What is a company password vault?

A company password vault is one of the most cybersecurity expert-recommended tools to protect business data.

A reliable vault can replace insecure data management practices such as writing passwords down on sticky notes or storing them in online documents.

So what is a company password vault, precisely? Should your company use it?

What is a company password vault?

A company password vault, also called a business password manager or enterprise password vault, is a tool that allows a company to store its credentials safely.

A reliable password vault protects users’ data with the most advanced cybersecurity measures – military-grade encryption and Zero-knowledge proof. These security methods ensure that no third party or application can access and disclose your sensitive data. (This applies to software developers, too.)

There are many different implementations of a company password vault. For instance, it can come in Software-as-a-Service (SAAS) form, hosted on-premises, or built from scratch by the company’s cybersecurity team.

Usually, companies select the most applicable implementation method that meets their needs. Yet, regardless of which implementation you choose, all password vaults should serve their primary purpose – to protect business data.

corporate company; a stunning city view from the window

Should you use a company password vault?

Every company aiming for business growth, reputation maintenance, and continuous operation should use a company password vault.

Almost half of all cybercrime affects small to medium-sized businesses. Two-thirds of these companies stop operating within six months after a data breach.

What causes such business vulnerability to cyber threats?

Data suggests that passwords are the weakest link in cybersecurity. Poor, stolen, accidentally shared, or mismanaged passwords can become an underground reason for causing a data breach.

Therefore, protecting business passwords can radically strengthen your resilience against common cyber threats.

A company password vault is a tool that can help you with that.

How?

city and skyscrapers landscape, the concept of company password vault

How do password vaults protect passwords? What features should you look for?

Company password vaults assist in breaking old password habits and falling into new (good) ones.

These are the main features that can help you and your employees update your data management practices:

Secure password storage

A secure vault should offer safe data storage. That means all credentials should be encrypted with the most advanced technologies (AES-256 encryption) and never stored or sent in plain text (Zero-knowledge proof).

Besides, a password manager should make it easy for users to create new strong passwords. One of the ways to achieve it is to provide a feature to randomly generate a new password. The tool should also automatically save and fill credentials into the login fields.

Eventually, your team members should never feel the need to store passwords elsewhere. It is simply more convenient to keep them in a dedicated tool.

A password manager should also provide an option to share passwords safely. Whether that means sharing a design tool login with a recently employed UX designer or asking a client to share logins for his project.

Sharing credentials inside a company password vault is a convenient, straightforward, and highly secure data management practice everyone should follow.

Some password managers like PassCamp took a step forward and facilitated password-sharing processes with external business partners. For example, if you hire freelancers to work temporarily on a new project, you don’t need to pay separately for their access to your team’s password vault. Simply add them as Guests without charge.

Two-factor authentication

Two-factor authentication (or 2FA) is a critical cybersecurity feature that instantly adds a second layer of security to your vault. The 2FA prevents unauthorized access even when a cybercriminal guesses the combination of username and password.

Whenever you try to access the vault from a new device, the 2FA asks you to confirm your login from another device (for instance, your phone). This feature blocks around 99% of unauthorized account hacks.

These are the most critical features you should look for in a company password vault. Of course, there can be more of them. Extra touches are always attractive. But they cannot weigh down the critical features.

Choose a company password vault that provides a strong foundation for business cybersecurity and protects your business from increasing cyber threats.