Password managers are one of those things I am still stunned is staying popular for advice, even though it's nearly akin to "use one password for everything". I assume a big part of it is the affiliate deals subscription password managers have with infosec influencers.
There are absolutely valid use cases, but they are much fewer and further between than people claim.
It's quite different from use one password everywhere. My threat vector I wish to protect against that some random website I signup to will mismanage passwords and end up with them leaked, causing every website using that password to be compromised. Remembering hundreds of unique passwords is unreasonable, thus, password manager.
Considering the amount of times my email has ended up in a leaked dataset, and the only accounts I've ever had visibly compromised were ones I did not use a password manager for, this seams to be the correct mindset.
No. If a shitty service stores your password in plain and leaks it, this won't affect your other accounts, unless you reuse passwords.
I simply can't remember dozens of passwords, so a pw manager is the best I can do realistically. Yes, it's a single point of failure, but so is using the same pw everywhere.
It's completely the opposite of "use one password for everything". When you do that any single compromise of a website you have an account on means all your accounts are likely compromised. With a password manager you have a long random password for every single website, meaning a compromise is siloed to just that site.
Even if your password vault is stored on the cloud you're likely using a very secure passphrase for it that has 0 reuse anywhere else, so even if your password vault is stolen it's impossible to brute force.
For a hacker to comprise your password vault it would likely involve hacking your computer, which if you're keeping your software updated is a very difficult task these days without the target user's active help.
Depends on your threat model. I went all in on 1Password when I realized that realistically the most likely attack vector for me is phishing, which it absolutely protects against (won't be duped by a fake site and auto fill password).
It would be interesting to do a study (if one hasn't already been done) on whether password manager use reduces the number of compromises an individual has or not.
I think if used correctly they can be a net benefit, but the question is how many users actually use them correctly. Isn't the security they offer based on a user only having to remember a single complex and unique password for the manager, and then let it handle unique and complex passwords for everything else. The question is, however, how many users just set the password manager password to 'ImSecure123!' and use it to autofill the same old reused passwords they've always used?
This is why all the top/good password managers will alert you of: 1) password reuse between sites and 2) weak passwords. One can hope that the users will listen to those suggestions. In an organization, you can enforce compliance.
> even though it's nearly akin to "use one password for everything"
It's not at all akin to that.
Firstly, every respectable password manager requires multi-factor authentication to log in to. Someone finding out the password to your manager is almost never sufficient. They would probably need to find it out as well as gain physical access to a device of yours which has the manager installed.
Secondly, the whole issue of "use one password for everything" is that if one site gets hacked and they store passwords insecurely (or, indeed, if the people who run the site are themselves malicious), then someone can use that same password to access all of your other accounts. So you have to trust the security of every single site you make an account with.
Using a password manager doesn't have that problem, since each site is being provided with a different password. So then you don't have to trust any website, you only have to trust the password manager itself. And you don't have to use a big cloud-hosted one if you distrust them - there are many password managers that you can just run locally on your computer (though without the cloud benefits of backup / disaster recovery). You can also just use a notebook with a padlock or something - frankly it doesn't really matter how you track your passwords, as long as nobody can get to it but you, and you use a different password for everything, and you have some plan for disaster recovery. That's the idea.
There are absolutely valid use cases, but they are much fewer and further between than people claim.