Top 5 Dangers of Sharing Passwords In The Workplace

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The Hidden Risks of Password Sharing in the Workplace & Smart Ways to Fix Them

Why password security matters for UK businesses

For businesses with 5 to 200 staff, you might assume that you’re too small to be a target for cyber-criminals.

The opposite is true: many attacks focus on organisations just like yours because they’re perceived as more vulnerable.

Weak password practices are one of the top entry points for an attack.

 

Many UK businesses we’ve meet are often:

  • Reusing the same passwords
  • Storing passwords in insecurely ways
  • Sharing passwords via unsafe channels.

 

When passwords are treated casually, the consequences can include:

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We went live talking to a variety of UK businesses owners sharing everything you need to know to keep your business safe with secure passwords.

1. The 5 Key Dangers of Password Sharing in Business

Here’s a breakdown of what you’re risking when you allow or tolerate password sharing among employees:

Increased vulnerability to security breaches

When your team shares credentials rather than each person having their own login, you weaken security.

Hackers look for weak passwords, reused passwords and shared credentials.

Lack of accountability and audit trail

If multiple people use the same account or password, you lose the ability to track who did what. This is a major issue if something goes wrong (accidentally or maliciously).

Compliance & regulatory risk

Many sectors in the UK require businesses to adopt reasonable technical and organisational measures to protect data. Shared passwords can undermine that duty.

Internal threats and misuse

Sharing credentials increases the risk of insider threats, whether this is done intentionally or accidental.

If an ex-employee keeps access, or someone uses another person’s credentials, your internal controls become weak and unsecure.

Productivity, workflow and maintenance issues

Using a shared login can cause bottlenecks (who changed the password?), confusion, and increased overhead when people leave or change roles.

2. Best Practices Checklist for UK Businesses (10-200 employees)

Here’s a checklist you can implement this week to improve your password security:

  1. Adopt a business-grade password manager to ensure it supports secure sharing, auditing and is designed for teams.
  2. Implement role-based access give each employee login credentials appropriate to their job role.
  3. Enable MFA everywhere with no exceptions for admin or privileged accounts.
  4. End or restrict password sharing, institute a policy forbidding password sharing via email, chat, WhatsApp, SMS, social media or phone.
  5. Establish an access-review and off-boarding process – when someone leaves or changes role, revoke access quickly and update shared credentials.
  6. Train your team, deliver a short awareness session: why password sharing is risky, how they should behave, what the policy is.
  7. Use unique strong passwords, no reuse, encourage passphrases, let the password manager generate/store them.
  8. Audit access regularly, check who has access to what, review password usage logs, remove redundant access.
  9. Set policy and governance, document your password policy, sharing rules, and consequences of non-compliance.
  10. Plan for emergencies, know how you’ll revoke access, change shared passwords, control damage if a credential is compromised.

Free Password Policy Template

If you haven’t already ensure you have a secure password policy in place so that every employee is aware of the guidelines you have set.

If you havent implmented one yet, not to worry! 

Download our free template for help getting started.

3. Why Investing in Password Safety Makes Business Sense

For a small to medium business, the cost of a single breach (data loss, downtime, reputation loss, regulatory fines) often far outweighs the modest cost of a strong password management solution and a bit of training.

        As one UK SME advisor puts it: 

Many small businesses treat password management as optional, but when you look at the damages, it’s anything but optional.

4. Frequently Asked Questions About Business Passwords & Sharing

Short answer: No, not if you’re sharing them the usual way. Localised, casual sharing (e.g., via email, WhatsApp, Teams) creates risk.

The Best practice is to avoid manual sharing of raw passwords.

The UK Government guidance states: “You should never allow password sharing between users.”


That said: If you must share access, use secure tools/controls rather than handing over the password itself.

Want to explore these secure options?

Click here to book a demo

No, Text message or SMS is generally insecure for sharing passwords.

  • This is due to messaging apps being vulnerable to being intercepted.

If you want to explore more secure password sharing options click here to book a demo

No, WhatsApp is generally not recommended for sharing passwords even though they promote secure messaging and are a lot further forward than some other apps, this is still not recommended for best practices.

  • This is due to messaging apps being vulnerable to being intercepted.

If you want to explore more secure password sharing options click here to book a demo

No Text Message both (SMS, MMS as well as iMessage) are generally insecure for sharing passwords. For example:

  • Messaging apps or text: messages may be intercepted, phones may be compromised.

Want to explore these secure options?

Click here to book a demo

No, any of these types of channels not matter what provider are generally insecure for sharing passwords. For example:

  •  you cannot guarantee the listener is authorised, nor control logging of the password.

Want to explore these secure options?

Click here to book a demo

No Facebook channels are generally insecure for sharing passwords.

For example:

Social media/Instagram/Facebook messaging: not designed for confidential password transmission, risk of account compromise, lack of audit.

In effect, sharing via these channels exposes the password to unnecessary risk.

Instead, use a proper password manager or secure vault that controls access.

Want to explore these secure options?

Click here to book a demo

No Instagram generally insecure for sharing passwords. For example:

Social media/Instagram/Facebook messaging: not designed for confidential password transmission, risk of account compromise, lack of audit. In effect, sharing via these channels exposes the password to unnecessary risk.

Instead, use a proper password manager or secure vault that controls access.

Want to explore these secure options?

Click here to book a demo

The platform itself may be secure, but if you simply write a password in a Trello card or pass it via 3CX chat or phone, you end up with the same risk: uncontrolled exposure, lack of audit, no individual accountability.

A better approach is: each user gets their own credentials, roles/permissions are assigned appropriately, and if a shared account is unavoidable, manage it via a vault.

Want to explore these secure options?

Click here to book a demo

The platform itself may be secure, but if you simply write a password in a Trello card or pass it via 3CX chat or phone, you end up with the same risk: uncontrolled exposure, lack of audit, no individual accountability.

A better approach is: each user gets their own credentials, roles/permissions are assigned appropriately, and if a shared account is unavoidable, manage it via a vault.

Want to explore these secure options?

Click here to book a demo

A robust password policy should include:

  • Every individual has a unique account for business systems (avoiding shared user accounts). 

  • Requirements for password creation (length, uniqueness, avoid reuse across systems). 

  • Conditions when shared/generic accounts may be used, and how access is managed (e.g., via a vault, logs, regular review).

  • Use of multi-factor authentication (MFA) or other measures as a standard for critical systems. 

  • Process for changing passwords when someone leaves, a system is compromised, or when a generic/shared account is used.

  • Training for staff so they understand the risks of password sharing and weak credentials.

Book Your Free Demo

Picture of Anne-Marie Blazdell

Anne-Marie Blazdell

Anne-Marie Blazdell is a Marketing & Communications Manager with expertise in digital marketing, content creation, and IT solutions. With a strong foundation in graphic design, she trained at Farnborough College of Technology and Southampton Solent University before advancing into marketing and business IT support.

Since joining Syn-Star in 2022, Anne-Marie has specialised in crafting SEO-optimised website content, managing social media, and helping businesses navigate the complexities of IT. Her work bridges the gap between technology and business, making IT more accessible and effective.

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