definition of terms
Password vaulting is a central component of modern privileged access management (PAM) strategies. It involves storing highly privileged access data such as admin passwords, root accounts, or service credentials in a protected, encrypted password vault. Access to this information is strictly controlled, logged, and ideally temporary.
Functionality
Instead of users having to remember or manually enter passwords, access data is stored centrally in an encrypted "vault." Administrators can specify which users or groups are granted access to specific applications. Using browser extensions or a dashboard, employees can then log in with a single click via single sign-on (SSO), even for apps without native SSO support.
Why do you need password vaulting?
Password vaulting is necessary because many applications do not support federated authentication (e.g., SSO, SAML, or OpenID Connect). It enables secure and centralized management of these applications.
Advantages and reasons for use
- Secure storage: Access data is stored in encrypted form in a central vault.
- Centralized management: Administrators can manage passwords, control access rights, and assign apps in a targeted manner.
- Automated login: Users log in with a single click via a dashboard or browser plugin, without having to enter passwords manually.
- Closes SSO gaps: Ideal for applications without federated identity support.
- Protection of sensitive accounts: An important component of privileged access management (PAM) for securing privileged access.
- Compliance & Audit: Supports security and data protection requirements (e.g., GDPR, ISO 27001).
How does a password vault work?
A password vault is part of a PAM solution and usually includes the following functions:
- Central, encrypted storage location
→ All sensitive access data is stored in the vault and protected against unauthorized access.
- Temporary release ("check-out") with logging
→ Only authorized users can use a password for a defined period of time, and each use is logged.
- Automatic password change (rotation)
→ Passwords are automatically changed after use or on a regular basis.
- Access without visibility of the password
→ Users can log in to the system without ever seeing the password.
Conclusion
Password vaulting reduces risks associated with weak or reused passwords and provides security even where SSO cannot be used.