Top 5 Password Mistakes Small Businesses Still Make in 2025

Strong passwords are one of the simplest, most effective defenses in cybersecurity. And yet, password hygiene is still a major weak point for small teams.

Here are the top 5 mistakes — and what to do instead.

❌ Mistake #1: Reusing Passwords Across Tools

If your email and accounting platform share a password, one breach opens the door to everything.

Fix: Use a different, strong password for each app. Password managers make this easy.

❌ Mistake #2: Using Personal Info (Names, Pets, Birthdays)

Attackers can guess or find this info easily — especially on social media.

Fix: Create random passwords with a mix of characters — or use passphrases like “&Banana/Jump7*Track”.

❌ Mistake #3: Storing Passwords in Plaintext

Notepad files, email drafts, or sticky notes are not secure.

Fix: Use a password manager like Bitwarden or 1Password. Store recovery codes safely.

❌ Mistake #4: Ignoring MFA Setup

MFA (Multi-Factor Authentication) blocks over 99% of automated attacks — but too many skip it.

Fix: Turn on MFA for email, cloud tools, banking, and payroll.

It might seem convenient, but it’s risky and non-compliant.

Fix: Create individual logins. If needed, use shared vaults in a business password manager.

✅ Quick Win Checklist

✅ Use 12+ character passwords
✅ Don’t reuse them
✅ Turn on MFA
✅ Use a manager
✅ Never share them

“You lock your office door. Your passwords should do the same.”