Though this information might be news to you, it’s not to cybercriminals. Weak and reused passwords are a reliable gateway to businesses’ sensitive data. Depending on the type of cyberattack, up to 80% of successful data breaches can be attributed to weak or stolen credentials.

You might consider implementing a password policy to encourage your team to use stronger passwords. But how can you create a policy that works, and what should you include? Today, we’re talking about best practices for password policies.

What is a password policy?

A password policy informs your team about how to make decisions around creating and managing passwords.

A password policy aims to improve cybersecurity by preventing cyberattacks that rely on weak and reused passwords. That usually means establishing conventions around passwords that make them difficult to hack.

Password policies can also refer to rules and guidelines around setting passwords internally. This gives businesses administrative control over which password criteria an internally developed system can accept.

Because these policies can be enforced automatically by software, the advice below focuses on external-facing password policies. In other words, it will offer advice for establishing the guidelines employees should follow when creating passwords for external accounts or software for corporate use, such as Outlook, Google Workspace, or Zoom.

Why do you need a password policy?

To understand the need for a password policy, let’s consider the alternative — looking at the default behaviors around password management in a corporate setting.

Weak passwords are the (unfortunate) standard

Without guidance, users reliably choose weak passwords.

Weak passwords can be easily guessed or hacked with minimal effort. “Password,” for instance, is as weak as they come. And yet our research reveals that this is the most common password in 2022. This password has been used millions of times around the world.

If you suspect that internet users adopt more secure behavior when creating corporate credentials, a study of breached Fortune 500 companies has shown this is not so.

Predictable passwords such as “123456” topped the list of most common passwords, with others like “abc123” and “sunshine” making their way to the top 10 by industry. As mentioned, the company’s name is also a common choice.

Overall, the percentage of unique passwords was only 31% for all industries – to say nothing of the unique passwords’ strength.

A different study of management, owners, and C-suite executives’ credentials demonstrated that even leadership team members are no better at using strong, secure passwords.

Suffice it to say: People use weak passwords at work.

Weak passwords represent a massive cyber vulnerability

Weak passwords, like those mentioned above, can be hacked in less than one second. So it’s no surprise that according to Verizon’s most recent Data Breach Investigation Report, credentials are involved in nearly 50% of all breaches — more than twice as often as phishing attacks.

To make matters worse, using weak passwords is often combined with poor password hygiene. The most common password hygiene sins are storing passwords in insecure locations and reusing the same passwords for multiple accounts.

Passwords stored on sticky notes on your desktop or in Excel spreadsheets are two particularly egregious examples of improper password storage. A password written in plain sight is all too convenient for an intruder in your workspace.

On your virtual desktop, a list of passwords is low-hanging fruit to cybercriminals who have secretly gained access to your device.

As you can tell, poor password hygiene can defeat even the strongest, longest password. That’s why a good password policy must address both.

Password policies and cybersecurity compliance

That password authentication is so standard, yet often, such a weak security barrier is a widespread and well-known issue known a the “password problem.” For that reason, all cybersecurity standards either directly or indirectly offer guidance on passwords.

CIS Password Policy Guide

The Center for Internet Security (CIS) is a non-profit organization with a mission to safeguard organizations against cyber threats. It publishes recommendations that, if followed, will improve businesses’ cybersecurity posture.

The CIS Password Policy Guide offers two tiers of password recommendations: one when passwords are the only authentication method and another when passwords are just one of multiple authentication methods.

So, to be more precise, identity and access management is a cybersecurity framework that allows companies to assign specific access permissions to individual users within the organization to ensure they can access only the systems, networks, and services necessary for their role. This means that, instead of granting all employees equal access to all resources, businesses can control exactly who has access to their systems and data—and for what purpose.

How does IAM work, exactly?

IAM is just a strategy, so it doesn’t work on its own. Therefore, you need the right tools to be able to enforce it and put it into practice in your business. That’s where IAM systems come in.

By definition, the goal of IAM systems is to perform two core tasks: authentication and authorization. Both of these play a part in making sure that the right person will get access to the right resources for the right reasons. Here’s how it typically works:

• First, the IAM system confirms the identity of a user by checking their credentials against a database that holds everyone’s identity and access permissions.

• The IAM system grants the user access only to the resources they’ve been assigned.

As you might expect, an IAM system typically comes with a set of dedicated tools that operators can use to easily create, monitor, modify, and delete access privileges for all members of the organization.

The role IAM plays in security

If you’re still asking yourself the question “What is IAM in cybersecurity?”, we are here to tell you that IAM is considered a critical part of cybersecurity these days and that every organization should incorporate it into its cybersecurity strategy. Why? Because IAM security is concerned with reducing identity-related access risks, improving legal compliance, and improving business performance across the entire organization.

What is more, by helping companies manage digital identities and user access to company data, IAM tools make it very hard for non-authorized parties to hack into business networks and cause problems that could lead to big financial losses.

If you asked an IT expert for a definition of identity and access management, also known as simply “IAM,” they would probably tell you that it is a cybersecurity discipline that, when followed, can help a given organization provide their employees with access to the IT tools that they need to perform their jobs efficiently.

In other words, IAM is a framework that allows companies to significantly boost their cybersecurity. This is done by restricting access to organizational resources to only those people whose identity has been confirmed and who have been assigned specific access privileges.

How does IAM work?

By definition, the goal of today’s IAM systems is to perform two core tasks: authentication and authorization. Both of these play a part in making sure that the right person will get access to the right resources for the right reasons. The process usually goes as follows:

1. An IAM system confirms the identity of a given user by authenticating their credentials against a database that contains all users’ identities and access privileges.

2. The IAM system provides that user with access to only those resources to which they were assigned.

An IAM system usually includes a series of dedicated tools which operators can use to easily create, monitor, modify, and delete access privileges for all members of the organization.

The role IAM plays in security

If you’re still asking yourself the question “What is IAM in cybersecurity?”, we are here to tell you that IAM is considered a critical part of cybersecurity these days and that every organization should incorporate it into its cybersecurity strategy. Why? Because IAM security is concerned with reducing identity-related access risks, improving legal compliance, and improving business performance across the entire organization.

What is more, by helping companies manage digital identities and user access to company data, IAM tools make it very hard for non-authorized parties to hack into business networks and cause problems that could lead to big financial losses.

Enterprise identity and access management

As you can probably guess, “enterprise identity and access management” is a phrase that refers to all of the IAM policies, processes, and tools that large-scale businesses can use to manage access to their data and resources more securely and effectively.

Many of today’s enterprise-like organizations have massive IT infrastructures that consist of a vast range of servers, databases, applications, and cloud environments — to which dozens, if not hundreds or thousands, of their employees must have easy access. Enterprise IAM solutions are, therefore, a way for those big enterprises to make their resources available to a large number of employees without making any compromises in regard to cybersecurity.

So, even if your business is a global one — that is, you have thousands of employees and run multiple projects around the world — many of the IAM solutions available today are powerful and flexible enough to give you the ability to manage user permissions and prevent unauthorized access with ease.

What is the difference between identity management and access management?

The difference between identity management and access management essentially boils down to the part each of these two frameworks plays in the process of providing users with access to company resources.

Identity management is about (as its name suggests) user identities and the many ways they can be recognized and verified. Access management, on the other hand, deals with giving or withdrawing permissions and access privileges.

IAM regulatory compliance

Many of today’s lawmakers around the world are striving towards creating and introducing new policies that will help protect the digital lives of their citizens. As a result, many of today’s data privacy regulations (including HIPAA, SOC2, and PCI DSS) require businesses to follow strict IAM policies, which means they are obligated to manage access to data very carefully.

Luckily, identity and access management solutions can be used to meet some of the compliance requirements — which is also one of the reasons why enterprises are interested in making them part of their IT environments.

Let us provide you with an example. To comply with the already-mentioned information security standard called PCI DSS, a vendor is required to establish strict IAM policies (including rules that clearly define user identities, authentication, and authorization methods), and processes that restrict access to environments where cardholder data is stored. Only with such IAM policies in place can a vendor become fully compliant with the PCI DSS standard.

Identity and access management benefits

Implementing IAM solutions offers numerous benefits for businesses, regardless of their size or location. These include:

1. Enhanced cybersecurity – IAM solutions can help all businesses – no matter their size or location – prevent data breaches and protect themselves against malware, identity theft, and phishing attacks.

2. Simplified work for IT administrators — With the use of IAM tools, IT administrators can develop new, advanced security policies and processes and implement them across the entire organization in a blink of an eye.

3. Real-time monitoring of company data access — IAM solutions allow you to remain in control of who can access what at your organization.

4. Ensuring compliance with data privacy regulations — IAM systems are designed to help users comply with legal requirements such as HIPAA, SOC2, and PCI DSS.

5. Minimizing financial and reputational losses — By allowing you to prevent fraudulent activities and unauthorized use of company resources, IAM solutions can help you maintain business continuity and avoid costly downtime.

Enterprise identity and access management with NordPass

NordPass Enterprise, an encrypted password, and passkey management platform, can be used as an IAM tool to securely provide members of your organization with access to company data, systems, and applications. How so?

First of all, when you use the Business version of the NordPass platform, you can share an unlimited number of digital entry points that you can assign to different departments or teams. This means that you can fully control access to shared credentials, payment information, and other sensitive data across the entire organization. Moreover, thanks to features such as the Activity Log, you can easily monitor all company logins to know exactly who accessed what and when.

Second, NordPass uses multi-factor authentication (MFA), as well as the single sign-on (SSO) authentication method, to identify and verify each and every user once they try to access one of the company accounts. The platform is equipped with three MFA options — an authenticator app, a security key, and backup codes — so that you can provide your team members with a few options in regard to how they can gain access to company resources.

Third, NordPass can help you achieve regulatory compliance. As mentioned, some standards (e.g., HIPAA and NIST) require organizations to implement secure access management solutions. With NordPass, not only can you easily manage access privileges, but you can also establish rules, procedures, and policies that will allow your company to meet certain specifications.

Of course, the fact that NordPass is an encrypted password management solution also means that you and your team members can use it to securely and easily generate, store, manage, and share company credentials. This is something that IAM tools cannot do — just as they cannot run password health check-ups or scan for data breaches to see if any of the credentials, payment information, or emails have been compromised – but NordPass can.

As obvious by the opening lines, today we’re getting into the nitty gritty of penetration testing. Why is it important to document these tests? What types of pen tests are there? What are the benefits of it all? Get answers to these and other questions in this article.

Why is it important to continuously conduct pen testing?

Change is the only constant in the digital world. Software updates, infrastructure developments, and evolving cyber threats make the digital landscape a dynamic one, to say the least. New vulnerabilities emerge as technology advances, making continuous penetration tests essential.

By continuously evaluating and re-evaluating defenses, organizations can ensure they remain resilient against both existing and — even more importantly — emerging threats. Moreover, as businesses grow and expand infrastructure as well as implement more network solutions, the potential attack surface expands. Regular pen tests ensure that as a business evolves, its defenses evolve alongside.

These days, when we can safely assume that cybercrime is the most lucrative criminal endeavor and is even projected to only grow in sophistication and frequency — pen tests should be an integral part of organizations processes.

Benefits of Penetration Testing

Penetration testing offers a variety of benefits that extend beyond identifying vulnerabilities:

• Proactive defense. The proactive nature of a pen test is one of its major advantages. Instead of adopting reactive strategies and waiting for a cyberattack to occur, organizations can seek out potential vulnerabilities. This kind of approach ensures that potential threats are identified and mitigated before they can be exploited by bad actors.

• Informed decision making. With the insights gained from pen tests, organizations can make data-driven decisions with regard to their security strategy. Whether it’s allocating resources to specific areas, prioritizing vulnerability fixes, or investing in security tools, a pen test always provides the clarity needed for effective decision-making.

• Regulatory compliance. For many industries, regulatory compliance is a mandate. Thanks to penetration tests, organizations can adhere to industry-specific regulations in an easier and more efficient manner, avoiding potential legal trouble and hefty fines.

• Reputational growth. Data breaches and cyberattacks can severely taint an organization’s reputation. In some cases, they can even make a company go out of business altogether. By regularly conducting penetration tests and showcasing a commitment to cybersecurity, organizations can improve their reputation and inspire confidence among clients, partners, and stakeholders.

• Cost savings. While there’s an upfront cost associated with penetration testing, the long-term savings can be substantial — especially given the fines that loom in an instance of a data breach. Identifying and addressing vulnerabilities early can prevent the potentially significant financial and reputational losses associated with a data breach.

Types of penetration testing

The digital world is vast and so is the landscape of potential vulnerabilities. Different assets and scenarios necessitate varied types of penetration tests.

• Network penetration testing. This sort of test can be considered a deep dive into an organization’s network infrastructure. It evaluates the robustness of servers, firewalls, routers, and other network devices against potential attacks. The goal of a network pen test is to ensure that data in transit remains secure at all times.

• Web app penetration testing. Cybercrooks love targeting web applications, given their accessibility over the internet. The web app pen test delves into the intricacies of those applications, from the frontend user interface to the backend databases. It evaluates all aspects of the web app, highlighting potential vulnerabilities.

• Mobile app penetration testing. The popularity of mobile devices has led to an explosion in mobile apps. This test focuses on both the application and the underlying mobile platform, ensuring that users’ data remains secure.

• Physical penetration testing. Often overlooked, this test evaluates the physical security measures of an organization. It simulates attempts to gain unauthorized physical access to facilities, aiming to identify potential security lapses in areas like surveillance, access controls, and employee security awareness.

Penetration testing methods

Different methods of pen tests can provide unique perspectives, tailored to various scenarios:

• External testing. This method focuses on evaluating the security of an organization’s assets that are visible on the internet and so can be exploited. It’s an in-depth assessment of public-facing applications, websites, and servers, providing insights into potential vulnerabilities that external attackers might look to exploit.

• Internal testing. Not all threats are external. In fact the Gurucul’s 2023 Insider Threat report results indicate that insider threats are a top concern at organizations of all kinds. Simulating insider threats is crucial for gauging the risks posed by potential threats from within the organization, whether it’s a disgruntled employee or a third-party contractor with devious intent.

• Blind testing. During a blind test, testers have limited knowledge about the target. It’s a real-world simulation, mimicking scenarios where cybercriminals use various techniques to gather intelligence and launch attacks. It is a great way to understand how cyberattacks work in real time.

• Double-blind testing. Taking realism a step further, during a double-blind test even the organization’s IT and security teams are unaware of the test. This approach evaluates the real-time response capabilities of the organization, providing insights into incident detection and response effectiveness.

• Targeted testing. This is a collaborative method where both the organization and the tester are aware of the test. It’s a transparent approach, often used for educational purposes, to provide a grand view of the security landscape and train internal teams.

The five phases of the penetration testing

In most instances pen testing comprises five phases. Here are the five typical phases of pen testing.

• Reconnaissance. This is the initial phase during which the penetration tester gathers data about the target. The information could involve IP addresses, domain names, network infrastructure, and even employee details. The aim is to collect data that can be used to find actual vulnerabilities. This phase may involve both passive methods, like studying publicly available information, and active methods, such as directly interacting with the target system.

• Scanning. The next step after information gathering is to identify potential points of entry. This involves scanning the system in a variety of ways to identify potentially open ports, running services, and applications, along with their versions. The goal is to determine how the target responds to various intrusion attempts, which can provide a roadmap for the actual attack.

• Vulnerability assessment. With a clear picture of the target’s infrastructure, the tester now looks for weaknesses. This phase often involves the use of automated tools, databases, and manual techniques to identify vulnerabilities in the system. The outcome is a shortlist of potential weak spots that could be exploited in the next phase.

• Exploitation. During this phase, the tester tries to exploit the identified vulnerabilities. The aim is not just to breach the system but to understand the potential impact of each vulnerability. For instance, can the vulnerability be used to gain unauthorized access, manage access privileges, or access sensitive data? This phase provides a clear picture of what a real-world attacker could accomplish.

• Reporting. After the assessment, the tester compiles a detailed report. This report typically includes a summary of the assessment, vulnerabilities found, data accessed, and recommendations for securing the system. The goal here is to provide the organization with actionable insights that could be implemented to fortify their overall security posture. This phase is crucial because it not only highlights the weak spots but also guides the organization on the steps to take to enhance their security posture.

Bottom line

In the digital landscape, penetration testing should be an integral part of an organization’s processes, especially if the company is striving for success. It is important to understand that pen tests are not just about identifying vulnerabilities. These tests are about understanding the broader implications of the vulnerabilities on an organization’s overall security posture. By simulating cyberattacks, companies can gain valuable insights with regard to their defenses, allowing them to make informed decisions about where to bolster their security measures.

But while penetration testing provides a deep dive into an organization’s vulnerabilities, it’s essential not to overlook the basics. Passwords, for example, are often the first line of defense for most digital systems. Their importance cannot be overstated, and yet they remain one of the most commonly exploited vectors for cyberattacks.

This is where NordPass for companies comes in handy. It offers more than just a single secure place to store passwords. It provides an encrypted environment, ensuring that sensitive credentials are protected from prying eyes. Features like the password generator ensure that users create strong, hard-to-crack passwords, while the password health check offers insights into the strength of stored passwords. Additionally, with the data breach scanner, organizations can stay ahead of potential threats by being alerted if their domains or emails have been detected in a data breach.

In the end, if there’s one thing that you ought to take from this post is that there is no one-size-fits-all solution when it comes to organizational security. While pen tests are crucial and can provide incredible insights, it is essential not to overlook foundational security tools such as NordPass.