Stay updated with the latest Cybersecurity News on our TecnetBlog.

Password Managers Under Attack: Are Your Credentials Safe?

Written by Levi Yoris | Dec 11, 2025 1:15:00 PM

Password managers have become essential tools for your digital life. They allow you to create strong passwords, remember them for you, and reduce the risk of reusing weak credentials across services. But precisely because of their value, they’ve also become a high-priority target for attackers.

At TecnetOne, we often say: when something becomes too valuable, it naturally attracts cybercriminals. And today, your password manager holds your most precious digital assets—your identity, money, and data.

In recent years, attacks on these tools have risen dramatically: phishing, specialized malware, fake apps, provider breaches, and software vulnerabilities. The threat landscape keeps expanding—and so does the potential impact.

Here’s why this trend is accelerating, and the top three threats you should watch closely.

 

A World with More Passwords—and More Risk

 

Our digital lives keep getting more complex. Without realizing it, the number of services you log into daily has exploded.

According to NordPass, the average user now manages 168 passwords, a 68% increase from just four years ago. That volume makes it almost impossible to memorize strong, unique passwords, which leads many people to reuse them—a gift for attackers.

Password managers solve this by generating strong passwords and syncing them across devices. But with that convenience comes a new risk: if someone breaks into your vault, they gain access to your entire digital life.

 

Read more: Why should you NOT ask an AI to create your passwords?

 

1. Master Password Theft: The Most Critical Risk

 

Your master password is the key to everything. If an attacker gets it, they can access:

 

  1. Bank accounts

  2. Email

  3. Social media

  4. Work platforms

  5. Digital wallets

  6. 2FA repositories (if stored there)

  7. Tax and government portals

 

In short, they get total control.

 

How do attackers steal the master password?

 

ESET researchers have identified several techniques:

 

  1. Brute-force attacksstill effective if your password is short or weak.

  2. Fake login pages identical to real manager UIs, used to phish credentials.

  3. Malicious ads attackers pay for sponsored results that appear above the real site.

  4. Keyloggers and screen-capturing malware silently record what you type.

 

In many cases, users don’t realize they've been compromised—until it's too late.

 

2. Phishing, Malware, and Fake Apps: The Triple Threat

 

Beyond the master password, an entire ecosystem of threats now targets your vault:

 

Fake websites and phishing campaigns

 

Attackers create near-perfect clones of:

 

  1. LastPass

  2. 1Password

  3. Dashlane

  4. Bitwarden

  5. KeePass

  6. NordPass

 

The only difference? The URL. Once you type in your password, they’ve got it.

These fakes are often promoted via malicious ads on search engines or social media.

 

Malware engineered for vault theft

 

A recent example is North Korea’s DeceptiveDevelopment operation using InvisibleFerret malware. This tool:

 

  1. Extracts saved credentials

  2. Captures browser cookies

  3. Targets popular managers like 1Password and Dashlane

  4. Sends everything via Telegram or attacker-controlled servers

 

This malware often hides in developer tools or "productivity" apps.

 

Fake apps in official stores

 

Even Google Play and Apple’s App Store have seen fake password managers slip through. These apps can:

 

  1. Steal your master password

  2. Install spyware

  3. Lock your device for ransom

 

The threat is no longer limited to shady websites—it's in the stores themselves.

 

3. Vendor Breaches and Internal Flaws: Threats from Within

 

Even if you follow best practices, one risk remains out of your control: the provider’s security.

The most famous case is LastPass, which suffered two major breaches in 2022:

 

  1. Source code theft

  2. Internal documentation leak

  3. Encrypted vaults stolen

 

Those encrypted files later helped criminals steal millions in crypto. Weak master passwords made those encrypted vaults vulnerable.

And it’s not an isolated case. ESET reports a growing number of vulnerabilities in managers:

 

  1. Syncing errors

  2. Memory leaks

  3. 2FA exposure bugs

  4. Browser extension flaws

  5. Weak cross-device encryption

 

Every new feature adds another potential attack vector.

 

You might also be interested in: The Dark Side of Your Passwords: How do they end up on the dark web?

 

How to Protect Yourself: TecnetOne’s Key Recommendations

 

Despite these risks, password managers are still far safer than trying to memorize everything. But you must harden your setup.

 

Create a strong, unique master password

Use a long passphrase with random words:

Example: skyforest-river42-moonlight

Avoid birthdays, names, or short combos.

 

Always enable multi-factor authentication (MFA)

Best options:

 

  1. Hardware keys (YubiKey)

  2. TOTP apps (Authy, Google Authenticator)

  3. Biometrics

 

Avoid SMS-based MFA whenever possible.

 

Keep your manager and devices updated

Many attacks rely on old, unpatched flaws.

 

Download only from official sources

Never install a manager from:

 

  1. Ads

  2. Third-party links

  3. Unknown websites

  4. Alternative app stores

 

Always verify the developer name.

 

Don’t store 2FA tokens in your manager

If the manager is compromised, your 2FA goes with it. Use a separate app or device.

 

Turn on all available security alerts

These can notify you of:

 

  1. Unusual logins

  2. Vault exports

  3. Suspicious changes

 

Enable every alert your manager offers.

 

Final Thoughts: Your Vault Is Safe—If You Keep It That Way

 

Password managers remain one of the best tools for digital security. But their growing value has turned them into prime targets, and attackers are adapting quickly.

At TecnetOne, we see it clearly: your vault’s safety depends not just on the software, but on your habits.

Strengthen your master password, enable MFA, avoid shady downloads, and stay alert. With these measures in place, your password manager will remain a trusted ally—not a single point of failure.