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Cybersecurity risks have increased steadily with the rise of digital technologies. In 2022, for example, hackers exposed more than 24 billion passwords, most of which were confirmed as weak or recycled across many sites. In August 2024, background check provider National Public Data revealed nearly 3 billion records, including Social Security numbers, had been part of a recent data breach. These breaches cost victims billions of dollars each year.
Increasing breach incidents underscore the importance of creating strong passwords and keeping them out of the hands of criminals. A password manager can do all of this for you, and they're relatively cost-effective. Here's what to know about password managers and how to tell whether you need one.
What Is a Password Manager?
A password manager is a digital service that helps you generate strong passwords and stores these credentials in a secure, encrypted vault. You can typically use these managers as an app or a browser extension on any of your devices.
When you visit a site or open an app where you need to enter a username and password, the password manager automatically fills in the credentials for you. They may offer other services, like autofilling your other personal information, sending alerts about compromised websites and sharing sensitive information securely.
Learn more >> Identity Protection Tools and Measures You Can Use
Why Do You Need a Password Manager?
Security experts generally recommend using a password manager. Here are some reasons why:
Secures Your Information
A Digital Shadows report revealed some of the easy-to-guess passwords people actually use, including "123456" and "qwerty." These weak or recycled passwords are dangerous to your digital security because they leave you susceptible to identity theft and other crimes.
Creating strong passwords is one of the best ways to prevent unauthorized people from accessing your accounts and using your financial information—but they can be difficult to remember. A password manager can help you create strong passwords and encrypt the information to keep it safe.
Requires Less Effort
Many websites, online services, apps and financial accounts require you to create a username and unique password to keep your information safe. But over time, you might create dozens or hundreds of these accounts, and it can be difficult to remember all of those credentials. You might start reusing the same password across several websites or writing down the information where it's not protected.
A password manager comes in handy because you'll just need to remember one master password. The rest of your credentials will automatically populate when you visit the appropriate app or website. Better yet, many of these services use end-to-end encryption, which means not even the password manager company can see your passwords.
Protects You in Other Ways
Password managers may have extra features that help you with cybersecurity. For instance, the manager may analyze the strength of your existing passwords and suggest updates for weak or recycled credentials. Many will also scan the dark web to check for password data leaks, let you securely share passwords, autofill online forms and detect phishing attempts when you click on suspicious links.
Risks of Not Using a Password Manager
Not using a password manager could leave you vulnerable to a few risks, including:
- Password recycling: When you reuse passwords, every account that uses the same password becomes vulnerable if one account is compromised. A thief may use credential-stuffing attacks to access your other accounts.
- Weak password creation: It's possible for a criminal to break through a short or easy-to-guess password, leaving your information vulnerable.
- Improper storage: Once you have multiple passwords to keep track of, you may start writing down your passwords or keeping them in an unsecured document, which someone could steal.
Learn more >> How to Protect Yourself From Identity Theft
Best Password Managers
When searching for a password manager, look for one that offers services you'll use at a price you can afford. Here are a few of our picks for the best password managers available:
1Password
You can use the 1Password app on Windows, iOS and Android devices and the browser extension with most web browsers. The app quickly generates and autofills passwords and syncs them across devices. You can also create and store other sensitive information in your encrypted vaults, including notes and credit card details.
Cost: The company offers a free online password and username generator and a 14-day free trial. Beyond those no-cost options, individual personal plans start at $35.88 a year, while a family plan with support for up to five people costs $59.88 annually. Each family member can have their own private vaults and access shared vaults.
BitWarden
BitWarden might not have as many features as other password managers, but its free plan covers all the basics and comes with a lot more functionality than other options' free plans. Plus, if you want even more features, there are low-cost individual and family plans.
For instance, the free plan supports an unlimited number of passwords and devices, can sync passwords across devices and lets you share your vault items with another user. The paid plans add additional multifactor authentication (MFA) security options, more robust password health reports and support for encrypted file attachments—and they also allow you to designate an emergency contact who can access your vault.
Cost: The free plan includes unlimited passwords and devices, and allows you to share vault items with another user. Individual plans start at $10 annually and include extra features. Family plans support up to six users for $40 a year.
Dashlane
Dashlane is more expensive than many other password managers, but it also has features and tools that could be worth paying for. There's a free plan as well, but it may be too limited for many people.
Cost: The free plan covers one device and up to 25 passwords. For $59.88 a year, the premium individual account protects unlimited passwords on all your devices. It includes dark web monitoring, a virtual private network (VPN) and a password health tool that can warn you about weak and compromised passwords. You can also sign up for a family premium plan, which covers up to 10 members for $89.88 annually.
LastPass
LastPass is another option that works on a wide variety of devices and browsers. There is a free plan with unlimited passwords, but it's limited to a single type of device (such as computers or phones, but not both). The free plan also comes with a secured vault for your passwords and other account information, and lets you share saved items with one person.
Cost: Beyond the free plan detailed above, the paid subscriptions are reasonably priced compared to other password managers. The individual plan costs $36 a year and comes with helpful additional features, including dark web monitoring, a security dashboard and score, and support for an unlimited number of devices. A family plan protects up to six members for $48 annually.
How Much Do Password Managers Cost?
As noted above, some password managers offer free subscriptions that come with basic features for a limited number of devices. For instance, the free account might generate strong credentials, save and autofill your information and share your information.
You can usually upgrade to a paid tier for around $10 to $60 per year. Paid accounts usually offer more features like dark web monitoring, unlimited password autofills and personal support for one person. Family plans provide all the premium features of the paid account but for multiple family members.
How to Set Up a Password Manager
Setting up a password manager is a matter of choosing one, creating a master password and getting started. These tips can help guide you as you start out:
- Set up an account. After choosing a password manager, go to its website and follow the prompts to set up an account.
- Create a strong master password. This is the key to all your other passwords, and it's the only one you need to memorize. It should be at least 16 characters long with a combination of numbers, symbols and uppercase and lowercase letters.
- Install the software and apps. Depending on the service you use, you may need to download browser extensions for your computer and an app for your smartphone and tablet. Sign in to the service on each device.
- Use the password manager. Use the password manager to create and store login credentials for all of your accounts.
The Bottom Line
Protecting your personal information online can involve many strategies and requires a careful eye to spot threats. Using a password manager won't cover every aspect of your online and financial life, but it'll help you take care of one very important part of it.
Services like Experian's dark web scan can help you find out whether your information has been compromised. Identity theft protection from Experian can also help you keep your personal information safe.