Top Password Safety Strategies to Protect Your Business in 2025
Imagine your business’s sensitive data being compromised because of a weak password. It’s a nightmare that no one wants to go through. Whether it’s individual accounts or shared team passwords, taking proactive steps can greatly reduce risks. Poorly managed passwords can lead to serious problems, as shown by recent cyber incidents in Canada.
In 2023, Indigo, a big bookstore chain, had a cyberattack that disrupted their operations and exposed employee information. This incident reminds us that businesses of all sizes must focus on password security.
Here’s how to keep your business passwords safe:
Use a Password Manager
Password managers are tools that safely store and organize your passwords. They help you keep track of passwords without risking security. For businesses, it’s important to choose tools made for teams and organizations. Some good options are 1Password Business, NordPass for Business, and Dashlane for Business. These tools offer:
- Secure sharing options for your team.
- Strong encryption to keep passwords safe from hackers.
- Multi-factor authentication (MFA) for extra protection.
Free password tools, like Google Password Manager or ones built into web browsers, may work for personal use, but they aren’t secure enough for businesses. These tools don’t have the features businesses need, like the ability to share passwords safely, control who has access, or remove access when an employee leaves.
Browser-based tools can also be risky because they don’t always use the strongest security, and they don’t let you track or manage password use across your team.
A business-grade password manager gives you the tools to keep company passwords safe, share them securely, and control access when needed. It’s the best way to protect your business.
Add Multi-Factor Authentication (MFA)
Relying only on passwords isn’t enough. MFA adds extra protection by asking for a second way to verify, like a code sent to your mobile phone. This lowers the chances of unauthorized access, even if a password is stolen.
Regularly Update Passwords
Keeping the same password for too long increases the risk of exposure. Regularly changing passwords helps minimize this risk. Set a policy to update passwords every 90 days. A password manager can automate this process.
Review Access Privileges Frequently
Not every employee needs access to every account. Limiting access based on roles helps prevent unauthorized use and reduces the risk of accidental or intentional data exposure. Implementing Role-Based Access Control (RBAC) ensures employees only have access to the tools and information necessary for their role.
When sharing passwords for shared accounts—such as social media or collaboration tools—avoid insecure methods like email or chat. Instead, use the secure sharing features built into password managers. These tools allow you to share access without exposing the actual password, adding an extra layer of protection.
Additionally, integrating Data Loss Prevention (DLP) measures with RBAC ensures sensitive data remains protected. When offboarding team members, IT teams can quickly revoke access and prevent unauthorized use of company accounts, safeguarding your business from potential breaches.
Use Strong Passwords
A strong password serves as your first layer of Protection. Weak or reused passwords can put your business at risk of cyber attacks. Encourage passwords that are at least 16 characters long and include a mix of uppercase letters, lowercase letters, numbers, and special symbols. Password managers can generate complex passwords automatically.
For businesses looking to go beyond traditional passwords, passwordless access is another option to consider. This method uses technologies like biometrics (fingerprint or facial recognition) or security keys for authentication. Passwordless systems not only enhance security by eliminating the risk of stolen or weak passwords but also improve user convenience. While it’s not a complete replacement for passwords in every scenario, it’s worth exploring for sensitive systems or frequently accessed tools.
Educate Employees on Password Security
Human error is one of the main reasons why data breaches happen. Regular training helps employees adopt secure habits and avoid common mistakes. Key topics to cover include:
- Recognizing phishing emails.
- Using unique passwords for each account.
- Securely sharing passwords through approved tools.
Be Prepared for Security Incidents
No system is entirely foolproof. Having a plan in place for password-related incidents, like leaked or lost credentials, is crucial. Include steps such as:
- Immediately changing affected passwords.
- Notifying relevant team members.
- Updating security policies to prevent similar incidents.
Why It Matters for Canadian Small Businesses
Recent cyberattacks in Canada show the growing risks businesses face. The Canadian Internet Registration Authority (CIRA) reported a fourfold increase in reputational damage due to cyberattacks since 2018. Taking steps like using password managers, enabling MFA, and educating employees can help protect your business from similar threats. Don’t wait for an incident to act—start securing your passwords today.
Got questions about making passwords safer? Let’s talk about how these tips can help protect your business.