Common Password Manager Mistakes That Put Your Organization at Risk

Password managers have become essential tools for maintaining strong security hygiene, but implementing them incorrectly can create dangerous vulnerabilities. Here are the critical mistakes organisations need to avoid when using password managers.

Using a Master Password That's Too Simple

One of the most dangerous mistakes is choosing a weak master password. This password is the key to your entire digital kingdom. Organisations often focus on generating complex passwords for individual accounts but overlook the importance of an ultra-secure master password. Your master password should be a lengthy passphrase, combining random words with numbers and special characters.

Failing to Enable Two-Factor Authentication

Many organisations deploy password managers without enforcing 2FA. Even if your master password is compromised, a properly configured 2FA system provides crucial additional security. Make sure to use authenticator apps rather than SMS-based verification, as SMS can be vulnerable to interception.

Automatic Form Filling Without Verification

While auto-fill features are convenient, they can be exploited through carefully crafted malicious websites. Some password managers will automatically fill credentials before verifying the legitimacy of the website. Train users to manually verify the website's URL before allowing password auto-fill.

Sharing Passwords Insecurely

Password managers often include password sharing features, but employees frequently share credentials through less secure channels like email or chat. Establish clear policies for password sharing that require using the password manager's built-in sharing features, which maintain encryption and access control.

Not Regularly Auditing Access

Organisations often fail to conduct regular audits of who has access to shared passwords. When employees change roles or leave the organisation, their access to shared passwords should be immediately revoked. Implement a monthly audit process to review access rights and remove unnecessary sharing.

Storing Sensitive Information in Notes

Password manager notes sections are often misused to store highly sensitive information like encryption keys, recovery codes, or security answers. While password managers are secure, storing this type of information requires additional security controls and separate storage solutions.

Neglecting Regular Password Updates

While the old practice of forcing password changes every 30 days is outdated, organisations still need policies for updating passwords when necessary. Establish clear guidelines for when passwords must be changed, such as after a suspected breach or when an employee with access leaves the organisation.

Poor Backup Procedures

Many organisations lack proper backup procedures for their password manager data. If your password manager service becomes unavailable or your master password is lost, you need a secure way to recover access to critical accounts. Implement encrypted offline backups and document recovery procedures.

Conclusion

Password managers are powerful security tools when used correctly. By avoiding these common mistakes and implementing proper policies and training, organisations can significantly enhance their security posture while maintaining usability for employees.

Remember that a password manager is just one part of a comprehensive security strategy. It should be combined with other security measures like regular security awareness training, robust access controls, and continuous monitoring of potential security threats.

Want to improve your organisation's password security? Start by auditing your current password manager implementation against these common mistakes and develop an action plan to address any gaps in your security posture.