5 Mistakes to Avoid When Using Excel to Manage Your Passwords

Here are 5 mistakes to absolutely avoid if you (still) use Excel to manage your passwords.

1. Storing Passwords Without Encryption

One of the worst mistakes is keeping your passwords in plain text, without any protection. A simple Excel file can be opened in a few clicks by anyone with access to your computer or network. If these passwords are for your internal systems, databases, or digital platform access, this represents a critical risk.

Tip: Even though Excel offers password protection for a file, this measure remains largely insufficient. Free tools can easily bypass it.

Double tip: Avoid naming the file "passwords.xlsx" or "PWD_client". Choose a neutral name that is less attractive to a fraudster, like "RSM.xlsx" (meaning monthly strategic report) or "T24_PlanVS.xlsx" (meaning Quarter 2024).

2. Sharing the File by Email or on the Internal Network

Many organizations share this type of file via emails or shared folders from Drive. This significantly increases the attack surface. If an email is compromised or an employee clicks on a fraudulent link, the entire file can be exposed.

Reminder: The higher the number of people with access to the file, the greater the risk. And in the case of a successful phishing attack, the attacker can access it without being detected.

• Consider making a clear list of roles and access rights for each member of your organization.
• This helps limit unnecessary exposure of sensitive data and meet the requirements of Law 25 regarding information governance.

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3. Not Updating Passwords Regularly

An Excel file quickly becomes outdated if passwords are not updated. Yet, a single password leak is enough to compromise your entire organization.

The right approach is not necessarily to change all passwords every month, but rather to update them in the following situations:

• when a platform prompts you to do so (especially after a security update),
• when there is a doubt or a leak,
• when an employee leaves your organization.

Additionally, your passwords must be strong and above all unique. If you use the same password across multiple services and just one of those services is compromised, all the others become vulnerable.

4. Using the Same File for All Services

Centralizing all your passwords in a single file without segmentation significantly increases the risk. If this file falls into the wrong hands, your entire digital system is vulnerable.

Preventive measure: Use secure password managers that allow compartmentalized management and access control based on each team member's role.

5. Ignoring Professional Password Management Solutions

Out of fear of change or lack of knowledge, some organizations persist in using Excel or paper notebooks to manage their access. Yet, there are professional password managers today specifically designed to secure and simplify this task.

These tools allow you to:

• generate strong and unique passwords,
• store them in an encrypted vault,
• control access based on each user's role,
• automate password changes,
• easily access your credentials without memorizing them.

Setup is generally simple, even for small organizations, and can be adapted to your internal realities. Many managers offer team versions with management dashboards, access logs, and incident alerts.

Our advice: Don't wait for an incident to push you to change. Integrating a password manager means investing in security, efficiency, and compliance, especially in connection with Law 25 requirements.

Here are our 5 mistakes to avoid when using Excel for your passwords.

Excel is a great tool for analyzing data... but not for protecting your organization's sensitive access. Adopting good password management is a fundamental pillar of cybersecurity. By avoiding these mistakes, you strengthen the security of your systems, protect your data, and reduce your risk of compromise.

Need help? We can help you with our cybersecurity training tailored to the specific needs of your organization.

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