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How to Protect Passwords? Risks, Frauds, and Security Measures

RBL Bank Feb 07, 2024

Hackers, malware, and viruses are always attempting data breaches to access your sensitive information. In most cases, it happens through cracking your passwords.

Passwords prevent unauthorized access to your data and information. A strong password helps protect you from risks, malicious frauds, and protect the integrity of your online identity. That is why password security is so important.

How is Password Security Compromised?

This can happen through password sharing. One of the most common types of password sharing is intentional sharing where users voluntarily share their passwords with people for collaboration or convenience. Another type of password sharing is unplanned sharing, where passwords are leaked accidentally due to poor security measures or phishing attacks. Password sharing also occurs through credential stuffing, where someone uses leaked passwords from a platform to access other platforms.

Implications of Password Sharing

In the realm of digital landscape, password sharing is not just about convenience. It can have serious consequences!

1. Legal Consequences: Password sharing has serious legal ramifications. If you work in an organisation and share passwords without permission, you may be in violation of your terms of service agreement and intellectual property rights. This can result in legal action against you, or others involved.

2. Financial Risks: Password sharing carries a financial risk because unauthorized access to accounts can lead to fraudulent activity. Credentials stolen from a password sharing account can be used or unauthorized purchases, fund transfers, and other financial activities that could lead to financial losses to you or your organization.

3. Damage to Reputation: The digital world has real-world consequences. Password sharing, trust issues, security breaches, and negative press can damage your reputation over time.

4. Identity Theft: Password sharing increases the risk of identity theft by making it easier for criminals to impersonate you. Stolen passwords become a way to access your personal information, making it easier for identity theft that has far-reaching effects.

5. Corporate Espionage: Corporate espionage refers to the practice of extracting confidential information from a business, such as trade secrets or intellectual property, and transferring or selling that information to a third party. Unintentionally, shared credentials can be used for data breach or unauthorized accessing such sensitive information.

Scams from Password Sharing

Nowadays, computers and mobile phones have become an integral part of our daily lives. That’s why it’s so important to stay safe online.

  • Phishing attacks take advantage of shared credentials, using phishing emails and fake websites to lure people in.
  • Credential stuffing amplifies the problem, where stolen credentials are shared across multiple accounts to create a complex web of digital identities.
  • The increasing threat of Man-In-the-Middle (MIM) attacks sees hackers intercept communications, making shared passwords even more vulnerable.
  • Social engineering takes advantage of trust, weaving a subtle web of deceit as criminals trick people into giving up sensitive information.
  • Keylogging is a silent threat, silently recording keystrokes and putting your personal and financial security at risk.

How is Your Password Compromised?

Passwords are one of the most important pieces of information we have when it comes to protecting your online privacy. It is crucial to understand how passwords can be compromised.

1. Weak Passwords: The first weakness is that passwords are easy to guess. Whether it’s “123456”, “password,” or using personal details, choosing an easy-to-guess password exposes your account malicious hackers, where they try different combinations of passwords to gain access to your account. Having a strong, one-of-a-kind password is an essential part of your digital security.

2. Reusing Passwords: Another common mistake is using the same password on multiple platforms. If one of your accounts is compromised, hackers can use that same password to gain access to other platforms, increasing the risk of unauthorized access. Using different passwords is a straightforward yet effective way to reduce this risk.

3. Not Using Two-Factor Authentication: If you do not have two-factor authentication enabled, your account is at risk. 2FA adds an extra layer of security by requiring a secondary verification process, usually via text message, call, or an authentication app.

4. Malware and Viruses: Malware and viruses can get into your device and steal your passwords. Keeping your antivirus software up to date and being careful when clicking on links are the best ways to protect your device from malware attacks.

5. Using Unsecured Wi-Fi: The same characteristics that make free wifi hotspots attractive to users also make them attractive to hackers; because they don’t require authentication to connect to the network. This creates a great opportunity for a hacker to gain unrestricted access to unsecured devices on the network.

5 Ways to Protect Your Passwords:

As stated before, password protection is paramount for protecting sensitive information. By implementing strong password practices and utilizing technological solutions, we can strengthen our defenses against potential risks.

1. Implementing Strong Password Practices:

  • The first line of defense is creating passwords that are both long and complex. A combination of uppercase/lowercase letters/numbers/symbols increases the password’s ability to withstand a brute force attack.
  • Regularly changing passwords reduces the chances of compromise, especially when there’s evidence of unauthorized access to your account.
  • When it comes to passwords, avoiding personal information like birthdays or names adds another layer of protection.

2. Two-Factor Authentication:

2FA provides an additional layer of security. By enabling 2FA, users must provide a secondary authentication method, usually via a mobile verification code, even if the user’s password has been stolen.

3. Password Managing Tools:

Password managers streamline the process of managing complex passwords. These tools generate and store strong, unique passwords for each account, eliminating the need for users to remember multiple credentials. Utilizing a reputable password manager enhances convenience without compromising security.

4. Monitoring and Detection:

Monitor accounts for suspicious activity on a regular basis and use detection tools to identify early threats. Responding quickly to signs of unauthorized access allows for rapid mitigation, reducing collateral damage.

5. Educating Yourself:

It is important to educate yourself on common cybersecurity risks and stay on top of ever-changing tactics. Knowing what to look out for gives you the ability to spot phishing attacks and other potential threats.

The importance of password protection cannot be overstated in today’s ever-changing digital world. From intentional password sharing to the malicious threats of cyber-attacks, our online safety is under constant threat. By implementing strong password creation, strong two-factor authentication and staying informed, we strengthen our defenses. The reality is that what we do in the digital world affects us in the real world.

If you have been a victim, you can register a complaint immediately by dialing 1930 or visit the National Cybercrime Reporting Portal.

National Cybercrime Reporting Portal
Disclaimer: Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result. Visitors to this blog/ website w.r.t products & services offered by RBL Bank Limited herein, shall ensure that the comments / feedback posted shall be restricted to the contents published herein and shall not contain such language that may be un-parliamentary or against any religion, caste, section of society, political view etc. While our endeavor is to publish the comments that are submitted, however, all comments/feedback shall be subject to internal review by RBL Bank Limited. We do not guarantee that the comments that are submitted will be published.

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