Password Manager: An Important Tool in Data Security

The best password manager will protect your passwords and more

A password manager application is an essential component in your data security toolbox, particularly when you consider the fact that about 15 million people in the United States have their identities stolen each year—resulting in losses of up to $50 billion. Simply put, identity theft is widespread and expensive—and when considered from the business perspective, a password manager can mean the difference between business as usual and business screeching to a halt. Protection is vital, and the best password managers are a great tool for shielding your business network and personal information from attack. But what exactly is a password manager, and what does it do to protect your information? Read on for expert insights from the team at Locknet® Managed IT, an EO Johnson Company.

What is a password manager?

Criminal actors desperately want to get their hands on your data, including your business network, your bank accounts, your passwords, and your personal information. Hackers become increasingly more sophisticated every year in finding ways to obtain that priceless information—and their expertise puts you in the hot seat. That's because they can capture and decrypt that data, throwing open the doors to your accounts, your finances, and your identity. When it happens, it can be devastating personally and financially. Prevention through the use of a password manager can give you peace of mind in our fast-moving, digital world.

A password manager saves your passwords, protecting them and providing data security features that can safeguard your data online. Some will work across multiple devices.

Benefits of the best password managers

The best password managers may not be free (though there are free tools available) but the investment is likely to be worth your while. The benefits they promise are a strong selling point: providing increased convenience with the use of and access to passwords (no more risky post-it notes!) and a guarantee that you'll never "forget" your passwords again. But most importantly, password managers provide beefed-up information security.

How can you identify the best password managers? Search for one which requires multi-factor authentication, which we've written about in the past. This measure provides a higher level of security. Your password manager will likely have a feature that alerts you to attempted log-ins, giving you a heads up if someone else tries to access your accounts.

Creating strong passwords is a vital component of utilizing password managers to their fullest. Strong passwords are complex, often including symbols and numbers. That can make them even harder to remember than the passwords you've used historically. The complexity offers a higher level of protection, particularly as hackers become adept at determining less complex passwords. Yet that same complexity makes it even more important to leverage a password manager, so you and your employees don't have to struggle every time you log in to a program.

Ready for a password manager for your business?

When it's time to implement a password manager to protect your business, we can help. At Locknet® Managed IT, we have a password management solution that can ensure the protection of your company's data. That, paired with our other IT security solutions can give you the defense system you need to face today's threats in the digital space. Contact us to learn more about the best password management solution for your organization.