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My new favourite password manager
(keepass.info)
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this post was submitted on 13 Oct 2023
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Yup, I have been using KeePassXC locally since (one of) the first big LastPass breaches. I thought "password manager company... they know encryption" and then kept some of the most important things stored in my vault including notes of Bitcoin seedphrases etc. Thought "even if they get hacked, they wouldn't let anyone exfil the huge amount of data from the USER VAULT SERVER.... thought "my passphrase is like 25-30 chars long, nobody will crack that"...
5 years after my last login and I find out the breach happened, user vaults were exfil'd, the encryption was absolute shit, and the notes weren't even encrypted.
I don't trust cloud companies to keep promises or know what they're doing today. and anything self-hosted isnt Internet accessable unless it's on dedicated hardware subnetted off and wouldn't matter if it got hacked.
Bitwarden for example does public reports and is pretty cheap at 10€ per year. But the base (free) offering is more than enough. The fee is only to have TOTP and a bit of encrypted cloud storage. https://bitwarden.com/help/is-bitwarden-audited/
And to keep the company alive. It's cheap enough that IMO it's worth paying for if you get a lot of value from it, even if you don't need the paid features.
In theory at least, online services would be more safe than a locally decrypted vault. If your computer is compromised, the bad actors can pull your encrypted vault for an unlimited brute force attack. Of course, this can be mitigated by increasing the decryption time. However, if your vault is already decrypted, then bad actors can just pull all your password from your memory.
I, for one, am decrypting my vault once when I start my PC. In theory, if I were to use an online solution, bad actors wouldn't be able to pull my vault from memory.
It's the same issue once you login to your vault via browser extension. They have to download your vault locally on login to decrypt it when you enter your password anyway*. Even if they don't store your vault password in memory, they either store the entire vault (unlikely for size reasons) or a more temporary key to access the vault. Local compromise is full compromise already.
*If they don't, then they either made a giant technological leap, or they're storing your passwords on a simple database on their servers and that's not what you want from a password manager.