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How do password managers work and protect your data?

Remembering complex passwords can be difficult, especially when you have numerous accounts. A password manager simplifies your login experience by safely creating, storing, and managing strong, unique passwords. You only need to remember one master password, eliminating the need to keep track of multiple passwords or reusing the same password (a big security risk).

This article explains how password managers work, from setting up an account and a master password to recovering your account and improving your security. It also shows how Proton Pass can help save you time and protect your online identity.

What is a password manager?

A password manager(nouvelle fenêtre) is a software application that remembers which passwords go with which website or application. More than a simple database, it encrypts your passwords, stores them in a secure vault protected by a master password, and allows you to log in to websites and apps automatically.

How does a password manager work?

A password manager works through the following key steps:

1. Creating an account and setting up a master password

When you first set up a password manager, you create an account with the service. You’ll be prompted to create a master password. This is the only password you need to remember(nouvelle fenêtre) since you will use it to gain access to all the other passwords stored in the manager.

The master password is the single point of failure in a password manager. If it’s compromised, all your stored passwords could be at risk. To mitigate this risk, a secure password manager like Proton Pass never stores or sends your master password to its servers. Instead, it’s used locally on your device to encrypt your password database.

2. Encrypting data

When you save passwords, the password manager encrypts this data using strong encryption algorithms (like AES-256) before storing it locally or in the cloud. The encryption process(nouvelle fenêtre) converts your passwords into an unreadable format that can only be accessed by decrypting it with the master password. Even if a hacker gains access to the password manager’s servers, they would not be able to read your passwords without the master password.

Proton Pass uses end-to-end encryption(nouvelle fenêtre) to secure your usernames, passwords, and metadata, which means no one can see this confidential data — not even us.

3. Autofilling and retrieving passwords

When you log in to a website or app, the password manager automatically detects the login fields and offers to autofill your username and password(nouvelle fenêtre). For security reasons, the autofill process typically requires you to unlock the vault with your master password or biometric authentication, such as fingerprint or facial recognition. The password manager decrypts the necessary information on your device, fills in the login details, and then immediately clears any decrypted data from memory.

4. Generating passwords

Many password managers have a built-in tool that you can use to generate strong and unique passwords instantly(nouvelle fenêtre). Additionally, you can personalize them by adjusting the length, choosing to include uppercase letters, numbers, special characters, or opting for random or easily memorable passwords.

5. Syncing across devices

If you use the password manager on multiple devices, it can sync your encrypted password vault across those devices using secure cloud services. Only the encrypted version of your password vault is transmitted, ensuring that even if intercepted, the data remains unreadable. Decryption happens locally on each of your devices using the master password.

6. Recovering a master password

Password managers usually make it difficult or impossible to recover a master password since it’s used to decrypt your data. Some services offer recovery options like password hints, recovery keys, or biometric access, while others follow a strict zero-knowledge approach, meaning lost master passwords cannot be recovered.

Since Proton Pass is end-to-end encrypted, it doesn’t store your master password anywhere. If you need to reset the master password, you can regain access to your account using a recovery phrase or a device-based recovery file. However, without a recovery method, resetting the password(nouvelle fenêtre) will result in the loss of all saved passwords and data.

7. Improving account security

Some password managers provide additional security features for strengthening the protection of your account. Proton Pass provides the following features through Pass Monitor(nouvelle fenêtre):

Keep your passwords safe with Proton Pass

By choosing Proton Pass, you opt for an encrypted password manager that uses end-to-end encryption to ensure that only you can access your data. All information, including passwords, notes, and credit card details, is encrypted locally on your device using 256-bit AES-GCM encryption before it’s synced to our servers.

In addition to the Pass Monitor features mentioned above, here’s what else you can do with Proton Pass:

Proton Pass is independently audited and open source(nouvelle fenêtre), so anyone can check our security model. Plus, we’re based in Switzerland(nouvelle fenêtre), a country known for its strong privacy laws and outside the US or EU jurisdiction.

You can easily import your passwords(nouvelle fenêtre) and set up Proton Pass on iOS, Android, Windows, macOS, and Linux, including through browser extensions and a web app.

Get started by creating a free Proton Pass account.

Frequently asked questions

What does a password manager do?

A password manager stores all your passwords in an encrypted vault and automatically fills them in when you need to log in. So you can keep your accounts secure without the hassle of memorizing or writing down your passwords.

Why use a password manager?

A password manager improves your online security by creating complex, unique passwords for every account. It eliminates the risky habit of reusing passwords and makes it easy to manage your login details across different platforms.

Is a password manager safe to use?

Password managers are safe(nouvelle fenêtre) when they use end-to-end encryption, meaning only you can access the data. A password manager that has access to your passwords exposes your sensitive information to risks like data leaks, hacking, or misuse by the service provider.
With end-to-end encryption, even if the manager’s servers are breached, your passwords remain secure because they are only accessible with your unique encryption key. Still, you should protect your password manager with two-factor authentication to stay safe.

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