Updated Best Practices for 2026

As organizations continue to adopt cloud applications, remote access, SaaS platforms, and hybrid authentication, identity has become one of the most important security boundaries to protect. That makes password security a practical starting point for strengthening identity management strategies in 2026, especially as attackers continue to exploit weak, reused, and compromised credentials to gain access to business systems

Presented by the Identity Defined Security Alliance and the National Cybersecurity Alliance (NCSA), it’s a much-needed opportunity to educate businesses and IT leaders on the importance of cybersecurity awareness and practical credential security best practices. 

What is Identity Management? 

Identity Management (IdM) ensures that only authorized users have access to the technology resources they need to perform their work. 

It involves hardware, software, applications, and permissions, password policies, and anything related to access controls in a relevant situation.  

Why is it important now? 

In cybersecurity conversations about IdM, there is a special focus on the dangers of not properly securing identities and access credentials. User-specific information, especially passwords and password reset paths, is a common entry point for account takeover, ransomware attacks, and other attack vectors. 

Research by the IDSA reveals that identity-related breaches remain preventable when organizations protect access credentials consistently. According to the 2025 Verizon DBIR, stolen credentials, phishing, and the human element remain frequent breach factors.

What is the Issue with Passwords? 

From one-time passwords to fingerprint scans, there are many authentication methods. However, the reality is that passwords are still present in almost all environments as primary credentials, fallback mechanisms, or the shared secret that protects other authenticators. They remain familiar to the average user. This is especially true in hybrid authentication environments.  

Credentials can be used across devices, operating systems, and application versions with no compatibility issues, making them incredibly useful. Inevitably, passwords have become a security layer that most organizations rely on, but actually have little control over because users choose, reuse, and sometimes expose their own passwords.

While other authentication methods can be layered to reinforce IdM systems, we need to close the loop properly by securing the password with current best practices before investing in other areas.

What are the Best Practices to Strengthen IT Security?

1.     Understand Password Vulnerabilities

Given the sheer frequency of credential-related data breaches, it would be easy to assume that passwords themselves are intrinsically liable for most security issues. But the nuance of the issue is that individuals create weak passwords, reuse them, and rely on predictable variations all the time.  This is why password reuse remains such a durable risk.

Once a user’s credentials have been stolen from one account, they are often leaked on the dark web, bundled into infostealer logs or credential lists, and sold to other cybercriminals. Credential data is a useful and tempting target because cybercriminals know that many individuals reuse passwords across personal and professional boundaries, making it easy for bad actors to gain access to additional accounts. This is part of the credential economy that attackers rely on.

While we can’t control every user behavior, businesses can understand the reality of what’s happening, educate their teams, and put solutions in place. Start by blocking compromised passwords without breaking the user experience.

2.     Audit Passwords 

A straightforward way to gauge the severity of the problem is to audit the passwords in use in your environment. There are several audit tools that make it easy for organizations to get a snapshot of their domain’s password security state, compared against the latest breaches, cracking dictionaries, and exposed credentials that may still authenticate today. Enzoic’s latest AD analysis shows why compromised credentials in AD still need attention.

3.     Follow NIST guidelines

The standards from NIST regarding password policies are an excellent resource for businesses to pull from. In 2026, organizations should align with current guidance, including these key password recommendations. Enzoic’s NIST SP 800-63B Revision 4 guide summarizes the 2025 changes for password security.

• Get rid of password composition requirements. 
  Arbitrary requirements for mixtures of uppercase letters, symbols, and numbers often result in worse passwords, reused passwords, and more IT help desk calls.
• Permit longer passwords
  Like the complexity requirements, restrictive password length maximums prevent users from creating more memorable, stronger, and more unique passwords for themselves. 
• Get rid of periodic password resets
  Multiple studies have shown that requiring frequent password changes is actually counterproductive to good password security. Instead, require a change when there is evidence of compromise, and encourage the use of unique, memorable passwords, backed by continuous screening. Continuous credential monitoring closes the gap left by static policy.
  

4.    Screen for Compromised Passwords and Credentials   

This recommendation is also part of the NIST password guidelines, but it deserves its own emphatic bullet point. One of the best ways to protect your business and your users is to screen all passwords (as they are newly created and while actively in use) against dynamic lists of dictionary words and known compromised passwords on a continuous basis. Alerting users and IT teams when full sets of credentials have been compromised is extremely useful in protecting the company from a breach and has the added benefit of reducing friction for the user. Modern controls should continuously screen for compromised credentials, not only at reset.

While cybersecurity problems and solutions should be discussed across all realms and levels of a business, experts are still working to disseminate information and recommendations. The benefits of a strong defensive stance are myriad. Following current NIST guidelines helps companies maintain regulatory compliance and reduce IT costs across the board. Treat the password layer as part of continuous credential defense, not a once-a-year policy review.