In today’s business world, password theft, ransomware, and phishing cases are on the rise, requiring cybersecurity measures. You need applications to manage, store, and protect your company passwords and data from hackers.
A password manager is one of the most effective security tools to protect your organization, employees, and customers from intruders. Here is a detailed analysis of how password managers work if they are secure, and cases where they have been breached.
LastPass Breach
Password managers aim to protect customer data, but some companies have experienced regular breaches. In 2022, one of the most commonly used password managers, LastPass, was hacked, and unencrypted customer metadata fell into the wrong hands. In August 2022, the company announced it experienced a breach and no user data had been accessed. Later in December 2022, it was revealed the breach had exposed password vaults and user data to unauthorized personnel.
LastPass has experienced previous data breaches that compromised customer data. In 2015, it encountered an attack that exposed customers’ security information and email addresses. The same happened in 2017 when OneLogin got attacked, leaking customer data.
Cybersecurity issues are inevitable, and the aim of password management companies is not to have a 100% track record. Their goal is to protect customers and react to any disasters immediately as they happen. This helps to put fast measures in place to ensure the hackers cannot use any of the stolen data. LastPass failed at this by communicating about the 2022 breach too late.
What Is a Password Manager?
A password manager or password vault represents a software application that organizes and stores your company’s usernames and passwords. Password managers help you generate complex and unique passwords to protect your firm’s accounts. Here are more services offered by a password manager security:
- Industry-standard encryption
- Encrypted file storage vaults
- Multi-factor authentication and two-factor authentication
- Site and password breach alerts
- Password rotation
Different password managers have varying ways of operating, in that some are cloud-based, and others use local storage. They are also built into different web browsers, such as Firefox, Chrome, Edge, and Safari.
What Are the Risks of Using a Password Manager? / Can Password Managers be Trusted?
If you’ve been wondering, “how safe are password managers?” — they are safe. A password manager is tough to compromise and thus can be trusted to store your passwords. However, you should be aware of the risks of using password managers. Here are some risks:
All your sensitive data is in one place
Having a password manager involves placing all your sensitive data in a single place. This could include your secure notes, credit cards, and private customer data. If your company experiences a breach, changing your passwords and blocking payment options could take time, allowing the attacker to do some damage.
Your devices are not secure enough
Your password managers can get hacked if you use a device infected with malware. When you type your master password, the malware records it, giving hackers full access to your stored data. You should invest in a trustworthy antivirus and endpoint manager to protect all your devices.
Failing to use biometric authentication
Not including biometric authentication places your business at risk of a cyber-attack. Biometric authentication adds an extra level of security to your company data.
Configuring your password manager to request a face scan or fingerprint lowers the chances of your vaults getting hacked. It is also easy to use your fingerprint over adding a master password.
Forgetting your master password
Forgetting your password could make it very challenging to recover your password vault. You should store your master password or hint in a physically secure place, for example, a safe.