The Hidden Cost of Poor Password Management

When you think of securing a digital account, what’s the first thing that pops into your head? A password! From Amazon to Facebook, passwords are the tried and true line of defense for your accounts. What you may not know is poor password management can represent a large risk and overlooked costs for your business.

The true cost of poor password management

The major potential cost is the financial burden of falling victim to a data breach. Weak passwords can easily lead an attacker to find their way inside your dealership’s accounts. 86 percent of data breaches involve stolen credentials. The price of a data breach alone can cost your business millions of dollars.

How to mitigate password-related costs

Thankfully, there are steps you and your dealership can take to strengthen passwords and decrease the risks of poor password management.

• Use multi-factor authentication (MFA): MFA is an easy way to add an extra layer of protection over your team’s passwords. This can lighten the load on your IT team and lower the risk of a security-related incident. While MFA is an important piece of the password puzzle, strong passwords are still a vital first step.
• Educate and train employees: Knowledge is power. Training your teams on the importance of password security and management can lead to a lessened workload for IT support teams. This proactive approach can also lead to a culture of security among employees and cut potential costs.
• Invest in the right software: Current password security software will allow you to enforce stronger passwords and make it easier for your team to manage them. This can decrease the chance of a breach and the use of compromised passwords.
• Don’t use the same password for every account: When you use individual passwords, if one becomes compromised, the rest of your access remains secure. This also means passwords should be changed, ideally, every three months.

While passwords serve as the cornerstone of digital account security, their management and vulnerabilities can take a hefty toll on your business. From the drain on IT resources to the dire consequences of data breaches, the financial impact of weak passwords cannot be overstated. By prioritizing password strength and security, you can mitigate the hidden costs associated with password management, safeguard sensitive data, and uphold the integrity of your operations in an increasingly digital landscape.