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The Ultimate Guide to Password Best Practices: Guarding Your Digital Identity

In the wake of escalating cyber-attacks and data breaches, the ubiquitous advice of “don’t share your password” is no longer enough. Passwords remain the primary keys to our most important digital assets, so following password security best practices is more critical than ever. Whether you’re securing email, networks, or individual user accounts, following password best practices can help protect your sensitive information from cyber threats.

Read this guide to explore password best practices that should be implemented in every organization — and learn how to protect vulnerable information while adhering to better security strategies.

The Secrets of Strong Passwords

A strong password is your first line of defense when it comes to protecting your accounts and networks. Implement these standard password creation best practices when thinking about a new password:

  • Complexity: Ensure your passwords contain a mix of uppercase and lowercase letters, numbers, and special characters. It should be noted that composition rules, such as lowercase, symbols, etc. are no longer recommended by NIST — so use at your own discretion.
  • Length: Longer passwords are generally stronger — and usually, length trumps complexity. Aim for at least 6-8 characters.
  • Unpredictability: Avoid using common phrases or patterns. Avoid using easily guessable information like birthdays or names. Instead, create unique strings that are difficult for hackers to guess.

Combining these factors makes passwords harder to guess. For instance, if a password is 8 characters long and includes uppercase letters, lowercase letters, numbers and special characters, the total possible combinations would be (26 + 26 + 10 + 30)^8. This astronomical number of possibilities makes it exceedingly difficult for an attacker to guess the password.

Of course, given NIST’s updated guidance on passwords, the best approach to effective password security is using a password manager — this solution will not only help create and store your passwords, but it will automatically reject common, easy-to-guess passwords (those included in password dumps). Password managers greatly increase security against the following attack types.

Password-Guessing Attacks

Understanding the techniques that adversaries use to guess user passwords is essential for password security. Here are some of the key attacks to know about:

Brute-Force Attack

In a brute-force attack, an attacker systematically tries every possible combination of characters until the correct password is found. This method is time-consuming but can be effective if the password is weak.

Strong passwords help thwart brute force attacks because they increase the number of possible combinations an attacker must try, making it unlikely they can guess the password within a reasonable timeframe.

Dictionary Attack

A dictionary attack is a type of brute-force attack in which an adversary uses a list of common words, phrases and commonly used passwords to try to gain access.

Unique passwords are essential to thwarting dictionary attacks because attackers rely on common words and phrases. Using a password that isn’t a dictionary word or a known pattern significantly reduces the likelihood of being guessed. For example, the string “Xc78dW34aa12!” is not in the dictionary or on the list of commonly used passwords, making it much more secure than something generic like “password.”

Dictionary Attack with Character Variations

In some dictionary attacks, adversaries also use standard words but also try common character substitutions, such as replacing ‘a’ with ‘@’ or ‘e’ with ‘3’. For example, in addition to trying to log on using the word “password”, they might also try the variant “p@ssw0rd”.

Choosing complex and unpredictable passwords is necessary to thwart these attacks. By using unique combinations and avoiding easily guessable patterns, you make it challenging for attackers to guess your password.

How Password Managers Enhance Security

Password managers are indispensable for securely storing and organizing your passwords. These tools offer several key benefits:

  • Security: Password managers store passwords and enter them for you, eliminating the need for users to remember them all. All users need to remember is the master password for their password manager tool. Therefore, users can use long, complex passwords as recommended by best practices without worrying about forgetting their passwords or resorting to insecure practices like writing passwords down or reusing the same password for multiple sites or applications.
  • Password generation: Password managers can generate a strong and unique password for user accounts, eliminating the need for individuals to come up with them.
  • Encryption: Password managers encrypt password vaults, ensuring the safety of data — even if it is compromised.
  • Convenience: Password managers enable users to easily access passwords across multiple devices.

When selecting a password manager, it’s important to consider your organization’s specific needs, such as support for the platforms you use, price, ease of use and vendor breach history. Conduct research and read reviews to identify the one that best aligns with your organization’s requirements. Some noteworthy options include Netwrix Password Secure, LastPass, Dashlane, 1Password and Bitwarden.

How Multifactor Authentication (MFA) Adds an Extra Layer of Security

Multifactor authentication strengthens security by requiring two or more forms of verification before granting access. Specifically, you need to provide at least two of the following authentication factors:

  • Something you know: The classic example is your password.
  • Something you have: Usually this is a physical device like a smartphone or security token.
  • Something you are: This is biometric data like a fingerprint or facial recognition.

MFA renders a stolen password worthless, so implement it wherever possible.

Password Expiration Management

Password expiration policies play a crucial role in maintaining strong password security. Using a password manager that creates strong passwords also has an influence on password expiration. If you do not use a password manager yet, implement a strategy to check all passwords within your organization; with a rise in data breaches, password lists (like the known rockyou.txt and its variations) used in brute-force attacks are constantly growing. The website haveibeenpawned.com offers a service to check whether a certain password has been exposed. Here’s what users should know about password security best practices related to password expiration:

  • Follow policy guidelines: Adhere to your organization’s password expiration policy. This includes changing your password when prompted and selecting a new, strong password that meets the policy’s requirements.
  • Set reminders: If your organization doesn’t enforce password expiration via notifications, set your own reminders to change your password when it’s due. Regularly check your email or system notifications for prompts.
  • Avoid obvious patterns: When changing your password, refrain from using variations of the previous one or predictable patterns like “Password1,” “Password2” and so on.
  • Report suspicious activity: If you notice any suspicious account activity or unauthorized password change requests, report them immediately to your organization’s IT support service or helpdesk.
  • Be cautious with password reset emails: Best practice for good password security means being aware of scams. If you receive an unexpected email prompting you to reset your password, verify its authenticity. Phishing emails often impersonate legitimate organizations to steal your login credentials.

Password Security and Compliance

Compliance standards require password security and password management best practices as a means to safeguard data, maintain privacy and prevent unauthorized access. Here are a few of the laws that require password security:

  • HIPAA (Health Insurance Portability and Accountability Act): HIPAA mandates that healthcare organizations implement safeguards to protect electronic protected health information (ePHI), which includes secure password practices.
  • PCI DSS (Payment Card Industry Data Security Standard): PCI DSS requires organizations that handle payment card data on their website to implement strong access controls, including password security, to protect cardholder data.
  • GDPR (General Data Protection Regulation): GDPR requires organizations that store or process the data of EU residents to implement appropriate security measures to protect personal data. Password security is a fundamental aspect of data protection under GDPR.
  • FERPA (Family Educational Rights and Privacy Act): FERPA governs the privacy of student education records. It includes requirements for securing access to these records, which involves password security.

Organizations subject to these compliance standards need to implement robust password policies and password security best practices. Failure to do so can result in steep fines and other penalties.

There are also voluntary frameworks that help organizations establish strong password policies. Two of the most well known are the following:

  • NIST Cybersecurity Framework: The National Institute of Standards and Technology (NIST) provides guidelines and recommendations, including password best practices, to enhance cybersecurity.
  • ISO 27001: ISO 27001 is an international standard for information security management systems (ISMSs). It includes requirements related to password management as part of its broader security framework.

Password Best Practices in Action

Now, let’s put these password security best practices into action with an example:

Suppose your name is John Doe and your birthday is December 10, 1985. Instead of using “JohnDoe121085” as your password (which is easily guessable), follow these good password practices:

  • Create a long, unique (and unguessable) password, such as: “M3an85DJ121!”
  • Store it in a trusted password manager.
  • Enable multi-factor authentication whenever available.

10 Password Best Practices

If you are looking to strengthen your security, follow these password best practices:

  • Remove hints or knowledge-based authentication: NIST recommends not using knowledge-based authentication (KBA), such as questions like “What town were you born in?” but instead, using something more secure, like two-factor authentication.
  • Encrypt passwords: Protect passwords with encryption both when they are stored and when they are transmitted over networks. This makes them useless to any hacker who manages to steal them.
  • Avoid clear text and reversible forms: Users and applications should never store passwords in clear text or any form that could easily be transformed into clear text. Ensure your password management routine does not use clear text (like in an XLS file).
  • Choose unique passwords for different accounts: Don’t use the same, or even variations, of the same passwords for different accounts. Try to come up with unique passwords for different accounts.
  • Use a password management: This can help select new passwords that meet security requirements, send reminders of upcoming password expiration, and help update passwords through a user-friendly interface.
  • Enforce strong password policies: Implement and enforce strong password policies that include minimum length and complexity requirements, along with a password history rule to prevent the reuse of previous passwords.
  • Update passwords when needed: You should be checking and – if the results indicate so – updating your passwords to minimize the risk of unauthorized access, especially after data breaches.
  • Monitor for suspicious activity: Continuously monitor your accounts for suspicious activity, including multiple failed login attempts, and implement account lockouts and alerts to mitigate threats.
  • Educate users: Conduct or partake in regular security awareness training to learn about password best practices, phishing threats, and the importance of maintaining strong, unique passwords for each account.
  • Implement password expiration policies: Enforce password expiration policies that require password changes at defined circumstances to enhance security.

How Netwrix Can Help

Adhering to password best practices is vital to safeguarding sensitive information and preventing unauthorized access.

Netwrix Password Secure provides advanced capabilities for monitoring password policies, detecting and responding to suspicious activity and ensuring compliance with industry regulations. With features such as real-time alerts, comprehensive reporting and a user-friendly interface, it empowers organizations to proactively identify and address password-related risks, enforce strong password policies, and maintain strong security across their IT environment.

Conclusion

In a world where cyber threats are constantly evolving, adhering to password management best practices is essential to safeguard your digital presence. First and foremost, create a strong and unique password for each system or application — remember that using a password manager makes it much easier to adhere to this critical best practice. In addition, implement multifactor authentication whenever possible to thwart any attacker who manages to steal your password. By following the guidelines, you can enjoy a safer online experience and protect your valuable digital assets.

Dirk Schrader is a Resident CISO (EMEA) and VP of Security Research at Netwrix. A 25-year veteran in IT security with certifications as CISSP (ISC²) and CISM (ISACA), he works to advance cyber resilience as a modern approach to tackling cyber threats. Dirk has worked on cybersecurity projects around the globe, starting in technical and support roles at the beginning of his career and then moving into sales, marketing and product management positions at both large multinational corporations and small startups. He has published numerous articles about the need to address change and vulnerability management to achieve cyber resilience.