How Can a Password Manager Protect Your Business?

Most of us have reused the same password across multiple accounts at some point. It's convenient but also super risky. If just one of those accounts is exposed in a data breach, that password can become a "skeleton key" to your email, social media, bank account, business applications, and more.

A password manager is the best way to stop reusing passwords and keep your collection safe. They are easy to use once you get started.

What is a password manager?

A password manager is a secure tool that stores and manages your passwords for you. It can be an app, a browser extension, or a built-in feature on your device or web browser. We recommend using a trusted standalone password manager (not like Google Chrome or Edge's built in browser password tool).

With a password manager, you can:

• Generate strong, unique passwords for every account
• Store them securely in an encrypted vault
• Autofill login details when you visit websites or apps

Instead of remembering hundreds of passwords, you only need to remember one master password when you're using a password manager.

Why you should use a password manager

Using a password manager is one of the most effective ways to improve your business' online security. Reusing passwords is a big issue; remembering dozens of strong passwords is impossible for most people. A password manager uses the latest tech to keep your passwords safe.

1. Stronger passwords without the hassle

Password managers create long, complex passwords that are difficult to guess or crack. The good news is you don't have to memorize them. A strong password is unique, at least 16 characters long, and a random string of letters, numbers, and symbols.

2. Stop recycling passwords

Every account gets a unique password when you use a password manager. If one account gets compromised, the others stay safe. When you add a letter or symbol to an existing password, it still counts as a reused password. Password managers generate a new, super-strong password for each account.

3. Save time

Password managers can be set up to automatically fill in your login information, so you don't have to reset forgotten passwords or dig through notes.

4. Work across devices

Most password managers sync across your phone, laptop, and tablet, so your passwords are available when you need them.

5. Security features

Many password managers also:

• Help you safely store other sensitive information
• Warn you about suspicious or phishing websites
• Alert you to data breaches or compromised passwords

There are a lot of high-quality options available for free. And some that are paid which offer more storage, protection, etc.

How password managers keep your data safe

It might feel risky to store all your passwords in one place. Are you storing all your eggs in one basket? No, because a basket isn't designed to be as safe as a digital bank vault. Modern password managers are designed with extremely strong security protections.

Encryption

Password managers use encryption to scramble your data so it's unreadable to anyone without access.

Zero-knowledge design

We recommend seeking out a password manager that uses zero-knowledge architecture. This is a fancy cyber term which means:

• The company cannot see your passwords
• Your master password is never stored on their servers
• Only you can unlock your vault

Multifactor authentication (MFA)

You should enable multifactor authentication for your password manager to add an extra layer of security beyond a strong master password. This requires a second step, such as a texted code, fingerprint, facial scan, or an authentication app, before granting access. Many password managers require MFA, but you should turn it on if it's not already enabled.

Automatic locking

Your password vault can automatically lock after a period of inactivity, helping protect your passwords if you walk away from your computer or lose your device.

Is it safe to store all your passwords in one place?

This is a common concern. Unfortunately, it's a big reason many people pass on password managers.

But here's the reality. Using a password manager is safer than:

• Reusing the same password across accounts
• Writing passwords in a notebook or on sticky notes
• Saving passwords in unprotected spreadsheets or notes apps

A password manager reduces your risk by helping you create stronger passwords and avoid reuse, two of the biggest causes of account compromise.

Start slow and make it a habit

You can start using a password manager in just a few minutes:

• Choose a reputable password manager
• Create a strong master password
• Turn on multifactor authentication
• Start saving passwords as you log in, or import them all at once

Many password managers will prompt you to save passwords as you browse. Over time, your secure vault will grow.

Install the password manager's browser extension and mobile app to easily access your passwords anywhere. Generally, browser extensions are needed for auto-fill features, and apps are a way to save all your passwords across multiple devices.

Password managers bring peace of mind

A password manager acts like a secure vault and personal assistant for your business accounts. It helps you stay organized, save time, and protect your identity.

Password manager examples

There are many different free or paid password managers available for business use. Some examples include:

• Keeper
• Bitwarden
• 1Password
• LastPass
• Dashlane
• NordPass

Compare the different password managers and find the one that works best for you.

If you'd like a recommendation of the best password manager for your business, contact us today. We'll help you protect your business before a compromised password becomes an expensive problem.

Article FAQ

What is a password manager?

A password manager is a secure tool that stores and manages your passwords in an encrypted vault. It can generate strong, unique passwords for every account, autofill login details, and sync across your devices. You only need to remember one master password.

Why should a business use a password manager?

Using a password manager is one of the most effective ways to improve business online security. It stops password reuse, generates strong unique passwords for every account, saves time with autofill, syncs across devices, and can alert you to data breaches and compromised passwords.

Is it safe to store all your passwords in one place?

Yes. A password manager uses encryption and zero-knowledge architecture, so the company cannot see your passwords and your master password is never stored on their servers. Using a password manager is safer than reusing passwords, writing them on sticky notes, or saving them in unprotected spreadsheets.

What is zero-knowledge architecture in a password manager?

Zero-knowledge architecture means the password manager company cannot see your passwords, your master password is never stored on their servers, and only you can unlock your vault. We recommend choosing a password manager that uses this design.

What are the best password managers for business?

There are many free and paid password managers available for business use, including Keeper, Bitwarden, 1Password, LastPass, Dashlane, and NordPass. We recommend comparing them to find the one that works best for your business. Contact us for a recommendation tailored to your needs.