8 Things You Should Consider Before Selecting a Corporate Password Manager

A couple of guesses—your mother's maiden name, your date of birth, your pet's name. And Bam! Your password is stolen.

Password theft is becoming more common every day. While one of the most notorious incidents was the 2014 Russian hacker incident that compromised more than 1.2 billion passwords, this is far from an isolated event. There are news stories about password-related breaches almost every day. And yet, many people continue to use weak, easily guessable passwords.

Why? Because they’re easy to remember. But as simple as these passwords are for you, they’re even easier for hackers to crack. This is a serious concern for businesses, where cybersecurity is paramount.

Why Security Policies Alone Aren't Enough

Large enterprises often implement password policies requiring employees to use strong passwords. However, since it's easier to remember short passwords, many employees disregard the policies and choose weak passwords. A policy alone isn’t much help here.

The solution? A corporate password manager that ensures strong, unguessable passwords are used across the company. By using the right technology, you can significantly reduce the risk of a data breach.

While a corporate password manager can choose passwords for you, how do you choose the right one for your business? Here are some tips to help you find the best software for your enterprise.

Tip #1: Choose the Right Solution for Your Enterprise

Password management solutions typically come in two forms: SaaS (cloud-based) or on-premise. Both have their advantages, depending on your company’s needs.

• SaaS (Software-as-a-Service): This option is managed by the provider, and you typically pay a subscription fee based on the number of users or the level of service. SaaS solutions are great for small- to mid-sized businesses, as they offer flexibility, scalability, and minimal setup costs.
• On-Premise: With an on-premise solution, the software is hosted on your company’s own servers. While there’s a higher upfront cost for hardware and software licenses, this option is ideal for larger enterprises that require full control over their data for compliance or security reasons.

Both options have their merits, so choose a vendor that offers both SaaS and on-premise solutions. This way, you can make a decision based on your company’s specific needs, ensuring you have the right balance between cost, security, and scalability.

Tip #2: Identify Potential Vulnerabilities

A critical feature of any corporate password manager is its ability to safeguard your data against vulnerabilities. Before committing to a solution, take the time to identify any weak points in the software.

Here’s a quick test: Sign in to the password manager and press F12 to open the browser’s developer console. In the “Network” tab, check for any external requests, like analytics scripts or third-party integrations. A secure password manager should not allow external third-party scripts that could expose you to cross-site scripting (XSS) or other attacks.

When third parties are allowed to call into the system, they can make the system vulnerable. Whether you prefer a SaaS password manager or an on-premise password manager, it should hold all sensitive information in such a way that external applications cannot access them.

Tip #3: Verify Encryption Standards

The password manager should store all passwords in an encrypted form. To verify this, use the browser’s developer tools again (F12 → Network tab). Now open any website where you need to sign in. Save the password in the password manager. Check whether the password appears as plain text or in encrypted form.

If it’s stored in plain text, the system is vulnerable to hacks. Strong encryption is essential. Look for password managers that use AES-256 encryption combined with an RSA handshake, which is the gold standard for secure data encryption.

Different password managers have different encryption standards. The highest cipher is AES-256 with an RSA handshake. This is military-grade encryption and is virtually unhackable. If your corporate password manager provides this level of encryption and owns its own servers, you don’t have to worry about the security of your information.

Tip #4: Choose a Vendor with Transparent Policies

When selecting a password manager, transparency is key. Check the vendor’s website for whitepapers and documentation on the algorithms and cryptography they use. Vendors with open-source or auditable code are preferable, as they demonstrate a commitment to transparency and security.

Zero-knowledge encryption is another critical feature. This means that the vendor has no access to your master password or any of your sensitive data. For instance, Passwork ensures all passwords are stored in encrypted vaults using a 256-bit cipher, making them accessible only to the user.

Opting for an open-source solution is a smart move, as it allows you to inspect the code and confirm that the cryptography being used is reliable and secure.

Tip #5: Ensure Auditability

If you opt for an on-premise solution, auditability is important. You should be able to inspect and audit the internal code to verify that it meets your company’s security standards.

Regular password audits are also essential for maintaining a secure system. A good password manager will automatically notify you when passwords need to be updated due to age or reuse across multiple services. This feature helps maintain optimal security across your entire organization.

If the code is open-source, you may even have the ability to customize it. However, be cautious, as making changes to the code can introduce instability. Always consult with the vendor before making any significant modifications.

Tip #6: Implement Two-Factor Authentication (2FA)

A reliable corporate password manager should support strong two-factor authentication (2FA) options to enhance security. Passwords alone aren’t always enough to safeguard sensitive data, as they can be stolen or cracked. 2FA ensures that even if a password is compromised, an additional authentication factor—such as a code sent to your phone or an authentication app—protects your accounts.

When selecting a password manager, ensure it integrates with a variety of 2FA methods, such as time-based one-time passwords (TOTP) or SMS codes. Implementing 2FA will greatly reduce the risk of unauthorized access to your corporate accounts, making it an essential security measure for any business.

Tip #7: Test the SSL Security

Advanced corporate password management tools use Secure Sockets Layer (SSL). The SSL transfers data securely between the client and the server. Passwork uses SSL along with AES-256 bit encryption and RSA handshake to ensure your data is encrypted according to the highest standards.

There are several online tools to check if there are any potential issues with the SSL quality of the password manager. With tools such as SSL Labs and SSL Checker, you can find out if the SSL certificates of the password manager are valid.

Tip #8: Look for Flexibility Across Platforms

A good corporate password manager should work seamlessly across all platforms and devices your employees use. Whether it’s desktop or mobile, macOS, Windows, iOS, or Android, the solution should offer compatibility with all major operating systems.

Additionally, ensure the password manager offers browser extensions for popular web browsers such as Chrome, Firefox, Safari, and Edge. Syncing across devices is another crucial feature. If an employee saves a password on their desktop browser, it should automatically be available when they log in on their mobile device.

The Bottom Line

There are several corporate password managers available, but make sure you choose the best one. Your password manager should not only be secure but also adaptable to your company’s needs. If you find a password manager that meets all the criteria listed above and is affordable, choose it to safeguard your passwords.

Remember, security isn’t an area where you can afford to cut corners. Your enterprise passwords are extremely important so don’t compromise on quality. Choose password manager that meets all your security requirements, including strong encryption, transparency, auditability, and two-factor authentication.

As the saying goes, “If you’re not paying for the product, you are the product.” Make the right choice by selecting software that keeps your company’s details safe. It not only simplifies things for your employees but also ensures your valuable information remains secure from prying eyes.