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We increasingly access our financial information and accounts online. While this makes banking, paying bills, and other tasks more manageable, there is a risk of a financial breach each time we do. These breaches can cause anything from minor headaches to catastrophic consequences. Strong passwords are one of the best ways to protect accounts, and there are many options for password managers that offer ease and protection. Are they the best way to protect our financial information? Here are their benefits and other alternatives.
What Are the Risks of Financial Breaches?
Financial breaches can cause minor inconveniences or significant, long-lasting consequences. These include:
- Identity theft
- Unauthorized transactions
- Account takeovers and loss of access
- Increased risk of future attacks
- Exposure of confidential information
- Additional costs for recovery and legal fees
What Are Password Managers?
Password managers generate new, unique passwords for each account and automatically fill in information when you log into websites. You only need to remember one password. Some have limited free accounts, and most have a monthly or yearly fee. With a password manager, you can avoid risky behaviors that put your account at risk. These include relying on one password or common ones like “Password,” which makes account breaches easy, or keeping passwords in an easy-to-steal notebook.
What to Look for in a Password Manager
Helpful features to look for in a password manager include:
- Password generation with one password to remember
- Browser extension to easily capture passwords when you log in
- File and data encryption
- Device syncing so that passwords are available on your computer, smartphone, or other devices
- Autofill features for personal and payment information to save time when you create new accounts or make online purchases
- Businesses will want providers that offer plans for teams
- Outside audits to ensure security
- Breach alerts
- A virtual private network (VPN) that hides your IP address and keeps your online activity private
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Password Manager Options
Browser Managers
Browser password managers like Chrome, Firefox, or Apple encrypt passwords and make it easy to log in by saving them. They prompt you to save passwords as you log in, and the next time you go to the site, the manager will fill in the username and password for you. However, if your device is stolen, thieves may enjoy that easy access, and these programs risk being hacked and exposing your personal password information.
DIY Solutions
With recent data breaches to the password manager, Last Pass, there are reasons to be concerned about any system. Want to create unique passwords on your own? Utilize DIY generator formulas, use a practice called salting to add a random string of characters to the end, and follow password creation tips like never using the same one and making it lengthy.
Now that you have hard-to-hack passwords, where do you store them? Online systems like Google Drive or Dropbox have security measures. Utilize multi-factor authentication and log out on all devices frequently to protect your system from being hacked.
Best Password Manager Apps or Software
If DIY solutions seem like a lot of work, a password manager may be the better choice. Look for systems with high ratings and advanced security measures in place. Here are some options to consider:
Bitwarden is open-sourced software that securely stores passwords and other personal or financial data, such as credit card numbers. It offers login across devices, data breach monitoring, and advanced multi-factor authentication options. There is a highly-rated free plan for individuals to try it out and options for businesses. PC Magazine rated it the best of the year in 2023.
Dashlane is a powerful app and browser-based password manager with advanced features such as dark web monitoring and VPN. It’s one of the pricier options, though, and its free plan is so limited that it may not be worth installing. Other features include single sign-on (SSO) integration, built-in 2-factor authentication, encryption, and password health scores.
1Password is another top-rated option with a newly updated feature that automatically saves your login information. It also offers a data breach monitor and multi-factor authentication. Users especially appreciate the well-designed password organization system.
Protecting your financial information is critical in avoiding costly and potentially catastrophic data breaches. Isn’t it time to toss those sticky notes and easy-to-steal passwords like Password123 and select a password management system that will bring security, ease, and peace of mind?Copyright © 2024 Distributed Media Lab
