Every time you create a new login or download an app, you are asked to set up a password. Each time, you receive the same warnings: make it strong, use a combination of characters, and never reuse the same one. However, with so many online accounts in our daily lives, it is easy to make a mistake and reuse a weak password for convenience.
Unfortunately, password-related breaches are one of the most common ways cybercriminals gain access to your digital life. According to a recent FTC report, phishing and password theft remain leading causes of online fraud. If you continue using weak or repeated passwords, your accounts could be at serious risk.
A strong password is your first line of defense. But what makes a password secure?
Creating strong passwords for all your accounts can feel overwhelming, especially if you use dozens of websites. However, doing so can help keep your confidential information out of the hands of hackers.
Reusing passwords is one of the greatest risks to your online security. If a website experiences a data breach and your login credentials are exposed, cybercriminals may try the same password on other websites. This tactic, known as credential stuffing, is how one breach can lead to several compromised accounts.
To protect yourself, always use a unique password for every online account, even if it is only a shopping website or newsletter. Many people underestimate the risk and think, “This website is not important.” However, any website can become a gateway to your more important accounts.
A password manager is a secure tool that stores and remembers all your passwords so you do not have to. Many people worry about storing all their login credentials in one place, but reputable password managers use encryption to protect your information. In fact, using a reliable password manager is often safer than trying to remember dozens of unique passwords.
Look for a password manager that:
If you are unsure which one to use, PCMag’s current overview of the best password managers is a good place to start. Avoid free or unfamiliar options unless they come from a well-known provider and have strong ratings.
Multifactor authentication, also known as two-factor authentication, adds another layer of protection to your accounts. Even if someone discovers your password, they will need a second code to sign in. This code usually comes from a mobile app, email, or text message.
Here is how MFA works:
This process may add a few seconds to your login, but it significantly improves your password security. MFA can protect your bank account, email, and any application connected to personal or financial information. Some services also support biometric authentication, such as a fingerprint or facial recognition, as one of the authentication factors.
Many cybersecurity experts now recommend changing passwords only when you believe an account may have been compromised. However, it is still a good idea to periodically update the passwords for your most important accounts, including:
If you receive notifications about unusual activity or learn about a data breach, change your password immediately. This simple step can help prevent your information from being sold or misused.
Also consider taking Credit.org’s free Identity Theft Prevention course to stay informed about current risks and protective habits.
Autofill features are convenient, but they can be risky, especially on public or shared devices. When browsers or applications offer to automatically fill in a password, it means the information is stored and may be accessible if someone else uses the device.
Here is how to stay safer:
If you have used a public computer to sign in to any account, change those passwords immediately. Avoid allowing your browser to store confidential information, especially for banking, tax, or shopping applications that contain your credit card or Social Security number.
For more information about staying safe while shopping online, review Cyber Monday Security Tips: Shop Online More Safely.
The more accounts you create, the more passwords you have to manage. Try cleaning up your digital life by deleting old or unused accounts. Every account you no longer use is another place where your personal information may be stored and eventually exposed.
Here are some ways to simplify your digital presence:
To avoid overspending while completing this cleanup, read Avoid Subscription Fatigue for advice on managing paid services that often go unnoticed.
Sharing a password may seem harmless, such as giving a friend your streaming login, but it can create problems. Even someone you trust could accidentally expose your password, store it in an unsafe place, or reuse it on one of their own compromised accounts.
Instead of sharing passwords, consider these safer alternatives:
If you previously shared a password and now regret it, change it immediately and choose a stronger one.
One of the first signs that your password has been compromised is unusual account activity. This could include:
If you notice any of these signs, act quickly:
For more advanced monitoring, consider using identity protection tools or applications that alert you when exposed credentials are found on the dark web.
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When creating a new login, take time to write a strong password from the beginning. Avoid short phrases or words that are easy to guess.
A good password should:
You can use a password generator to make the process easier, especially if your password manager includes one. Some applications allow you to customize the number of letters, symbols, and numbers included so the password meets a website’s specific requirements.
As mentioned earlier, enabling multifactor authentication is one of the best steps you can take to protect your accounts. Make sure it is activated for:
In most cases, multifactor authentication uses a text message or an app such as Google Authenticator. These methods provide additional protection against hackers who may have discovered or guessed your password.
For more information about protecting personal information from identity thieves, review How to Protect Your Social Security Number.
With so many password managers available today, choosing the right one can feel overwhelming. However, the best password manager for you depends on your devices, budget, and the amount of control you want over your information.
Look for the following features when choosing a password manager:
Reputable options such as 1Password, Bitwarden, Dashlane, and Keeper are highly rated by experts and offer both free and paid versions. Research the options and review recent ratings before downloading one.
You can also review password-protection resources from the Cybersecurity and Infrastructure Security Agency (CISA) for additional guidance.
You do not need to change your passwords every month, but you should always change them immediately when:
Many password managers now warn you when your login information appears in known data breaches. Take these alerts seriously and change the affected passwords immediately. Use new, strong, and unique passwords.
If you are unsure where your information may have been exposed, consider signing up for dark-web monitoring or using your password manager’s security-scanning tool.
Passwords are not only for websites. They protect every part of your digital life, including:
Make sure every entry point to your personal or financial information is protected by a strong password and, when available, multifactor authentication.
Read Getting the Most from Smartphone Ownership to learn how to improve mobile security. Your phone may be the key to accessing all your accounts.
If you sign in to an account on someone else’s device, remember to sign out when you are finished. Leaving an account open, even briefly, may expose personal information, stored passwords, or saved payment details.
Signing out is especially important when:
Treat your login sessions like the keys to your home: do not leave them behind, even when the situation seems secure.
Writing down passwords may seem outdated, but when done carefully, it can be useful—especially for people who prefer not to use a digital password manager.
When writing passwords by hand:
No matter where your passwords are stored—in a notebook, file, or application—their security depends on your behavior. Passwords must be protected and stored correctly.
A password is considered secure when it is:
Avoid making the first character something obvious, such as a “P” for “password” or the first letter of the application you are signing in to.
Whether you use a password manager or save passwords in an offline file, make sure the stored passwords are protected. Reputable password managers use encrypted vaults, which means your information is coded so hackers cannot read it.
Even if your phone or device is lost or stolen, encrypted information makes it more difficult for thieves to access your stored files and login credentials.
If you must keep password files on your device, encrypt them using built-in security settings or trusted software tools. This extra step can prevent stolen credentials from being misused or sold online.
One final tip: never use the same username and password combination across multiple accounts. If one combination is exposed during a data breach, hackers may try it everywhere.
Use different credentials for every application and online account, even when you believe the service presents little risk.
Cybersecurity may seem like a constantly changing target, but some habits never go out of style. Using unique passwords, enabling multifactor authentication, and using a password manager are simple steps that can make a significant difference.
By following the advice above, you can better protect your accounts and avoid the problems caused by identity theft and fraud.
To take your protection even further, explore Credit.org’s free Identity Theft Prevention course or our guide on How to Stop Junk Mail and Opt-Out to clean up your digital footprint.
If you have questions about protecting your passwords, you can speak with one of our certified financial counselors at no cost. Contact us today to get started.
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