A noticeable trend is taking shape: compromised passwords are regularly responsible for successful data breaches, and this attack method is rapidly gaining ground. As a result, organizations often find themselves in a continuous “chase,” attempting to identify and neutralize the threat of exposed credentials before they are exploited.
The challenge can be overwhelming when other security priorities are commanding time and resources. Certainly, weak passwords can take a heavy toll on any organization, both directly and indirectly. Considered one of the most vulnerable parts of a security system, poor passwords give cybercriminals easy access to sensitive data and systems. While cyberattacks and data breaches are the most apparent risks, weak password policies have other, less obvious consequences.
Weak passwords will expose you to cybercrime
Dealing with password-related issues such as resets and account lockouts drains valuable IT resources. This diverts attention from higher-priority, strategic tasks to routine maintenance. Compromised passwords are one of the most common ways hackers gain unauthorized access to systems. Whether through exploiting weak passwords or using passwords that have already been exposed in other breaches, this access is often the gateway to launching more sophisticated attacks. Hackers can escalate their privileges, install ransomware, or deploy malicious software, resulting in severe data breaches.
A significant security issue is password reuse. This is where users apply the same password across multiple sites and devices. Even if your organization enforces strong password policies with minimum character counts, employees may reuse these credentials on less secure personal accounts or apps. If one of these external accounts is compromised, that password could be sold on the dark web, where attackers could link it back to the business.
Impact of weak passwords
The danger of weak passwords is ever-present. Research found that, in the past year, over two million VPN passwords were malware-stolen from prominent VPN providers. When examined, the most common passwords identified include “12345” and “qwerty,” as well as common weak passwords such as “Admin” and “password.” Furthermore, “123456” was the most common compromised password found in over 2 million breached cloud application credentials.
The financial impact of a password-related breach can be staggering. Costs can pile up from multiple sources, including:
- Regulatory fines and legal fees
- Loss of customers due to damaged trust
- Higher insurance premiums
- Operational disruptions and productivity loss
- The reputational damage that can be difficult to quantify
- Expenses associated with data recovery, especially in ransomware cases
Poor password management is a security risk that can lead to significant, often unexpected costs. Addressing password vulnerabilities now can save an organization from facing hefty financial and reputational consequences later.
Addressing bad password security habits
Organizations recognize that employees and end users pose a cybersecurity risk due to mistakes, hacker activity, and sometimes malicious intent. While security awareness training aims to reduce this risk, it has limitations and can be viewed as time-consuming, disruptive to productivity, and easily forgotten. Despite training, bad password habits continue to persist. For example, 84% of people admit to reusing passwords across multiple sites.
Training helps build a cybersecurity-conscious culture, but many users still prioritize convenience, often reusing weak passwords to streamline their tasks. Password reuse, particularly across work and personal accounts, remains a significant risk, giving hackers easy access if one password is compromised.
Indeed, research shows that while users find cybersecurity training helpful, only a small percentage change their habits, with 31% reporting they stopped reusing passwords after training. The growing number of accounts and SaaS tools further increases password management challenges, with the average employee managing 154 logins per month.
To effectively combat these issues, organizations need to combine training with stronger technological solutions, like enforcing password policies and using tools that minimize password reuse.
Enforce strong password security
While training people on strong and long passwords is valuable, enforcing strong password policies is more effective with the help of technology rather than relying on end users alone. This can be achieved in a few ways:
1 – Block weak passwords: Preventing weak password creation is key to stopping brute force attacks. Organizations should block not only short or common passwords but also variations like “qwerty” and those from past breaches. Custom dictionaries can also block industry-specific terms.
2 – Scan for compromised passwords: Password reuse can compromise even strong passwords. Regularly scanning for breached passwords in the Active Directory is essential, with the best tools providing continuous scans and alerts to users when compromised passwords are detected.
3 – Providing a better password security experience: Providing tailored notifications can improve user experience by clearly explaining why a password reset is needed, reducing frustration. Always encourage stronger passwords by allowing longer reset intervals for users who create long, secure passwords. Lastly, provide real-time guidance during password creation to help users avoid generic errors and to create strong, long, compliant passwords more easily.
Ultimately, organizations should aid their workforce by deploying solutions that provide automated, ongoing protection for system passwords, including the Active Directory, to safeguard users from compromised passwords. Capabilities should incorporate continuously scanning passwords daily, and checking them against an updated database of known leaks collected from real attacks. Administrators can then review results and deploy technology that enhances the user experience with features like length-based password aging, dynamic feedback during password changes, and customizable notifications, to ensure every password created meets its organization’s policies.