How do password managers work?

30th October 2025

We explore the technology used by password managers, how it helps and why you should consider using one.

In our last article, we explained what password managers are and how they might be useful in keeping your login details collected and safely secured. Continuing from this, we want to explain further how password managers work and why users may benefit from them, in terms or organisation and security.

Some of the key security features of password managers include:

·         Encryption – passwords are stored in an encrypted vault, with a master password being the only one you need to remember.

·         Zero knowledge architecture – used by many password manager providers, this means that even the provider can’t access your details.

·         Multi factor authentication – adds another layer of security, verifying your identity before your passwords can be seen.

·         Detects fake websites – some password managers can protect against phishing websites by detecting them and not allowing you to auto-fill your details.

Each of these is designed to keep your passwords safe, making it easy for you to access, but difficult for cyber criminals to breach. Using one can also help you to meet compliance standards related to cyber security, including Cyber Essentials and ISO 27001.

Beyond security, you may want to use a password manager for the convenience, as the auto-fill will save you time and you won’t have to keep resetting forgotten passwords. Also, password managers can be useful for IT teams who may be managing details on behalf of an organisation: they can cover all the details from one centralised place.

So, now that we’ve established what password managers are, how they work and why it is a good idea to use one, which one should you use?

For individuals or small teams:

·         Bitwarden – open-source, affordable and secure.

·         1Password – user friendly, with excellent security features.

·         Dashlane – includes dark web monitoring and has a built in VPN

·         NordPass – made by the company who make NordVPN, with a focus on simplicity and security

For businesses:

·         LastPass Business – offers admin controls, user provisioning and security problems

·         Keeper Security – strong enterprise features and compliance tools

·         Zoho Vault – good for smaller businesses, who may already use other Zoho products

Now that you have all the details, could a password manager be right for you? If you need anything else explained, please contact Interfuture Systems, we’d be happy to offer some advice.

YouTube: https://youtu.be/s2ORuOCypZI