In keeping with the theme of the previous post, I was recently asked by Tyler Dukes of The News & Observer, who writes the biweekly “Stump the Geeks” column, to comment on issues with choosing good passwords. Here’s a link to the article below:

http://www.newsobserver.com/2012/03/19/1935703/passwords-are-still-securitys.html#storylink=misearch
Due to space considerations, a lot of what I wrote didn’t make it past the editor’s knife so I’m posting here my larger response so you can see what didn’t make the paper and, hopefully, get a better sense of my thinking in this area…
Ideally you would want each password to be chosen randomly and comprised of a mixture of upper and lower case characters along with a few numbers and special characters like *!%$ thrown in for good measure. Also it is best not to also use same password on any other system so that if it does become compromised, the damage is limited. Finally, it should be changed at regular intervals such as every 90, 180 or 365 days, depending upon the risk involved with the information being protected.
All this is to make the password hard to guess. The problem is that things that are hard to guess often tend to be hard to remember, which is people naturally bristle at such guidance.
I think the best compromise is to use password storage or single sign-on software. These tools can generate strong, random passwords that are unique for each system they will be used to log into and only require the user to remember a single password to unlock the password storage “vault.” I have literally hundreds of passwords — all unique and none that I actually know, but with tools like these I only need to keep up with the one password that unlocks the tool and it keeps up with the rest.
IBM sells a product called Tivoli Access Manager for Enterprise Single Sign-On that I work with that is designed to do this for an entire organization’s user population. There are consumer products as well that are both free and fee-based. One nice freebie that I have used is Password Safe, which is an open source tool available from SourceForge.net. Still other tools offer to save your passwords on a shared system (i.e. in the cloud), which is convenient if you need them to be available across multiple systems. Just bear in mind that when you store your passwords on someone else’s system then you are totally at the mercy of how good a job they do with their security and, in most cases, there is no way for you to verify if their claims of using strong encryption and the like are valid or not.
As with all such decisions, there’s a trade-off between security and convenience and the answer will be different for different people depending upon their tolerance for risk and their understanding (or lack thereof) of that risk.