The Rising Threat to Password Managers: What SMBs and Nonprofits Need to Know

Hacker in a hoodie facing a laptop with glowing lock icons, red and blue digital background, conveying cyber security and data protection themes.

In recent years, password managers have become essential tools for securing sensitive information. However, a surge in cyberattacks targeting these platforms has raised concerns, especially for small to medium-sized businesses (SMBs) and nonprofits. Understanding these threats and implementing robust security measures is crucial to protect your organization's data.

Key Statistics Highlighting the Importance of Password Security

*statistics sources:

• 29% of adults experienced identity or credential theft in the past year

  • Source: Security.org – "2022 Identity Theft Statistics"

    https://www.security.org/privacy/identity-theft-statistics/

• 70% of weak passwords can be cracked in less than 1 second

  • Source: JumpCloud – "The Power of Strong Passwords"

    https://jumpcloud.com/blog/strong-passwords

• 15% of individuals use a password manager

  • Source: Exploding Topics – "Password Manager Usage Stats"

    https://explodingtopics.com/blog/password-manager-statistics

• 37% of users enable two-factor authentication (2FA)

  • Source: Exploding Topics – "Two-Factor Authentication Usage Stats"

    https://explodingtopics.com/blog/2fa-statistics

Best Practices for Enhancing Password Security

To safeguard your organization, consider the following actionable steps:

1. Implement Multi-Factor Authentication (MFA): Adding an extra layer of security can prevent unauthorized access, even if passwords are compromised.
   

2. Use Strong, Unique Passwords: Ensure all passwords are complex and not reused across different accounts.
   

3. Regularly Update Passwords: Change passwords periodically to reduce the risk of unauthorized access.
   

4. Educate Employees: Conduct training sessions on recognizing phishing attempts and the importance of password security.
   

5. Choose a Reliable Password Manager: Select a password manager that offers robust encryption and has a strong security track record.

Downloadable Resource: Strengthening Your Organization's Password Security

To assist SMBs and nonprofits in implementing these practices, we've created a free guide detailing actionable steps to enhance your password security. By staying informed and proactive, your organization can significantly reduce the risk of falling victim to cyberattacks targeting password managers. Download the guide below:

Password Security Guide.pdf

Download PDF • 2.81MB

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Key Vocabulary

• Cybercriminals – Hackers or malicious actors targeting sensitive information.

• Data breach – Unauthorized access to confidential data.

• Phishing – Fraudulent attempts to obtain sensitive information by disguising as a trustworthy entity.

• Social engineering – Manipulating people into divulging confidential information.

• Unauthorized access – Gaining entry into a system without permission.

• Multi-Factor Authentication (MFA) – An added layer of security requiring more than just a password.

• Password manager – A tool that securely stores and manages passwords.

• End-to-end encryption – A method of securing data so only the sender and receiver can access it.

• Credential theft – Stealing login details to gain unauthorized access.

• Password complexity – Using a mix of characters, numbers, and symbols to create strong passwords.

• Security awareness training – Educating employees about cyber threats and best practices.

• Incident response plan – A strategy for responding to security breaches or cyberattacks.

• Account activity monitoring – Keeping track of login attempts and unauthorized changes.

Resources for Reporting an Incident:

Incident Reporting System | CISA

Data Breach Response: A Guide for Business | Federal Trade Commission

Your Fraud Fighting Ally,

-De'Airra