Another advantage of digital password wallets is that the software not only makes it easy to store passwords, but also to generate a strong, highly random password. That makes it trivial to maintain a different password for each and every website used. Accordingly, the next time hackers crack a Sony password database, even if it contains your username and password, hackers won't be able exploit that combination anywhere else.
Digital password wallets, however, do mean one more piece of software to download, install, and use. "It's a nuisance, I know," said Kristensen, who's been using an open source application called KeePass for 10 years. But he said that using digital password wallets is simply a best practice. "It's not the perfect solution, but it's much better than reusing passwords."
When it comes to password management software that stores passwords securely, there are numerous options. For example, Bruce Schneier, chief security technology officer at BT, created PasswordSafe, an easy-to-use, open source password database for Windows. Such software is also available for the Apple OS X (for example, shareware PasswordWallet, which also works for Windows). Another option, the aforementioned KeePass, runs on both of those operating systems, as well as Linux.
Furthermore, many password wallets will synchronize passwords between your computer and mobile devices, meaning you can always carry a secure, password-protected copy of your passwords and PIN codes with you. (For the record, people's PIN-picking practices are arguably even poorer than their password selection habits.)
To recap: secure passwords by creating a unique and random, long and strong password for every website that matters. Then keep these passwords secure by storing them in a digital safe. Do that, and don't fear the next LulzSec.
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