Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Getting Employees (Through Training) on Board Is Key to Data Security

Author: Scarinci Hollenbeck, LLC

Date: April 21, 2015

Key Contacts

Back

Would your employees sell their business passwords to a third party for a measly $150? While most employers would likely respond with a resounding “NO,” such confidence may not be so justified when it comes to data security.

Survey Reveals Lax Password Management

A recent survey found that many employees are still not taking data security very seriously. SailPoint’s 7th Annual Market Pulse Survey polled 1,000 employees at large organizations across Australia, France, Germany, the Netherlands, the United Kingdom, and the United States. Among the password study’s most notable findings:

  • More than 50 percent of workers surveyed reuse passwords for personal and corporate applications. On average, they only use three passwords for all of their logins.
  • One in seven would sell their passwords to a third party, some for as little as $150.
  • Of those surveyed, 20 percent share their passwords with fellow employees.
  • One in five respondents have fallen victim to a high-profile data breach.
  • Despite their actions in the workplace, 20 percent of respondents would stop doing business with a company that placed their data at risk.

“Employees may have moved away from the post-it note password list, but using the same password across personal and work applications exposes the company,” said Kevin Cunningham, president and founder of SailPoint. “Just think of the major breaches that occurred in 2014 requiring users to change their passwords on social media. If those were the same passwords being used to access mission-critical applications, it’s very easy for hacking organizations to take advantage and get into more valuable areas.”

Steps to Improve Password Protection

Many employees use a number of passwords on a daily basis, and it can be tempting to create one login that works across the board. Unfortunately, hackers are aware of this vulnerability and are increasingly using passwords from soft targets like social media to gain access to sensitive corporate data. To address these data security risks, there are steps that businesses can take:

  • Implement and enforce a policy that prohibits reusing corporate passwords on third-party sites.
  • Train employees regarding the risk of password reuse and how to safeguard their corporate credentials.
  • Require employees to change their corporate credentials every 90 days.
  • Immediately remove old passwords so that former employees cannot access your systems.
  • Install password management software and other tools that regulate/automate the use of corporate passwords.

The SailPoint study should certainly be eye opening for employers. The bottom-line — if you don’t already have strong password policies in place, you could be exposing your company to significant liability.

Do you have any feedback, thoughts, reactions or comments concerning this topic? Feel free to leave a comment below and follow the twitter accounts @CyberPinguelo and@eWHW_Blog. If you have any questions about this post or would like assistance with your legal needs, please contact me or the Scarinci Hollenbeck attorney with whom you work. To learn more about data privacy and security, visit eWhiteHouse Watch – Where Technology, Politics, and Privacy Collide (http://ewhwblog.com).

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses post image

Buying Commercial Property in New Jersey: Legal Guide for Small Businesses

Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]

Author: Robert L. Baker, Jr.

Link to post with title - "Buying Commercial Property in New Jersey: Legal Guide for Small Businesses"
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities post image

The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities

On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]

Author: Dan Brecher

Link to post with title - "The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities"
Common Legal Mistakes NYC and New Jersey Business Owners Make post image

Common Legal Mistakes NYC and New Jersey Business Owners Make

Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]

Author: Dan Brecher

Link to post with title - "Common Legal Mistakes NYC and New Jersey Business Owners Make"
What Founders Can Learn From Start-up Suits post image

What Founders Can Learn From Start-up Suits

High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]

Author: Dan Brecher

Link to post with title - "What Founders Can Learn From Start-up Suits"
Corporate Governance Reviews: A Practical Guide for New Jersey Companies post image

Corporate Governance Reviews: A Practical Guide for New Jersey Companies

Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]

Author: Ken Hollenbeck

Link to post with title - "Corporate Governance Reviews: A Practical Guide for New Jersey Companies"
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights post image

What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights

Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]

Author: Robert E. Levy

Link to post with title - "What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!