Password Manager Pros and Cons: Do you need one?

Password managers have become one of the most critical components of an organization’s cyberdefenses. The fact is that passwords are a little bit broken. Humans aren’t able to memorize hundreds of complex passwords, so they cheat—reusing the same, easy-to-crack passwords for multiple sites. 

To keep businesses safe, password managers do that work for you, but that’s not all. Password managers provide a lot of value beyond the cybersecurity function. Conversely, the wrong password manager could cause some issues. 

Here are just some of the pros and cons of using a password manager. 

TeamPassword has all of the password manager pros and none of the cons. Don’t believe us? Sign up for a 14-day free trial today and try for yourself.

What is a password manager?

Password managers are an effective way to generate, store, use, and even share strong, random passwords securely. They allow users to create and store unique and difficult to guess passwords for every account by removing the need to remember them.

However, behind that simple technology lies a great deal of value. 

What are the pros and cons of using a password manager?

There are a lot of benefits of using a password manager. However, if you choose the wrong one, or you become overconfident by using one, problems could arise. 

Here are the main advantages and disadvantages of using a password manager.

The advantages of using a password manager

Password managers bring a lot of value to organizations. The obvious ones, of course, are related to security. However, there are far more benefits than simply heightened security measures. 

Here are some of the main advantages of using a password manager:

1. Automatically generate strong, random passwords

2. Added layer of security to all accounts

3. Only need to remember one password (or passphrase)

4. Access passwords from all devices

5. Easily share accounts with colleagues (without sharing passwords)

6. More productive workforce

7. Save money from requiring fewer licenses

8. Audit accounts for usage, breaches, and access

Automatically generate strong, random passwords

The average person accesses more than 200 accounts. Password best practices dictate that each account requires a strong, random password. However, it is impossible to remember all of those passwords, leading most people to take shortcuts like reusing passwords or using easy-to-crack ones like “password.”

TeamPassword’s built in password generator will do all of this for you, reducing the chances a team member might compromise your accounts.

Added layer of security to all accounts

While most businesses should have two-factor authentication (2FA) available, unfortunately, that’s not always the case. With all the issues surrounding password use and reuse, this added layer of security helps keep your valuable data safe.

By implementing the right password manager, an instant benefit is this second layer of security being added to your password vault.

Only need to remember one password (or passphrase)

Whether you use traditional style passwords or passphrases (and I recommend the latter), with a password manager you only need to remember one. Simply create one strong master password and use that to unlock all of your accounts. 

Access passwords from all devices

Just like how your single master password unlocks all your accounts on your work laptop, TeamPassword allows you to access all of your passwords from any device. With a handy Chrome add-on, every account is available at your fingertips whether at home, in the office, or on your mobile device.

Easily share accounts with colleagues (without sharing passwords)

It’s no secret that accounts are shared among colleagues. However, even in these cases sharing the passwords directly, for example using a Google Sheet password list, is a high-risk endeavor. 

A single disgruntled employee, or forgetting to change all your passwords when someone leaves the team, and all of your accounts are compromised. TeamPassword solves this by allowing you to grant (and revoke) access to accounts of team members without ever giving them the actual credentials. 

More productive workforce

Providing employees with access to the tools they need when and where they need them will boost productivity. With the toggle of a control, the right password manager allows you to do just that. Even a few minutes saved per day can equate to thousands of dollars in added productivity per employee per year. 

Save money from requiring fewer licenses

As mentioned above, many teams share user licenses. With the average cost of subscription prices on the rise, this is a simple way to keep costs down as you scale a business. 

Audit accounts for usage, breaches, and access

Reduced licenses of necessary software is one way to save money. Another is to eliminate underused software subscriptions. By monitoring who is using software and how often, your password manager can help you make annual budget decisions including ending subscriptions for unused tools. 

Similarly, monitoring for potential data breaches (being “pwned”) makes sure that passwords that may have been compromised are immediately changed. 

The disadvantages of using a password manager

It’s clear from all the password manager pros that they are a critical tool for all organizations and individuals. However, even the best solutions can have unforeseen consequences. 

If you choose the wrong option, or you give yourself a false sense of security and opt out of further cybersecurity planning, then even a password manager can present new issues to your business.

Here are some of the main disadvantages of using a password manager:

1. Overconfidence in your cybersecurity posture

2. Might not require 2FA

3. Takes time to set up a password manager

4. Password vault’s master password becomes a primary target

Overconfidence in your cybersecurity posture

A password manager is a huge step up in your cybersecurity preparedness. It means every account is protected by a strong, random, and unique password and that those passwords are stored and used securely. 

However, that’s not the only thing you should be doing. It’s really only the first step towards cybersecurity preparedness. If you become overconfident in your ability to fend off security threats because of the added protection afforded by your password manager, then that clear pro could become a con.

Might not require 2FA

Not every password manager is created equal. Some don’t require you to use 2FA and as such do not afford as much added security. One of the things that makes TeamPassword the best password manager for teams is that it provides 2FA protection. 

By taking your cybersecurity seriously, TeamPassword prevents this potential password manager disadvantage.

Takes time to set up a password manager

The average person has over 200 accounts. To get all of those accounts safely stored in your password manager takes time. While inputting all of those usernames and passwords will pay time- and money-saving dividends eventually, it can be a process getting started. 

For those familiar with project management frameworks like disciplined agile, this is probably three story points.

Password vault’s master password becomes a primary target

Putting all of your accounts behind a single password could be a risky choice. This is one reason hackers want your email account. Since it is the backup system for lost passwords, once they gain control of your email account, they have everything—from Facebook to your online banking. 

Unfortunately, some password managers have been hacked. LastPass, for example, has been compromised on at least seven occasions. 

When choosing a password manager, it is important that you can trust they are going above and beyond the gold standards for password encryption. That way, even if hackers somehow manage to compromise your password manager’s servers, all they will find is unreadable data. 

TeamPassword: All the pros and none of the cons

TeamPassword is the password manager designed with collaboration in mind. By giving you the ability to share accounts—without sharing passwords—your colleagues have access to the tools they need without the added cost of extra user licenses. 

When employees have access to the tools they need when they need them, work happens. 

Sign up for a 14-day free trial today to see why TeamPassword has all the password manager pros and none of the cons.