How do password managers work?

Security guidelines state that all accounts, regardless of their importance, should use unique and complicated passwords. Unfortunately, the burden of juggling different accounts with long passwords that are difficult to keep track of or enter without typos leads to people settling for simpler, repetitive, and far less resilient passwords.

This struggle can be easily solved once you know how password managers work to support your credential handling. Whether it’s a built-in browser password manager or a dedicated third-party tool, they let you conveniently keep track of your credentials without losing out on that security factor. Let’s look into how password managers actually work, what features they may offer, and what makes them a safe choice to store all sensitive details in one place.

What is a password manager?

Password managers are pretty self-explanatory—they’re tools that let you store and manage your login credentials. They do the heavy lifting for you by storing your essential login information, such as your usernames, passwords, and email addresses.

Even if the term doesn’t ring a bell, chances are you’ve already used one before. Browsers like Chrome, Firefox, and Opera have built-in password managers that let you save your login details, saving you time whenever you need to log in. Third-party password managers are generally regarded as a more secure alternative to their browser counterparts.

What does a password manager do?

The primary purpose of a password manager is to provide secure storage for sensitive information. This is achieved through encryption—the process of scrambling data so that it can only be accessed if you have the right key to decipher it. A password manager like NordPass encrypts information on your device and, once it’s scrambled, sends it to the servers for safekeeping. This helps ensure that even in the case of a breach, the data is not accessible to unauthorized parties in plaintext.

As for the data itself—despite the name, password managers are not limited to passwords alone. They also provide storage for email addresses, personal addresses, ID information, banking details, and any other sensitive data that you want to keep safe. Password managers can even provide storage for passwordless solutions—NordPass lets its users store and manage passkeys.

Secure storage is just the tip of the iceberg. By now, password generators are a basic requirement for both browser-based and standalone password managers. Password generators help easily create unique and complex passwords that meet the standards of various security protocols. Instead of coming up with a password yourself, you can have the password manager generate a random, one-of-a-kind string of characters for you.

Password managers can take the chore out of finding the right password for the right account. Although you can use the vault search function or sort your credentials alphabetically when you need them, password managers eliminate this manual step altogether with autofill. This function instantly finds the login credentials you need and inputs them for you, instantly letting you access your account. Additionally, autosave detects whenever you’re entering credentials that aren’t in your vault and lets you store them without needing to type them out yourself.

Family password management

We usually focus on the benefits password managers offer to individuals. But did you know that you can share this tool with your friends and family and keep your entire closest circle protected online?

A password manager facilitates secure and convenient credential sharing. Imagine a family of five using a single Amazon account but scattered across different households. Using a password manager like NordPass, they can securely juggle access to the shared account. No need to send an unencrypted text message, a screenshot, or spell it out over the phone—you can simply select the password you want to share, who you want to share it with, and what access permissions you want to grant.

Managing passwords within a family is also convenient for broader security. Setting up a NordPass Family account grants access to Premium features like the Data Breach Scanner, which tracks the dark web for any signs of leaked personal information, and Password Health, which lets you know if any of your passwords are old, weak, or reused.

Multiply that by six, and you have your family’s cybersecurity sorted. And don’t forget, a family password manager doesn’t mean it has to be your relatives only—you can bring your spouse or friends along for the ride.

Business password management

Have you ever given in to the temptation to reuse one of your personal passwords for a work-related account to save time? It wouldn’t be surprising—between juggling accounts for personal and professional use, an average person has to handle 168 and 87 passwords, respectively.

A business password manager is here to keep things simple and separate personal and work credentials. It helps organizations optimize their workflows and implement centralized password usage policies that uphold high security standards.

Many features related to corporate credential security are handled from the admin side of password managers. For example, using NordPass, security managers can establish password strength requirements, such as password length, use of special characters, and frequency of updates.

Companies can set up extra layers of security, like multi-factor authentication, across the company. Additionally, NordPass offers a built-in Authenticator, allowing employees to easily generate two-factor codes for their work accounts and access login credentials all in one place.

As for employees themselves, they can handle their work-related accounts, such as corporate emails, social media communications, or banking. They can also securely share credentials with their colleagues or clients for collaboration.

NordPass allows Business users to control their shared access permissions to maintain data security. No need to fear losing track of what’s been shared—the Activity Log gives a clear overview of who created, edited, or granted access to credentials.

How to use a password manager

The hardest step in getting started with a password manager is finding the right one for you. The core will be similar everywhere—all you need to do is create an account, set up a master password, and add credentials to your encrypted vault. And if you’re looking for additional security for your cyber life, look no further than NordPass.

Whether you’re looking to cover your own personal needs, handle sensitive work-related data, or share passwords more securely with your friends and family, NordPass offers something for everyone. It’s built on zero-knowledge architecture and uses XChaCha20 encryption to provide a high level of security for both your personal and professional sensitive data. Start your hassle-free digital life with NordPass—a password manager that puts convenience first without compromising your security.

FAQ