Customer Questions: “What are the Risks of Using a Password Manager?”

At Cloaked, we get variations of this question a lot. For the most part, modern password managers have learned to reinforce their security protocols to ensure that your passwords won’t make their way into the hands of nefarious characters.

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However, due to the nature of the product, password managers are also a major target for hackers. Your passwords are the gatekeepers to some of your most sensitive information. If that lands in the wrong hands, the ensuing headache can last for years.

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So, what IS the Main Risk of Using a Password Manager?

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People use password managers for a lot of reasons. However, many of these converge on one primary advantage: convenience.

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The convenience of having all of your passwords in one place, accessible through autofill or the simple click of a button is both a blessing and a curse when it comes to the risk of a breach.

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Very simply, the biggest current risk of using a password manager is the security of the device it’s being used on. Having everything in one place is great - for both you and hackers or thieves. 

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Just imagine someone looking over your shoulder when you put your unlock code into your phone.

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It’s not hard to memorize those digits. Next, you set your phone down while you’re at dinner, going shopping, or you just toss it in your bag. It doesn’t take much for a clever criminal to take possession of your device. And by doing so, they also gain access to all of your passwords.

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By the time you realize what’s happened, real damage can be done.

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Although that's not always the most likely scenario, it’s one that’s easy to envision.

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A skilled hacker can use malware, phishing, SIM swaps, and even wifi hijacking to get the same awful results. And these can occur without you realizing it as you continue to use your device normally. 

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How Can You Stop This from Happening to You?

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Now, don’t go and delete your password manager just yet. There are several things you can do to reduce this risk and keep the convenience of having all of your credentials on-hand.

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• Consider using biometrics as a way to unlock your device. This is more difficult for thieves to get past, and will reduce the risk of having all of your passwords stolen with your phone, tablet, or computer.
• Always be conscientious of where your device is. Get into a routine of making sure that it’s locked and placed in a secure location when not in use.
• Download a good VPN. This can keep you protected when using public wifi and in many other scenarios where you may otherwise be a target.
• Never give out your personal information to any person or company that isn’t absolutely verified as real. Never give it out over email before reaching out to the person or the company to get details on why it’s necessary.
• Keep yourself up to date on the latest phishing scams currently going around the internet.
• Use multifactor authentication to make it more difficult for someone to gain access to any of your accounts.
• Research your password manager before downloading and using it. Look for reports of data breaches, customer complaints, and information on how the product is structured. Not all password managers are created equal, and it’s important to do your homework before trusting any digital product.
• Update your passwords and passcodes to make sure that they meet maximum security guidelines.

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Have Questions Around Online Privacy or Security?

Feel free to reach out to [email protected], and we’ll do our best to address your questions in future posts!