What Is a Password Vault and How Does it Work?

What Is a Password Vault and How Does it Work?

A password vault is an encrypted digital web vault that stores online login credentials, documents, images and other sensitive information. A password vault gives customers the option to use a single master password that decrypts the vault and provides access to different passwords used for various websites or services.

What Does A Password Vault Do?

Password managers are tools that provide users and businesses the ability to track, store, protect, share and manage passwords for applications and online services. The difference between a password manager and a password vault is that a password manager enables one click logins and allows you to keep track of your passwords without having to memorize them.

A password vault is the part of a password manager which physically stores and protects any sensitive information. A password vault can be used by you, your business or your family to secure all of your information. 

Are Password Vaults A Good Idea?

While the pandemic pushed everyone to shift their job, shopping, education and recreational activities online, many people fell victim to bad password practices, like using the same password across many accounts. Password vaults help protect your passwords and personal information from cybercriminals.

A password manager can make your life easier by making it quick and simple for you to access your accounts while significantly improving the security of those accounts, making it much more difficult for cybercriminals to gain access to them. The most secure method of providing sensitive data to a third party or contractor without exposing it via email, text message or messaging is One-Time Share. Anyone can securely share a record for a limited period of time without needing to register for an account.

Can Password Vaults Be Hacked?

As long as your Master Password is long and complex, the chances of a cybercriminal breaching your device and accessing information from your vault is extremely low. Having a password vault highly increases your level of protection from a cyberattack.

Interestingly, according to the 2021 ForgeRock Consumer Identity Breach Report, cyberattacks involving usernames and passwords grew 450% over 2019 and resulted in more than one billion compromised records in the United States alone. This catastrophe caused the U.S. government to release a memorandum detailing the requirement for federal agencies to achieve zero trust by the end of Fiscal Year 2024 in an effort to strengthen their cyberdefenses. Finding a password manager that supports the zero-trust security model is crucial for reducing the danger of data breaches caused by compromised user accounts.


Our Zero-Trust Security Model is a cybersecurity framework that asserts that no user or application should be trusted by default. Zero trust assumes every user and device could be compromised, instead of automatically trusting users and devices within the organization’s network. Anyone and anything, human or machine, is required to be verified before they gain access to the network. Keeper is zero trust because it increases security and compliance agility, the speed of detection and remediation of cyberthreats is unbeatable and it makes security analytics easily available. 

With a password vault, you have the ability to access all of your sensitive information without having to worry about getting breached. Start your Free Trial today to access your very own Keeper password vault on unlimited devices. 

Bayan Alkhatib

Bayan Alkhatib works in the marketing department at Keeper Security. She is in her last year of business school, pursuing a Bachelor’s Degree in Marketing at DePaul University in Downtown Chicago. Bayan is an SEO copywriter and has written blogs in the cybersecurity space. Bayan hopes to educate readers on the importance of staying safe on the internet.