What is password vaulting? Does your company need one?

Every second company fails to maintain control of its password security.

Does your team struggle to keep dozens of various passwords too?

How could password vaulting help your company to manage business passwords?

So, what is password vaulting, and how does it work?

What is password vaulting?

Password vaulting is a cybersecurity practice of keeping business (or personal) passwords in dedicated software (also called password manager). This software can be digital (f.e., cloud-based) or local (f.e., hosted on-premises).

This password manager encrypts data you store inside the vault and defends your sensitive data against cyber threats.

Therefore, password vaulting can be considered one of the most effective methods to protect business credentials.

How does it work?

Password vaulting is very straightforward for a user. You or your team member has to remember only one Master password to unlock the account. This password grants access to all other credentials securely stored in a vault.

Simultaneously, password vaulting involves many complex processes running in the background.

Each piece of sensitive information is protected with military-grade encryption (also known as AES-256-bit encryption). The end-to-end encryption translates your passwords into ciphertext – an unreadable format. This technology protects your data from hacking-related data thefts.

Only after entering the Master password does the vault unlock your account and grant access. This process happens locally on your device, so you do not risk exposing any data over the network.

Password vaulting also includes such widely used cybersecurity technologies as Zero-knowledge proof. This security method allows a password vault to grant access to your account without storing your password copies.

Therefore, nobody, even the creators of a password vault, can access your sensitive business information.

Are password vaults a good idea? Why?

Generally, password vaults are an excellent idea for all sizes of companies that care about their cyber security.

Password managers (like PassCamp) are so easy to use that they replace the need to follow insecure data management practices: reusing credentials, sharing them via chats, etc.

How?

For instance, a password vault allows team members to share passwords inside the team without risking business safety. They can do it inside the tool by assigning access so that only intended people see the credential.

Besides, a password manager facilitates daily business data management processes and increases the team’s productivity. The tool automatically saves new passwords and fills them in whenever an employee visits the website. This feature eliminates the need to search for passwords, minimizes password reuse problems, and fastens daily processes.

This way, a reliable password vault can radically increase the security of business passwords and improve work efficiency.

Do you need a password manager?

Regardless of the size of your team, a password vault would benefit your business greatly.

Small and medium-sized businesses are not an exception to data breaches. Over half of all cyber-attacks are targeted at small businesses.

Specifically, about two-thirds of all SMBs had at least 1 cybersecurity incident between 2018 and 2022.

A reliable team-focused password manager (like PassCamp) can help your business defend against that.

By solving most password issues that cause data breaches, a password vault can effectively minimize your business’s risk of suffering from password-based cyberattacks.

This way, introducing password vaulting practices into your organization can become the best cybersecurity decision that you will make this year.