Skip to content
Finance — Business — All about technology.

Financial sector struggles with weak password practices.

Multiple private individuals and large corporations, including financial institutions, habitually opt for insecure passwords, as per a new research finding.

,   and  Administrator
2 min read
Financial sector struggles with weak password choices.
Financial sector struggles with weak password choices.

Financial sector struggles with weak password practices.

The financial industry, a critical pillar of our economy, has been under the spotlight for its password security practices. A study by NordPass, a password manager subsidiary of Nord Security, analysed over 15 million data breaches, categorised into 17 industries.

In the financial sector, the use of simple passwords is a concerning trend. The favourite password among bankers and financial professionals is surprisingly "password". This password, along with "123456", "LinkedIn", "Student", "Default", "Sunshine", "Profit", "Aaron431", "Ready2go", and "13pass13", are among the top 10 passwords in the financial industry.

The findings are alarming, with only one in four passwords in the financial sector being unique. This lack of password diversity could potentially expose these institutions to increased risks of data breaches.

The study also highlighted that around 3.6 million of these data breaches are in the financial sector. This underscores the urgent need for improved password security practices within the industry.

While the study did not delve into specific instances beyond LastPass (a password management company that suffered a significant cyberattack in August 2022), it is clear that other major financial firms face significant cybersecurity threats from ransomware, phishing, and identity attacks. The increasing use of AI-based solutions to manage and mitigate these risks offers a glimmer of hope, but the fight against poor password hygiene remains a pressing concern.

In contrast, the human resources industry appears to have a better password security record. In this sector, 31% of passwords are unique, suggesting that other industries could learn from their practices.

As we navigate the digital age, it is crucial for individuals and institutions alike to prioritise password security. Using complex, unique passwords and employing reliable password managers are essential steps towards bolstering cybersecurity defences. The financial sector, with its vast troves of sensitive data, must lead by example in this regard.

Read also:

Related

Latest