Why This Is a Myth
Many people assume that if a password manager ever got hacked, all their passwords would be exposed. In reality, that’s not how modern password managers are built. High‑quality services use zero‑knowledge encryption, which means your passwords are encrypted on your device before they ever reach the company’s servers. Even the password‑manager provider cannot see what’s inside your vault. So, even in the event of a breach, attackers would still only access fully encrypted, unusable data.
Using a password manager also helps reduce your risk by allowing you to create unique, complex passwords for every account you use. This is important because reusing the same password across multiple sites is one of the leading causes of cyber attacks. If just one website experiences a data breach, attackers can take that stolen password and try it on your other accounts, also known as credential stuffing. When every account has its own distinct password, a breach on one platform cannot be used to access anything else, greatly limiting the damage a cybercriminal can cause.