Do I need a password manager – and if so, how do I choose one?

October 8, 2021

choosing password manager

What is a password manager?

A password manager is an online tool that allows users to generate, store and manage their passwords for various apps and accounts. This means you don’t need to come up with all your different passwords and remember them all. A password manager can retrieve even the most complex passwords, storing them in an encrypted database and recalling them on demand.

Why would I need one?

Our passwords are the keys to our digital lives, and therefore they need to be secure. They should be long enough and random enough that nobody else will guess them, but not so complex or bizarre that you won’t be able to remember them. And of course, they need to be different for each account. So how can our human brains cope with all these requirements without endangering our cyber security?

That’s where password managers come in.

What are the benefits of a password manager?

According to a 2020 study by DigitalGuardian, 38.8% of users are writing down their passwords on paper, with 17.7% of users reusing the same password on multiple accounts. Only 27.7% of users used a secure password manager to make sure they don’t forget their information. Writing down or using the same password across accounts is one of the biggest ways you could be endangering your cyber security.

Having a password manager is a sensible and reliable way of keeping track of all your passwords safely and effectively. They enable you to use unique, long, and complex character combinations. However, you don’t need to try to remember them or write them down. All you need to know is one ‘master’ password, which will give you access to all the passwords you use across your accounts.

Different programs have different features, offered from free to a range of prices. However, most paid-for password managers will include generating, auto-filling and sharing passwords, password security auditing, and multi-factor authentication.

What are the risks of having a password manager?

While password managers are an amazing way to improve your cyber security, they are not without risk. You may come across illegitimate password managers, which might not have your best interests at heart or be as secure as they seem.

Some password managers also use trackers, which collect your personal data while you’re using the program.

On top of this, there is potential for you to lose access to your data if the password manager is hacked, or if you forget the master password for the app. Because of this, we recommend you do plenty of your own research before investing in a password manager. And make sure that you opt for a legitimate and trusted provider to limit these risks.

Considerations

You need to ask yourself what’s important to you when it comes to a password manager. Security, ease of use, price, compatibility, and password sharing should all be considered. You may also wish to consider whether being able to edit your passwords while offline is important to you, because in emergencies, very few password managers enable you to edit your passwords without internet access.

Options

While we can’t make a specific recommendation without knowing and understanding your business, we can suggest researching some of the leading password managers, and seeing whether they meet your needs and you’re satisfied with their offering and level of protection.

The following are generally well-regarded and reviewed (links go to their websites):

Conclusion

There are hundreds of password managers out there we could discuss, but what matters most is prioritising what’s important to you when it comes to managing your passwords.

If a password manager feels important for your business, it’d likely make sense to pay extra for a premium version. This means it’s going to have a bigger impact on your security. However, you may be looking to test the water, or just have basic requirements for your password manager (or a limited budget). In which case, there are plenty of free options out there that you can try out with minimal risk.