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Think of password vaulting as building a secret fortress where all your passwords rest safe and sound. Imagine that encryption is like a dragon protecting the fortress.
Believe it or not, with the right password vault, protecting yourself against cybercriminals isn’t too difficult. You just need to follow some security best practices, like storing your login credentials in a reputable password manager, using MFA (multi-factor authentication) and biometric security, and using complex passwords.
In this guide, we explain the meaning of password vaulting and how it protects your credentials against adversaries.
Password vaulting involves storing your credentials within a password manager. A password manager is a high-tech digital safe where you can store your passwords behind multiple layers of encryption.
Instead of juggling multiple passwords or scribbling them down on sticky notes (yikes, not safe!), put your mind at ease by storing your passwords in a password vault. Password managers protect your passwords and make it easier to find them when you need them.
Password and credential vaulting differ in terms of scope. While password vaulting includes securing passwords, credential vaulting involves making some extra space in your secure digital fortress for confidential information beyond passwords.
This confidential information could include API keys, certificates, and encryption keys—anything that works as a key to your systems or sensitive resources.
While both password vaults and password managers secure sensitive login information, password vaults are typically used to securely store and encrypt passwords without additional privacy features.
In contrast, password managers often come equipped with more sophisticated features such as password generation, autofill capabilities, and even the ability to assess the strength of your passwords. So while the terms are sometimes used interchangeably, a password manager provides a more comprehensive solution for managing your online security–ensuring that your complete digital life is both convenient and secure.
Password vaulting secures your passwords, allows you to store and access them conveniently, and gives you peace of mind.
According to IBM, the average cost of a data breach is $4.45 million. Vaulting your passwords can potentially save you some serious money–and can protect you against serious crimes like identity theft.
Once you add passwords to the vault and set up MFA, the password manager hashes and encrypts your passwords locally and uploads them to a server. The encryption prevents cybercriminals from intercepting your data–even if they manage to gain access to your network.
Many vaulting apps don’t only store passwords. They can also generate complex passwords and allow users to share passwords securely with approved individuals.
For example, Cloaked helps you replace existing passwords across multiple platforms (or identities) with just a few clicks. There are multiple ways in which Cloaked secures your credentials— the autofill feature securely fills login credentials into a webpage, and the email and phone number generators allow you to keep your personal information private.
Of course, Cloaked isn’t only a password vault. Cloaked also helps:
Need a comprehensive personal security solution? Try Cloaked!
The “I forgot my password” process is helpful…but having to use the feature repeatedly can be frustrating.
Imagine not having to remember any of your passwords. Password vaults can make your imagination come true with an auto-filling feature.
When you’re on a webpage for which you’ve stored credentials in the vault, the vaulting app detects the relevant fields and prompts you to fill in your credentials.
Once authorized, the app auto-fills your credentials so all you have to do is click on the login button. You never have to remember a password again because the vaulting app does the heavy lifting for you.
Password vaults also sync passwords across multiple devices so you can access your passwords from anywhere using single sign-on (SSO).
Password vaults can assess your password’s strength. It also alerts you about weak and reused passwords, encouraging you to follow security best practices.
Some password vaults integrate with password databases to track known data breaches. They monitor these databases to see if any of your passwords have been compromised. If the vault finds a breach, it notifies you about potential risks and the next steps.
Given the recent breaches, convincing users of the safety and efficacy of password vaults has become challenging. There’s a need to restore consumer confidence by discussing the security measures modern password managers deploy to prevent security breaches.
A password vault works pretty much like a safe, except that the contents of the safe are disguised. When you add a password to the vault, the password is converted into a secret code.
Only your vault knows how to decode it, safeguarding it against prying eyes. Once the password is encrypted, here’s how password vaulting works:
Your master password is the golden ticket to accessing the password vault. You can choose a password when you set up your vault for the first time. Once you choose a password, the vault doesn’t store the password itself.
Here’s what happens:
Sixty-six percent of Americans use the same password for multiple accounts. While this isn’t a great password security practice, it’s understandable—the same survey shows that 75% of Americans are frustrated trying to keep track of passwords.
You need a unique and complex password for each account—and no, you shouldn’t use ChatGPT-generated passwords. Your best bet is to use password managers that can generate strong passwords using specific algorithms and criteria.
Here are the aspects a password vault considers when generating passwords:
Password vaults also offer some customization options. This is important because websites and systems have varying requirements. For example, you might be able to specify the character length and type when generating a password.
Password vaults use a combination of techniques and protocols to securely auto-fill the username and password on a login page.
Your password vault encrypts your credentials, stores them on the cloud, and keeps syncing the credentials whenever you modify them. They encrypt the data and use synchronization protocols like HTTPS to securely transmit and sync this data across devices. The data remains encrypted during the sync and only authorized devices can decrypt and access it.
A password manager’s browser extension or plugin keeps monitoring the pages you visit. When it finds a website or login page for which it has saved credentials, it detects relevant fields and prompts you to auto-fill the credentials.
Once you allow the vault to fill in the details, it communicates securely with the browser extension and transfers your credentials in an encrypted format to prevent interception.
Setting up MFA is like adding extra layers of security to your digital safe–and it means you’ll need more than one key to unlock the safe.
Two-factor authentication (2FA) is generally sufficient in most cases. Have you ever used a time-based one-time password (TOTP) in addition to your password when logging into your bank account? That’s an example of 2FA.
2FA combines something you know, such as your password, with something you have access to, such as your phone. This means you can complete 2FA using a one-time password, an authenticator app, or biometrics like fingerprint or facial recognition.
MFA is just an extension of 2FA, where you use more than two layers of verification.
Password vaults can sniff out weak passwords so you can fortify your digital defenses. Vaults use algorithms to check your password’s strength based on factors like length and complexity (combination of letters, numbers, and special characters).
In addition to these basic checks, some password vaults use the following techniques to assess password strength:
Password vaults score your passwords based on algorithmic assessment. Higher scores indicate greater strength. Many vaults display this score so you can find weak ones and modify them.
If you’re looking for a password vault, here’s a list of the best options:
Some password managers have limitations that allow adversaries to access your credentials. This has led users to get caught in a dilemma between the convenience of password vaulting services and concerns about their security.
The conversation points to an evolving landscape in password management, where trust and security are paramount. Currently, there’s room for improvement in how password vaulting services handle and secure user data.
Being mindful of the limitations of an average password manager is the first step toward protecting your data. When choosing a password vaulting app, investigate how it will protect you against these risks.
Yes, some password vaults can be hacked. In fact, researchers from the University of York released a study in 2020 analyzing five password managers for security vulnerabilities. The researchers were able to trick two password managers (1Password and LastPass) into revealing a password.
This has led to a growing concern among consumers about the safety of password vaults, but in most cases, users can protect themselves with a little bit of education.
Here are the methods an adversary could use to hack your password vault:
- Capturing data packets using specialized tools and extracting sensitive information
- Exploiting weak encryption protocols
- Using DNS spoofing to redirect communication from the password vault to servers under their control
Losing your master password can be a big problem. Top password managers offer limited recovery options because they prioritize the security of user data. Even the company that built the password manager doesn’t store your master password and can’t access your data.
Here’s how a password vault may help you regain access:
Because the password vault will prioritize security, you won’t get direct access to stored passwords without authenticating your identity through multiple verification layers.
Not all password managers you find on the internet are safe, but storing passwords in browser caches isn’t a safe alternative. You need a password manager you can trust.
While you still need to follow best security practices to protect your passwords, a strong password vaulting app can help. Cloaked, ensures your passwords remain in a safe digital space, away from everyone’s reach, including the Cloaked team.
Cloaked uses secure hashing algorithms and encryption ciphers (ECC25519, Argon2, and XSalsa20-Poly1305) to protect your data. The platform also adds an extra layer of security by storing your data on a unique database with unique keys.
No more giving away any personal information.
