails that look like they have been sent by a legitimate person you know. A password manager will recognize this.

It will also refuse to autocomplete the necessary fields with your personal information. You will then be alerted to the scam, without losing any of your personal information.

Beyond Passwords

A truly cutting edge password management service will offer you other methods of securely accessing your data besides password use. This includes things such as biometrics, fingerprint usage, and photo-login.

It also includes simple solutions such as the use of a pin code. An effective strategy in password management incorporates all of these aspects. The more secure options you have to access your data, the better off you are.

All it takes is one data breach or stolen password to show you the value of a successful password management strategy. The more sensitive your data, the more effort you should focus on having an ironclad password management strategy.

Don’t Be a Victim Use a Password Manager

More and more of our sensitive data is moved into the digital world than ever before.  Protecting this data and limiting who has access to it is as crucial as determining who has the keys to your house.

Cybercriminals target the most vulnerable users. Don’t find yourself amongst the victims! By using a successful password management service you can protect yourself or your business. 

You simply can’t put a price on the security of your sensitive information. This is even more true when it applies to your business. Find the right password management service today, and make sure that your personal and business data is safe!