Updated on November 2, 2023.
A password vault is an encrypted digital web vault that stores online login credentials, documents, images and other sensitive information. It is decrypted with a single master password that acts as a key to open your digital vault, providing you access to the credentials and personal information in your vault. The personal information stored in a password vault is encrypted, protecting it from cyber criminals.
Continue reading to learn more about how a password vault works, the difference between browser-based and dedicated password vaults and the benefits of using one.
How Does a Password Vault Work?
A password vault works by using data encryption to protect the stored information inside the vault. This makes the stored information unreadable to anyone without access to the vault. A password vault can only be unlocked using a master password. Once you unlock your password vault with your master password, you can access everything stored in the vault, such as your login credentials and credit card numbers.
A password manager is a tool that stores, protects and helps you manage personal information such as login credentials, credit card numbers and other information inside a password vault. The password manager is the platform that you interact with to access your vault. The password vault is what actually stores and protects your information within the password manager. The password manager monitors the passwords stored inside the password vault, and some can help identify any weak or compromised passwords.
Browser-Based vs Dedicated Password Vaults
Browser-based password managers use built-in password vaults on browsers such as Microsoft Edge or Google Chrome. They can store your login credentials and credit card numbers and automatically fill them in for you on a website. Browser-based password vaults are less secure than dedicated password vaults and only work on the browser of your choice. For example, if you use the Google Password Manager then you can’t use it to log in to your apps on your iPhone.
Although browser-based password vaults are encrypted like other password vaults, they can be easily susceptible to cyber attacks that can compromise the browser, especially if the browser is not updated. Once a cyber criminal has compromised a browser, they can easily access your passwords stored in the browser-based vault.
Dedicated password vaults can store more than just your login credentials. In addition to passwords, a vault can store your identification cards, transportation tickets, shipping addresses and more. Dedicated password vaults can be accessed on any device using any browser.
Benefits of Using a Password Vault
Password vaults offer convenience and protection for all your credentials and any other sensitive information you want to store. The benefits of using a password vault include the following:
Remember only your master password
Password vaults are protected by master passwords. You do not have to worry about remembering all your passwords. You only need to remember your master password to access the vault. Since you only have to remember a single password, make sure it’s strong and not easy for cyber criminals to crack. A strong master password should contain at least 16 characters including uppercase and lowercase letters, numbers and special characters.
Protected by MFA
To protect your password vault even more, you can enable Multi-Factor Authentication (MFA). MFA is a security measure that requires users to verify their identity using additional forms of identification such as a one-time code.
You can strengthen the security of your password vault by using a strong master password and enabling MFA whenever you log in to your vault. Even if a cyber criminal gets access to your master password, they won’t be able to access your vault because it is protected by MFA.
Easily manage passwords
Since all of your login credentials are stored in one place, it is easier to safely manage all of your passwords. Most password managers don’t limit the amount of passwords you can store in your vault, so you can keep track of all of the accounts you use and organize them however you want. Some password managers offer add-ons that can identify if any of the passwords stored in your vault are weak or have been found on the dark web and need to be changed. If you need to reset or update your login credentials, you can do so with the help of your password vault.
Makes logging in easier
Password vaults make logging in to your accounts easier since all of your information is safely stored in one place. With a password vault, you don’t have to worry about remembering all of your different passwords or reusing any passwords. Some password managers have autofill features that automatically fill the login credentials from your vault, whenever you visit the website or app you want to log in to.
Most password vaults are cross-compatible, meaning you can access your vault regardless of the device you use. The vault syncs your passwords across all browsers, devices and operating systems.
Do I Need a Password Vault?
Cyber criminals are always trying to steal your login credentials and gain access to your personal information. They do so by cracking weak passwords or stealing passwords saved with unsecured storage methods such as a spreadsheet. A password vault can help protect you from cyber criminals trying to compromise your passwords. It will safely store and encrypt your personal information, keeping out cyber criminals. Using a password vault can also prevent you from reusing passwords and promote the usage of strong passwords. A password vault will protect you online and keep your personal information safe.
Use Keeper To Store Your Passwords
You should use a password vault to securely store your login credentials and other personal information. With a password vault, you only have to remember your master password and, if enabled, provide MFA to access your vault. Password vaults make managing and logging in much easier across all of your devices, especially when used within a password manager. A password manager can help protect your personal information from cyber criminals by monitoring for any compromised passwords. Sign up for a free trial of Keeper Password Manager to safely store and keep track of all your passwords.