Passwords should be complex and difficult to guess, but that makes them difficult to remember, so what about using password managers to get around that problem? Are password managers safe and secure? Are they better than attempting to remember passwords for every one of your accounts?

First of all, it is worth considering that most people have a great deal of passwords to remember – email accounts (work and personal), social media accounts, bank accounts, retail sites, and just about every other online service. If you rarely venture online and do not make online purchases, that means you will need to learn a handful of passwords (and change them regularly!).

Most people will have many passwords. Far too many to remember. That means people tend to choose easy to remember – and easy to guess – passwords and tend to reuse passwords on multiple sites.

These poor security practices are a recipe for disaster. In the case of password reuse, if one password is guessed, multiple accounts can be compromised. So, are password managers safe? If that is the alternative, then most definitely.

With a password manager you can generate a strong and impossible to remember password for every online account. That makes each of those accounts more secure. Emmanuel Schalit, CEO of Dashline, a popular password manager, said, “Sometimes, it’s better to put all your eggs in the same basket if that basket is more secure than the one you would be able to build on your own.”

That does mean that if the server used by the password manager company is hacked, you do stand to lose all of your passwords. Bear in mind that no server can ever be 100% secure. There have been hacks of password manager servers and vulnerabilities have been discovered (see below). Password managers are not risk-free. Fortunately, password managers encrypt passwords, so even if a server is compromised, it would be unlikely that all of your passwords would be revealed.

That said, you will need to set a master password to access your password manager. Since you are essentially replacing all of your unique passwords with a single password, if the master password is guessed, then your account can be accessed and with it, all of your passwords. To keep password managers safe and secure, it is important to use a strong and complex password for your account – preferably a passphrase of upwards of 12 characters and you should change that password every three months.

If you use a cloud-based password manager, it is possible that when that service goes down, you will not be able to access your own account. Fortunately, downtime is rare, and it would still be possible to reset your passwords. You could also consider keeping a local copy of your passwords and encrypting that file. In a worst-case scenario, such as the password manager company going bust, you would always have a copy. Some services will also allow you to sync your encrypted backups with the service to ensure local copies are kept up to date.

Flaws Discovered in Password Managers

Tavis Ormandy, a renowned researcher from the Google Project Zero team, recently discovered a flaw in Keeper Password Manager that could potentially be exploited to gain access to a user’s entire vault of stored passwords. The Keeper Password Manager flaw could not be exploited remotely without any user interaction. However, if the user was lured onto a specially crafted website while logged into their password manager, the attacker could inject malicious code to execute privileged code in the browser extension and gain access to the account. Fortunately, when Keeper was alerted to the flaw, it was rapidly addressed before the flaw could be exploited.

Last year Ormandy also discovered a flaw in LastPass, one of the most popular password managers. Similarly, that flaw could be exploited by luring the user to a specially crafted webpage via a phishing email. Similarly, that flaw was rapidly addressed. The LastPass server was also hacked the year before, with the attackers gaining access to some users’ information. LastPass reports that while it was hacked, users’ passwords were not revealed.

These flaws do go to show that while password managers are safe, vulnerabilities may exist, and even a password manager can potentially be hacked.

Are Password Managers Safe to Use?

So, are password managers safe? They can be, but as with any other software, vulnerabilities may exist that can leave your passwords exposed. It is therefore essential to ensure that password manager extensions/software are kept up to date, as is the case with all other software and operating systems.

Security is only as good as the weakest link, so while your password manager is safe, you will need to use a complex master password to prevent unauthorized individuals from accessing your password manager account. If that password is weak and easily guessable, it will be vulnerable to a brute force attack.

In addition to a complex master password, you should take some additional precautions. It would be wise not to use your password manager to save the password to your bank account. You should use two-factor authentication so if a new device attempts to connect to any of your online accounts, you will receive an alert on your trusted device or via email.

As an additional protection, businesses that allow the use of password managers should consider implementing a web filtering solution that prevents users from visiting known malicious websites where vulnerabilities could be exploited. By restricting access to certain categories of website, or whitelists of allowable sites, the risk of web-based attacks can be reduced to a low and acceptable level.

Password managers should also be used with other security solutions that provide visibility into who is accessing resources. Identity and access management solutions will help IT managers determine when accounts have been breached, and will raise flags when anomalous activity is detected.