How secure are password managers for accountants really?

When it comes to password managers what do you think of? LastPass? Keeper? Saving directly to your Google profile? These are the most common answers we hear when people talk about securing login details at Practice Protect.   

In April 2023 alone it was reported that 7 of the most popular password managers were breached with data either stolen or compromised. So, the big question most people will have asked, how secure are password managers really? 

The answer is it depends. Which although is not very clear advice it is important to be aware not all password managers are created equal, and not all password managers are built to support your industry. After all, accountants deal with highly sensitive information, much more than most other departments or organizations, so does it really make sense to choose a password manager that isn’t built for you?  

How to judge if a password manager is secure? 

When news broke out about the breach of seven leading password managers, it wasn’t just individual users who were alarmed. Accountants, who rely heavily on these tools to safeguard their clients’ financial information, were particularly concerned. The incident highlighted a harsh truth: not all password managers are created equal.  

More importantly, it showed that generic solutions might not suffice for professionals with specialized needs, such as those in the accounting industry. 

When selecting a password manager, accountants should ask themselves eight different questions; 

1. Encryption standards; does it not just meet, but exceed modern standards for encryption? 
2. Does it have two-factor authentication which meets best practice standards?  
3. Does it have the ability to manage access to passwords on a granular role level, not just a folder level? 
4. Does it have the ability to cloak passwords so team members cannot see login details?? 
5. Does it provide end-point authentication meaning only apps you approve of can be safely stored? 
6. Do you have secure access, meaning apps can only be accessed via the password manager and not outside adding that extra layer of security?  
7. Does the password manager provide auto-encryption of new passwords and automatically hide it from users, so it is harder to compromise?  
8. Does the platform have a history of breaches; is the software you choose have a history of keeping data secure or have they been breached before? 

 In some ways asking yourself these questions when selecting a password management tool may seem excessive but think, how many banking login details do you have access to? Payroll systems? How much money is up for grabs by criminals if they access a client’s account?  This is why accountants more than ever need to be focused on cyber security and need to put their client’s data first. You need to continue to be their trusted data custodian and a line of defense for their finances.  

How do I know if a password manager is right for my accounting firm?  

In the wake of these security breaches, it’s become abundantly clear the one-size-fits-all approach to password management is flawed, especially for accountants. This is precisely where Practice Protect distinguishes itself. Designed with the specific needs of accountants in mind, Practice Protect doesn’t just offer password management; it offers a fortress for your digital data. In fact, password management is only a small part of what we do.  

Practice Protect is your all-in-one cyber security platform which focuses on identity protection, and securing your data whilst putting your compliance on autopilot.  

Practice Protect is designed to be a comprehensive security solution for accountants. It understands the unique challenges and risks associated with managing financial data and offers tailored features to mitigate these risks. From secure document storage to seamless integration with commonly used accounting software, Practice Protect is built to support the complex workflows of accounting professionals. 

Securing your practice with Practice Protect 

In a world where digital security is more critical than ever, accountants need more than just a password manager. They need a comprehensive solution which understands and addresses the unique challenges of their profession. Practice Protect stands out as this solution, offering unparalleled security, industry-specific features, and a commitment to protecting the sensitive information that accountants manage every day. 

For accountants looking to safeguard their professional data against the backdrop of increasing digital threats, Practice Protect offers reliability and security. It’s not just about managing passwords; it’s about protecting the livelihood of your practice, and the trust of your clients. 

In embracing Practice Protect, accountants can take a significant step towards securing their digital footprint, ensuring that their practice and their clients’ data remain protected in an ever-evolving digital landscape. 

If you are serious about securing your firm book in your complimentary security audit with one of our cyber security specialists today.