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According to this list it was used figuratively by Jane Austen, who I believe died more than 200 years ago. That page also claims the earliest known use is 1769, so it’s probably less than 300 years in writing? It’s moot either way, if you’re going for an etymological argument you could go further and say literally should mean anything to do with letters or writing, from the original Latin literalis/litteralis “of or belonging to letters or writing”.
Your security is only as good as the weakest link, which is usually people. If your password policy encourages users to stick a note to their screen then your weakest link is anyone in the office deciding to take a selfie or joining a call with their camera on. Best practices balance security with what users are actually willing to do.