Protecting passwords is one of the most critical steps in protecting sensitive data. Poor storage practices make passwords vulnerable to hackers, leading to data breaches and unauthorized access. The good news is that both simple and advanced strategies can help reduce these risks. We’ll discuss some of the password storage best practices you should follow.
General Password Storage Best Practices
Use a Password Manager
Password managers are a reliable way to securely store and organize passwords, with around 36% of U.S. adults using one. They encrypt passwords and allow you to access them through a single, secure vault. Many also generate strong, unique passwords for each account, reducing the risk of weak or reused passwords. That ensures both convenience and improved security.
Don’t Store Passwords in Unencrypted Documents
Storing passwords in an unencrypted document, such as a plaintext file or spreadsheet, makes it easy for hackers to access. Sending yourself an email or message on an app is also not secure. The easier it is for you to find or access, the simpler it is for others to do the same.
Don’t Keep Passwords in Easily Accessible Locations
Beyond just unencrypted documents, easy-to-access passwords can be just as risky. For example, if you keep passwords on sticky notes or index cards, those are only as secure as the method they’re being physically stored. If they’re sitting on your desk, they are easy for anyone to find. Or worse, if you misplace them, you may lose access while someone else gains it.
Back Up Password Data Securely
Always store backups of password data securely. Even if the main ones are secured through something like a password manager, any backups of that data should be kept just as secure as the main location. Weak backups can lead to stolen passwords.
Enable Multi-Factor Authentication (MFA)
Always use multi-factor authentication (MFA) to protect your accounts and password storage. Doing so provides an extra layer of defense, like a single sign-on link, text code, or pop-up via a phone app. Having just one extra security layer can improve account security even if the password is stolen. While MFA usage has risen to around 50%, many people still don’t use it.
Monitor for Breached Credentials
Some sites and services, such as Have I Been Pwned, help monitor for leaked information in data breaches. Many of them allow you to sign up for notifications, so any time your email is part of a breach, the service will notify you.
Don’t Share or Reveal Passwords
It can be tempting to share a password with a co-worker, family, or friends, but doing so creates a lot of risk. Once someone else knows it, you’re no longer in control of how that password is stored or used. Never share or reveal passwords unless a situation requires it, such as in the workplace. And when doing so, make sure to use an encrypted sharing method.
Never Reuse Passwords
Never reuse a password for multiple accounts. If anything happens to one account, if the password is used elsewhere, it can give the hacker access to everything. Also, if a password is leaked as part of a data breach or gets stolen in some other way, always assume it’s no longer safe. If stolen, you should change your password and never use the old one again.
Advanced Password Storage Best Practices
Use Strong Hashing Algorithms
Use strong hashing algorithms like bcrypt, Argon2, or PBKDF2 to protect passwords from brute-force attacks, credential stuffing, and other threats. Hashing is a one-way process that secures passwords by making them irreversible, while encryption safeguards sensitive data during storage or transit.
Add Salting and Peppering to Passwords
Salting adds a unique, random value to each password before hashing, preventing threats like rainbow table attacks. Peppering adds a secret, system-wide value for extra protection. Combining salting and peppering makes hashed passwords much more complex to crack.
Encrypt Password Storage
Encrypt passwords to ensure they remain secure even if accessed by unauthorized users. Use strong encryption algorithms like AES-256 to safeguard stored data. Pair encryption with secure key management practices, storing encryption keys in hardware security modules (HSMs) to prevent key theft.
Limit Who Can Access Stored Passwords
Enforce role-based access control (RBAC) to restrict only password storage access to authorized users. Combine this with auditing tools to maintain visibility and ensure no one accesses sensitive data without a valid reason.
Log and Monitor Access to Password Storage
Implement detailed logging to track all access to password storage systems. Monitor logs in real-time to detect unusual activity, such as repeated failed access attempts or unauthorized users. Use automated alerts for faster response to potential threats.
Use Secure Vaults for Enterprise Passwords
Store enterprise credentials in dedicated password vaults that offer encryption, access control, and audit capabilities. Choose solutions with advanced features like secrets management, API integrations, and multi-factor authentication to secure high-privilege and shared accounts effectively.
Password Storage in Practice
Securing passwords is a critical step in protecting both personal and business data from cyber threats. By adopting best practices tailored to your needs, you can reduce vulnerabilities and improve overall security. Combining strong encryption, password management tools, and proactive monitoring creates a balanced defense.
At ITonDemand, we help businesses set up and maintain secure password storage systems. Whether you need advanced tools or guidance on following security best practices, our team is here to support you. Contact us today to see how our managed IT services can strengthen your security and protect your organization.
