Passwork 7.5 and 7.5.1 releases

Latest — Feb 24, 2026
How to use a password manager: an expert's guide to reliable security

Most data breaches start the same way: with weak or poorly managed credentials. In basic web application attacks alone, the 2025 Verizon DBIR traced 88% of incidents back to stolen passwords. For any organization handling sensitive data, computer security starts with credential control. And password security has shifted beyond a recommendation and become a baseline requirement.

A password manager addresses this risk. For every account, it generates, stores, and auto-fills unique credentials — all protected by one master password. Instead of spreadsheets, sticky notes, and repeated password resets, teams get a controlled and auditable process across the entire workflow.

Main points:

  • One master password replaces hundreds of weak, reused credentials
  • AES-256 encryption and zero-knowledge architecture keep your vault unreadable, even to the provider
  • Setup takes planning, but the payoff is fewer support tickets, stronger compliance, and reduced breach risk

Understanding password managers

A password manager works as an encrypted vault — a digital safe that holds login credentials, secure notes, and other sensitive data. When you sign in somewhere, the manager retrieves the right password and fills the form automatically. Behind that vault stand two technologies: encryption and zero-knowledge architecture.

How password managers protect your digital identity

Before data leaves your device, AES-256 encryption (Advanced Encryption Standard with a 256-bit key) scrambles it into unreadable ciphertext. The same algorithm is used by governments and financial institutions.

Zero-knowledge architecture adds a second layer. Under this model, the provider cannot decrypt your data. Because all cryptographic operations happen locally, even full server access would reveal only encrypted blobs. We publish our cryptography documentation openly so teams can verify exactly how this works.

What password managers can and cannot do

A password manager is a reliable layer of defense, though it does not cover every threat on its own. Knowing its limitations helps you plan additional safeguards.

Can do

Cannot do

Generate unique, complex passwords for every account

Protect you if malware captures keystrokes on your device

Auto-fill credentials on recognized websites

Prevent phishing if you manually enter credentials on a fake site

Encrypt stored data with AES-256

Replace multi-factor authentication (MFA)

Alert you to reused or weak passwords

Stop social engineering attacks targeting your employees

Share credentials securely within a team

Guarantee safety if your master password is compromised

Multi-factor authentication (MFA) adds a second verification step, such as a time-based one-time password (TOTP), and addresses gaps that a password manager alone cannot cover. Together, they form a much stronger defense.

Creating your master password

Your master password is the single credential that unlocks the entire vault — a weak one undermines every other security measure.

Released in August 2025, NIST SP 800-63B-4 sets a minimum length of 15 characters for passwords used as a single-factor authenticator. The same revision states that verifiers shall not impose password composition rules (e.g., requiring uppercase letters, numbers, or symbols) and instead must screen passwords against lists of commonly used or compromised values. A password like "P@ssw0rd123" would fail such screening.

Instead of random character requirements, the passphrase method works better: pick four or five unrelated words and combine them. A password generator can produce random word combinations, but many users prefer manual selection. "correct-horse-battery-staple" is a classic example — high entropy, yet simple to remember.

Step-by-step master password creation:

  1. Choose 4–5 random, unrelated words (avoid song lyrics or famous quotes)
  2. Add a separator between words (hyphens, dots, or spaces)
  3. Optionally insert one number or symbol at a random position — not at the end
  4. Test: can you type it from memory three times in a row?
  5. Write it down once, store that paper in a physically secure location, then memorize it within a week

Master password best practices

Do:

  • Memorize it, never store it digitally in plain text
  • Keep one physical backup in a secure place (a sealed envelope in a safe, for example)
  • Practice typing it regularly during the first week

Don't:

  • Reuse your master password for any other account
  • Share it with anyone, including IT staff
  • Change it on a fixed schedule without reason: according to NIST SP 800-63B-4, passwords should change only when evidence of compromise exists

Recovery options are limited by design. With a zero-knowledge architecture, the provider cannot reset your master password because they never had access to it.

Choosing the right password manager for your needs

Before committing to any password management software, define what your organization actually requires. Deployment model, encryption standards, and integration with existing infrastructure should all factor into the decision.

Criteria

Questions to ask

Deployment On-premise, cloud, or both? Who controls the server?
Encryption AES-256? Zero-knowledge? Where does decryption happen?
Integrations AD/LDAP support? SSO protocols like SAML or OAuth?
Team features Role-based access? Shared vaults? Audit logs?
Compliance GDPR audit trails? Exportable reports?
Scalability Per-user licensing? Can it grow with the team?

When deployment flexibility and security architecture matter, both on-premise and cloud options should be available. Passwork supports both models, so you can choose where your data lives. The platform features a user-friendly interface that teams can quickly adopt. It combines password management with DevOps secrets management, API keys, tokens, and certificates in one system.

If you're evaluating multiple solutions, see how we perform in a real deployment scenario. Get a demo environment and test alongside other enterprise password managers. No credit card required.

Browser-based vs. dedicated password managers

Browser-built password managers (like the ones in Chrome or Edge) are convenient, but they lack enterprise features. Within a single browser profile, credentials remain isolated — sharing, role-based access, and audit logging are either absent or limited.

With a dedicated password manager, encryption happens independently of the browser, alongside granular access controls and multi-platform sync. Auto-fill and credential capture still run through a browser extension, but the vault sits in a more controlled environment.

Getting started with your password manager

With the master password ready and the solution selected, setup begins. The process follows a predictable path.

  1. Install the core application: desktop client, web interface, or self-hosted instance
  2. Create your account with the master password you prepared
  3. Enable MFA immediately before adding any credentials to the vault
  4. Install browser extensions for Chrome, Firefox, Edge, or Safari
  5. Install mobile apps for iOS and Android if remote access is needed
  6. Configure vault structure: create shared and personal vaults by department, project, or access level

Setting up browser extensions and mobile apps

After installing the extension, adjust a few settings:

  • Enable auto-lock after inactivity — five minutes is a reasonable default
  • Turn on PIN or biometric lock for the mobile app
  • Confirm the extension connects to the correct server URL (required for on-premise deployments)
  • Disable auto-fill on public or shared devices

A password saved on your laptop appears on your phone within seconds through cross-platform sync. All data travels encrypted, so even an intercepted sync payload is useless without the master password.

Setting up two-factor authentication for your password manager

MFA adds a second lock to your vault through an additional security verification step. Even if someone learns your master password, access still requires that second factor.

Authenticator apps (Google Authenticator, Authy) generate six-digit TOTP codes that refresh every 30 seconds. During setup, scan the QR code, verify the first code, and save the backup recovery codes in a physically secure location. Without those codes, losing your phone could mean losing vault access.

Importing and organizing your existing passwords

Migration from browsers, spreadsheets, or another password manager into your password storage vault usually starts with a CSV (Comma-Separated Values) export. Most managers accept this format and map fields (URL, username, password) automatically.

Before importing, audit what you have. Old accounts, duplicate entries, and credentials reused across services all need attention. The import stage is the ideal time to replace weak passwords with generated ones. 

Our admin tools let you configure vault structures that mirror your team's organization. With role-based access, the finance team sees only finance credentials, while IT administrators maintain oversight of everything. This combination with a cost-efficient approach gives you enterprise-grade control without paying for features you do not need.

For teams implementing password management for the first time, setting up the right structure early prevents future access issues. Book a consultation to define your access model, deployment approach, and rollout plan.

Prioritizing your most critical accounts

Not all accounts carry the same risk. Start migration with the credentials that would cause the most damage if compromised:

  1. Primary email accounts (often the recovery method for everything else)
  2. Financial services and payment platforms
  3. Cloud infrastructure and admin panels
  4. Business communication tools (Slack, Teams, email servers)
  5. Social media and public-facing accounts

According to IBM's 2025 Cost of a Data Breach Report, the global average breach cost reached $4.44 million, and the average time to identify and contain an incident was 241 days. Early migration of high-value accounts reduces that exposure window.

Using password health and data breach tools

Once credentials are in the vault, run a password vault health report — a routine computer security check. Built-in data breach monitoring scans your entries against known breach databases, while compromised password detection flags reused or weak credentials. Address critical findings first, especially any accounts where the same password protects multiple services.

Generating and managing strong passwords

For every new account or password replacement, use the built-in password generator. A strong configuration for high-security accounts: 20+ characters, mixed case, numbers, and symbols. Where services impose character limits, adjust — but never go below 15 characters.

A generated password like "g7#Kp!2xVmNqR9bW" has no predictable structure, which makes brute-force attacks impractical. The password manager remembers it, so complexity costs nothing in usability.

Using autofill features securely

Auto-fill speeds up form filling, but it requires awareness. Before letting the extension complete a login, verify these indicators:

  • The URL in the address bar matches the expected domain exactly
  • The connection uses HTTPS (look for the padlock icon)
  • The password manager recognizes the site; if it doesn't offer auto-fill, the domain may be spoofed
  • No unexpected redirects occurred before the login page loaded

A phishing page at g00gle.com looks convincing, yet the password manager matches exact domains and will not auto-fill on a fake site. On personal and work devices, keep the extension locked when not in active use.

Sharing passwords securely with others

For joint accounts, admin panels, and third-party services, teams need to share credentials. Sending passwords over email, Slack, or text messages is the wrong approach. Through built-in sharing features, encryption stays intact — credentials remain protected in transit.

We designed our role-based access controls to manage department-specific credentials and temporary contractor access. With on-premise deployment, shared secrets never transit through external servers. Learn more about our approach to business password management.

Managing family and team access

Shared password vaults work like shared folders: each vault has its own access permissions. An IT administrator might have full access, while a marketing team member sees only the social media credentials vault. Under GDPR, organizations must both protect personal data from unauthorized access and prove that protection is in place. Granular access controls and audit logs address both requirements at once.

Advanced features worth using

Beyond storing passwords, most enterprise password managers include features that teams often overlook. Secure notes let you store Wi-Fi credentials, server details, software license keys, or recovery codes — all protected by AES-256 encryption.

Through SSO (Single Sign-On) integration, the password manager connects with your identity provider, reducing friction for users who already authenticate through AD or LDAP. Audit logs track every action: who accessed which credential, when, and from which device — this simplifies GDPR and PCI-DSS (Payment Card Industry Data Security Standard) reporting.

Secure notes and document storage

Secure Shell keys (SSH), API tokens, recovery phrases, or internal procedures — all of these belong in secure notes rather than scattered across email threads or shared drives. Encryption protects them identically to passwords, and access controls determine who sees what.

Device syncing and access management

When a team member updates a password on their laptop, every authorized device reflects that change within seconds. Encrypted in transit, the data travels to the server (or your on-premise instance) and arrives at other devices still protected. Decryption happens only locally.

Proper device management requires MFA verification before any new device gains vault access. Without this step, an attacker who clones a session token could silently reach stored credentials.

Troubleshooting common password manager issues

Issue

Solution

Browser extension does not auto-fill

Clear extension cache, check browser compatibility and updates, verify the URL matches the saved entry.

Sync not working across devices

Confirm internet connectivity, check server status (for on-premise: verify the instance is running), log out and back in.

Master password not accepted

Check Caps Lock, verify keyboard language, try typing the password in a visible text field first.

MFA code rejected

Confirm the device clock is synced (TOTP codes depend on accurate time), use a backup recovery code if needed.

Maintaining your password security long-term

Security is not a one-time setup. Quarterly reviews keep your vault in good shape:

  1. Run the vault's security audit to identify weak, reused, or old passwords
  2. Replace any flagged credentials using the built-in password generator
  3. Review shared vault access — remove former employees or contractors
  4. Verify MFA is still active and backup codes are accessible
  5. Check for any accounts in known breach databases and rotate those passwords immediately

What to do if your password manager is compromised

If you suspect your master password has been exposed, immediate damage control is critical for your computer security:

  1. Change the master password immediately from a trusted device
  2. Enable or re-verify MFA on the vault account
  3. Rotate passwords for your highest-priority accounts (email, financial, infrastructure)
  4. Review the vault's audit log for unauthorized access
  5. Notify your security team and begin an incident response according to your organization's protocol

Conclusion: your next steps to password security

A password manager replaces guesswork with structure, a direct upgrade to your organization's digital protection. Instead of hoping employees choose strong passwords, you give them a tool that does it automatically and keeps every credential encrypted, auditable, and under control.

The first step is the simplest: choose a solution, create a strong master password, and start migrating your most critical accounts today.

Frequently Asked Questions

What is a password manager and how to use it?

Inside one encrypted vault, a password manager stores all your credentials – protected by a single master password. For new accounts, it generates strong passwords automatically and auto-fills login forms. We built our platform with AES-256 encryption and zero-knowledge architecture – once client-side encryption is enabled, your data stays unreadable, even to us.

How to use a password manager for the first time?

Create a strong master password (at least 15 characters, following NIST SP 800-63B-4 guidance). Enable MFA, install browser extensions, then import existing passwords from your browser or a CSV file. The process is well-documented and predictable with proper planning.

How do I create a master password?

Use the passphrase method: combine four or five random, unrelated words with separators (e.g., timber-clock-river-frost). Avoid personal details, common phrases, or song lyrics. The goal is high entropy – unpredictable to attackers, memorable for you.

What should I do if I forget my master password?

Under zero-knowledge architecture, the provider cannot recover it. Store a physical backup in a secure location (a sealed envelope in a safe, for example). Some platforms offer emergency access features or recovery keys – configure these during initial setup.

Are password managers safe?

With AES-256 encryption and zero-knowledge architecture, a properly configured password manager is safe by design: decryption happens only on the user's device, so even full server access reveals nothing. The 2025 Verizon DBIR found credential abuse in 22% of breaches – most involving weak or reused passwords. A password manager directly addresses that risk.

Upgrade from your current solution. Passwork provides free migration assistance, enterprise-grade implementation support. Get 20% off your first renewal!

Passwork: Secrets management and automation for DevOps
Introduction In corporate environment, the number of passwords, keys, and digital certificates is rapidly increasing, and secrets management is becoming one of the critical tasks for IT teams. Secrets management addresses the complete lifecycle of sensitive data: from secure generation and encrypted storage to automated rotation and audit trails. As
What is password management?
Learn what password management is, why it matters, and how it protects your accounts with encryption, secure storage, and access control.
Passwork 7.1: Vault types
Vault types Passwork 7.1 introduces a robust vault types architecture, providing enterprise-grade access control for enhanced security and management. Vault types address a key challenge for administrators: controlling data access and delegating vault management across large organizations. Previously, the choice was limited to two types. Now, you can create

How to use a password manager: A guide to reliable security

A password manager replaces guesswork with structure, a direct upgrade to your organization's digital protection.

Feb 18, 2026 — 3 min read
Introducing Passwork desktop app

Passwork is now available as a full-featured desktop app for Windows, macOS, and Linux. The desktop app delivers complete password management functionality: manage credentials, access vaults, collaborate with your team, all with the native performance and convenience of a desktop environment.

Supported operating systems

The desktop application supports Windows 10/11 (64-bit), macOS 12 (Monterey) and later, and Linux distros including Ubuntu 20.04+, Fedora 34+, Debian 11+, and others (64-bit).

How to download

You can download the desktop app directly from the Passwork interface.

How to download

Open Passwork → Settings and usersDesktop app and download the installer for your operating system.

Installation

The app authenticates through your browser. You'll need your Passwork instance hostname.

  1. Download the installer
  2. Install the app for your OS and launch it
  3. Enter your Passwork hostname and click Sign in with browser
  4. Authenticate in the browser: enter your credentials or sign in via SSO or passkey
  5. Allow the app to connect to your browser session
  6. If client-side encryption is enabled in Passwork, enter your master password in the app
Installation

Note: If you have an active session in the web version, Passwork will prompt you to continue with the current user or switch accounts.

How to update

New desktop app versions are released alongside Passwork updates. When a new version becomes available, the app prompts you to update. The process is automatic — the installer downloads from the repository and installs without manual intervention.

What's next

Upcoming releases will introduce desktop-exclusive features, including offline mode. Access your passwords without a server connection, ensuring continuity even when network access is unavailable.

On macOS, the system may block the first launch because the app is still undergoing Apple's verification process. To allow it, open System SettingsPrivacy & Security, find the message about Passwork being blocked, click Open Anyway, and authenticate with your administrator password.
Detailed installation instructions are available in the user guide
All information about Passwork updates in our release notes
Passwork 7.5 and 7.5.1 releases
The new releases introduce the Passwork desktop app support and add several improvements and bug fixes to the Authentication settings.
Passwork wins Best Customer Support 2026 by Software Advice
We’re excited to share that Passwork’s customer support has been recognized as the best in the Password Managers category by Software Advice.
Passwork: Secrets management and automation for DevOps
Introduction In corporate environment, the number of passwords, keys, and digital certificates is rapidly increasing, and secrets management is becoming one of the critical tasks for IT teams. Secrets management addresses the complete lifecycle of sensitive data: from secure generation and encrypted storage to automated rotation and audit trails. As

Introducing Passwork Desktop app

Passwork is now available as a full-featured desktop app for Windows, macOS, and Linux. The desktop app delivers complete password management functionality: manage credentials, access vaults, collaborate with your team, all with the native performance and convenience of a desktop environment.

Feb 18, 2026 — 7 min read
Security password guide: Expert methods to protect your digital identity

Password security stands as your first line of defense against cyber threats. A comprehensive approach combines strong password creation, encrypted storage through password managers, and multi-factor authentication to counter increasingly sophisticated attacks targeting your digital identity.

The true cost of weak passwords

Data breaches cost organizations an average of $4.35 million per incident, according to IBM's Cost of Data Breach Report. The Verizon Data Breach Investigations Report reveals that compromised credentials remain the leading cause of security incidents, with 81% of hacking-related breaches leveraging stolen or weak passwords.

Beyond financial losses, organizations face regulatory penalties, operational disruption, and reputational damage. Identity theft affects millions annually, with attackers exploiting weak passwords to access banking systems, healthcare records, and corporate networks. The cascading effects extend far beyond the initial breach — customer trust erodes, legal liabilities mount, and recovery efforts consume months of resources.

Companies struggle daily with password-related security incidents, where basic credential weaknesses lead to significant business disruption. Passwork's Zero-knowledge encryption architecture and transparent cryptography documentation help organizations understand exactly how their passwords are protected, eliminating the guesswork that often leads to security compromises.

Common password vulnerabilities and attack methods

Credential stuffing exploits password reuse across multiple accounts. Attackers obtain credentials from one breach and systematically test them against other services, succeeding when users recycle passwords. Dictionary attacks rapidly test common passwords and predictable patterns against target accounts.

Phishing remains devastatingly effective. Hackers craft convincing emails that trick users into revealing credentials directly. Brute force attacks test character combinations, with weak passwords falling within minutes. Password cracking tools leverage GPU processing to test billions of combinations per second.

The most exploited vulnerabilities stem from human behavior: using "password123" or "qwerty," incorporating easily discoverable personal information such as birthdays, and reusing the same password for years. Have I Been Pwned documents over 12 billion compromised accounts, demonstrating the scale of credential exposure. Password checkers reveal that most user-created passwords would crack in under an hour using standard tools.

Creating secure passwords and management strategies

Password strength fundamentally depends on length rather than complexity. NIST guidelines recommend a minimum 12-character password, with each additional character exponentially increasing crack time. A 16-character passphrase like "correct-horse-battery-staple" provides superior security compared to "P@ssw0rd!" while remaining more memorable.

Combining uppercase, lowercase, numbers, and symbols creates complexity, but a 20-character phrase of random words defeats attackers more effectively than an 8-character jumble of special characters. The mathematics of password entropy clearly favors length.

Longer passphrases provide better security than complex character combinations. Passwork's built-in password generator follows NIST guidelines, while our dual capability combines enterprise-grade password management with secrets management for DevOps teams — something most traditional password managers can't offer. Learn more about Passwork's enterprise deployment options.

Secure storage becomes essential when managing dozens of unique passwords. Writing passwords on paper creates physical security risks. Storing them in unencrypted documents or browser storage exposes credentials to malware. Password managers solve this problem by providing encrypted vaults that are protected by a single master password. This allows you to create and maintain unique and complex passwords for each of your accounts without having to remember them all.

Password manager selection and setup guide

Enterprise password management requires evaluating deployment models, security architecture, and operational capabilities. 1Password emphasizes business sharing features and cross-platform accessibility. KeePass provides open-source flexibility with local database control. LastPass offers cloud convenience but has faced security incidents that raise deployment concerns.

Password manager feature comparison chart:

Feature

Passwork

1Password

KeePass

LastPass

Deployment Model

On-premise/Cloud

Cloud

Local/Self-hosted

Cloud

Secrets Management

Zero-Knowledge Architecture

Role-Based Access Control

Advanced

Standard

Limited

Standard

LDAP/SSO Integration

Limited

Audit Logging

Comprehensive

Standard

Basic

Standard

DevOps Integration

Native

Limited

Manual

Limited

Transparent Cryptography Docs

Partial

Partial

While 1Password offers strong business features and KeePass provides open-source flexibility, businesses need both password management and secrets management in one platform. Modern infrastructure includes not only human passwords, but also API keys, tokens, certificates. Passwork provides on-premises deployment, whereas Bitwarden is cloud-based. For companies, cost-efficiency without feature bloat is important.

Setup begins with master password creation. This single credential protects your entire vault, requiring maximum strength — minimum 16 characters combining random words or a memorable phrase with added complexity. Enable encryption at rest and verify that the password manager uses AES-256 or equivalent encryption standards.

Migration requires a systematic approach: inventory existing credentials, prioritize critical accounts, and gradually transfer passwords while updating weak credentials. Configure browser extensions for autofill convenience, but verify they require authentication before populating credentials. Establish backup procedures for encrypted vault data, ensuring recovery options if master password access is lost.

Evaluating enterprise password managers? Get a demo environment to test Passwork alongside other solutions.

Multi-factor authentication and future security

Multi-factor authentication (MFA) transforms password security from single-point failure to layered defense. Even when attackers obtain passwords through phishing or breaches, MFA blocks unauthorized access by requiring additional verification. This secondary defense layer reduces account compromise risk by 99.9%, according to Microsoft security research.

MFA combines something you know (password), something you have (phone or security key), and something you are (biometric data). This approach ensures that credential theft alone proves insufficient for account access. Organizations implementing MFA across critical systems dramatically reduce successful breach attempts, as attackers rarely possess multiple authentication factors.

The authentication landscape evolves toward passwordless systems. Biometrics leverage fingerprints, facial recognition, or behavioral patterns for verification. Passkeys, built on WebAuthn standards, enable cryptographic authentication without traditional passwords. These technologies promise enhanced security while reducing user friction.

Passwork integrates seamlessly with existing MFA systems through SSO and LDAP connections, ensuring that it becomes part of your existing security infrastructure rather than creating another authentication silo. This integration approach reduces user friction while maintaining the security benefits of multi-layered authentication.

MFA methods and emerging authentication technologies

Authenticator apps like Google Authenticator or Microsoft Authenticator generate time-based codes, providing strong security without SMS vulnerabilities. Hardware security keys offer maximum protection against phishing through cryptographic challenge-response protocols. SMS-based codes remain common but face interception risks through SIM swapping attacks.

Biometric authentication delivers convenience and security when properly implemented. Fingerprint sensors and facial recognition systems verify identity without memorization requirements. However, biometrics cannot be changed if compromised, requiring careful implementation with fallback options.

Passkeys represent the authentication future. WebAuthn enables public-key cryptography where private keys never leave your device. Passkeys prevent phishing by using cryptographic verification instead of shared secrets for authentication. Major platforms now support passkey implementation, with adoption accelerating across consumer and enterprise environments. Biometric hardware works seamlessly with WebAuthn, combining the security of cryptographic keys with the convenience of fingerprint or face verification.

Conclusion

Effective password security balances protection with usability. Implement unique, lengthy passwords for every account. Store credentials in encrypted password managers rather than memory or insecure documents. Enable multi-factor authentication on critical systems. Monitor for credential exposure through breach notification services.

Passwork is designed to be both enterprise-grade secure and genuinely usable — the best security system is the one people actually use consistently.

Frequently Asked Questions

What makes a strong password?

Strong passwords combine length and unpredictability. Use a minimum of 16 characters, combining random words or mixed character types. Avoid personal information, dictionary words, or predictable patterns. Each additional character exponentially increases crack time — a 16-character password resists brute force attacks for years, while 8-character passwords crack in hours. NIST guidelines emphasize length over complexity rules that create memorable but weak passwords like "Password1!". Password managers eliminate memorization burden, enabling truly random credentials.

Why should I use a password manager?

Password managers solve the fundamental conflict between security and usability. Humans cannot remember dozens of unique, complex passwords, leading to dangerous reuse patterns. Passwork has Zero-knowledge encryption where your master password never reaches our servers, ensuring only you can decrypt credentials. On-premise deployment options provide additional control for regulated industries. Password managers also generate cryptographically random passwords, store API keys and certificates for DevOps workflows, and provide audit trails for compliance requirements. The security improvement dramatically outweighs the minimal learning curve.

How does multi-factor authentication improve my security?

MFA creates layered defense requiring multiple verification methods. Even when attackers steal passwords through phishing or breaches, they cannot access accounts without the second factor. It's better to use authenticator apps or hardware keys over SMS codes, which face interception risks. MFA integration with password managers through SSO and LDAP ensures seamless workflows while maintaining security. Organizations implementing MFA reduce successful account compromises by over 99%, according to security research. The additional seconds required for authentication provide exponentially greater protection against credential-based attacks.

What should I do if I suspect my password has been compromised?

Immediately change the compromised password and any accounts sharing that credential. Check HaveIBeenPwned to verify if your email appears in known breaches. Enable MFA on affected accounts if not already active. Review account activity logs for unauthorized access. Conduct a comprehensive password audit using your password manager to identify and update reused credentials. Monitor financial accounts and credit reports for fraudulent activity. Consider freezing credit if personal information was exposed. Document the incident timeline and affected systems for potential regulatory reporting requirements.

Ready to take control of your credentials? Start your free Passwork trial and explore practical ways to protect your business.

Case study: City of Melle and Passwork
Passwork has improved the internal security at the City of Melle by creating a reliable system for password management.
Passwork wins Best Customer Support 2026 by Software Advice
We’re excited to share that Passwork’s customer support has been recognized as the best in the Password Managers category by Software Advice.
Guide to Advanced Encryption Standard (AES)
Learn how AES encryption works, why it’s the standard for data security, and how AES-256 protects everything from passwords to TOP SECRET data.

Security password guide: Expert methods to protect your digital identity

Password security stands as your first line of defense against cyber threats. A comprehensive approach combines strong password creation, encrypted storage through password managers, and multi-factor authentication to counter increasingly sophisticated attacks targeting your digital identity.

Feb 13, 2026 — 3 min read
Passwork wins Best Customer Support 2026 from Software Advice

We're excited to share that Passwork's customer support has been recognized as the best in the Password Managers category by Software Advice. This award is based on real customer reviews and serves as an objective indicator of our product and service quality — we don't just answer questions, we help clients solve their challenges effectively.

What customers say about us

There are many reviews available across multiple platforms, and here are some of them.

"Clients highlight our responsiveness, deep expertise, and willingness to help even in non-standard situations. Excellent support during the testing and implementation phase, as well as very responsive managers who quickly and flexibly helped resolve all organizational issues." — Information security officer

Passwork has improved the internal security at the Melle city administration by creating a reliable system for password management:

"I ran into some minor difficulties after migrating to Passwork 7, but the support team literally walked me through the entire process. Within a day at most, I received answers to all my questions. Perfect. No issues. I'm very satisfied." — System administrator

Through careful evaluation and a security-focused implementation strategy, the deployment proceeded smoothly. A tailored onboarding approach drove high user adoption.

About the platform

Software Advice is an international platform for discovering and comparing IT solutions for businesses. It's part of Gartner Digital Markets, alongside GetApp and Capterra, which recognized Passwork with the Best Ease of Use 2025 award in the password management category by Capterra, a leading software review platform.

At Passwork, we believe cybersecurity should feel manageable, not overwhelming. Our expert support team and managers work closely with you, offering fast responses, practical guidance, and personal assistance whenever you need it.

Customer trust and honest feedback play a key role in how we improve and develop Passwork.

Take the first step too! Start your free Passwork trial and see how easy secure password management can be.

What is password management?
Learn what password management is, why it matters, and how it protects your accounts with encryption, secure storage, and access control.
The 2025 small business cybersecurity checklist: A complete guide | Passwork
Passwork’s 2025 cybersecurity checklist, based on the NIST framework, provides actionable steps to prevent data breaches and financial loss.
Secrets management - Passwork Blog
Self-hosted password manager for your business

Passwork wins Best Customer Support 2026 from Software Advice

We're excited to share that Passwork's customer support has been recognized as the best in the Password Managers category by Software Advice.

Feb 13, 2026 — 4 min read
Passwork 7.4 update

The new releases introduce restrictive settings for User vaults (including the option to block adding new users and groups), smooth appearance switching, and other improvements and fixes.

Restrictions for User vaults

We've added a new block of additional restrictive settings for User vaults in the Vaults settings, allowing administrators to centrally permit or restrict the following actions for all user vaults (private and shared):

  • Adding users and groups
  • Sending passwords
  • Creating password links
  • Creating password shortcuts

The restrictions do not apply to Company vaults and are automatically enforced on all existing and new User vaults.

Restrictions for User vaults

Additional restriction settings for user vaults are located in Settings and usersVaults settingsSettings tab.

New restrictions solve three security problems:

  • Lower breach risk — Blocking link creation and password sending from User vaults prevents accidental or intentional data leaks outside the organization.
  • Centralized policy management — Administrators control actions at the platform level rather than relying on employee discipline.
  • Stronger control over data distribution — Prevent unmonitored password sharing through personal vaults. Critical for organizations with strict security requirements.

Use cases

Three common cases where additional restrictions for User vaults resolve specific security challenges:

Prohibiting password sharing from Personal vaults

  • Problem: Employees store corporate passwords in personal vaults and share them directly with colleagues, bypassing company vaults.
  • Solution: Enable all four restrictions. Employees can store passwords in personal vaults but cannot share them — sharing requires Company vaults with controlled access.
  • Problem: Employees create temporary password links from personal vaults and send them to external contractors, creating leak risks.
  • Solution: Enable "Prohibit creating password links." Links can only be created from Company vaults, where administrators control expiration time and access rights.

Preventing corporate password duplication

  • Problem: Employees copy passwords from Company vaults to their personal ones, create shortcuts, and then share them with colleagues. As a result, the same credentials are stored in multiple locations, and when a password is changed in the Company vault, outdated copies remain in personal storage.
  • Solution: Enable the restrictions "Prohibit creating password shortcuts" and "Prohibit adding users and groups." This will force employees to work directly with Company vaults, where passwords are always up to date, and the administrator controls their lifecycle and change history.

Other changes

  • Added visual indicators informing users about the mandatory email confirmation in order to receive notifications
  • Added dynamic list loading for the user filter in the Security dashboard
  • Added smooth transition when switching appearance
  • Added automatic setting of the Read value in the Access field when sending a password to another user
  • Fixed an issue where users couldn't confirm their email addresses when the master password wasn't saved in the browser
  • Fixed an issue where, after resetting access in User management, an incorrect access level was displayed until the page was reloaded
  • Fixed an issue where the list of inbox passwords wasn't displayed correctly after enabling the "Search only in Inbox" checkbox with an empty search query
  • Fixed an issue where XML files from KeePass could not be imported if they contained folders with names consisting only of digits
  • Made minor UI and localization improvements
You can find all information about Passwork updates in our release notes

Case study: City of Melle and Passwork
Passwork has improved the internal security at the City of Melle by creating a reliable system for password management.
Guide to Advanced Encryption Standard (AES)
Learn how AES encryption works, why it’s the standard for data security, and how AES-256 protects everything from passwords to TOP SECRET data.
Passwork: Secrets management and automation for DevOps
Introduction In corporate environment, the number of passwords, keys, and digital certificates is rapidly increasing, and secrets management is becoming one of the critical tasks for IT teams. Secrets management addresses the complete lifecycle of sensitive data: from secure generation and encrypted storage to automated rotation and audit trails. As

Passwork 7.4 and 7.4.1 releases

The new version introduces restrictive settings for User vaults, including the option which blocks adding new users and groups, adds smooth appearance switching, and other improvements and fixes.

Feb 5, 2026 — 2 min read
Passwork 7.3.2 release

The new version adds a resizable note field, enhanced event descriptions in Action log, and several other improvements and bug fixes.

Improvements

  • Added the capability to resize the Note field when creating and editing entries
  • Changed the behavior of the Export data menu item: it now becomes inactive when there is no data to export
  • Improved the description of user email confirmation events in the Activity log

Bug fixes

  • Fixed an issue where passwords with special characters could be processed incorrectly when saving an LDAP server
  • Fixed an issue where search results with an empty search query and no filters applied displayed incorrectly for a specified vault
  • Fixed an issue where after exiting search in a selected vault, only folders were displayed while passwords and shortcuts did not load until re-entering the vault
  • Fixed an issue where not all passwords were being exported during the data export process
  • Fixed an issue where resetting a user's master password incorrectly required permission to manage master password complexity policies
  • Fixed an issue where the sign-up form accessed via link returned a 401 error when self-registration was disabled
  • Fixed an issue that prevented adding a WebAuthn credential with an empty transports field
You can find all information about Passwork updates in our release notes

What is password management?
Learn what password management is, why it matters, and how it protects your accounts with encryption, secure storage, and access control.
Case study: City of Melle and Passwork
Passwork has improved the internal security at the City of Melle by creating a reliable system for password management.
Passwork 7.3: Biometric authentication and passkeys
In the new version, we’ve added support for passkeys and biometrics, an email address verification mechanism for users, the option to specify multiple URLs for a single password, independent shortcut color customization, as well as numerous improvements and fixes.

Passwork 7.3.2 release

The new version adds a resizable note field, enhanced event descriptions in Action log, and several other improvements and bug fixes.

Jan 29, 2026 — 2 min read
Passwork 7.3.1 release

In the new version, we've added search filtering by current directory and made minor improvements to the import process, localization, and UI. The update is available in the Customer portal.

Search in vault or Inbox

Added an option to limit search to the current vault or Inbox. A checkbox is now available below the search bar that, when enabled, restricts search to the selected area.

Other changes

  • Fixed an issue where quickly switching between directories and Recents, Favorites, or Inbox pages could display an incorrect or empty password list
  • Fixed an issue where importing files with long notes could cause the process to freeze
  • Fixed an issue in MongoDB connection string handling
You can find all information about Passwork updates in our release notes

Passwork 7.3: Biometric authentication and passkeys
In the new version, we’ve added support for passkeys and biometrics, an email address verification mechanism for users, the option to specify multiple URLs for a single password, independent shortcut color customization, as well as numerous improvements and fixes.
What is password management?
Learn what password management is, why it matters, and how it protects your accounts with encryption, secure storage, and access control.
Case study: City of Melle and Passwork
Passwork has improved the internal security at the City of Melle by creating a reliable system for password management.

Passwork 7.3.1 release

In the new version, we've added search filtering by current directory and made minor improvements to the import process, localization, and UI. The update is available in the Customer portal.

Jan 22, 2026 — 4 min read

The new version introduces biometric and passkey authentication, the option to add multiple URLs for a single password, email address verification for users, email-based authentication, and numerous other improvements and fixes.

Biometric authentication and passkeys

We've added support for biometric authentication, passkeys, and security keys based on the WebAuthn standard. You can now sign in to Passwork using your fingerprint, Face ID, PIN code, or a hardware security key (YubiKey and similar devices).

On the Authentication settings page, you can add new sign-in methods, manage existing ones, change your password, or enable passwordless authentication through biometrics or hardware security keys.

The authentication settings page automatically locks after 5 minutes of inactivity — click the lock icon in the top-right corner to unlock it.

The new role setting Use passkey instead of password allows users to authenticate with a passkey instead of their local or domain password.

You can reset a passkey for an individual user on their page in the User management section through the Authentication modal window.

Learn more about authentication methods in our user manual.

Multiple URLs per entry

You can now add multiple URLs to a single entry. This is useful when one account is used to access different addresses: test and production environments, regional versions of a website, or related company services. The browser extension will automatically suggest filling in credentials on any of the specified URLs.

Email verification

Passwork now supports mandatory email verification for users. When a user adds or changes their email address, Passwork sends a verification email with a confirmation link.

Email notifications will only be sent to verified addresses. Exceptions include: test emails, verification emails, registration emails, and invites.

You can enable mandatory email confirmation in System settingsRegistrationMandatory email confirmation.

Without email verification, invalid addresses can appear in the system. This can create problems: notifications don't reach users, password reset fails, and security risks emerge. Email confirmation ensures that messages are delivered only to legitimate recipients.

Email-based authentication

We've added the ability to sign in to Passwork using a verified email address instead of a login to simplify authentication and reduce login errors. After enabling this setting, username-based sign-in remains available, and all email addresses will be checked for uniqueness in the system.

You can enable email-based authentication in Passwork in System settingsRegistrationSign in with email.

Improvements

  • Improved the user filter in the Activity log: search now considers not only the action initiator but also linked users
  • Fixed an issue where the folder filter in Security dashboard and Activity log might not include data from nested subfolders when selecting a parent folder
  • Added automatic locking of the authentication settings page after 5 minutes of inactivity
  • Added an option to set a color for each shortcut individually without changing the color of the initial password
  • Added Trusted Proxies support (see documentation for details)
  • Made improvements to the UI and localization

Bug fixes

  • Fixed an issue where the Edit option in User management was not activated when the "Edit user email" option was enabled in role settings
  • Fixed incorrect display of the banner prompting to add a service account on the LDAP server edit page after reloading the page
  • Fixed an issue where the Update button in the user edit modal could remain inactive when there were unsaved changes
  • Fixed an issue in the setup wizard where an incorrect "Database already exists" message could be displayed on the database connection page
  • Fixed an issue where after saving changes in the Vault access or Folder access modal, an incorrect "Discard changes?" message was displayed when attempting to close the window
  • Fixed an issue where notifications about failed PIN code entry attempts in the browser extension might not be sent
You can find all information about Passwork updates in our release notes

Case study: City of Melle and Passwork
Passwork has improved the internal security at the City of Melle by creating a reliable system for password management.
What is password management?
Learn what password management is, why it matters, and how it protects your accounts with encryption, secure storage, and access control.
Guide to Advanced Encryption Standard (AES)
Learn how AES encryption works, why it’s the standard for data security, and how AES-256 protects everything from passwords to TOP SECRET data.

Passwork 7.3 release

In the new version, we've added support for passkeys and biometrics, an email address verification mechanism for users, the option to specify multiple URLs for a single password, independent shortcut color customization, as well as numerous improvements and fixes.

Jan 14, 2026 — 7 min read
The city of Melle: How Passwork сentralized password management

The city of Melle, a municipality in Lower Saxony with more than 48,000 residents, is recognized for its modern approach to city administration and citizen services. The local government manages a wide range of responsibilities: urban development, education, social care, environmental protection, cultural initiatives, municipal infrastructure, and economic support for the region.

In recent years, Melle has invested heavily in digital transformation, introducing online citizen services, modernizing internal administrative workflows, and improving the technological foundation that supports daily municipal operations. The administration is known for its commitment to transparency, efficiency, and service quality — regularly receiving positive recognition from residents for its well-organized city services and proactive, solutions-oriented governance.

As a city institution, the administration is committed to upholding the highest standards of data protection and operational integrity. The city's IT team continuously seeks to implement modern technologies that streamline workflows, enhance security, and support its employees in their daily tasks. This commitment led them to reevaluate their password management approach, seeking a solution that would meet their security requirements while remaining user-friendly for employees.

Company: Stadt Melle
Location: Lower Saxony, Germany
Industry: City administration
Company size: 450+ employees

Challenge: Unified password management without security risks

Source: Melle.info

The city administration of Melle recognized a need to improve credential security across employee workflows. Different departments relied on various password management solutions, with most using the one integrated into Microsoft Edge. This resulted in isolated systems with limited central oversight, no visibility into user actions, and inconsistent security standards across the organization. 

Beyond security, the IT team wanted to simplify password management for employees. The city administration employs people with varying levels of technical proficiency, so ease of use was just as important as protection. 

"That was especially important to us so that we wouldn't have an additional password, another hurdle for people. So really just their Windows password and then the PIN for the browser extension at the end of the day." — Andre Kahlen, system administrator

This meant finding a solution with LDAP support — allowing users to authenticate with their existing Windows credentials and eliminating an additional barrier to adoption. This led the IT team to make a strategic decision to evaluate and introduce a centrally managed, enterprise-grade password management solution.

The main objective was to find a platform that combined three core requirements:

  • Security: high security that aligns with strict data protection regulations and internal security policies.
  • Usability: exceptional user-friendliness with seamless integration into existing IT infrastructure.
  • Control: simple, centralized administration that keeps data accessible while providing fast technical support.

The city of Melle required a service that could unify the workflows across all departments, establish transparent access management, and ensure secure password storage.

Solution: Building a resilient infrastructure

Source: Melle.info

To select a password manager, the IT team conducted a thorough analysis of the available solutions on the market. After careful consideration, they chose Passwork for its security features, granular control, and user-friendly interface — all of which closely matched their criteria.

Passwork's ability to provide centralized control while still offering a secure space for users was beneficial to the IT team. The vault structure was also considered a deciding factor.

"We want to maintain control, since we assign many people, especially those outside of IT, to deal with passwords. One of the advantages of Passwork is centralized management."

This level of control was essential for the municipality, as administrators handle a vast amount of sensitive data and require protection that effectively prevents unauthorized access to confidential information.

The team successfully tested all the declared functions and analyzed database-level security. The decision was based on an intensive three- to four-month testing phase involving about eight members of the IT department. The entire Passwork implementation process, from initial selection to final implementation, took over a year.

Technical Integration

Source: Melle.info

LDAP integration was essential to minimize user friction. After testing, the city administration deployed Passwork within its infrastructure with the following setup:

  • LDAP integration for centralized user management based on Active Directory
  • The self-hosted solution with an additional instance for employees with heightened security requirements in an isolated network segment
  • Snapshot-based and classic backups to ensure data can be quickly restored in case of an incident
"We set up LDAP integration to centrally manage user accounts and permissions, which was highly important. We decided to split the solutions into several instances. Access is heavily restricted this way."

After the successful implementation, the IT team needed to structure the employees' work in the new system.

Organizing work with data in Passwork

The goal was to build a balanced and flexible system that combined control with the freedom of personal information space for employees. The IT team established a clear governance structure:

  • Centralized administration — IT admins automatically granted access to all vaults to maintain control
  • Personalized training on secure password export and import procedures to ensure safe data migration
  • Onboarding sessions for each user during setup to build confidence and ensure smooth adoption
  • Clear guidelines on what information belongs in shared organizational vaults and personal vaults

With Passwork, users gained the flexibility to create and organize vaults based on their workflow requirements.

User onboarding

During the rollout, the IT team discovered that centralized training sessions were ineffective — many employees found it challenging to absorb the information all at once. A new method was chosen instead: a personalized approach intended to encourage users to accept the product, use strong, generated passwords, share credentials securely, and learn to use Passwork effectively.

"Passwork adoption is getting very good: employees are taking to new features easily. There is a personal briefing for every user we set up. This also covers security requirements and guides how to effectively utilize the tool. Employees are already organizing their space to fit their structure, thinking about how to design vaults." 

Staff always have access to user instructions, and the IT department provides ongoing support to address any questions that arise.

Result: Security and efficiency in workflows

Source: Melle.info

After more than a year in use, the City of Melle remains highly satisfied with Passwork. The solution is actively used by office employees today. The following points were highlighted as particularly positive.

Unified secure space for data storage

The municipality has abandoned browser-based solutions: all passwords are now stored in a secure system with multi-level encryption. Access to them is strictly controlled and logged — this helps prevent leaks and enables incident investigation if necessary.

Positive user acceptance

Many employees have embraced the tool and are proactively thinking about how to structure organizational vaults.

Reliable customer support

The Passwork support team played an important role in the successful implementation and upgrade from version 6 to the recently released Passwork 7.

"Customer support has been excellent so far with its fast responses. I always have answers to my questions, always with the right scripts included or the right syntax I needed to enter, everything already prepared. Perfect." 

The City of Melle plans to continue rolling out Passwork until all users are successfully onboarded. The IT team has begun systematically gathering feature requests to refine the system to meet the specific requirements of the city administration's IT infrastructure and to ensure it aligns with their operational needs.

Conclusion

Passwork has improved the internal security at the City of Melle by creating a reliable system for password management. Through careful evaluation and a security-focused implementation strategy, the deployment proceeded smoothly. A tailored onboarding approach drove high user adoption, while the platform's reliability and responsive technical support solidified its position as an essential tool in daily administrative operations.

Take the first step too! Start your free Passwork trial and see how easy secure password management can be.

What is password management?
Learn what password management is, why it matters, and how it protects your accounts with encryption, secure storage, and access control.
Kindernothilfe: Simplifying global employee collaboration with Passwork
Kindernothilfe (KNH) is a German non-profit organization dedicated to supporting vulnerable children in impoverished and underprivileged regions worldwide. Founded in 1959, it has made significant contributions as one of Europe’s largest charities dedicated to child aid. Operating in over 30 countries, Kindernothilfe emphasizes the importance of ensuring children’s
Guide to Advanced Encryption Standard (AES)
Learn how AES encryption works, why it’s the standard for data security, and how AES-256 protects everything from passwords to TOP SECRET data.

The city of Melle: How Passwork сentralized password management

Dec 17, 2025 — 1 min read
Browser extension 2.0.30 release

The browser extension is available for Google ChromeMicrosoft EdgeMozilla Firefox, and Safari.

  • Improved recognition and autofill algorithm for simple and multi-step login forms, including TOTP code fields
  • Improved local storage security for the extension in Chromium-based browsers
  • Fixed an issue where password icons displayed incorrectly when entry names contained Unicode characters
  • Fixed vault list display issues that occurred after deleting folders within a vault and returning to the main screen
  • Fixed unintended session reset when removing the PIN code in the extension
You can find all information about Passwork updates in our release notes

Browser extension 2.0.30 release

The browser extension is available for Google Chrome, Microsoft Edge, Mozilla Firefox, and Safari.

Dec 12, 2025 — 14 min read
What is password management?

Password management is the practice of securely creating, storing, organizing, and controlling access to passwords and other authentication credentials. It combines human processes with specialized software tools to ensure that every account uses a strong, unique password without requiring users to memorize them all.

Whether you're an individual trying to secure your online life or an IT administrator protecting your organization's digital assets, understanding password management is essential.

This guide explains everything you need to know: what password management is, why it matters, how it works, and how to implement it effectively. You'll learn about different types of password managers, key features to look for, and best practices that protect you from the most common security threats.

Understanding password management

At its core, password management addresses a fundamental challenge: humans are terrible at creating and remembering secure passwords. We default to predictable patterns, recycle familiar combinations across accounts, and prioritize convenience over security.

Password management systems compensate for these inherent limitations by assuming the cognitive burden and complexity on our behalf. As both a practice and a technology, password management encompasses several key functions:

  • Password generation: Creating strong, random passwords that meet security requirements and resist common attack methods like brute force and dictionary attacks.
  • Secure storage: Encrypting and storing passwords in a protected vault that only authorized users can access.
  • Organization: Categorizing and managing credentials across hundreds of accounts, making them easy to find when needed.
  • Access control: Determining who can access which passwords, particularly important in team and enterprise environments.
  • Autofill and automation: Automatically entering credentials into login forms, reducing friction while maintaining security.
  • Audit trails: Recording who accessed which credentials and when, allowing security teams to detect suspicious activity, investigate incidents, and maintain compliance with regulatory requirements.

Password management has evolved from rudimentary practices to sophisticated security infrastructure. The first generation of digital password managers introduced basic encryption (like Blowfish algorithm) and centralized storage, addressing immediate security gaps but lacking the granular controls enterprises required.

Modern password management systems represent a fundamental shift: they combine military-grade encryption, zero-knowledge architecture, role-based access controls, and comprehensive audit capabilities. Today's solutions enforce security policies, detect anomalies, integrate with existing infrastructure, and provide the visibility organizations need to maintain compliance and respond to threats in real time.

Why is password management important?

Why is password management important?

According to Verizon's 2025 Data Breach Investigations Report, stolen credentials served as the initial access vector in 22% of all confirmed breaches, with that figure jumping to 88% for basic web application attacks.

In the first half of 2025 alone, over 8,000 global data breaches exposed approximately 345 million records, demonstrating the persistent and catastrophic scale of credential-based attacks. Behind these statistics lies a fundamental incompatibility between human cognition and modern security demands.

The human factor

Our brains simply weren't designed for this pace of information. Psychological research shows that humans can reliably remember only 7±2 pieces of data in working memory. Yet we're expected to manage hundreds of unique, complex passwords — each a random string of uppercase letters, lowercase letters, numbers, and symbols.

Faced with this impossible task, people develop coping mechanisms that undermine security:

  • Predictable patterns: Adding "123" or "!" to meet complexity requirements.
  • Password reuse: Over 60% of people reuse passwords across multiple accounts.
  • Writing passwords down: Sticky notes on monitors remain surprisingly common.
  • Simple passwords: "password," "123456," and "qwerty" still rank among the most common passwords globally.

This behavior isn't laziness. It's a rational response to an overwhelming cognitive burden. Password fatigue is real, and it leads to security shortcuts.

Password fatigue is the mental exhaustion and frustration users experience from creating, remembering, managing, and resetting an excessive number of passwords across multiple accounts.

The consequences of poor password hygiene

When password security fails, the consequences cascade:

  • For individuals: Identity theft, financial fraud, privacy violations, and the time-consuming process of recovering compromised accounts. The average victim of identity theft spends 200 hours resolving the issue.
  • For businesses: Data breaches cost an average of $4.44 million per incident, according to IBM's Cost of a Data Breach Report. Beyond direct financial losses, organizations face regulatory fines, legal liability, reputational damage, and loss of customer trust.
  • For IT teams: Password-related help desk tickets consume 20-50% of IT support resources in typical organizations. Every "forgot password" request represents time that could be spent on strategic initiatives.

The benefits of effective password management

Implementing proper password management delivers measurable improvements:

  • Enhanced security: Unique, strong passwords for every account eliminate the domino effect of credential reuse. Even if one password is compromised, your other accounts remain secure.
  • Reduced cognitive load: You remember one master password instead of hundreds. The mental relief is immediate and significant.
  • Time savings: Autofill eliminates the minutes spent typing or resetting passwords. For organizations, this translates to thousands of hours of productivity annually.
  • Compliance support: Many regulations (GDPR, HIPAA, SOC 2) require organizations to demonstrate proper credential management. Password managers provide the audit trails and controls needed for compliance.
  • Improved user experience: Seamless access to accounts without the friction of password resets or account lockouts.

How does password management work?

Understanding the mechanics of password management helps you appreciate both its security and its usability. Modern password managers balance strong encryption with user-friendly access.

The master password concept

Everything starts with your master password — the single password you need to remember. This password unlocks your encrypted vault containing all your other credentials.

Many users create master passwords using passphrases, random words strung together like correct-horse-battery-staple, which are both secure and memorable.

Using a passphrase for memorability and strength
Source: XCDC.com

The XKCD comic that popularized this concept demonstrated a crucial insight: four or five random common words create more entropy (randomness) than a shorter complex password, while being far easier to remember.

The encrypted vault

Your password vault is an encrypted database that stores all your credentials, notes, and other sensitive information. Modern password managers use AES-256 encryption, the same standard used by governments and militaries worldwide.

Here's what makes it secure:

  • Encryption at rest: Your data is encrypted before it leaves your device. Even the password manager company cannot read your vault contents.
  • Zero-knowledge architecture: The service provider never has access to your master password or unencrypted data. If their servers are breached, your passwords remain protected.
  • Encryption in transit: When syncing across devices, your encrypted vault travels through secure channels (TLS/SSL), adding another layer of protection.
On-premise password managers such as Passwork take this further. Your encrypted vault never leaves your infrastructure — no cloud sync, no external servers, no third-party access. The data stays on your servers, behind your firewall, under your access controls.

The user journey

Here's how password management works in practice:

  1. Initial setup: You create your master password, set up your account and security settings — multi-factor authentication, access controls, and vault parameters.
  2. Adding passwords: As you log into existing accounts, the password manager detects login forms and offers to save your credentials. You can also manually add passwords or import them from browsers or other password managers.
  3. Password generation: When creating new accounts, the password manager generates strong, random passwords according to the site's requirements. You never need to think about password creation again.
  4. Autofill: When you visit a login page, the password manager recognizes the site and offers to fill in your credentials. One click, and you're logged in.
  5. Syncing: Your encrypted vault syncs across all your devices — phone, tablet, laptop, desktop. Changes made on one device appear everywhere.
  6. Secure sharing: When you need to share credentials with family members or team members, the password manager encrypts and transmits them securely, without exposing them in plain text.

Types of password managers

Types of password managers

Password managers vary significantly in architecture, security model, and deployment options. Understanding these differences is essential for selecting the right solution.

Browser-based password managers

Built into web browsers like Chrome, Firefox, Safari, and Edge, these password managers offer basic functionality without additional software.

Pros:

  • Free and immediately available
  • Seamless integration with the browser
  • Automatic syncing across devices using the same browser
  • No learning curve

Cons:

  • Limited to browser-only passwords
  • Basic security features compared to dedicated solutions
  • Vulnerable if browser account is compromised
  • Limited sharing capabilities
  • Inconsistent cross-browser functionality

Best for: Casual users with simple needs who primarily use one browser ecosystem.

Standalone password managers

These applications store your encrypted password vault locally on your device rather than in the cloud. Designed for individual use, they prioritize local control over multi-device convenience.

Pros:

  • Complete control over your data
  • No reliance on cloud services
  • Works offline
  • Maximum privacy

Cons:

  • Manual syncing across devices
  • Risk of data loss if device fails without backups
  • Less convenient for multi-device users
  • Requires more technical knowledge

Best for: Privacy-conscious users, those with limited internet connectivity, or anyone who prefers local data storage.

Cloud-based password managers

The most popular category, these services store your encrypted vault on their servers and sync it across all your devices.

Pros:

  • Seamless syncing across unlimited devices
  • Accessible from anywhere with internet
  • Automatic backups
  • Rich feature sets (sharing, auditing, breach monitoring)
  • User-friendly interfaces
  • Mobile apps with biometric authentication

Cons:

  • Requires trust in the service provider
  • Subscription costs for premium features
  • Dependent on internet connectivity
  • Potential target for attackers (though encryption protects data)

Best for: Most individual users, families, and small teams who want convenience and comprehensive features.

Enterprise password managers

Designed for organizations, these solutions add administrative controls, compliance features, integration with corporate systems and are deployed on-premise. This architecture eliminates dependencies on external providers. You define the security perimeter, manage access controls, and maintain complete operational independence.

Pros:

  • Complete data sovereignty
  • Zero external dependencies or cloud service providers
  • Automatic compliance with data residency regulations
  • Integration with Active Directory, LDAP, and SSO systems
  • Centralized administration with granular policy enforcement
  • Role-based access controls and privileged access management
  • Comprehensive audit logs and compliance reporting
  • Automated onboarding/offboarding workflows
  • Protection from provider-side security incidents

Cons:

  • Higher upfront infrastructure and licensing costs
  • More complex setup and administration
  • May require IT expertise
  • Organization manages backups and disaster recovery

Best for: Businesses of all sizes, IT teams managing shared credentials, organizations with compliance requirements.

Key features of password managers

Key features of password managers

Modern password managers offer far more than basic password storage. Understanding these features helps you evaluate solutions and maximize their value.

Core features

  • Password generation: Creates strong, random passwords based on customizable criteria (length, character types, symbol inclusion). The best generators create passwords that resist brute force attacks for centuries.
  • Secure storage: Encrypted vault for passwords, with many managers also storing secure notes, credit card information, identity documents, and other sensitive data.
  • Autofill: Automatically detects login forms and fills credentials with one click or tap. Advanced autofill distinguishes between similar sites to prevent phishing attacks.
  • Cross-platform syncing: Keeps your vault synchronized across Windows, macOS, Linux, iOS, Android, and web browsers.
  • Browser extensions: Integrations for Chrome, Firefox, Safari, Edge, and other browsers that enable autofill and password capture.
  • Mobile apps: Full-featured applications for smartphones and tablets, often with biometric authentication.

Security features

  • Multi-factor authentication (MFA): Adds a second verification step beyond your master password. Options include authenticator apps (TOTP), SMS codes, hardware keys (YubiKey), or biometric verification.
  • Biometric authentication: Unlock your vault using fingerprint, face recognition, or other biometric methods on supported devices.
  • Security dashboard: Analyzes your passwords and identifies:
    • Weak passwords that don't meet security standards
    • Reused passwords across multiple accounts
    • Old passwords that haven't been changed recently
  • Zero-knowledge architecture: Ensures that even the password manager company cannot access your unencrypted data.
  • Emergency access: Designates trusted contacts who can access your vault after a waiting period if you become incapacitated.

Sharing and collaboration features

  • Secure sharing: Share individual passwords or entire folders with family members or team members without exposing passwords in plain text.
  • Team accounts: Organize passwords by department, project, or access level with role-based permissions.
  • Access controls: Define who can view, use, or modify specific passwords.
  • Sharing history: Track when passwords were shared, accessed, or modified.

Advanced features

  • Password history: Maintains previous versions of passwords, allowing you to revert if needed.
  • Secure notes: Store sensitive information beyond passwords — software licenses, WiFi credentials, server details, recovery codes.
  • File attachments: Attach encrypted files to vault items (contracts, certificates, documents).
  • API access: For developers and power users, programmatic access to the password manager.
  • CLI tools: Command-line interfaces for integrating password management into development workflows.
  • Audit logs: Detailed records of all vault activities for security monitoring and compliance.

Password management best practices

Password management best practices

Having a password manager is only the first step. Following these best practices ensures you're using it effectively and securely.

1. Create an unbreakable master password

Your master password is the single point of failure for your entire password security. Make it count:

  • Use at least 16 characters (longer is better)
  • Combine random words into a memorable passphrase
  • Avoid personal information (names, dates, addresses)
  • Never reuse a password you've used anywhere else

2. Enable multi-factor authentication

Add a second layer of security to your password manager account. Even if someone discovers your master password, they can't access your vault without the second factor. Authenticator apps (Passwork 2FA, Google Authenticator, Authy) are more secure than SMS codes. Hardware security keys (YubiKey) offer the strongest protection.

3. Use unique passwords for every account

This is the fundamental rule of password security. Your password manager makes it effortless — let it generate a unique password for each account. If one site is breached, your other accounts remain secure.

4. Generate long, complex passwords

When creating passwords, maximize length and complexity:

  • Aim for 16-20 characters minimum
  • Use all character types (uppercase, lowercase, numbers, symbols)
  • Let the password manager generate them randomly

5. Conduct regular password audits

Schedule quarterly reviews using your password manager's security dashboard:

  • Update weak passwords
  • Eliminate reused passwords
  • Change old passwords (especially for critical accounts)
  • Remove passwords for accounts you no longer use

6. Respond immediately to breach alerts

When your password manager notifies you of a compromised password, change it immediately. Don't wait, breached credentials are often exploited within hours.

7. Organize your vault thoughtfully

Create a logical structure:

  • Use folders or tags to categorize passwords (Work, Personal, Finance, etc.)
  • Add notes to passwords with security questions, account numbers, or other relevant information
  • Mark critical accounts for easy identification

8. Back up your vault regularly

While cloud-based password managers handle backups automatically, consider:

  • Exporting an encrypted backup periodically
  • Storing the backup in a separate secure location
  • Testing your backup to ensure it works

9. Set up emergency access

Designate a trusted person who can access your vault if something happens to you. Most password managers offer emergency access features with configurable waiting periods.

10. Use secure sharing features

When sharing passwords with team members:

  • Use the password manager's built-in sharing features
  • Never send passwords via email, text, or messaging apps
  • Revoke access immediately when no longer needed
  • Regularly review who has access to shared passwords

11. Keep your password manager updated

Enable automatic updates to ensure you have the latest security patches and features. This applies to browser extensions, mobile apps, and desktop applications.

12. Avoid common mistakes

  • Don't store your master password in your vault (circular dependency)
  • Don't share your master password with anyone, ever
  • Don't use password manager autofill on public or shared computers
  • Don't ignore security warnings from your password manager
  • Don't assume you're completely secure — stay vigilant

Frequently Asked Questions

Frequently Asked Questions

Are password managers safe?

Yes, when properly implemented, password managers are significantly safer than the alternatives (reusing passwords, writing them down, or using weak passwords). They use military-grade AES-256 encryption and zero-knowledge architecture, meaning even the password manager company cannot access your unencrypted data. While no system is 100% invulnerable, password managers have proven track records and are recommended by security experts, including the NSA and CISA.

Can password managers be hacked?

While password managers can theoretically be targeted by attackers, successful attacks are extremely rare and typically require sophisticated techniques. The encryption used is virtually unbreakable with current technology. Most "password manager breaches" you hear about involve compromised user accounts (weak master passwords, no MFA) rather than flaws in the password manager itself. Using a strong master password and enabling multi-factor authentication makes your password manager highly resistant to attacks.

Should I use a free or paid password manager?

Free password managers provide adequate security for basic needs. Paid password managers offer additional features like advanced sharing, priority support, dark web monitoring, and more storage. For individuals, free options are often sufficient. For families and businesses, paid plans provide better collaboration tools and administrative controls. The most important factor is choosing a reputable password manager and using it consistently, regardless of whether it's free or paid.

Can I share passwords safely with family or team members?

Yes, modern password managers include secure sharing features that encrypt passwords before transmission. You can share individual passwords or entire folders with specific people, and you can revoke access at any time. This is far safer than sending passwords via email, text, or messaging apps. Family plans typically allow each person to have their own vault plus shared family folders. Business plans offer more granular permission controls.

Do I need a password manager if I use two-factor authentication?

Yes. Two-factor authentication (2FA) and password managers serve complementary purposes. 2FA adds a second verification step beyond your password, providing protection even if your password is compromised. However, you still need strong, unique passwords for each account — which is what password managers provide. In fact, many password managers can also store and autofill 2FA codes, making the combination even more convenient.

Can I use a password manager on public or shared computers?

It's generally not recommended to use your password manager on public computers (libraries, internet cafes) or shared computers (hotel business centers) due to the risk of keyloggers or other malware. If you must access accounts from a public computer, use your password manager's web vault in a private/incognito browser window, log out completely when finished, and change your master password afterward.

Conclusion

Password management isn't optional anymore — it's essential infrastructure for digital life. The average person manages hundreds of accounts, each requiring secure authentication. Trying to remember unique, strong passwords for every account is impossible, and the alternatives — password reuse, weak passwords, or written notes — create serious security vulnerabilities.

Password managers solve this problem. They generate strong passwords, store them securely with military-grade encryption, and autofill them when needed. You remember one master password; the password manager handles everything else.

The benefits extend beyond security. Password managers save time, reduce frustration, improve productivity, and support compliance requirements. For businesses, they reduce help desk burden and protect against the costly consequences of data breaches.

Passwork is an EU-based company with a trusted name in cybersecurity delivering enterprise-grade password management solution designed for organizations that demand full control over their security infrastructure.

With on-premise deployment at its core, Passwork ensures complete data ownership, zero-knowledge encryption, and compliance with industry regulations — backed by ISO 27001 certification.
Take the first step today. Start your free Passwork trial and see how easy secure password management can be.

Further reading

Guide to Advanced Encryption Standard (AES)
Learn how AES encryption works, why it’s the standard for data security, and how AES-256 protects everything from passwords to TOP SECRET data.
GDPR password security: Guide to effective staff training
Learn proven strategies to train employees for GDPR password security compliance. Reduce breach risks with practical training methods.
Passwork 7.1: Vault types
Vault types Passwork 7.1 introduces a robust vault types architecture, providing enterprise-grade access control for enhanced security and management. Vault types address a key challenge for administrators: controlling data access and delegating vault management across large organizations. Previously, the choice was limited to two types. Now, you can create

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