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Are browser password managers safe for businesses to use?

Written by itfoundations | May 20, 2025 9:00:00 AM

We discuss browser password managers and how they compare to business password management systems?

The go to for many people saving their credentials is to use the password manager built into their browser. But should they?

We think the answer is no, and we discuss why in this article.

Although they are convenient, there are drawbacks to storing your credentials in a browser. Especially when considered in the context of a business.

This blog explores the safety of browser-based and dedicated business password managers, their benefits, and potential risks.

What is a password manager? 

A password manager is a digital tool designed to store and manage your passwords securely. These tools create a centralised vault where you can save all your login credentials for various websites and applications. The vault is either protected behind your browser's account login (like your Google account) or by a master password. This should be coupled with a form of multifactor authentication, like an authenticator app.

Almost every password manager comes with a feature that generates strong, unique passwords for each account, doing away with the need to create your own memorable passwords. They also enable a frictionless process for adding your credentials to websites by utilising autofill login for forms.

Browser-based Password Managers explained

Browser-based password managers were developed by companies like Google, Firefox, and Microsoft as an easy way to quickly improve general internet security. They are baked into the browser and are simple to use for personal use. They are a much better solution than writing passwords down or reusing the same ones over and over. 

Browser-based password managers are linked to your account on that browser and are protected by whatever credentials you have set (i.e. your email, password, and multifactor authentication). They will usually (but not always) sync your credentials across your devices, but only if you sign into the browser. 

Advantages of browser-based password managers

  • They're built into the browser, so there's no need to install extensions or to log in to a separate website to access your credentials
  • They're easy to use because they're integrated
  • They're free to use
  • Alerts you to weak or leaked passwords

Disadvantages of browser-based password managers

  • Your credentials are restricted to a specific browser
  • There's limited support across multiple devices
  • There are no business-level controls, policies, or reporting
  • They're designed to lock you into a specific browser
  • To access your credentials on mobile, you have to open your browser and go into the settings to find them.
  • There's no mechanism for easily and securely sharing credentials

Business Password Managers explained

Business password managers seek to fulfil the same basic security requirements as browser-based ones but with a slew of additional functions and capabilities designed to meet the needs of businesses.

Unlike browser-based password managers, which are integrated into a piece of software, these are standalone services with their own desktop apps, mobile apps, and browser extensions that allow access to credentials wherever the user is. They usually work across Windows and Mac, making them an ideal choice for flexibility. Additionally, they can sometimes integrate with other pieces of software on your computer, allowing for seamless logins.

Most, if not all, business password managers were developed specifically for business use but often offer a personal version as well. Examples of business password managers are LastPass, Bitwarden, Keeper, and PassPortal.

 

Advantages of business password managers

  • Cross-platform functionality
  • Browser agnostic
  • Passwords are easily accessible on multiple devices
  • Most allow the secure sharing of passwords with individuals or groups of employees
  • Most can act like an authenticator app and generate MFA codes, making shared credentials much easier to implement
  • Most have mobile apps
  • Some can enforce password complexity compliance
  • Granular controls can be implemented across an organisation
  • Extensions allow them to work with any browser
  • Extensions can be automatically installed across an organisation to enforce standardisation
  • Organisation-wide management means former staff's access can be blocked
  • Most provide reporting capabilities
  • An audit history of interactions with credentials at the user level is stored and accessible

Disadvantages of business password managers

  • There is a cost, usually a monthly subscription fee per user
  • It can be difficult to switch products, although all platforms provide a manual mechanism for exporting and importing passwords

Should you store business passwords in a browser?

Many people save their passwords in their browsers because it's convenient to do so. It's also a free service which makes it appealing.

That said, there are good reasons not too do so, and to use a dedicated password manager instead. Especially in a business environment.

Let's start by explaining what it means to store a password in a browser. This is when Chrome, Edge, or your preferred browser pops up and asks if you would like to save your credentials for a website.

While this feature offers ease of access, it isn't a particularly good solution for three reasons.

  1. Security - The first is that the security mechanisms in browser password managers aren't quite as robust as those of dedicated password managers without configuration. Browser password managers are designed to lean towards the usability side of the scale, rather than the security side. It means that, out-of-the-box, they are as easy to use as possible to encourage their use, rather than as secure as possible to really protect passwords.

    As an example, browser password managers won't generally ask you to regularly re-authenticate yourself, meaning that if someone steals your laptop they will have easy access to all your passwords.

    They are also vulnerable to attack simply due to the fact that they are baked into a very complicated piece of software - your internet browser. They interact at a very deep level with browser extensions which are often used by cyber criminals as ways to getting malware onto people's devices. This was evidenced earlier in 2025 when Google Chrome leaked passwords through an extension-based attack. 

  2. Management - The second reason that browser-based password storage isn't recommended for businesses is a lack of central management or control.

    If individuals store credentials in their browser, they become difficult to control, to revoke, or to change. For example, if a former member of staff has credentials stored in their browser, the business has no way to get these back, forcing a password change for every shared service they had access to. Additionally, businesses need to remember every cloud service that the member of staff had an account with and delete those accounts as soon as they leave. If one is overlooked, then the person would still have their credentials for access.

    Most business grade password managers allow administrators to tightly control credentials. They can:

    • share common credentials with staff who need to access communal software and services. Often this can be done without actually revealing the credential to the member of staff.
    • update shared credentials for all staff simultaneously
    • withdraw access to all credentials from an individual when appropriate

  3. Accessibility - If passwords are stored in a browser then they may not be available if you need them on another device.

    Browsers like Chrome and Edge allow you to sign in with your Google or Microsoft accounts. Once logged in, you can choose to sync your passwords using your account. This means that if you sign into the same type browser on another device, your passwords should also be accessible. But it means you have to use the same browser to access them. You may not want to sign into a browser and sync your details to it if you're on an unfamiliar or shared device. 

    Because dedicated password managers are agnostic of platform and browser they can be access from any device, whenever you need them by visiting their website and logging in with your master password. Most also provide a mobile app so you can access your credentials on your own secure personal mobile device without relying on accessing a website through a device you don't know.

Balancing security and accessibility in a password manager

As described above, most browser password managers are designed to be as easy to use as possible to maximise the number of people using them. As with all things in the world of technology, there is a balance to be found between usability and security. The more usable a system is, the less secure it tends to be. This rule holds fast with password managers too. A more secure password manager generally means it's harder to access.

When choosing a dedicated password manager, it's essential to balance security and accessibility.

Some password managers offer high levels of encryption, ensuring that your data remains secure. They use your password to encrypt your stored credentials. If you forget your password that data cannot be unencrypted, therefore potentially locking you out permanently. They do offer solutions to minimise the chances of this happening, like setting a password hint, or allowing a trusted contact to provide you with emergency access.

On the other hand, there are password managers that don't associate your password with the encryption of your data. Encryption with these providers is based on a unique secret code linked to your account. This means that they can offer recovery options like password reset, security questions, or backup codes. While these are more forgiving if you forget your master password, they may introduce vulnerabilities.

It's crucial to evaluate your needs and choose a solution that offers a reasonable balance between security and ease of access.

Are all password managers equally secure?

We've already seen above that browser based password managers can be vulnerable but so too can dedicated password manager.

No software or technology can guarantee to be 100% secure. There are some reputable password managers that have had flaws identified by security researchers which have been immediately fixed. Thankfully, these flaws were caught by the good guys first and don't seem to have been found or exploited by criminals. That's part of the day-to-day world of technology. Microsoft patches flaws in Windows ALL THE TIME. As does Apple with MacOS. 

That said, some password managers have been compromised several times over suggesting that they maybe don't take your security as seriously as they should. 

When selecting a password manager, it's advisable to research its history and user reviews to ensure you're choosing a reliable and secure tool.

If you are unsure about which password manager you want to use, speak to your IT support partner, who will be able to guide you.

Are password managers really worth using?

We provide all of our customers with a business-grade password manager because we feel strongly that they are a vitally important tenet of good cyber security.

Password managers are not 100% foolproof, but they offer a significant improvement over other methods like storing passwords in browsers, writing them down, or re-using the same password across multiple accounts. The benefits of enhanced security, convenience, and password management far outweigh the potential risks.

While no system is entirely invulnerable, using a reputable password manager is a sensible step towards safeguarding your online accounts. It strikes a balance between security and convenience, making it a better option than less secure alternatives.

 

Next steps...?

If you want to elevate your business' security then get in touch with our Edinburgh based experts who can help you protect you data.