The second and also important part: Password strategies to avoid
Some common methods used to create passwords are easy to guess by criminals. To avoid weak, easy-to-guess passwords:
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Avoid sequences or repeated characters. "12345678," "222222," "abcdefg," or adjacent letters on your keyboard do not help make secure passwords.
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Avoid using only look-alike substitutions of numbers or symbols. Criminals and other malicious users who know enough to try and crack your password will not be fooled by common look-alike replacements, such as to replace an 'i' with a '1' or an 'a' with '@' as in "M1cr0$0ft" or "P@ssw0rd". But these substitutions can be effective when combined with other measures, such as length, misspellings, or variations in case, to improve the strength of your password.
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Avoid your login name. Any part of your name, birthday, social security number, or similar information for your loved ones constitutes a bad password choice. This is one of the first things criminals will try.
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Avoid dictionary words in any language. Criminals use sophisticated tools that can rapidly guess passwords that are based on words in multiple dictionaries, including words spelled backwards, common misspellings, and substitutions. This includes all sorts of profanity and any word you would not say in front of your children.
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Use more than one password everywhere. If any one of the computers or online systems using this password is compromised, all of your other information protected by that password should be considered compromised as well. It is critical to use different passwords for different systems.
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Avoid using online storage. If malicious users find these passwords stored online or on a networked computer, they have access to all your information.
The "blank password" option
A blank password (no password at all) on your account is more secure than a weak password such as "1234". Criminals can easily guess a simplistic password, but on computers using Windows XP, an account without a password cannot be accessed remotely by means such as a network or the Internet. You can elect to use a blank password on your computer account if these criteria are met:
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You only have one computer or you have several computers but you do not need to access information on one computer from another one
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The computer is physically secure (you trust everyone who has physical access to the computer)
The use of a blank password is not always a good idea. For example, a laptop computer that you take with you is probably not physically secure, so on those you should have a strong password.
How to access and change your passwords
Online accounts
Web sites have a variety of policies that govern how you can access your account and change your password. Look for a link (such as "my account") somewhere on the site's home page that goes to a special area of the site that allows password and account management.
Computer passwords
The Help files for your computer operating system will usually provide information about how to create, modify, and access password-protected user accounts, as well as how to require password protection upon startup of your computer. You can also try to find this information online at the software manufacturer's Web site.
Keep your passwords secret
Treat your passwords and pass phrases with as much care as the information that they protect.
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Don't reveal them to others. Keep your passwords hidden from friends or family members (especially children) who could pass them on to other less trustworthy individuals. Passwords that you need to share with others, such as the password to your online banking account that you might share with your spouse, are the only exceptions.
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Protect any recorded passwords. Be careful where you store the passwords that you record or write down. Do not leave these records of your passwords anywhere that you would not leave the information that they protect.
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Never provide your password over e-mail or based on an e-mail request. Any e-mail that requests your password or requests that you to go to a Web site to verify your password is almost certainly a fraud. This includes requests from a trusted company or individual. E-mail can be intercepted in transit, and e-mail that requests information might not be from the sender it claims. Internet "phishing" scams use fraudulent e-mail messages to entice you into revealing your user names and passwords, steal your identity, and more.
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Change your passwords regularly. This can help keep criminals and other malicious users unaware. The strength of your password will help keep it good for a longer time. A password that is shorter than 8 characters should be considered only good for a week or so, while a password that is 14 characters or longer (and follows the other rules outlined above) can be good for several years.
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Do not type passwords on computers that you do not control. Computers such as those in Internet cafés, computer labs, shared systems, kiosk systems, conferences, and airport lounges should be considered unsafe for any personal use other than anonymous Internet browsing. Do not use these computers to check online e-mail, chat rooms, bank balances, business mail, or any other account that requires a user name and password. Criminals can purchase keystroke logging devices for very little money and they take only a few moments to install. These devices let malicious users harvest all the information typed on a computer from across the Internet—your passwords and pass phrases are worth as much as the information that they protect.
What to do if your password is stolen
Be sure to monitor all the information you protect with your passwords, such as your monthly financial statements, credit reports, online shopping accounts, and so on. Strong, memorable passwords can help protect you against fraud and identity theft, but there are no guarantees. No matter how strong your password is, if someone breaks into the system that stores it, they will have your password. If you notice any suspicious activity that could indicate that someone has accessed your information, notify authorities as quickly as you can.
Good passwords are:
- unique. Do not use a password you already use for another account, such as your bank account PIN.
- difficult to guess. Don't use common words or names.
- at least 7-characters long.
- made up of both lower and upper-case letters, numbers, and symbols.
Bad passwords include:
- a complete word from any dictionary (English or other);
- your login name in any form (as is, reversed, capitalized, doubled, etc.);
- common names, such as the names of family members, pets, or friends;
- based on any information easily obtained about you (e.g., license plate numbers, telephone numbers, employer, school name, automobile brand, street name, etc.);
- all the same digit or letter (this significantly decreases the search time for password cracking software);
- any obvious sequence of characters (e.g., 123456);
- obvious to anyone watching you enter them (such as "qwerty").
Info from microsoft and yahoo!. Edited by jac006.