How Can Password Managers Protect Information?

Data breaches are becoming more frequent, and even the most cautious users aren’t immune. While you can’t always prevent a breach from happening, you can take steps to protect your sensitive information when it does. Password managers are one of the most powerful tools available to everyday users — they help you generate stronger passwords, store them securely, and detect vulnerabilities before they become problems.

In this article, we’ll explore how password managers fit into a broader strategy for protecting your data. You’ll learn why breaches happen, what to do if your data is compromised, and how to safeguard your information going forward.

Data breaches are alarmingly common — and growing in scope. In 2025 alone, there have been 1,732 data compromises reported, with cyberattacks affecting more than 114 million individuals. The top five industries that suffer breaches the most frequently are financial services, healthcare, professional services, manufacturing, and education.

These incidents are part of a broader trend. Cybercriminals are constantly evolving their tactics, using phishing emails, malware, social engineering, and exploiting outdated software to gain access to sensitive data. Once inside a system, attackers can steal passwords, financial information, or even personal identities, often without being detected right away. In fact, the average dwell time of an attacker on a network before detection is upwards of 200 days.

The key takeaway? Data breaches are the norm and it isn’t whether you’ll be affected, but when. That’s why proactive protection matters.

Password managers are one of the most effective tools for protecting your accounts and reducing your risk of a data breach. They securely store all your logins in one encrypted vault, generate strong passwords, and fill them in automatically, so you don’t have to remember them all. Many services now also offer features like data breach monitoring, password health checks, and two-factor authentication for further safeguards.

Here are a few recommended password managers:

• NordPass. Offers end-to-end encryption, password health reports, and business-ready features. It also supports passkeys and email masking to prevent phishing attacks.
• RoboForm. A great pick for fast one-click logins and flexible local storage options.  Its built-in TOTP authenticator and offline access are ideal for privacy-minded users.
• 1Password. Known for strong security, seamless syncing, and secure password sharing. Its Smart Suggestions and customizable vaults help teams stay organized and secure.
• Google Password Manager. Built into Chrome and Android, it’s a simple free option for everyday use. While basic, it supports password autofill, syncing across devices, and breach alerts.

In 2025, almost half of all data breaches (46%) included customer personal identifiable information, such as tax ID numbers, email and home addresses, and phone numbers. If you suspect or know that your information has been compromised, acting quickly can reduce your risks. Here are the most important steps to take:

1. Change your passwords immediately

Update the password for any affected account, especially if you’ve reused that password elsewhere. Make sure each new password is strong, unique, and not similar to previous ones. A good password is at least 20 characters long, and uses a mix of upper and lowercase letters, numbers, and special characters, and avoids using personal information like names and birthdates. Using a password manager can help you generate and store these passwords easily.

Furthermore, the passwords created by password managers are so complex that the user won’t be able to memorize them. This makes it even more difficult for a threat actor to guess or brute force the passwords to your accounts.

2. Enable two-factor authentication (2FA)

Adding 2FA to your accounts ensures that even if your password is compromised, unauthorized users still can’t access your data without a second verification step. Authenticator apps like Google Authenticator or Authy are more secure than SMS codes, which can be intercepted through SIM-swapping or phishing attacks. Hardware security keys like YubiKey offer even stronger protection and are ideal for high-risk accounts. Enabling 2FA gives you a significant security boost with minimal effort.

3. Monitor financial accounts and credit reports

After a data breach, it’s crucial to watch your financial activity closely. Look for unfamiliar charges on your credit and debit cards, and check your bank accounts daily for unexpected withdrawals. You can also request free credit reports or use credit monitoring services to keep tabs on new accounts opened in your name. If you’re concerned about identity theft, consider placing a freeze or fraud alert on your credit file.

4. Log out of all sessions and revoke suspicious device access

Most platforms let you view and manage active sessions across devices. Immediately logging out of all sessions helps kick out any unauthorized users who may have gained access. You should also review the list of devices with login permissions and revoke access to any that look unfamiliar. This stops bad actors from lingering in your accounts, potentially harvesting more information or changing security settings.

5. Update apps and operating systems

Hackers often exploit known vulnerabilities in outdated software. Installing the latest updates for your apps, browsers, and operating systems ensures you have the latest security patches in place. Many companies release updates specifically to close vulnerabilities discovered after a breach. Regular updates are a simple yet powerful defense against future attacks.

It can take an organization an average of 204 days to identify a data breach and 73 days to contain it. Protecting your information before it gets in the hands of hackers is the best way to reduce the chances of your sensitive information being stolen and you not finding out about it for months.

Here are a few steps below to keep your online data secure:

• Use a password manager: Password managers make it easy to generate and store strong, unique passwords for every account. Many also include breach monitoring tools that alert you if a saved login appears in a known leak.
• Turn on two-factor authentication: Adding a second step to your login process, such as an authenticator app or hardware key, keeps your accounts safe even if a password is compromised. Most major platforms support this security feature.
• Avoid reusing passwords: Using the same password across multiple accounts means a breach at one site can give hackers access to everything. A password manager can help you generate strong and unique passwords and keep track of them.
• Don’t click on suspicious links or attachments: Phishing remains a leading cause of data breaches. Be cautious with unexpected emails, texts, or pop-ups, especially ones asking for login details or personal information.
• Keep your software up to date: Operating systems, browsers, and apps often release patches to fix security flaws. Turning on automatic updates ensures you get the latest protections as soon as they’re available.
• Use encrypted networks when possible: Public Wi-Fi is convenient but risky. A VPN (virtual private network) encrypts your traffic, protecting your information from prying eyes on unsecured networks.
• Limit the personal info you share online: The more data you make public, like birthdays, addresses, or even favorite hobbies, the easier it is for hackers to guess passwords or create phishing scams tailored to you.