Password management
October 30th, 2010I have a lot of passwords. Before I even walk out the door of my home or acess anything online, I have passwords for servers, desktops, apps on servers etc, probably 20 passwords. Add in the rest and I’d have over 200. Add in enforced password change policies and it gets worse. Clearly you can’t remember all of these.
There are generally two ways of managing this sort of thing.
1. Re-use passwords
One solution is to have a small number of known passwords. This is generally a bad idea as compromising one password means compromising another. This is a security problem both at your end and the destination. At your end somone may find out a password (eg by shoulder surfing) or you give it to someone (eg login to my yahoo account and download this for me).
At the far end, the site or system you have the password may have lax security. They might be storing the passwords using clear text rather than hashed and salted. If the site is compromised, your password might be compromised with it. Worse, the site might be set up simply to collect logins and passwords.
This can be mitigated by using high value passwords with high value sites/systems, effectively assessing their value before giving them a password. For example your bank account would be a high value password, your email account would be a medium value password and a web forum might be a low value password. So you might have one password for each area.
There are two problems with this approach. This will still mean that one compromise of your high value password will mean all your high value systems are compromised. Using different passwords for each high value system may not be an option if you have a large number of high value systems. The other problem is you may not be able to make a good assessment as to the value of a system. For example, your email account might seem to be relatively low value, however most sites offer the option to reset passwords with emails notifications. Hence compromising you email account can guarantee the compromise of a lot of other systems.
2. Password storage
The other option is to use a password storage/management system. These store the passwords in an encrypted datastore, with a password to access the datastore. To use this properly you need to have a strong password for the datastore, as cracking that password gives someone full access to your passwords everywhere. You also would not want to forget that one strong password, or lose the datastore. In either case you are in trouble.
One variation on this is to use different datastores with different passwords for different areas (eg work, net accounts, bank accounts etc). This allows you to limit the potential damage of that password being compromised, but also increases the liability of having multiple passwords you must remember.
This is a much better solution than re-using passwords as it significantly reduces both the password management headache and also reduces the risk of a single password loss resulting multiple systems being compromised. It does increase the risk of compromise from that single password, however carefully managed, the overall risk is lowered
