The Pros and Cons of Password Managers

Some people feel uncomfortable with the idea of entrusting all their passwords to a third-party software program. Simultaneously, others feel the convenience of generating, storing, and encrypting strong passwords, reduces the risk of their credentials being stolen. But regardless of what you "feel", password managers are not without their problems.

First Published 10th January 2023

With the future of traditional passwords still in flux, is the password manager a handbrake to progress?

4 min read  |  Reflare Research Team

Thou shall not pass last

In December 2022, LastPass, a cybersecurity company behind the password manager of the same name, was reported to have suffered a data breach. Such a security incident is not the first time. The Wikipedia page of the company indicates that the company has suffered several security incidents over the years. Some information security writers and analysts are now encouraging users to abandon the product.

So what is a password manager?

A password manager is a software tool that assists with storing, organising, and safeguarding your passwords and other sensitive information. It keeps your login information in a secure, encrypted "vault." You can then access this repository using a single master password, which you create when you set up your account.

In recent years, password managers have gained widespread use as people have become more aware of the importance of utilising strong, distinctive passwords for all their online accounts. By employing a password manager, you don't have to remember your various passwords – you just need to remember your single master password, and the password manager will complete the rest for you. This simplifies the process of creating and using strong passwords, which helps to protect you against hacking and other cyber threats.

Options, options, options

Many different password managers are available, ranging from free to paid options. Some popular choices include LastPass, 1Password, and Dashlane. Most password managers offer similar features, such as the ability to generate strong passwords, store other types of sensitive information (such as credit card numbers, bank account information, and more), and share passwords with others. Many password managers also offer additional features, such as two-factor authentication, which adds an extra layer of security to your account.

So, what are the pros and cons of using a password manager? Let's examine them in more detail.

Pros of using a password manager

Enhanced security

One of the primary benefits of using a password manager is its improved security. Using a password manager, you can create strong, unique passwords for all your online accounts. This makes it much harder for hackers to access your accounts, as they would need to guess or crack your master password to gain access to your other passwords.

Convenience

Another advantage of using a password manager is its convenience. Rather than remembering your different passwords, you need to remember your single master password. This can save you time and frustration, particularly if you have many online accounts.

User-friendliness

Most password managers are easy to use and set up. They typically offer intuitive interfaces and clear instructions for getting started.

Additional features

Many password managers offer additional features, such as storing other types of sensitive information, sharing passwords with others, and enabling two-factor authentication. These features can provide an extra layer of security and convenience.

Cons of using a password manager

Dependence on a single master password 

One potential drawback of using a password manager is that it relies on a single master password. If you forget this password, or if it is compromised, you could lose access to all of your other passwords. It is essential to choose a strong, unique master password and keep it safe.

Cost

Some password managers are free to use, while others charge a subscription fee. If you opt for a paid password manager, you will need to consider whether the cost is worth it for the features and security it provides.

Complexity

Some individuals may find password managers too complex or confusing. If you are not comfortable using technology or have difficulty remembering passwords, a password manager may not be your best option.

There are also potential risks related to the service providers if you store the passwords in the cloud. One of the most significant risks is the possibility of a data breach, as seen with LastPass.

Data breaches can seriously affect password manager users, as the information stored in their password manager is often highly sensitive. In addition to the risk of identity theft, a data breach can also lead to financial losses, as hackers may gain access to bank accounts or credit card information.

While it is important to consider the risks associated with using a password manager, it is also worth noting that password managers are generally considered to be very secure. Many password managers use advanced encryption techniques to protect user data and passwords and often have robust security measures to prevent data breaches.

The weigh up

A password manager is worth considering if you want to improve your online security and make your life easier. The pros of using a password manager far outweigh the cons. While there are a few potential drawbacks to consider, the enhanced security and convenience that a password manager provides can be well worth it.

Overall, the decision to use a password manager is a personal one. It is crucial to weigh the pros and cons carefully and consider your security needs and preferences. Choosing a reputable and secure provider is also vital if you use a password manager.

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