What is a password manager?

Learn how to create strong, unique passwords and discover how a password manager can help protect your online accounts and boost your cybersecurity.

11-03-2022 - 8 minute read. Posted in: cybercrime.

What is a password manager?

What is a password manager and why you need one

We use passwords every day on our computers, smartphones, and tablets, making effective password management crucial for protecting our accounts and personal data. They act as digital keys that protect our accounts and personal data. But as cyber threats grow more advanced, weak and reused passwords are no longer enough. That’s why it’s important to understand what is a password manager and how it can help you stay secure online.

The problem with passwords

Passwords are meant to keep your personal information safe. But many people still use weak and predictable passwords like:

  • 123456

  • password

  • qwerty

  • iloveyou

These passwords can be cracked in seconds using automated tools. Even slightly stronger passwords like Summer2024! or Welcome1! are no longer secure. If you reuse passwords across multiple accounts, a single data breach can compromise everything from your email to your online banking.

Hackers can also get your login information through data leaks. Even though the passwords are encrypted (hashed), attackers can often break these encryptions.

Why strong passwords matter

A strong password should be:

  • Long

  • Complex

  • Unique

The longer and more random the password, the harder it is to crack. For example, T8k!s#R@1nB0w is much stronger than Summer2024!. A good rule is to use at least 12 characters with a mix of uppercase and lowercase letters, numbers and special characters.

Avoid:

  • Reusing passwords. A reused password can lead to multiple accounts being compromised if one site is breached.

  • Creating password variations like Moxso20, Moxso30, etc.

  • Using names, birthdays or personal info

How to remember complex passwords

Creating long and unique passwords for every account is ideal but hard to remember. One method is to use acronyms based on made-up phrases:

  • Hackers use vulnerabilities → HuV

  • Disasters disable titans → DdT

  • Many observe X-factor super often → MOXSO

Just make sure your phrases aren’t personally related to you, as hackers can gather personal info from social media or Google.

What is a password manager

A password manager is a secure tool that generates, stores and fills in your passwords for you. Instead of remembering dozens of login details, you only need to remember one master password. This master password unlocks your password manager, which handles the rest.

When you visit a website and need to log in, your password manager securely enters your saved username and password for you. This makes logging in faster and safer. It also means you no longer need to use weak or repeated passwords.

It creates secure, one-of-a-kind passwords for your online accounts and keeps them safely stored in an encrypted digital vault. Password vaults securely store all your passwords, ensuring they are protected from unauthorized access.

Password managers protect your saved credentials using strong encryption methods like AES-256, ensuring that everything stored in your vault remains secure and inaccessible to others.

How password managers work

A password manager is a tool that helps you safely organize and protect your login details. It generates powerful, individualized passwords for your accounts and keeps them protected in a securely encrypted storage system. The beauty of a password manager is that you only need to remember one master password to access your entire vault. When you log in to a website or app, the password manager auto-fills your credentials, making it effortless to access your online accounts.

Password managers secure your passwords by applying robust encryption techniques, including standards like AES-256, to keep your data safe from unauthorized access.

They also employ secure protocols like HTTPS to communicate with their servers, ensuring that your passwords are safe from hackers and unauthorized access. This combination of strong encryption and secure communication means your stored passwords are well-protected.

What a password manager can do

  • Create strong, unique passwords for every account

  • Securely store your credentials

  • Autofill login details on websites and apps

  • Alert you to data breaches

  • Protect you from phishing

  • Support two-factor authentication for extra security

Types of password managers

There are two main types of password managers you can choose from: These include cloud-based password managers, which store your passwords online for easy access from any device, and locally installed password managers, which store your passwords directly on your device for enhanced privacy.

Browser-based password managers

These are built into browsers like Chrome, Firefox, Safari and Edge. They store your passwords and suggest strong ones. However, they often save your data locally and not securely enough, making them a weaker option.

Dedicated password managers

These are standalone apps built for maximum security. Popular options include:

  • 1Password

  • LastPass

  • KeePass

  • Dashlane

Dedicated password managers store your encrypted passwords in the cloud, so you can access them from multiple devices. Even if someone accesses your vault, the data is still encrypted and hard to decrypt.

Some password managers also prevent phishing by checking the URL of a site. If the URL doesn’t match the one stored in your vault, it won’t autofill your login details.

Why you should start using a password manager

Managing dozens of secure passwords is almost impossible without help. Passwords managers make it simple, fast, and secure to manage your online credentials. They protect you from weak password habits, phishing attacks, and data breaches.

So the next time you wonder what is a password manager, think of it as your digital keychain that locks down your online life and keeps it safe from hackers.

Benefits of using a password manager

Using a password manager offers several significant benefits:

  • Improved password security: Password managers generate strong, unique passwords for each online account, drastically reducing the risk of data breaches and identity theft. Explore how identity theft happens and how to protect yourself.

  • Convenience: With a password manager, you no longer need to remember multiple passwords. It auto-fills your credentials, making it easy to access your online accounts.

  • Time-saving: Forget the frustration of trying to recall passwords. Password managers save you time by storing all your passwords in one secure location.

  • Organization: Password managers keep all your passwords organized in one place, making it simple to manage your online accounts.

By using a password manager, you can enhance your online security while enjoying the convenience of having all your passwords at your fingertips.

Security features

Password managers come equipped with several robust security features to protect your passwords:

These features provide an extra layer of security, ensuring that your stored passwords remain protected from unauthorized access.

Getting started with a password manager

Getting started with a password manager is straightforward. Follow these steps:

  1. Choose a password manager: Research and select a reputable password manager that meets your needs.

  2. Create an account: Sign up for an account with the password manager and set up your master password.

  3. Download the app: Install the password manager app on your device.

  4. Import your passwords: Import your existing passwords into the password manager.

  5. Start using the password manager: Use the tool to create and save secure, individual passwords for all your online accounts.

By following these steps, you can quickly and easily start using a password manager to enhance your online security.

Managing critical accounts

Password managers can help you manage critical accounts, such as:

  • Financial accounts: Generate and store strong, unique passwords for your financial accounts, such as online banking and investment accounts, to protect against unauthorized access.

  • Email accounts: Secure your email accounts with strong, unique passwords, reducing the risk of email hacking and identity theft.

  • Social media accounts: Protect your social media accounts with strong, unique passwords, minimizing the risk of social media hacking and identity theft.

By using a password manager to manage your critical accounts, you can significantly reduce the risk of data breaches and identity theft, ensuring your online identity remains secure.

Pro tip

Always enable two-factor authentication on your password manager. It enhances your security by asking for both your master password and a verification code sent to your mobile device.

This post has been updated on 09-04-2025 by Sarah Krarup.

Author Sarah Krarup

Sarah Krarup

Sarah studies innovation and entrepreneurship with a deep interest in IT and how cybersecurity impacts businesses and individuals. She has extensive experience in copywriting and is dedicated to making cybersecurity information accessible and engaging for everyone.

View all posts by Sarah Krarup

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