Password Security for Australian Organisations: Building a Resilient Credential Strategy

Summary

Credentials – the combination of usernames and passwords – remain among the simplest yet most exploited attack vectors in Australian organisations. According to the Office of the Australian Information Commissioner (OAIC) the majority of reported cyber incidents in 2023–24 started with compromised credentials. BankInfoSecurity That trend underscores the need for a robust Password Security / credential strategy anchored in strong passwords or passphrases, password-manager adoption, multi-factor authentication (MFA), and ongoing monitoring. This article presents a four-pillar framework tailored for Australian organisations (SMBs and enterprises) and maps implementation steps, metrics, common pitfalls and a decision framework for action. It is vendor-neutral, anchored in local guidance from the Australian Cyber Security Centre (ACSC) and aligned to global standards such as NIST SP 800‑63B and ISO/IEC 27001.

The Importance of Credential / Password Security

The state of credential-related breaches

Credential-based attacks are no longer edge cases. The OAIC reports that compromised or stolen credentials accounted for a majority of incidents in Australia in late 2023. BankInfoSecurity Moreover, more than 31,000 banking credentials belonging to Australians were discovered circulating on the dark web in 2025, exposing banking accounts to takeover risk. International Business Times Australia In 2024 the OAIC also logged 1,113 data-breach notifications (a 25 % increase over 2023). OAIC
These data points illustrate that password security weakness is a systemic risk.

Credential reuse, phishing & credential stuffing

Attackers exploit simple human behaviours: reuse of passwords across systems, weak or default passwords, absence of MFA, and social-engineering that tricks users into disclosing credentials. For example, the ACSC emphasises passphrases where MFA is unavailable. Cyber.gov.au Furthermore, global data shows that 94 % of users reuse passwords across multiple accounts and that brute-force or credential-stuffing attacks account for a large share of intrusions.

For Australian organisations, the implication is clear: credentials represent both the first line of defence and one of the weakest points in the chain.

Australian Credential Guidance and Frameworks

ACSC / ASD recommendations on passphrases, MFA and reuse

The ACSC recommends:

• Use MFA on all high-value accounts (remote access, privileged accounts, external-facing systems). Cyber.gov.au
• Where MFA cannot be implemented, use long, random passphrases composed of four or more unrelated words (at least 15 characters) rather than short complex passwords. Cyber.gov.au
• Enforce unique credentials per account, avoid reuse across systems, and use password-manager tools for storage. Cyber.gov.au

Relevant standards and their relevance for Australia

Though not mandatory for all organisations, guidance from NIST SP 800-63B and ISO/IEC 27001 offers useful controls for credential security that map well to Australian risk-profiles. For example:

• NIST recommends length and randomness in authentication secrets over complex character rules.
• ISO/IEC 27001 requires control over user access and credential management (control A9 “Access control”).
• The Aust­ralian Signals Directorate’s (ASD) Information Security Manual (ISM) emphasises that single-factor passwords alone are inadequate for sensitive information.
  This means for Australian organisations a control baseline might be: passphrase or strong password + MFA + unique per system + credential hygiene monitoring.

Four Pillars of a Credential Strategy

1. Strong & Unique Credentials (Passphrase vs Password)

• A “password” typically is shorter, may follow predictable patterns.
• A “passphrase” is longer (four or more unrelated words, 15+ characters), unique per account and hard to guess. The ACSC defines this clearly. Cyber.gov.au
• Passphrases outperform short complex passwords in both usability and security. Organisations should mandate unique credentials per system and reject reuse.
• Implementation tip: enforce a credential-deny list of known compromised passwords (many vendor tools support this) to augment policy.

2. Password-Manager Adoption and Corporate Policy

• A password-manager tool allows users to store, generate and synchronise long, unique credentials across services, reducing reuse and memory burden.
• Corporate policy should mandate: unique credentials per system, use of a vetted password manager, disable simple password reuse from domain credentials into consumer services.
• Benefit: improved credential hygiene, fewer support calls for resets, easier auditing.

3. Multi-Factor Authentication (MFA) & Identity Governance

• MFA is a force-multiplier: when properly deployed, it significantly raises the cost of attacker success (they need more than just username and password).
• The ISM explicitly states that single-factor (password) is inadequate for sensitive data.
• Identity governance: tiered access (least privilege), periodic review of credential-privileged accounts, logging and alerting of anomalous authentication.
• Policy: require MFA for remote/logged-in external accounts, management consoles, privileged service accounts.

4. Monitoring, Breach Detection and Credential Screening

• Implement monitoring of account behaviour (failed logins, geo anomalies, credential stuffing attempts).
• Use breach-screening tools (eg. check if corporate credentials appear in public dumps) and block those credentials in AD/SSO systems.
• Metric reporting: account lock-outs, MFA enrolment percentage, credential reuse detected, number of compromised credentials blocked.

Practical Implementation Steps for Australian Organisations

Small business approach (lighter controls)

• Step 1: Identify high-value accounts (banking, email, cloud admin)
• Step 2: Enable MFA on those accounts immediately
• Step 3: Use a password manager (approved, cloud-based) for all staff, enforce unique credentials
• Step 4: Provide basic training: passphrase creation, credential hygiene
• Step 5: Monitor a simple KPI: percentage of high-value accounts with MFA enabled, number of shared passwords discovered.

Enterprise approach (tiered controls, IAM, identity governance)

• Step 1: Map credential usage (consumer apps, cloud services, internal systems, privileged accounts)
• Step 2: Define credential policy: passphrase minimum length, deny list, no reuse across system types
• Step 3: Deploy enterprise password-manager or vault solution, integrate with SSO and IAM
• Step 4: Require MFA for all external access, sensitive systems, privileged roles
• Step 5: Implement identity governance: periodic review of accounts, privileged role segregation, logging/alerting of unusual authentication
• Step 6: Monitor KPIs: credential reuse incidents, blocked login attempts, days to revoke compromised credentials, percentage accounts with MFA.

Measuring success and maturity (KPIs, metrics)

Consider metrics such as:

• % of accounts with MFA enabled
• Number of systems using unique credentials (non-reuse)
• Number of credentials blocked/denied due to breach/deny-list
• Number of credential-based incidents (successful login with stolen credentials)
• Time to revoke or reset a credential following breach detection
  Tracking improvement quarter-on-quarter signals increasing maturity.

Common Pitfalls and How to Avoid Them

Over-complexity causing user workarounds

Mandating frequent password changes, overly complex rules (special characters, forced rotations) often encourages users to write down passwords or reuse across accounts. Organisations should favour long passphrases and uniqueness over frequent forced expiry.

Password rotation fatigue and predictable changes

Frequent rotation encourages predictable modifications (e.g. Password1!, Password2!). The ACSC guidance recommends rotation only when compromise is suspected. NGM Lawyers

Ignoring credential reuse for cloud/consumer apps

Many organisations focus on core systems but neglect user accounts in SaaS or consumer-facing applications. Attackers exploit weakest link. A robust strategy includes all account types.

Recommendations & Decision Framework

How to choose between password-only vs passphrase + MFA

• If MFA is already available and easily deployable, focus on enabling it broadly and enforce unique credentials stored in a manager.
• If MFA is not feasible for certain systems (legacy or IoT), then mandate strong passphrases (4+ random words, 15+ characters) as single factor.
• Use risk-based assessment: external-facing systems, privileged roles and high value data require MFA. Internal lower-risk systems may suffice with passphrase as single factor temporarily.

Budgeting and prioritisation (risk-based approach)

• Prioritise based on: exposure (external access), asset value (financial, reputational), threat likelihood (credential theft common).
• Allocate budget: enterprise password-manager, MFA licence, training and monitoring tools.
• Create rollout phases: Phase 1 (MFA + high-value accounts), Phase 2 (password-manager deployment), Phase 3 (full identity governance and monitoring).

When to engage a specialist

If your organisation lacks security-capability to: audit credential usage, enforce policy across hybrid cloud/legacy systems, integrate IAM controls or respond to credential-based compromises, then engage a specialist cyber-security consultancy (such as your firm’s “Identity & Access Management” service) to provide assessment, roadmap and implementation.

Useful Links and Resources

• CyberPulse Advisory Services: https://www.cyberpulse.com.au/services/
• Essential 8 Services: https://www.cyberpulse.com.au/essential-8-compliance-australia/
• Australian Cyber Security Centre – Passphrase guidance. (ACSC) – https://www.cyber.gov.au/protect-yourself/securing-your-accounts/passphrases/creating-strong-passphrases Cyber.gov.au
• Australian Cyber Security Centre – Personal Cyber Security: Next Steps guide. Cyber.gov.au
• Office of the Australian Information Commissioner – Data breach statistics. OAIC

Next Steps to Improve Password Security

• Conduct a credential audit: map all account types, check MFA coverage, identify shared or reused credentials.
• Deploy a password-manager for all staff and enforce unique credentials from day one.
• Enable MFA for all accounts accessing high-value systems or remote/privileged access.
• Establish monitoring and breach-screening: deploy compromised-password deny list, review failed login trends, train users on passphrases and phishing.
• Engage with a trusted cyber-security partner to review your credential security posture, align to Australian frameworks and optimise your identity-access management programme (link to your IAM service page here).

If you need help with your Credential / Identity Strategy, feel free to get in contact with our expert team: Contact Us