Picture this: You’re trying to log into your office dashboard. The password requirement says:
Minimum 8 characters, one uppercase, one special character, no previous passwords, change every 45 days.
You think, “Alright, how about Password@123?”
Congratulations you’ve passed the checkbox security test. But let’s be real: this is not data protection. It’s password theatre, meaning they are security measures that create the illusion of enhanced security without actually improving it.
In a world where privacy laws are evolving and breaches make headlines weekly, we can’t afford to pretend that these outdated rules still work. Let’s decode why bad password policies are more than just bad IT hygiene and what businesses should actually be doing instead.
The Problem: Password Policies That Don’t Protect
Many companies still follow rigid but outdated password rules that do more to frustrate users than stop breaches. Examples include:
· They ask for a mix of characters (like “@” or “#”), but still allow weak patterns
· They force users to change passwords every 30 or 45 days
· They don’t check if the password was already exposed in a data breach
· They don’t block old or reused passwords
Here’s the issue: these rules are often enforced without any context. They create the illusion of protection while attackers grow smarter with tools like credential stuffing and password spraying.
What could go wrong? Consequences of a Poor Password
Poor password practices open the door to:
· Hackers can steal accounts using guessed or leaked passwords
· Sensitive data can be accessed and misused
· Your company can get in trouble under privacy laws like GDPR, DPDPA, or CCPA
· Trust is lost, as customers won’t feel safe using your platform
· Costly Breaches - IBM reports show compromised credentials are one of the top causes of data breaches globally.
And remember, once attackers are in, your beautiful DSR platform or data minimization efforts won’t save you. Prevention starts before the first login.
Real-Life Example: Colonial Pipeline
In 2021, Colonial Pipeline, the operator of a major US fuel pipeline, suffered a ransomware attack because of a weak, reused password. It gave hackers access to a VPN account that had no multi-factor authentication.
The result? Fuel shortages, panic buying, and a $4.4 million ransom payment.
The lesson? It’s not just about compliance. Weak passwords can shut down infrastructure.
What Companies Should Be Doing Instead
Let’s fix the basics. If your organization is serious about privacy by design, start with these steps:
1. Create Better Password Policies
· Set the minimum required number of characters.
· Set a ratio of each type of characters i.e. letters, numbers, symbols.
· Focus on longer passwords (or passphrases) instead of just symbols.
· Don’t force regular password changes unless there's a real risk or a proper established policy for changing passwords.
· Provide a password meter.
· Don’t allow passwords that have been leaked in data breaches.
2. Use Password Managers
· Tools like Bitwarden or 1Password help people create and store strong passwords safely.
· No need to remember dozens of complex passwords.
3. Turn On Multi-Factor Authentication (MFA)
· Always use an extra step like an OTP or app-based code.
· This blocks most attacks, even if the password is stolen.
4. Train Employees
· Teach people how phishing works.
· Remind them not to write passwords down or reuse them.
5. Make Passwords Part of Your Privacy System
· Strong access control should be part of your company’s privacy operations.
If you handle data subject requests (DSRs), your systems must be secure from the start.
What Not to Do
· Using name, surname or birthdates
Using name, surname or birthdate makes the password easy to guess.
· Storing of password
Do not use Excel or Physical Notebook to store passwords as it contains risk of accidental leaks.
Instead, use a secure password manager that encrypts and protects stored credentials.
· Sharing password
Sending passwords through email or WhatsApp is very risky. These messages can be forwarded, hacked, or accessed later.
· Reusing password Across multiple platforms
One leaked password can unlock everything if it's reused for email, CRM, and internal dashboards.
Every Account should have a unique password
· Forcing Regular Password Changes (Without a Reason)
Changing passwords every 30 or 40 days might sound secure, but it often leads to lazy workarounds like: “company2024!” to “company2025!”.
Regular password changes should have a security reason behind it along with a good password policy.
Password Checklist
i. Use a different password for every account.
ii. Is your password long enough?
iii. Use a password manager.
iv. Keep your passwords random and unpredictable.
v. Have you enabled multi-factor authentication (MFA)?
vi. Check for leaked password databases.
vii. Avoid sharing passwords
viii. Keep your work and personal passwords separate
Final Thoughts
Let’s face it- weak password policies aren’t just old-fashioned, they’re risky. They make you think you’re protected while leaving your systems wide open to attacks. These days, with smarter hackers and stricter privacy laws, sticking to outdated rules like frequent password changes or basic complexity just doesn’t cut it anymore.
Instead, focus on what really works: longer, unique passwords, a good password manager, and always using multi-factor authentication. Strong password habits aren’t just an IT checkbox, they're how you build trust and keep data safe.
If you’re serious about protecting your business, start by rethinking your password approach. Because in security, preventing a problem is always easier and cheaper than fixing one later.
Reference:-
Secureden:- https://www.securden.com/blog/top-10-password-policies.html
Sherweb:- https://www.sherweb.com/blog/security/password-policies
Uniqkey:- https://blog.uniqkey.eu/password-checklist/
