Password Managers: Risks & How to Use Them Safely

TL;DR

Password managers are much safer than reusing passwords, but they aren’t perfect. The biggest risks are master password compromise and provider security issues. Strong master passwords, two-factor authentication (2FA), and choosing reputable providers significantly reduce these risks. Regularly review your security settings and be aware of phishing attempts.

Understanding the Risks

Let’s break down why people worry about password managers:

• Master Password: This is the one password you *must* remember. If someone gets this, they get access to everything.
• Provider Security: You’re trusting a company with your data. They could be hacked or have internal security flaws.
• Phishing Attacks: Cleverly disguised websites can trick you into entering your master password.

How to Use Password Managers Safely

1. Choose a Reputable Provider: Not all password managers are created equal.
   • Look for well-established companies with good security reputations (e.g., 1Password, Bitwarden, LastPass – though research recent incidents).
   • Check if they offer end-to-end encryption. This means only *you* can decrypt your passwords.
2. Create a Strong Master Password: This is the most important step.
   • Length matters: Aim for at least 16 characters, preferably more.
   • Complexity: Use a mix of uppercase and lowercase letters, numbers, and symbols.
   • Avoid personal information: Don’t use birthdays, names, or common words.
   • Use a passphrase: A sentence is easier to remember than a random string of characters (e.g., “My cat loves eating fish on Tuesdays”).
3. Enable Two-Factor Authentication (2FA): This adds an extra layer of security.
   • Even if someone gets your master password, they’ll also need a code from your phone or another device.
   • Use an authenticator app (e.g., Google Authenticator, Authy) instead of SMS-based 2FA – SMS is less secure.
4. Regularly Review Security Settings:
   • Check for compromised passwords: Most password managers will alert you if a website you use has been breached.
   • Audit your saved logins: Remove any unnecessary or old accounts.
   • Review emergency access settings (who can access your vault if you lose access).
5. Be Wary of Phishing Attempts:
   • Always double-check the website address before entering your master password.
   • Look for HTTPS in the address bar (the padlock icon).
   • Never enter your master password on a website you don’t trust.
6. Keep Your Software Updated: Password manager apps and browser extensions need regular updates to patch security vulnerabilities.
   • Enable automatic updates whenever possible.
7. Consider Self-Hosting (Advanced): If you’re technically confident, self-hosting a password manager like Bitwarden gives you more control over your data.

   docker pull bitwardenrs/server:latest

   This requires server administration skills and is not for beginners.

Checking Password Strength

You can use online tools to check the strength of your master password, but be cautious about entering it on untrusted websites. Many password managers have built-in strength checkers.

What if Your Password Manager is Breached?

• Change your master password immediately: Use a completely new and strong password.
• Enable 2FA (if you haven’t already): This will help protect your account even if your old password is compromised.
• Review all saved accounts: Change passwords for critical accounts (e.g., email, banking).