OPINION | India Went Digital, But Its Password Habits Are Stuck In The Past

India's digital boom makes password security more important than ever. Learn how unique passwords, password managers and two-factor authentication can protect your accounts.

Strong passwords, two-factor authentication and phishing awareness can help Indians protect their increasingly connected digital lives.

Source : ABPLIVE AI

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Key points generated by AI, verified by newsroom

• India's digital economy needs better password security practices.
• Use unique, strong passwords and managers for all accounts.
• Enable two-factor authentication and beware of phishing attempts.
• Verify all requests independently to avoid security risks.

India has built one of the world’s most digitally connected economies in remarkably little time. From UPI payments and online banking to investing, shopping, work and social media, a large part of everyday life now depends on digital accounts. Yet, one of the simplest layers of digital security remains easy to overlook: the password.

Passwords are often treated as a minor inconvenience, something to be created quickly, remembered for a while and reset when necessary. But as more aspects of our financial and personal lives move online, the way we manage passwords deserves more attention. A compromised account can expose personal information and, depending on how accounts are connected, create additional risks across other digital services.

The issue is not necessarily that people do not understand the importance of passwords. It is that passwords are competing with convenience.

Most people manage dozens of online accounts, and remembering a different, complex password for every service can feel impractical. This can lead to password reuse, predictable variations of older passwords, or credentials being stored in ways that may not be secure. The challenge becomes greater as our digital identities become increasingly interconnected.

For example, an email account can often serve as a recovery channel for several other online services. This makes protecting important accounts, particularly email, financial and investment accounts, an important part of maintaining overall digital security.

The basic principle is simple: every important account should have a unique password.

If the credentials for one service are exposed, they should not also provide access to another. Passwords should also be long rather than simply complicated. A longer passphrase made up of unrelated words can be easier to remember and more resistant to guessing than a short password that relies on predictable combinations of numbers and symbols.

This is where password managers can make a meaningful difference. Rather than expecting users to remember dozens of complex credentials, a password manager can generate and securely store unique passwords for different services. The user then needs to protect the master credential and the device on which the password manager is used.

For people who are not comfortable using password managers, the underlying principle remains the same: avoid reusing the same password across important accounts.

Two-factor authentication adds another important layer. It can provide additional protection even if a password is exposed, and users should enable it wherever it is available. At the same time, it works best as part of a broader security approach, alongside strong and unique passwords, secure devices and awareness of phishing attempts.

This last point is particularly important because many attacks do not depend on sophisticated technology. Attackers often try to persuade users to reveal their credentials themselves by impersonating banks, exchanges, employers, delivery companies or other familiar services.

Messages designed to create urgency, “your account will be blocked”, “verify your KYC”, “claim your refund” or “complete this security check”, are common examples. The objective is often to make the user act before they have time to verify the request.

The best defence is to slow down.

Users should avoid clicking on unexpected links, particularly when a message asks for credentials or financial information. Instead, they should independently open the official application or website and check whether any action is actually required.

For digital-asset users, this principle is particularly important. Blockchain transactions can be difficult or impossible to reverse once confirmed, which makes it important to understand exactly what is being authorised. Users should be cautious about unsolicited requests for passwords, OTPs, PINs, recovery phrases or transaction approvals.

No legitimate customer-support interaction should require a user to share their password, OTP, PIN or recovery phrase. When in doubt, users should access the service directly through its official app or website rather than through a link received in a message.

The evolution of account security is also moving beyond passwords. Passkeys and other stronger authentication methods are gaining adoption because they can reduce exposure to phishing and password theft. But even as authentication technology evolves, the fundamentals of good security remain relevant: protect access credentials, use additional authentication, keep devices updated and pay attention to unusual activity.

The larger lesson is that cybersecurity is rarely about one perfect tool. It is about layers.

A strong, unique password should sit alongside multi-factor authentication, device security, software updates, careful handling of links and messages, transaction alerts and regular account monitoring. For financial and digital-asset accounts, users should also understand the security and account-recovery features available to them.

India’s digital transformation has made financial services faster and more accessible than ever. The next step is making digital security equally intuitive.

Passwords may feel old-fashioned, but they remain an important part of how we protect our digital identities. Treating them as an afterthought is an avoidable risk. A few minutes spent creating unique credentials, enabling stronger authentication and learning to recognise phishing attempts can significantly reduce the risk of account compromise and the disruption that can follow.

Cybersecurity does not always require sophisticated technology. Sometimes, it starts with getting the basics right.

And in an increasingly digital India, a strong password is still one of those basics worth taking seriously. 

(The author is co-founder of CoinSwitch)

Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.

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