More security with password managers

Industry 4.0: Strong passwords are the best protection for online access and company data on the internet. Password managers quickly create order and security.

This article is part of the special topic Digital Crafts

94 percent of all passwords are insecurebecause they are used multiple times or are easy to guess. This is the result of a recent Study by Cybernews: Over a period of one year over 19 billion passwords from data leaks examinedthat occurred from April 2024 onwards. The most popular passwords include "1234", "Password", and "admin". This makes it easy for hackers.

Even in craft businesses, numerous online services are used every day, which require secure authentication. This includes email accounts, online banking, ordering platforms, social media channels, cloud services, software solutions, and smart building technology. A large number of access data often represents an organizational and security challenge. Therefore, in some companies, passwords are reused or written down on pieces of paper, which increases the risk of data misuse. The sharing of access data with employees is also sometimes unstructured and uncontrolled. The risks: A compromised account can not only disrupt operations but also cause financial damage or undermine customer confidence.

What makes passwords secure?


Secure passwords are therefore essential – and only perfect if they consist of at least twelve characters, a combination of upper and lower case letters, numbers and special characters, and avoid personal information. Even with optimal password design, the biggest weak point still remains: the humanBecause no one can remember dozens of complex passwords without compromising security.

This is exactly where password managers come in. You store all access data encrypted in a digital safe app and automatically enter them into the corresponding login fields when needed. Passwords are not only securely managed but also generated according to current security standards. Login is usually done via a master password or biometric methods, such as fingerprint or facial recognition. A major advantage: Password managers synchronize encrypted across multiple devices so that passwords are always available on smartphones, tablets and PCs – even on the go. For craft businesses with several employees, password managers also offer Team management featuresThis allows access data to be specifically granted or revoked without the actual password being visible. This allows roles and responsibilities to be clearly defined and sensitive information to be better protected.

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Important: The master password


A disadvantage of password managers: If you forget your master password, you may no longer be able to access your password collection. Most providers rely on the so-called zero-knowledge principle, where even the service provider has no access to the data. However, for such cases, some password managers offer the option of Save recovery file on PC or to create emergency codes. Anyone who has saved the master password on a device with fingerprint or facial recognition can often still access the password safe this way.

Costs and criteria


The Subscription fees for password managers vary depending on the range of functions and number of usersFor individual users there are Free solutions, while professional team versions usually cost a few euros per user per month. The most important selection criteria include the quality of support, user-friendliness, and the ability to integrate into existing systems. When selecting a password manager, companies should also pay attention to data protection compliance (GDPR) and regular security updatesTo prevent cyber attacks on password managers from being successful, Two-factor authorization is important.

Checklist for secure passwords Length
A secure password consists of at least twelve to 16 characters and a combination of upper and lower case letters, numbers and special characters.

vulnerability Passwords containing names, birthdays, easily guessed words, or sequences of numbers are insecure. A connection to the company or individuals should not be apparent.

Passphrases
An alternative method is to use passphrases from a sentence whose words have no obvious connection (for example, "The5RedSocksFallIn1GreenPot&Cost7Euro!") or to use the initial letters ("D5RSfi1GT&k7E!")

Uniqueness
Each account should have a unique password. Reusing passwords poses a risk, as multiple accounts are at risk in the event of a data breach.

confidentiality
Passwords should never be kept openly or written down on pieces of paper or in notebooks.

Two-factor authentication If possible, two-factor authentication should be enabled. This ensures an account remains secure even if the password is compromised.

Change
Regularly changing passwords increases data security. Password managers often do this automatically through password rotation.

Training
Employees should be trained in the rules for creating and managing secure passwords.

The optimal password manager  1. Needs analysis
- Recording all digital access (e.g., software, email accounts, cloud storage, IoT devices, shopping, banking)
- Recording user accounts and role distributions in the company
- Review of security policies and legal requirements (e.g. GDPR, IT Baseline Protection)

2. Core functions
- Can strongly encrypted passwords be generated automatically (min. twelve characters, special characters)?
- Is there a clear structure with folders or team safes? - Is synchronization possible across PCs, mobile devices, and browser extensions?
- Is there an offline mode and emergency access without an internet connection?

3. Security Standards
- Is there end-to-end encryption (AES-256 or higher)?
- Does the "zero-knowledge principle" apply (provider does not know master passwords)?
- Is the software GDPR compliant? - Does it offer two-factor authentication?

4. User-friendliness
- Are there browser plugins for filling out login forms?
- Are there mobile apps for iOS and Android with fingerprint/Face ID support?
- Is there an API interface for integration into ERP or existing systems?

5. Administration
- Is there a dashboard for user management and permissions assignment? 
- Is there logging and audit logs of access/share operations?
- Are password health checks and vulnerability reports available? - Is there automatic password rotation?

6. Emergency management
- Is it possible to set up an emergency kit (e.g. recovery file/key)?
- Are there regular backups and documented recovery processes?

7. Sustainability
- Is the software scalable for growing employee numbers and new locations?
- Is there reliable support?

And finally ... Password managers reduce the risk of data loss and simplify the management of all passwords within the company. In times of increasing cyber threats and growing digital demands, professional password management is a key component of your company's digital security. When selecting a password manager, pay attention to data protection compliance (GDPR) and regular security updates. The most popular passwords include "1234," "Password," and "admin."

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