What is secrets management? Best practices for IT security
Imagine the consequences of a stolen password or leaked API key—it could lead to unauthorized access, data breaches, or even financial loss. This is why secrets management is no longer just an option; it’s a necessity. But what exactly does it entail?
In this blog, we’ll explore the ins and outs of secrets management, including its importance, best practices, and how it fortifies your organization’s IT security.
The basics of secrets management
This article is split into two parts: The basics, which offers a simple introduction to secrets management, and beyond the basics, a deep dive into technical details and advanced practices. If you’re already familiar with the fundamentals, feel free to skip ahead to the second part for a more detailed exploration.
What is secrets management?
Secrets management is the process of securely storing and controlling access to sensitive information like passwords, API keys, and tokens.
Imagine it like a digital vault where you keep your most valuable items. Just as you wouldn’t leave your keys or important documents lying around, secrets management ensures that only authorized users or systems can access critical information, keeping your organization secure.
By using this system, businesses ensure their sensitive data is protected from unauthorized access and potential threats.

Why is secrets management important?
Managing secrets is really important because, if we don’t, sensitive information can fall into the wrong hands. This can lead to things like data breaches or people accessing systems they shouldn’t. For example, if a hacker gets hold of an API key or password, they could use it to steal data, mess with systems, or cause a lot of trouble.
Here are some types of sensitive information that need extra care:
- API keys: These let apps talk to each other. If someone steals an API key, they could control things like cloud services or other critical software.
- Passwords: These protect user accounts. If a password is exposed or stolen, it can give hackers easy access to important data.
- Tokens: These are used to verify users or apps. If someone steals a token, they could pretend to be someone else and access secure systems.
- Encryption keys: These are used to keep data private. If someone gets these, they could read messages or data meant to be kept secret.
Without good secrets management, these types of information are at risk, which can lead to major problems like stolen data or financial losses.
How does secrets management work?
Secrets management involves a range of tools and practices designed to securely store and control access to sensitive information. Here’s how it works in simple terms:
- Centralized storage: Secrets are stored in a secure, centralized repository with strict access controls.
- Encryption: All secrets are encrypted both in transit using TLS and at rest using strong encryption methods like AES-256.
- Access control: Fine-grained Identity and Access Management (IAM) roles and permissions are used to provide granular access to specific secrets.
- Authentication: All access requests using non-human credentials are authenticated.
- Principle of least privilege: Access is granted only to the minimum necessary secrets required for a specific task.
- Rotation: Secrets are changed on a regular schedule to reduce the risk of compromise.
- Versioning: Multiple versions of secrets are maintained to enable rollback and recovery if needed.
- Auditing: Comprehensive logs are maintained to track all access and changes to secrets.
- Automation: The secrets management process is automated to remove human error and eliminate hard-coded secrets.
- Replication: Secrets can be replicated across multiple regions for high availability and disaster recovery.
By using these practices together, secrets management helps ensure that sensitive information is protected and only accessible to those who need it. This minimizes the risk of data breaches and other security issues.
Common challenges in secrets management
- Hardcoded credentials in code: One of the biggest security risks comes from developers embedding passwords or API keys directly into their code. This is known as hardcoding, and it can leave sensitive information exposed if the code is shared or accessed by unauthorized users.
For example, if a developer shares a codebase without removing hardcoded credentials, malicious actors could easily exploit it. It’s essential to keep these credentials out of the code and use secure vaults or environment variables instead.
- Unauthorized sharing of sensitive information: Another challenge is when sensitive data, like passwords or tokens, are shared improperly—whether through emails, text messages, or unsecured channels. This creates an opportunity for hackers to intercept and misuse this information. To avoid this, organizations need clear policies on how secrets are shared and ensure that proper encryption and access controls are in place to prevent unauthorized access.
APIs are essential for secure secret management. Discover more about API security and its role in safeguarding sensitive information.
Beyond the basics of secrets management
Now that we’ve covered the basics, let’s dive deeper into the more technical aspects of secrets management. In this section, we’ll explore advanced concepts like secret encryption algorithms, access control models, and automated secret rotation practices.
Key components of secrets management
In this section, we’ll explore the core components that make up a robust secrets management system. These include encryption techniques, access control mechanisms, and the practice of secrets rotation, which work together to keep sensitive information safe. Here’s how each of these components contributes to securing your secrets.
Encryption and decryption: Secure storage
Encryption converts sensitive data (like passwords or API keys) into unreadable code using algorithms like AES-256 or RSA. This ensures that even if unauthorized access occurs, the data remains secure. The keys used for encryption must also be stored safely and rotated regularly to prevent exposure.
Access control mechanisms: RBAC and permissions
Role-based access control (RBAC) assigns access based on roles, ensuring only authorized entities can access specific secrets. Fine-grained permissions allow stricter control, specifying conditions like time or location for access. Tools like HashiCorp Vault use policies to enforce these access controls.
Discover how Role-Based Access Control (RBAC) plays a crucial role in enhancing RMM security.
Secrets rotation: Automating updates
Regularly rotating secrets (passwords, keys) reduce the risk of long-term exposure. Automated secret rotation ensures credentials are updated without manual intervention and dynamic secrets—temporary, session-based credentials—add another layer of security. This limits the potential damage from a compromised key.
By integrating encryption, access controls, and automated rotation, secrets management ensures sensitive data stays protected and minimizes security risks.
Threats to secrets management
Secrets management, while essential for securing sensitive data, faces several threats that can undermine its effectiveness. These threats range from internal risks to external attacks, often exploiting poor practices in handling sensitive information.
1. Insider threats and compromised credentials
One of the most significant risks in secrets management comes from insider threats. These are threats posed by individuals within the organization, such as employees, contractors, or trusted partners. They might have access to critical secrets but could intentionally or unintentionally misuse them. For example, an employee could leak sensitive API keys, passwords, or other secrets to unauthorized individuals or share them on insecure platforms.
Compromised credentials are another major threat. If an attacker gains access to valid credentials, they can exploit them to gain access to systems, steal data, or disrupt operations. Credential compromise can happen through phishing, social engineering, or brute-force attacks. Once an attacker has valid credentials, managing the risk of unauthorized access becomes significantly more challenging.
2. Real-world examples of breaches caused by poor secrets management
One infamous example is the GitHub leaks, where hardcoded secrets like API keys were accidentally pushed to public repositories. In many cases, developers forget to remove sensitive data before pushing their code to GitHub, exposing secrets that can be exploited by attackers. For instance, in 2020, a significant GitHub security incident occurred when attackers used publicly available API keys to gain unauthorized access to cloud services, resulting in data breaches and service disruptions.
Another example involves Tesla, where an employee misused internal credentials to carry out malicious actions. The insider threat, in this case, involved mismanagement of API keys that granted access to critical systems, which were used for unethical purposes, illustrating the need for tighter secrets management policies and practices.
These examples underscore the importance of not only properly securing and rotating credentials but also using encryption and access control measures to minimize the risk posed by both insiders and compromised credentials.
Integrating secrets management with CI/CD pipelines
Integrating secrets management into Continuous Integration/Continuous Deployment (CI/CD) pipelines is critical for securing sensitive information while automating deployment processes. Without proper handling, sensitive data can be exposed, leading to security vulnerabilities.
1. How secrets are injected securely during deployment
In modern CI/CD workflows, secrets are often injected into the pipeline during deployment using secure tools and methods. The most common approach is to store secrets in a dedicated secrets management tool (like HashiCorp Vault, AWS Secrets Manager, or Azure Key Vault). These tools allow secrets to be securely accessed during the pipeline’s execution and injected into the environment without exposing them in the codebase.
For example, during deployment, secrets can be fetched securely and made available to the application through environment variables or directly within the application configuration, ensuring that the secrets are only exposed to the application runtime and not stored or logged by the CI/CD tool itself.
2. Avoiding pitfalls in DevOps workflows
A major pitfall in DevOps workflows is the improper handling of secrets in places like environment variables or code repositories. While environment variables are often used to store credentials during deployment, they can inadvertently be exposed through logs or error messages if not configured properly.
Using cleartext secrets in environment variables or placing them in Git repositories (e.g., in .env files or directly in code) can lead to unintended disclosure, which is exactly what happened in the GitHub leaks where hardcoded API keys were exposed.
To mitigate this risk, organizations should enforce best practices like:
- Using secrets management tools that integrate with CI/CD pipelines to securely fetch and inject secrets during deployment.
- Environment variable masking in CI/CD tools to prevent the accidental logging of secrets.
- Ensuring secrets are not stored in version control systems and implementing scanning tools to check for exposed secrets in code repositories.
Additionally, secrets should be rotated regularly and follow the principle of least privilege, ensuring that only the necessary services or users have access to the required secrets.
By securely managing secrets during the CI/CD process and avoiding common pitfalls, organizations can minimize the risk of exposing sensitive information during software development and deployment.
Compliance and regulatory requirements
Secrets management plays a crucial role in helping organizations meet regulatory requirements like GDPR, HIPAA, and PCI-DSS. By securely storing and managing sensitive data, businesses can ensure they are compliant with laws that govern how personal and financial data should be protected.
1. How secrets management helps achieve compliance
For compliance with GDPR (General Data Protection Regulation), HIPAA (Health Insurance Portability and Accountability Act), and PCI-DSS (Payment Card Industry Data Security Standard), organizations must protect sensitive data from unauthorized access and exposure.
Secrets management tools help organizations:
- Encrypt sensitive data such as passwords, API keys, and tokens to ensure they are unreadable if intercepted.
- Implement access control mechanisms, allowing only authorized personnel or systems to access sensitive information.
- Enforce audit logs and monitoring to track access to secrets and detect any unauthorized activity.
For example, GDPR mandates that personally identifiable information (PII) be protected and that access to PII is strictly controlled, while HIPAA requires strict control of healthcare data.
Similarly, PCI-DSS outlines specific encryption and access control standards for payment card data. Secrets management tools help companies comply with these regulations by automating secure storage and providing tools to enforce strong access control policies.
2. Auditing and monitoring access to sensitive data
Regulatory frameworks require not only secure storage and access, but also auditing and monitoring of sensitive data. Secrets management solutions often include built-in auditing features, tracking every access and modification of secrets. These logs help companies demonstrate compliance with regulatory requirements, as well as identify potential security risks.
For instance:
- GDPR requires organizations to document all instances where personal data is accessed and processed. Secrets management tools help achieve this by providing a detailed audit trail of who accessed what data and when.
- HIPAA requires healthcare providers to implement stringent access controls and audits for any protected health information (PHI). Secrets management systems can automate access logging to ensure compliance with these standards.
- PCI-DSS requires monitoring and logging of all access to credit card information. Secrets management solutions help ensure this data is protected and access is properly logged for audits.
By providing secure storage, access control, and audit capabilities, secrets management tools ensure organizations can maintain compliance with critical regulations, reducing the risk of costly breaches and legal issues.
Atera has security compliance for GDPR, HIPPA, and PCI-DSS!
The future of secrets management
As we look to the future, secrets management is evolving to meet the increasing complexity of modern cybersecurity challenges. New technologies like AI and machine learning (ML) are becoming key players in enhancing secrets management practices.
These technologies can help detect anomalies in secret usage, flagging suspicious activity before it leads to security breaches. For example, AI could monitor how secrets are accessed and identify patterns that deviate from the norm, allowing for faster detection of unauthorized access.
Another area of development is post-quantum cryptography. With quantum computers on the horizon, traditional encryption methods that protect sensitive secrets could become vulnerable. In response, researchers are exploring quantum-resistant encryption algorithms to ensure secrets remain secure in a post-quantum world. These advancements are crucial for ensuring that secrets management not only meets today’s security needs but also stays ahead of emerging threats in the future.
By integrating AI for smarter threat detection and preparing for the quantum computing era, the future of secrets management looks more robust and adaptable, providing enhanced protection for sensitive data in an increasingly complex digital landscape.
Atera offers Agentic AI and has several features that can assist with secrets management and overall security:
- Multi-factor authentication (MFA) is available to enhance account security by adding an extra layer of protection beyond passwords.
- Role-based access control (RBAC) allows customer account administrators to easily manage user permissions, ensuring that access to sensitive information is restricted based on roles.
- Secure transmission and sessions are implemented using SSL/TLS cryptographic protocols, ensuring encrypted connections between users’ browsers and Atera’s service.
- Agent security is maintained through unique keys assigned to each deployed agent, which are used for authentication and secure communications.
- Real-time monitoring and alerts help detect any suspicious activity or potential security issues quickly.
- Network discovery performs regular scans to detect unauthorized devices and prevent potential security risks.
- Automated backups protect endpoint data in case of security incidents like data breaches or ransomware attacks.
In conclusion, effective secrets management is crucial for safeguarding sensitive information in today’s digital landscape. By leveraging robust solutions like Atera, organizations can enhance their security posture through features such as multi-factor authentication, role-based access control, and real-time monitoring.
These tools not only streamline the management of secrets but also help mitigate risks associated with unauthorized access and data breaches. As businesses continue to evolve and adapt to new challenges, prioritizing secrets management will be essential in ensuring the integrity and confidentiality of critical data. Embracing these best practices will empower organizations to operate securely and confidently in an increasingly interconnected world.