Identity theft is the fastest growing crime in the United States. Data breaches expose personal information and leaves the door open for hackers to steal and sell your data, like a familiar password you use to access most of your accounts. A password manager is a popular option for storing verification data, but one fundamental flaw undermines their value. Once someone knows your master password, it can no longer protect your data. Did you know there are ways to protect your data using alternative authentication methods?

What Are Password Managers? Password managers store verification data into a system, including phone numbers and security questions. Some search engines store passwords you enter into their browser for future use. They notify you if your password has been changed and allow you to automatically change passwords for certain websites. You'll have to change most passwords yourself, which isn't convenient for anyone managing dozens or hundreds of other accounts. Customers can purchase either offline or online manager programs. Offline programs tend to be safer, as hackers can expose all data hosted by cloud services. Regardless, password managers are becoming obsolete and passwordless methods are emerging as a new, viable type of encryption.

Why Password Managers Aren't Effective Although they function as a lockbox, they do not effectively protect you from secret cyberthreats that can infect your computer. Spyware can collect information about your company's financial portfolio and will do so without your knowledge. Another type of malware is keylogging, which records each key you type. Phishing is a popular tactic among hackers, who release malware disguised as official software to steal company information. Passwords aren't inherently secure precisely because anyone can steal them for their own use. To thoroughly protect yourself from security breaches, you'll have to change your password every time you log into a website. Business owners and accountants simply don't have the time. In general, it becomes more difficult to protect your identity over the internet if you store a reliable source of information.

What Are the Alternative Methods? Embracing innovation is the hallmark of success for businesses. Adapting alternative methods that don't require a password could place your company above your competitors. Smartphone and tablet users are familiar with fingerprint scans and facial detection. Unlike passwords, biometric data cannot be stolen or altered and they cannot be placed into a central database hackers can easily access. Many companies rely on two-factor authentication, which rely on an email address and phone number. There are two phone authentication methods. A push notification emerges from an app and the user is expected to simply push the pop-up. The notification comes from two types of sources. Local notifications happen immediately and the user must access the app within a limited time frame. With remote notifications, users can also access a company's server that is highly encrypted and contains a centralized notification service. Users can also rely on SMS, which receives a code and message from the server. You may wonder why these methods have suddenly replaced passwords over a short period of time.

Why Alternative Methods Are Convenient These methods help customers and improves user experience. They also eliminate the necessity to come up with a complex code that is difficult to remember. The World Economic Forum claims that passwords are for sale on the dark web for $7, also adding that the digital economy is associated with the rise of identity theft and online fraud. Passwords were the only way people protected themselves online in the past. Nevertheless, there are now more methods people can use to protect themselves, which makes it more difficult for hackers to obtain personal information they intend to sell. Furthermore, customers have greater autonomy over how to protect their identity under the current tech market.

Password managers can be expensive, which can place a burden for companies with thousands of employees. It's a costly investment based on a product that is better at storing your personal data than protecting it. Dismantling a central data source can blunt the rapid emergence of identity theft and allow customers to more thoroughly protect their data.