Password Security: Why “123456” is Still a Problem

In 2025, it’s easy to assume most people have learned not to use weak passwords like “123456” or “password.” But here’s the shocking reality: they’re still everywhere — including in small businesses across the U.S.

Let’s explore why this is such a serious issue, how real the threat is, and how to fix it before your business becomes the next cyberattack headline.

📊 The U.S. Still Has a Password Problem

According to the 2023 NordPass Report, the most common passwords in the United States were:

Rank	Password	Time to Crack
1	123456	< 1 second
2	password	< 1 second
3	123456789	< 1 second
4	guest	< 1 second
5	qwerty	< 1 second

These aren’t just personal passwords — they show up in employee accounts, admin panels, and even cloud services.

🔎 Verizon’s 2023 Data Breach Investigations Report (DBIR) found that:

• 83% of breaches involved external actors

• 49% included credential data

• 74% involved the human element, including password misuse

That means your weakest password could be your biggest threat.

Why People Still Use Terrible Passwords

Despite years of awareness campaigns, the psychology behind weak password use hasn’t changed:

1. Cognitive overload: Americans juggle over 100 online accounts per person. It’s exhausting.

2. “It won’t happen to me” mindset: Small business owners think they're not targets.

3. Bad default setups: Devices and services often start with generic passwords like "admin" or "1234."

4. No enforced policy: Many SMBs lack password standards or employee training.

   
   

Real-World Example: SolarWinds Breach (U.S.)

One of the most sophisticated breaches in U.S. history — the SolarWinds hack — was linked to a leaked password:

“solarwinds123” used for an internal update server.

Hackers used this simple entry point to inject malware that affected U.S. federal agencies, Microsoft, and Fortune 500 companies.

How Hackers Exploit Weak Passwords

Let’s break down how attackers weaponize bad password hygiene:

1. Credential Stuffing

They take leaked email-password pairs from past breaches and try them across popular services like:

• Microsoft 365

• QuickBooks

• Slack

• Shopify

2. Brute Force Attacks

They use automated bots to guess passwords by running thousands of combinations per second.

3. Dictionary Attacks

The bot goes through a list of the most commonly used passwords — guess what’s at the top?

4. Phishing

Even a good password is worthless if the user is tricked into typing it into a fake login page.

U.S. Laws and Compliance Pressure

Weak password protection can also put your business on the wrong side of the law. Depending on your industry, you might be violating:

• CCPA (California Consumer Privacy Act) – requires "reasonable security" for personal data

• HIPAA (Health Insurance Portability and Accountability Act) – mandates access controls for patient data

• GLBA (Gramm-Leach-Bliley Act) – financial institutions must safeguard customer info

• FTC’s Safeguards Rule – updated in 2023 to apply to more small businesses

🧨 A data breach due to a weak password could result in:

• Fines

• Lawsuits

• Reputation damage

• Revoked business licenses in some states

What Strong Passwords Look Like

A strong password is:

• At least 12–16 characters

• Uses uppercase, lowercase, numbers, and symbols

• Doesn’t include dictionary words, names, or patterns

• Unique for every site/account

• 
  

Example:❌ Bad: Admin2024✅ Good: u7$T!pK3#F92&xL

Best Practices for U.S. Businesses

Here’s how American small businesses can level up their password protection:

1. Use a Password Manager Tools like 1Password, Bitwarden, or Keeper store and autofill secure passwords.

2. Enforce Two-Factor Authentication (2FA)Across all employee accounts, especially:

   • Email

   • Cloud storage

   • Admin panels

   • Accounting software

3. Regularly Audit Employee PasswordsConduct quarterly checks. Ensure nobody is reusing or storing passwords in unsafe places.

4. Ban Weak Passwords Use filtering tools to block common passwords from being set.

5. Have a Breach Recovery PlanKnow exactly what to do if credentials leak — who to notify, how to rotate access, etc.

   
   

U.S. Business Case Study: SMB Gets Hit

In 2022, a small real estate firm in Florida had its entire Google Workspace hijacked due to an employee using 12345678 for their Gmail account.

Result:

• Thousands of contacts spammed

• Internal documents leaked

• $12,000 in legal fees

• Clients lost trust

The root cause? One weak password — and no 2FA.

Password Policy Checklist (ZentraSec)

Here’s a free mini checklist you can implement today:

•  All passwords are at least 12 characters long

•  Passwords include numbers, symbols, upper/lowercase

•  Employees use a password manager

•  2FA is enabled on all accounts

•  No shared accounts without MFA

•  Passwords are changed after employee turnover

•  Regular phishing training is done quarterly

✅ Want this as a PDF template? Just ask — we’ll send it!

Final Thought

“123456” isn’t just a joke — it’s a business risk.It’s the reason why cybercriminals keep winning.

If you're running a business in the U.S., especially in a regulated sector, password security is no longer optional — it’s compliance.

Want help building a secure password strategy?👉 Schedule your free Cybersecurity Diagnostic Call