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But this depends on the alternative. If, instead of using a password manager, uses only one (or even two or three) passwords across all the websites they frequent, then you are still, in effect, trusting numerous third parties to keep your password safe in the cloud--if any one of these sites is compromised, then your password for all (or half, or 1/3rd, etc.) is compromised along with it. I agree with you that an offline password manager is better in theory. But the problem is that I am aware of no such service that is easy to use across numerous devices, so much so that none has struck me as a viable option given my patterns of usage. Maybe there are people out there who will accept much more inconvenience in exchange for avoiding the risk associated with a cloud-based service. But, for me, the inconvenience is simply too much. So the choice once more, for me, becomes cloud-based password manager or no password manager at all. (Though if you've found a good option, that will allow me to easily sync across my home desktop, laptop, office pc, tablet, and smartphone, without using the cloud, I would absolutely love to hear about it! Maybe something Bluetooth based?) |
A catastrophic compromise would require an attacker to see actual credentials (not just the hashes) across many sites, and on top of that reverse engineer my specific permutation scheme. This seems much less likely to me than a very public, high-profile centralized cloud service forgetting to cross a T somewhere and getting hacked.