Password Management: How to Store Passwords on Your Computer

Password management is not as easy as it once was. Cybercriminals have continued to get better at hacking, so the need for more complicated passwords has never been greater. But remembering multiple passwords with a variety of characters has become an increasingly difficult task. Thankfully, there’s a science to how to store passwords on your computer. That’s where password managers come in. They’re a logical tool for keeping track of your passwords across multiple websites and accounts. They also generate strong, random multi-character passwords that will be more secure than those you create on your own.

Q: Why is a strong password policy important for small businesses?

A: Small businesses are often targeted by cybercriminals because they typically have weaker security systems. Enforcing rules around password complexity, regular updates and multifactor authentication helps protect sensitive company and customer data. A solid policy reduces the risk of unauthorized access and data breaches, which can have serious financial and reputational consequences.

How Safe Are Password Managers?

In general, password managers are better than people are at creating and storing strong passwords, although the password managers built into web browsers are not quite as secure. If you use a built-in password manager and fall victim to a cyberattack, the hacker can gain remote access to your computer and steal all your passwords in one hit. In addition, because all your passwords are stored in one place, it is easier for cybercriminals to breach your private information and even steal your identity. It’s as if you turned over the master key that opens a locked box holding all of your keys. Also, if you walk away with your computer open and unattended, anyone can access all your accounts.

Many password managers are free, but choosing one requires some due diligence. Don’t just randomly select a free password management software and download it. As with all internet-related matters, think before you click. Many free password managers lack sufficient security against data breaches and are often meant to draw the user in for nefarious reasons. Also, some are just poorly written programs with lots of frustrating bugs. The purpose of password management is to make your work more convenient and efficient, not slow you down with freezing or malfunctioning programs. 

Q: How do password managers support good password practices?

A: Password managers generate and store strong, unique passwords for each account, eliminating the need for employees to remember or reuse them. This reduces the risk of weak or duplicate passwords used across services. Most password managers also alert users to compromised passwords and can auto-fill credentials securely, making them both a convenient and effective tool in maintaining good security hygiene.

Case Study

A family medical practice in Philadelphia started to have too many passwords, each for a different function. Employees were also getting lazy about securing their own passwords. One of the practice’s assistants doubled as its IT point person. The assistant suggested that the office get a password manager for everyone to use. Unfortunately, he didn’t do enough research and gave insufficient weight to the differences between programs. He didn’t understand the most important features they needed, but he assured the practice’s managing partner that most password managers were alike, and he found what he believed to be a good one. He installed it system-wide. After six weeks of using the password manager, the practice suffered a significant data breach and theft of all the office’s passwords. In one attack, the cybercriminal was able to harvest everything he needed to gain access to several areas of the practice’s data. For a high-compliance business, a data breach of patient files could be catastrophic. Had it not been caught early, it would’ve put all the most confidential medical records at risk of a breach and put the practice out of business. After recovering from that event, the managing partner decided that cyber security was beyond his expertise and hired experts to help build and maintain suitable security protocols for his business.

Small and midsized businesses (SMBs) need a business-wide strategy for dealing with cyber security. Passwords are the outer gates of that security. A piecemeal approach to securing your network is insufficient. Many layers of security are essential to providing your business with the maximum protection required against cyberattacks. A comprehensive, all-encompassing plan must be tailor-made to your company and maintained by IT professionals. It is no longer a job for an employee who doubles as your “computer guy” to figure out, “How safe are password managers?” As hackers get more proficient, SMBs must take the necessary steps to be more effective in their approach to data protection.

Q: What should a small business look for when choosing a password manager?

A: Look for features like end-to-end encryption, secure sharing options for team collaboration, integration with multifactor authentication and administrative controls for managing user access. Compatibility with different devices and browsers is also important, as is the ability to monitor password health across the organization. Opt for a reputable, well-reviewed service with a strong track record of security.

What’s the Best Way to Protect Passwords?

If you’ve already been the victim of a hacked password and the resultant data breach, you’ve probably already researched how to store passwords on your computer. If you haven’t yet fallen victim to a cybercrime, you should act fast. It starts with your passwords and multifactor authentication, but there’s so much more SMBs need to do to ensure adequate cyber protection. How safe are password managers? Much safer than having you and your employees create and store your own passwords.

Perhaps, though, the prospect of a password manager feels overwhelming. IT security firms can offer guidance, set up and ongoing maintenance and monitoring. Such businesses specialize in preventing cyberattacks and work with clients to establish cyber security best practices. Many companies, regulated by strict compliance and privacy laws (such as law firms, medical practices and financial services), must apply additional data protection measures for compliance.

For any business, cyberattacks can have devastating financial consequences. Password mangers are essential to reduce password and credential misuse. Our team can install the product on employee devices and train your team to use them. Reach out if you are in the metropolitan New York City area, or connect with a local IT security company that can assess your cyber risks and work with you to ensure you have the best password and passkey security solution for your business.