Vault Password Manager—Definition, Security, and Features
Password managers have become essential security tools in everyday life and professional settings. Regular users rely on them to log into accounts, make online payments, or access sensitive information across multiple devices. They've also been adopted by enterprises to protect vital infrastructure and manage access to resources.
The key feature that makes password managers effective and versatile is their ability to store information in a secure vault. In this guide, we'll explore what a vault password manager is and discuss how it safeguards sensitive data against breaches. We will also introduce virtual cards and how they protect payment card details during online transactions.
Disclaimer: The information in this article is accurate as of July 2024. For up-to-date information, visit the official website of each listed provider or contact customer support directly.
What Is a Password Vault?
A password vault is a digital storage space where password managers keep your login credentials, credit card information, and other sensitive data. That space can be located on the password manager's server or your hard drive if you're using an offline password manager. Some solutions, like the open-source password manager Bitwarden, let you create a vault on a server you set up.
Password vaults protect your data using strong encryption algorithms that turn plain text information into complex, unreadable codes. The industry standard is AES-256, a highly secure encryption cipher, though some password managers, such as NordPass, use ChaCha20, a newer and faster encryption algorithm.
To access your password manager vault, you'll need a master password—a login credential used to derive the encryption key. It's often the same password you use to access your password manager account and the only password you need to remember when using a password manager.
Password Manager Vault Features
Password managers come with various password vault storage and management features to help you organize your credentials and sensitive information. Tools such as Keeper and Dashlane, among others, allow you to store whole files in your vaults, protecting them with encryption.
Other useful password vault management features include:
Some password managers can also help track various activities related to your password vault, including login attempts, changes to credentials, and their sharing. This feature allows you to identify suspicious activity quickly and take necessary action. Enterprise solutions like Password Manager Pro usually have thorough activity auditing and reporting features to aid with compliance requirements.
How Secure Are Password Vaults?
Besides the encryption, many password managers apply the zero-knowledge principle, where they encrypt your data on your device and never store your master password on their servers. As a result, neither they nor anyone who might steal your vault data can decrypt your sensitive information.
Other security measures password managers use to secure vaults include:
- Additional encryption keys—1Password has a feature called the Secret Key, which uses an additional key on top of your master password to create an even more secure encryption key for your vault.
- Multi-factor authentication (MFA)—Besides the master password, you can set up MFA methods such as biometrics, one-time passwords (OTPs), or physical keys like Yubikey to further secure your password vault.
- Passwordless login—Password managers such as LastPass and Norton Password Manager let you use a method other than your master password to unlock your vault. These can include push notifications, biometrics, or physical keys.
Potential Vulnerabilities of Password Vaults
Even though password managers employ stringent security measures to protect your vaults, there are still vulnerabilities and risks you should be aware of. These include:
- Weak master passwords—Since your master password allows access to all your other passwords, using a weak or easily guessable one can expose the contents of your vaults to potential attackers.
- Poor encryption practices—Some password managers use weaker encryption standards or leave some information unencrypted. These practices can significantly reduce the security of your vault and the information stored in it.
- Advanced persistent threats (APTs)—These sophisticated, prolonged attacks aim to gain unauthorized access to password managers' systems.
- Phishing and other attacks—Hackers might create fake password manager login pages or try to tamper with their apps' user interfaces to steal your master password.
- Human error—You may accidentally share your master password with someone, leave sensitive information on a clipboard, or forget to log out of your password vault on a shared or public device. These mistakes can jeopardize the security of your vault.
How To Protect Your Password Vault
To make sure your password manager vault and everything you store in it is safe, your first step should be to do your due diligence when choosing a password management solution. Ensure that the service provider you choose uses the highest encryption standards, offers support for all the devices you use, and has a good security track record.
Other measures you can employ include:
- Creating a strong master password
- Enabling two-factor authentication
- Updating your password manager software regularly
- Monitoring your vault activity
- Bolstering your device security
Can Password Vaults Keep Your Data Perfectly Safe?
Even though password managers use advanced security measures to safely store passwords and payment card information in their vaults, their protection has limits.
When you autofill and share your information with a third party, such as an e-commerce store, the security of your sensitive data depends on that third party. If the merchant you shopped with suffers a data breach, your financial details could be exposed.
For enhanced protection against hackers' attempts to steal your financial details, consider using virtual cards for online transactions. These cards come with a unique card number you can use at checkout, keeping your actual card numbers safe in case of a security incident.
If you're looking for advanced safeguards and robust spending controls, consider a dedicated card provider like Privacy.
Protect Sensitive Information With Privacy Cards
When you sign up for Privacy, you can add your bank account or debit card to their secure platform and create virtual cards for your online transactions. Privacy Cards work like your regular cards when shopping online. However, they allow you to keep your financial details hidden from potential hackers, reducing the risk of misuse.
As a BBB-accredited company, Privacy employs stringent security measures to safeguard your financial details. For instance, Privacy encrypts data using the industry-grade AES-256 encryption protocol, reducing the risk of unauthorized access. It undergoes regular external audits to ensure it complies with the highest security standards for data protection, including PCI-DSS and SOC 2.
Privacy also offers:
- Two-factor authentication—Requires a second form of authentication at login, such as a code sent to your phone or email or a time-based one-time password (TOTP)
- Transaction alerts—Sends real-time notifications each time your cards are used or declined, allowing you to spot and respond to unusual activity
- Fraud investigation—Investigates disputed transactions and files a chargeback against the vendor on your behalf, the same way a bank would.
Privacy Card Types and Their Features
With Privacy, you can create three types of virtual cards:
- Single-Use Cards—These cards are designed for one-time transactions. They close shortly after completing the first purchase, preventing potential misuse. Single-Use Cards are perfect for shopping with unfamiliar vendors.
- Merchant-Locked Cards—After the first use, Merchant-Locked Cards "lock" to that specific merchant and decline charge attempts from other vendors. These cards are ideal for recurring payments, such as bills and subscriptions.
- Category-Locked Cards—These cards "lock" to pre-defined spending categories such as travel, entertainment, or groceries. Privacy will block any attempts to use them with a merchant outside the category. Category Cards aid in budgeting and spending control.
Privacy allows you to set spending limits on virtual cards, declining transactions exceeding the preset amount. This feature can help protect you from price hikes you weren't notified about. You can also pause or close Privacy Cards, and Privacy will block further transactions. This feature can help reduce the risk of accidental or unauthorized charges, such as those that might happen during or after subscription cancelation.
Additional Convenience Features
Privacy offers several other features designed to make using and managing your Privacy Cards more convenient:
- 1Password integration—You can manage both passwords and Privacy Virtual Cards from the 1Password browser extension thanks to this integration.
- Mobile app—The Privacy App enables you to control your virtual cards from your smartphone. You can create new cards, manage existing ones, and track your spending on your iOS or Android device.
- Browser extension—Available for Chrome, Firefox, Edge, Safari, and Safari for iOS, the Privacy Browser Extension lets you generate and autofill virtual card details during online purchases, speeding up the checkout process.
- Shared Cards—You can share your virtual cards from Privacy with friends or family without exposing your actual payment card details.
Get Started With Privacy
To join Privacy and start using virtual cards, complete these four steps:
- Sign up for an account on the Privacy website
- Provide your KYC information to complete identity verification
- Link your bank account or debit card to your Privacy account
- Request and generate your first Privacy Card
Privacy offers four monthly plans to suit different budgets and needs:
