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Password Manager

What is a password manager?

A password manager is a cloud-based application designed specifically to store and organize your digital access information—primarily usernames and passwords for your online accounts—securely. 

Beyond storing your credentials, some password managers offer crucial built-in capabilities. One such feature is password generation, which allows the system to create new, highly random, and exceptionally strong passwords. It boosts security and simplifies the process of creating unique logins. They often include cross-device synchronization, ensuring that your stored passwords are always available and up-to-date across all of your authorized devices, providing seamless access wherever you are.

Are password managers safe for storing your data?

Most password managers use what is known as a zero-knowledge architecture. This means that the encryption and decryption of your data happens on your device only. Your master password is never stored or accessed by the password manager provider. Only you have access to the master password, which acts as the key to your encrypted password vault. Even if the service provider experiences a cyberattack or data breach, our stored passwords remain secure and unreadable to unauthorized individuals. This structure ensures that your login information stays private and can only be accessed by you.

Why should you use a password manager?

A password manager helps simplify your online activities while improving your privacy and security. It protects against common risks like weak or reused passwords, making it easier and safer to manage your online accounts. Here’s why they’re so crucial.

  • They combat weak passwords

Password managers eliminate the need to memorize complex passwords, allowing you to use long, randomly generated passwords that are more difficult for hackers to guess. They avoid reliance on common or easily guessable passwords (e.g., "password123", family names, pet names, birthdays, common phrases).

  • They prevent reused passwords

They enable you to use a different, unique password for every single online account. So if one website suffers a data breach and your password is exposed, a hacker cannot use that same password to access your accounts on other sites.

  • They enhance your online security

By promoting strong, unique passwords and reducing human error, password managers dramatically improve your overall online security posture, making it much harder for unauthorized individuals to access your accounts.

Beyond core security: Additional advantages

Beyond its core function of securing your digital credentials, a password manager offers several practical advantages that enhance convenience and efficiency in your daily online activities. These software applications provide features designed to streamline various tasks, making your online experience both safer and more effortless.

  • Automated credential entry: It can automatically populate username and password fields on login pages, significantly streamlining access.
  • Saved time and convenience: In addition to login credentials, most password managers can securely store and auto-fill other sensitive information like credit card numbers, speeding up online purchases.
  • Secure password generation: It’s equipped to generate new, highly random, and robust passwords.
  • Cross-device synchronization: It ensures that your securely stored passwords are consistently available across all of your authorized devices.

How do you use a password manager?

Setting up and using a password manager is a straightforward process, adaptable to your preferences. You have two options. You can either activate the built-in password management features often found in major web browsers (you can find instructions on your browser's support page), or choose a dedicated standalone application for your desktop or mobile device. These standalone apps typically guide you through their installation, including setting up their browser extensions, but you'll most likely need to create an account, and some may require a subscription.

Setting up your master password

A crucial first step involves establishing your master password. This single, exceptionally strong password serves as the exclusive key to unlock all of your stored credentials. It’s designed so that only you can access your encrypted data, meaning the password manager provider or its developers have no way to see your passwords. Choosing a master passwordthat’s both easy for you to remember and too difficult for others to guess is vital for keeping your entire password vault secure.

Saving and autofilling passwords

Once your password manager is active—whether it’s your browser's feature or a standalone app's extension—it will offer to save your username and password each time you log into a new or existing website. The password manager can fill in those username and password fields automatically when you return to that specific site, making future logins quick and effortless.

Generating strong passwords

Password managers also include a helpful feature to generate new, random, and highly secure passwords. You can often adjust the length and choose to include numbers or special characters. It’s a best practice to use this generator whenever you create a new account. You should also gradually replace older, weaker passwords on important accounts (like banking or social media) with these newly generated, stronger ones.

Managing payment information

Beyond login credentials, password managers offer the added convenience of securely storing your credit card details. This feature allows the manager to automatically fill in payment fields when you’re completing purchases on checkout pages. This capability significantly streamlines online transactions, saving you time and reducing the effort required for entering sensitive financial data.

Strategies for choosing a robust master password

The strength and integrity of your master password secures your entire digital vault. It must be easy for you to remember, yet too difficult for anyone else to guess or crack. Here are a few tips to create a highly secure master password.

Make it long and complex

  1. Length matters: Aim for at least 12 characters, but 20 or more is even better. Longer passwords are significantly harder to break.
  2. Mix it up: Use a combination of different character types: uppercase letters (A, B, C), lowercase letters (a, b, c), numbers (1, 2, 3), and special symbols (!, @, #, $).
  3. Avoid common choices: Steer clear of typical words or well-known phrases (like "password123" or "letmein").

Use a memorable but unpredictable passphrase

  1. Phrase power: Instead of a single, complex word, consider using a phrase made of multiple random words. For example, "CorrectHorseBatteryStaple" is much stronger than "correcthorse" and easier to remember than "xK8@bQ#2mWp9!Lz^5Pn".
  2. Add complexity to phrases: You can make passphrases even stronger by adding numbers or symbols (e.g., 3RedApples$JumpedOver@Moon!).
  3. Use mnemonics: If remembering a phrase is difficult, try using the first letter of each word in a memorable sentence. For instance, "My first car was a red Toyota in 2005!" could become "Mfcwarti2005!". 

Avoid including personal information

Do not use names (yours, family members, pets), birthdays, anniversaries, or any other details that someone could easily find out about you.

Never reuse your master password

Your master password must be unique. Do not use it for any other online account, no matter how unimportant that account seems.

Consider using Diceware for true randomness

For the highest level of randomness, use the Diceware method. This involves rolling a standard six-sided die multiple times and using the results to pick truly random words from a special list (like those from the Electronic Frontier Foundation). An example could be “Tiger-Globe-Pencil-42-Sushi”.

Test its strength (safely)

  1. Some password managers have built-in password strength meters. Use these tools to check how strong your chosen master password is.
  2. Important: Avoid using general online password checkers that might record your password.

Store a backup securely

Never save it digitally in an unencrypted format (e.g., in a simple notes app, an email, or a text file on your computer).

Enable Two-Factor Authentication (2FA)

Even with a super strong master password, adding 2FA provides an extra layer of security. This means you'll need a second piece of information (like a code from an app on your phone, a fingerprint, or a security key like a YubiKey) to log in, even if someone somehow gets your master password.

Who benefits from using a password manager?

Password managers are valuable tools designed for a wide range of users, supporting anyone who manages online accounts, whether for personal activities or professional responsibilities.

For individuals, these tools are essential for handling various personal login details, from emails and social media to banking and online shopping accounts. Families can also benefit, as many password managers offer plans that allow secure sharing of common accounts, like streaming services, while keeping personal information private.

Beyond personal use, password managers are highly beneficial for organizations and businesses. They enable secure storage and sharing of account credentials among team members, allow for strict control over who can access what, and help monitor the overall strength of passwords used across the company. Specifically, IT teams and administrators find enterprise-level password managers crucial because these provide central control, reporting features, and tools for ensuring compliance with security standards.

How do you choose a password manager?

Selecting a password manager involves understanding the various types available, primarily distinguished by where and how your sensitive password data is stored. Your choice will depend on factors such as convenience, access needs across devices, and your personal security preferences regarding data location.

Types of Password Managers

Type

Description

Best for

Cloud-based
password
managers
Your passwords are stored securely in the
cloud and can be accessed from any
device with an internet connection. They
offer syncing, backup, and easy recovery
options.
People who need access
from multiple devices,
families, and businesses.
Locally
installed
password
managers
Passwords are stored on your device
without syncing to the cloud. You have full
control, but if you lose the device, recovery
may be harder.
People who prefer offline
storage for maximum
privacy.
Browser-based
password
managers
Built directly into browsers like Chrome or
Firefox. Convenient, but they may lack
advanced security features and syncing
options.
Light users who primarily
use one browser and
want basic password
storage.
Enterprise
password
managers
Offer advanced features like team sharing,
role-based access, auditing, and
integration with business tools.
Businesses, teams, and IT
departments that require
secure password
management for groups.

Zoho Vault is part of the Zoho Workplace suite, thoughtfully built to support secure password management for individuals and teams. 

Secure and insecure password examples

Bad examples (do not use these):
  • password123
  • JohnDoe1985
Good examples (strong and secure):
  • Blue$ky7-Running@Fast#2024
  • Tulip-Battery9!Staple-Moon (similar to a Diceware-style passphrase)