Of late, cyber-criminal activities across the globe have assumed such grave proportions that all enterprises - big and small, are exposed to security breaches and identity thefts of various kinds. Many sabotage were found to have been caused by the insiders of the enterprises - either disgruntled staff or greedy techies or sacked employees. As stolen identities seem to have served as the ‘hacking channel’ for many cyber-crimes, improper management of the administrative passwords is believed to be at the root of a good number of security threats. This paper discusses the causes of security incidents in detail and suggests ways to effectively tackle the challenge.