Password Security Report: American Password Practices in 2024

We all know the importance of passwords in today’s digital world. We use passwords for everything, from logging in to our social media profiles to protecting our financial information. How well are Americans doing when it comes to password security?

Many Americans still face significant challenges when it comes to managing their passwords.

A new study by HostingAdvice.com sheds some light on habits, frustrations, and the biggest challenges Americans face when managing passwords and keeping them secure.

Our study found that, on average, Americans juggle 17 different passwords. That’s a significant amount to remember, and it’s no wonder that 65% of those surveyed said they struggle to remember them all.

This struggle often leads to various methods of storing passwords, each with risks and benefits. While 56% of those surveyed rely on memory, 55% use password managers, 29% write passwords down in notebooks, and 24% save them in digital documents.

While some of these methods of storing passwords may be convenient, they can leave Americans vulnerable if someone gains access to their notebooks or devices.

Managing multiple passwords comes with its own set of frustrations. The biggest frustration for 3 in 10 Americans surveyed is the number of passwords they must remember. Another common frustration for 24% is the need for frequent password changes, while 21% are annoyed by complex password requirements.

While designed to improve security, these requirements can make it even more challenging to create and remember strong passwords.

Regarding using stronger passwords versus easier, weaker passwords, 61% of Americans said they reserve complex passwords for important sites. Almost 2 in 5 do not differentiate the difficulty of password used, using the same level of security for all accounts.

Two-factor authentication (2FA) adds an extra layer of security, but only 56% of users use it for important accounts.

Even with added security, Americans fear being hacked, especially regarding certain accounts. Unsurprisingly, the biggest fear Americans have is having financial institution accounts hacked (89%).

Social media accounts follow at 45%, with Google and Amazon at 37% and 35%, respectively. Work systems, Apple accounts, health-related apps, and streaming services are also areas of concern, albeit to a lesser extent.

While 60% of Americans feel their passwords are secure, the reality is more concerning. Nearly half (43%) have had their passwords hacked or compromised, with an average of being hacked and compromised four times.

When a password has been compromised, most people (55%) will update their password for the affected site, but only about a third (33%) change passwords across all accounts using the compromised credential.

Certain trends are common in password creation, and following these trends could leave you vulnerable to a hack. Some of the most used password creation trends include using number sequences and names, each used by 37% of people, followed by years (27%), pets (26%), and birthdays (26%). Letter sequences, anniversaries, and sports teams are also common.

What are the most common passwords? You might be surprised (or maybe not) to find ‘1234’ topping the list (26%), followed by ‘admin’ (13%) and ‘password’ (12%).

Creating new passwords can be a hassle, with 69% of people saying they’re annoyed by the requirements. Nearly 3 in 10 will modify an existing password, 25% use a combination of words and numbers that are easy to remember, 21% use a random password generator, and 19% create a password based on a personal pattern.

The main reasons Americans change their passwords include website requirements (34%), forgetting the old password (26%), regular security maintenance (26%), and learning the password was compromised (14%).

Strong passwords are essential for protecting our digital lives. If you’re using any of the common passwords or one of the predictable pattern traps, it may be time to make a change.

Here are some tips for creating strong, unique passwords:

• Use a password manager: This will store your passwords securely and eliminate the need to remember them all yourself
• Use a mix of upper and lowercase letters, numbers, and symbols
• Make your passwords at least 12 characters long
• Avoid using personal information such as your name, birthday, or pet’s name
• Don’t reuse passwords across different accounts
• Enable 2FA when possible

While the number of passwords we need to manage can be frustrating, it’s important to create strong, unique passwords that will help keep your online accounts safe.

“With passwords comes frustration. To avoid frustrations like too many passwords and complex password requirements, use a password manager,” said HostingAdvice technology expert Joe Warnimont.

“A password manager solves so many problems. It generates great passwords for you. You don’t have to remember them. It eliminates the usage of common password trends. And you never use the same one twice on multiple accounts. Combine that with 2FA for the utmost protection and ease with passwords.”

In July 2024, we surveyed 810 Americans to understand their password habits and opinions better. The respondents’ age range was 18 to 77, with an average age of 39. Respondents identified as 49% female, 50% male, and 1% non-binary.

For media inquiries, please reach out to media@hostingadvice.com.