A method for managing access to application software contained on a computer system or network. The computer system utilizes an authentication component that is configured to receive a unique user account identifier and to generate an authentication passkey by using an identifying data element, typically called a “password”. The identifying data elements are collected from one or more input devices and used as an encryption key for the user account identifier. The generated authentication passkey is used in an authentication transaction associated with the application software instead of the identifying data element thereby reducing data security risks if the identifying data element alone were discovered due to other unknowns including the encryption elements.