What is Password Management? Examples of Best Password Managers for Businesses and Individuals (2023)

What is Password Management? Examples of Best Password Managers for Businesses and Individuals (1)

Passwords are a fundamental instrument for protecting our valuable information. It’s impossible to exist in the online world, let alone the business part of it, without using passwords. Now more than ever, healthy and responsible password management practices play a prominent role in our everyday lives.

This is where password managers come in. These nifty tools have gained tremendous popularity among both businesses and individuals over the past few years. They address the most important challenges that exist in traditional password management.

In this article, we’ll discuss the pros and cons of password managers and examine where they store your passwords. We’ll also share with you some of the best password managers, including free ones. Read on to learn more.


What Are Password Managers?

Where Do Password Managers Store Passwords?

Is It Safe to Use Password Managers?

Can Saved Passwords Be Hacked?

(Video) BEST FREE password manager | Password managers to try

What Is a Good Free Password Manager?

Best Password Manager for Individuals

Best Password Manager for Business

Which Password Manager Is the Most Secure?

What are Password Managers?

In simple terms, a password manager is a program that stores your passwords and generates safe new ones. The main function of password managers is that they free you from memorizing passwords.

You only need to remember the master password that you use to access all other passwords. Furthermore, some password managers allow biometric identification. So, you can take advantage of a face or fingerprint scanner and don’t even have to remember a master password.

Thanks to the password manager, you can connect all of your accounts and use autosave and autofill features to conveniently access them across all devices. This seemingly magical security system undeniably sounds intriguing, but it’s also important to answer the next key question.

Where do Password Managers Store Passwords?

To fully understand the basics of how password management as a service works, it’s also essential to know how password managers store passwords. Wecan classify three distinct types of password managers based on their password-storing practices. These are:

  • Offline Password Managers - These password managers are installed locally on your device. Offline password managers eliminate the risk of someone remotely breaching your password vault. However, the tradeoff is that you can only access the password vault on one device. So, if you lose the device, you also lose the vault.
  • Online Password Managers - Unlike the previous type of password managers, these services store your passwords in the cloud. This enables convenient password syncing across many devices. But, you need an Internet connection for authentication.
  • Hardware-based Password Managers - The third type of password managers utilize physical hardware, often a flash USB device. These are incredibly safe, as your credentials are stored in a safe separate space, and there’s no need for synchronization. On the other hand, you need to purchase proprietary hardware and software. Moreover, losing the device also means losing access.

Is it Safe to Use Password Managers?

Yes, password managers are generally safe to use. With a password manager, you don’t have to memorize all of your passwords and can even handily use auto-generated passwords that are strong and secure. What’s more, you can sync them across devices and save time when logging in to sites and services.

(Video) What is the BEST Password Manager for 2022

For businesses, a reliable password manager also means less strain on the IT department. Shared account management works smoothly, and the onboarding/offboarding process is streamlined.

But, while password managers unquestionably bring many benefits to the table, you should also consider the drawbacks. Namely, password managers have been hacked in the past. With a password manager, there’s always a potential threat of a single point of failure. If the password manager itself gets hacked, you’ll be scrambling to protect all of your accounts.

Considering both sides, both the pros and cons of password managers are completely legitimate. Still, by having proper security practices and choosing the right password manager, the advantages far outweigh the negative aspects.

Can Saved Passwords be Hacked?

Yes, a saved password can absolutely be hacked. Unfortunately, many online users aren’t aware of this fact. In fact, LastPass, one of the world’s biggest password managers, is a prime example of this, and one that still remains in fresh memory.

The massive breach resulted in stolen portions of source code and technical information, according to LastPass’ CEO. Although LastPass ensured its users that no action was required, the surfacing of this incident was undoubtedly a nerve-racking event for many users.

What is Password Management? Examples of Best Password Managers for Businesses and Individuals (2)

Staying on the topic of source code, the attackers were able to steal it because LastPass used proprietary code and not the preferred open-source code. With open-source code, users can inspect the code and actively contribute to its betterment. With proprietary code, you must fully trust that the company is doing its due diligence to ensure there are no weak points.

With all of this said, we should also remain objective. These occurrences are rare. Even with this incident in mind, using a password manager is still more secure than manually typing your passwords from memory.

At the same time, password managers are significantly less secure than passwordless authentication. This type of authentication is based on FIDO2 (Fast Identity Online) and U2F (Universal 2nd Factor) standards.

(Video) BEST password manager 2023 in 3 minutes [MY TOP PICKS]

You don’t necessarily need to remember the full extension of what these acronyms stand for. But, it's key to know that they enable you to entirely eliminate password use while staying safe online. While FIDO2 enables passwordless authentication, U2F is designed to be a second factor for passwords.

What is a Good Free Password Manager?

In the previous section, we’ve established that even some of the best-known password managers aren’t impervious attacks and can be compromised. So, is there a good password manager you can rely on? Moreover, what is a good free password manager that you can use without putting your information at risk?

The answer is yes, if you’re looking for trustworthy password management programs, there is one tool we can recommend. This is Bitwarden. It’s an open-source password manager that’s been in business for over half a decade.

What is Password Management? Examples of Best Password Managers for Businesses and Individuals (3)

Bitwardern is a very capable tool, considering that it comes entirely free of charge. It enables you to generate, sync, and share your passwords, as well as utilize plenty of other features. From a user standpoint, it’s good to know that it allows for convenient syncing across all major platforms. It implements AES 256-bit encryption and is very safe. Here’s a closer look at Bitwarden’s biggest advantages and drawbacks:

Pros of Bitwarden

  • Excellent free version
  • Very customizable with plenty of tools
  • Easy to use even for beginners
  • Premium plans are very affordable
  • Open source

Cons of Bitwarden

  • The user interface needs some polishing
  • Based in the US

Best Password Manager for Individuals

Dashlane offers password management and protection for both individuals and businesses. While it excels in both fields, it’s particularly terrific as an online password manager for individual users.

It uses robust end-to-end encryption to protect your data and is loaded with advanced features. Its apps and browser extension are phenomenal, and customer support is very helpful and responsive. Moreover, its interface is very intuitive and enables Dashlane to cater equally to both novice and experienced users.

What is Password Management? Examples of Best Password Managers for Businesses and Individuals (4)

Pros of Dashlane

  • Solid free plan
  • Comes with VPN features
  • Dark web monitoring
  • Unlimited devices with a paid subscription
  • Great customer support
  • Convenient syncing between devices

Cons of Dashlane

  • More capable plans are a bit expensive
  • Based in the US

Best Password Manager for Businesses

Nowadays, there’s certainly no shortage of password manager enterprise versions. But, it doesn’t mean that all of the tools available out there are worth your attention. This is why it’s important to always do your research and thoroughly know everything about the password manager for business before committing to it.

(Video) What Is a Password Manager, and Why Do I Need One?

While we can’t vouch for other tools out there, we can say that Hideez Key 4 serves as a universal identity and access management tool with password management feature.Hideezallows you to choose different authentication methods and its tools can work as:

  • Password Manager and OTP Generator The Hideez Key 4 stores and automatically fills in your login credentials at a push of a button. It can do so even from locally stored files like PDFs, Excel sheets, and more.
  • Phishing Protection Tool This tool also protects you from phishing threats, as it doesn’t let you input your passwords to non-genuine sites and apps. This prevents you from accidentally giving valuable information by falling for a phishing scam.
  • Security Key for Passwordless Authentication With FIDO2 and U2F certification, it can serve as your main verification factor. In other words, you can use it across many FIDO-enabled sites and services, such as Google, Microsoft, Facebook, and others.
  • Proximity Look If you use the Hideez Key 4 password manager on Windows, you can also employ it as a proximity lock. You can automatically lock/unlock your PC to get both passwordless protection and a smoother user experience.

In addition to all of these benefits, it’s important to mention that the Hideez Key 4 can be used by both individual users and businesses. Focusing on the latter, it works as a part of the overall Hideez Service, a universal IAM system for businesses. Lastly, enterprises can also get a 30-day free trial after scheduling a demo call.

Which Password Manager is the Most Secure?

Ultimately, the answer to the question of what is the best password manager for business or personal needs is a subjective one. Only you can tell what specific type of password management works best for you. That said, there’s no doubt that the most secure way of securing your passwords is to buy a hardware device.

When you have a hardware password manager, you can circumvent some of the inherent password manager vulnerabilities. Your passwords will be physically separated from your main device. This way, the risk of any data leaks is minimal.

What’s more, from a financial perspective, it’s important to note that you won’t have to pay any recurring subscription fees. Lastly, if you go with a hardware manager like Hideez, you can count on updatable firmware. This is a massively significant aspect, as it helps you future-proof your device and benefit from uncompromising security long after your purchase.


(Video) 1Password Tutorial for Beginners | Best Password Manager for Personal & Businesses



What are examples of password managers? ›

The primary benefit of cloud-based password managers, 1Password and LastPass being good examples, is that you can access your password vault from any device as long as you have an Internet connection.

What is best password manager to use? ›

Best Overall LastPass

By the time it was bought by SaaS company LogMeIn in 2015, it had grown to seven million users, supported by just 30 employees. LastPass is a browser-based password manager with extensions for Chrome, Firefox, Safari, Opera, and Edge, as well as Android, iOS, and Windows phone apps.

What is a business password manager? ›

A password manager is a program that stores passwords and logins for various sites and apps, and generates new strong passwords when a user needs to change an old one or create a new account.

What is the best and safest password manager? ›

If you're looking for a trusted password manager app to keep your login information private and secure, 1Password is the best password manager for the task, letting you access your accounts and services with one master password. It's available for all major device platforms.

What are the top 5 most used passwords? ›

The top 10 most common passwords list:
  • qwerty.
  • password.
  • 12345.
  • qwerty123.
  • 1q2w3e.
  • 12345678.
  • 111111.
  • 1234567890.
Dec 22, 2022

What are the three basic types of password manager? ›

Types of Password Managers

The three most common types are desktop, cloud-based and single sign-on. A desktop password manager is one of the oldest and most popular options. This kind of application encrypts and stores passwords directly on a user's machine, limiting the potential for breaches.

Why do businesses need password managers? ›

A password manager also makes it easy for employees to generate strong, unique passwords for each of their accounts, all while storing them securely. Password managers are crucial in keeping your organization secure along with simplifying how your organization tracks its employee's passwords.

Are password managers better than personal passwords? ›

Even though it's not surprising to hear the question “are password managers safe to use?”, the vast majority of cyber-security specialists agree that password managers are indeed the most secure way to protect your passwords.

How do businesses manage passwords? ›

A business password manager (e.g., 1Password, LastPass, Dashlane, Keeper) provides a safe location for companies to store login information for sites and apps. It can also generate strong,random passwords when you need to change credentials or create a new account.

Do companies use password managers? ›

Thankfully, a lot of well-known security companies offer business-focused password managers. A business-grade password manager allows everyone in an organization to spend less time trying to remember strong, unique passwords for all their accounts.

Does Google have a password manager for business? ›

Gain access to your shared passwords directly from your inbox with the TeamPassword Google Workspace addon. TeamPassword is a Password Manager to manage and share passwords in your team: password management right from your G Suite Account.

What are 3 strong passwords? ›

Good - Passwords
  • An English uppercase character (A-Z)
  • An English lowercase character (a-z)
  • A number (0-9) and/or symbol (such as !, #, or %)
  • Ten or more characters total.

Is Gmail a good password manager? ›

Google password manager is generally considered safe to use. But to ensure that your passwords are as secure as possible, the passwords for all of your devices and the master password for all of your passwords should be strong.

Is Google the best password manager? ›

So, while using Google Passwords is better than nothing, it's far from being secure. Dedicated password managers are as convenient as Google Passwords, but also offer an important extra layer of security. Plus, they're extremely affordable and make it easy to safely share passwords with others.

What do most people use for passwords? ›

The top 10 most common passwords
  • 123456789.
  • guest. MORE FROMFORBES ADVISOR. Best Travel Insurance Companies. By. Amy Danise. Editor. Best Covid-19 Travel Insurance Plans. By. Amy Danise. Editor.
  • qwerty.
  • 12345678.
  • 111111.
  • 12345.
  • col123456.
  • 123123.
Nov 25, 2022

What are the four most used passwords? ›

Hackers guessed the world's most common password in under 1 second—make sure yours isn't on the list
  • password.
  • 123456.
  • 123456789.
  • guest.
  • qwerty.
  • 12345678.
  • 111111.
  • 12345.
Nov 23, 2022

What are four 4 best practices for passwords? ›

Password Best Practices
  • Never reveal your passwords to others. ...
  • Use different passwords for different accounts. ...
  • Use multi-factor authentication (MFA). ...
  • Length trumps complexity. ...
  • Make passwords that are hard to guess but easy to remember.
  • Complexity still counts. ...
  • Use a password manager.

What are the four password management features? ›

Security and Privacy
  • Password Vault.
  • Secure Password Sharing.
  • Password Autofill.
  • Role-Based Access.
  • Single Sign-On (SSO)
  • Real-Time Audits.
  • Detailed Reports.
  • Data Backup.

What is a personal password manager? ›

A password manager is an app on your phone, tablet or computer that stores your passwords, so you don't need to remember them. Once you've logged into the password manager using a 'master' password, it will generate and remember your passwords for all your online accounts.

Why dont older adults use password managers? ›

Older adults that do not use a password manager feel that their current way of storing passwords, such as writing them down, is a safe and easy method. These adults note the importance of having control over who has access to their passwords.

Where is the safest place to store passwords? ›

You can keep them in a Word file, an Excel sheet, or a PDF, or even use your own code to better disguise them. If you're concerned about the low security levels of typical flash drives, you can get an encrypted drive to more effectively protect your information. These devices can often offer password protection, too.

What are the pros and cons of password manager? ›

Password Manager Pros
  • Pro #1: Complex Password Generation. ...
  • Pro #2: Easy to Access Accounts. ...
  • Pro #3: Works Across Multiple Devices. ...
  • Pro #4: Security Features. ...
  • Pro #5: Only Need to Memorize One Password. ...
  • Pro #6: Secure Collaboration Features. ...
  • Con #1: Single Point of Failure. ...
  • Con #2: Password Protection Isn't Everything.
Sep 7, 2022

What password manager does the government use? ›

Keeper Security Government Cloud is FedRAMP Authorized and maintains the Keeper Security Zero-Trust Security Framework alongside a Zero-Knowledge Security Architecture, so users have complete knowledge, management and control over credentials and encryption keys.

Are password managers ever hacked? ›

Even a password manager requires users to have one closely guarded master password, and even password managers have been hacked, as in the recent case of LastPass.

What's the most common way professionals keep track of their passwords? ›

Many security professionals recommend password management software as the best way to create and store complex passwords.

Do security experts recommend password managers? ›

Using a password manager is one of the top safety practices recommended by security experts. Yet only 39 percent of consumers use one, according to a recent Consumer Reports survey. Instead, many people use and reuse a small number of passwords they've memorized.

Does Microsoft have a password manager? ›

Users who can rely on the Microsoft Edge's in-built password manager can (and do) use stronger and unique passwords more because they don't need to remember them all and type them as often.

How much does Google password manager cost? ›

As one reviewer puts it, “Google Chrome Password Manager is free for everyone as part of the browser. There are no hidden costs, neither it has a paid version. It's also updated constantly which is pretty impressive for open-source software.”

What is downside of using password manager? ›

The biggest disadvantage of a password manager is that because access to all of your passwords is protected by a single strong password, there is the potential risk that an attacker could gain access to all of your passwords with one hack of your password manager.

What are 5 rules for a strong password? ›

A strong password is:
  • At least 12 characters long but 14 or more is better.
  • A combination of uppercase letters, lowercase letters, numbers, and symbols.
  • Not a word that can be found in a dictionary or the name of a person, character, product, or organization.
  • Significantly different from your previous passwords.

How passwords can be hacked? ›

Keylogger programs enable hackers to spy on you, as the malware captures everything you type. Once inside, the malware can explore your computer and record keystrokes to steal passwords. When they get enough information, hackers can access your accounts, including your email, social media, and online banking.

Does Google have a free password manager? ›

Welcome to your Password Manager

Manage your saved passwords in Android or Chrome. They're securely stored in your Google Account and available across all your devices.

Is Google password manager better than 1Password? ›

The Best Password Manager = 1Password. 1Password has better security than Chrome Password Manager. If someone gets access to your Google or Chrome account, they don't automatically scoop up your other passwords too.

Is Apple a good password manager? ›

Is Apple's Password Manager Safe? Apple's own iCloud Keychain is a solid password manager, much better than Chrome's built-in option. Built around Apple's secure iCloud service — which you can learn about in our iCloud Drive review — Keychain offers a convenient and free way to store passwords on the go.

Can Google passwords be hacked? ›

Anyone who lays hands on your device at the office, the cafe, or the subway (if you accidentally leave your briefcase behind) can access every account you have saved in Chrome passwords. This leaves you wide open to being hacked. Most of us sync our Chrome accounts across devices.

Should I use LastPass or Google password manager? ›

If you need an easy and free solution, then Google Password Manager will satisfy your needs. But if you've got some money to spend and are looking for a platform that works on every browser, LastPass could be a better option. On top of that, it offers more security and has an in-built password sharing capability.

Is Google considered a password manager? ›

Welcome to your Password Manager

Manage your saved passwords in Android or Chrome. They're securely stored in your Google Account and available across all your devices.

What are the top 3 most common passwords? ›

According to NordPass' latest list of top 200 most common passwords in 2022, “password” is the most popular choice, followed by “123456”, “123456789”, “guest” and “qwerty“.

Is Google passwords A password manager? ›

Google Password Manager makes it simple to use a strong, unique password for all your online accounts. When you use Google Password Manager, passwords are saved in your Google Account. You can use Google Password Manager to: Create and save strong, unique passwords that you don't have to remember.

Is Chrome a password manager? ›

Google Chrome has made it easy to save and store your passwords in your browser, so you never have to remember them or type them in manually. Plus, it's free and already at your fingertips.

Do password managers ever get hacked? ›

Not all devices are secure enough. Hackers exploit the same vulnerability to get all of your logins in one attack. Password managers can be hacked if your device is infected with malware. In this case, typing the master password will get it recorded, and cybercriminals will gain full access to the data stored.

Is Apple a password manager? ›

iCloud Keychain keeps your passwords, passkeys, and other secure information updated across your iPhone, iPad, iPod touch, or Mac. Set up iCloud Keychain.

What is the number 1 most used password? ›

Hackers guessed the world's most common password in under 1 second—make sure yours isn't on the list
  • password.
  • 123456.
  • 123456789.
  • guest.
  • qwerty.
  • 12345678.
  • 111111.
  • 12345.
Nov 23, 2022

Which is better 1Password or LastPass? ›

Both are good services.

However, they both have a slight edge in different areas. LastPass is one of the most generous free password managers. Whereas, 1Password is an overall better premium password manager.

How does Google know someone has my password? ›

To check whether you have any compromised passwords, Chrome sends a copy of your usernames and passwords to Google using a special form of encryption. This lets Google check them against lists of credentials known to be compromised, but Google cannot derive your username or password from this encrypted copy.

Why is 1Password better than Google? ›

1Password uses security features like a Secret Key system that uses 128-bit cryptography to provide you with a truly secret, non-replicable login credential, which makes your 1Password account much more secure than a normal web app like Chrome.

Can someone steal my Chrome passwords? ›

Passwords stored on web browsers can be easily stolen by a malware called Redline Stealer. Passwords stored on web browsers can be easily stolen by a malware called Redline Stealer. You must have seen the prompt on Google Chrome and a couple of other web browsers when it asks your permission to save your password.

Why not to use Google password manager? ›

Google Password Manager, however, does not have any kind of sharing features. Users can view passwords to copy and share using a different method, but there is no secure way to share passwords as most other password managers allow.


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