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 feature on digital craftsmanship.

94 percent of all passwords are insecure because they are reused or easy to guess. This is the result of a recent study by Cybernews : Over 19 billion passwords from data leaks that occurred from April 2024 onwards were examined over a period of one year . According to the study, the most popular passwords include "1234", "password", and "admin". This makes it easy for hackers.

Craft businesses also rely on numerous online services daily, all of which require secure authentication . These include email accounts, online banking, ordering platforms, social media channels, cloud services, software solutions, and smart building technology. The sheer number of login credentials often presents an organizational and security challenge . As a result, passwords are sometimes reused or written down on slips of paper, increasing the risk of data misuse. Furthermore, the sharing of login credentials with employees is sometimes unstructured and uncontrolled. The risks: A compromised account can not only disrupt operations but also cause financial losses or damage customer trust.

What makes passwords secure?


Secure passwords are therefore essential – and only perfect if they consist of at least twelve characters, a combination of uppercase and lowercase letters, numbers, and special characters, and avoid personal information. However, even with optimal password creation, the biggest weakness remains: the human element . No one can remember dozens of complex passwords without compromising security.

This is precisely where password managers come in. They securely store all login credentials in a digital vault app and automatically fill them in as needed. Passwords are not only managed securely but also generated according to current security standards. Login is usually via a master password or biometric methods such as fingerprint or facial recognition. A major advantage: Password managers synchronize securely across multiple devices , ensuring passwords are always available on smartphones, tablets, and PCs – even on the go. For businesses with multiple employees, password managers also offer team management features . This allows access credentials to be selectively granted or revoked without revealing the actual password. In this way, roles and responsibilities can be clearly defined, and sensitive information can be better protected.

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Important: The master password


One drawback of password managers is that if you forget your master password, you may lose access to your password collection . This is because most providers rely on the so-called zero-knowledge principle, where even the service provider has no access to the data. However, some password managers offer the option of saving a recovery file on your PC or creating emergency codes for such cases . If you've saved your master password on a device with fingerprint or facial recognition, you can often still access your password vault this way.

Costs and criteria


Subscription fees for password managers vary depending on the range of features and the number of users . Free solutions are available for individual users , while professional team versions usually cost just a few euros per user per month . Key selection criteria include the quality of support, user-friendliness, and the ability to integrate with existing systems. When choosing a password manager, businesses should also ensure compliance with data protection regulations (GDPR) and regular security updates . Two-factor authentication is essential to prevent cyberattacks on password managers.

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?

In conclusion, password managers reduce the risk of data loss and simplify the management of all passwords within a company. In times of increasing cyber threats and growing digital demands, professional password management is a crucial component of your company's digital security. When selecting a password manager, ensure compliance with data protection regulations (GDPR) and regular security updates. Among the most popular passwords are "1234", "password", and "admin".

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