What's kept me away from such solutions are these questions: How can you trust one service with all your passwords? What if their configuration has a vulnerability?
KeePass works well too - open source, offline solution that has an "Autotype" function.
I actually only run into passwords that are a pain on mobile devices. Now that my Android phone has no keyboard but tons of power, that's becoming more and more significant.
I use keepass too. I keep my database in dropbox and use the android dropbox and keepass clients on my android. Logging into an app or website involves opening dropbox, clicking on the database[1], entering my password, choosing the site, and clicking on "copy password to clipboard." It's a few extra steps, but it's not that much of a hassle.
[1] I find this easier than opening keepass and selecting the database from dropbox for some reason that might be as simple as dropbox having an easier to spot icon.
You can also use the favorite feature on Dropbox to keep a fresh copy of the database on your phone and have KeePassDroid remember that location. Then your flow is 1) open KeePassDroid 2) enter password 3) select site 4) copy/paste
The enter (long alphanumeric and symbols) password/copy/paste/switch window was a little clunky in Android 2.2. Little better in ICS, so need to get back to using this.
One more KeePass user here (actually KeePassX). But I'm using it only for not my own passwords, provided by others and so on.
For my personal ones I'm keeping few algorithms in my brains. I'm using resource type (website/some server/device) and name (e.g. domain/model) as variables and after few steps in my head I always have different password for each kind of service.
Use open-source tools such as SHA1-Pass. The passwords it generates can be recreated with openssl and any other standard crypto library.
Edit: I wrote SHA1-Pass, so I'm biased, but I know what you mean about having trust issues with closed-source password tools. That's one of the reasons I wrote it.
I use open source tools such as "pwgen", "emacs" and "gpg". Open up the encrypted file in the editor, type your pass phrase if you haven't this session, cut and paste, close file. The built-in keyboard navigability makes this faster than everything but the in-browser form filling.
You might consider renaming it. I've been looking for several minutes and can't find it via that name.
Is it this: http://manpages.ubuntu.com/manpages/natty/man1/sha1pass.1.ht... I don't see how you would use this the same way you'd use the other tools mentioned here. I can imagine a way, but it's no where near as convenient and still has it's own major usability problems.
Nothing, really. However, I trust the LastPass guys to keep their shit secure as much as I trust myself to keep my own system secure.
After all, if my own system is compromised, I just get a lot of hassle. If LastPass ever gets hacked and leaks their passwords, they lose their business overnight. That's pretty good motivation for them to keep on top of their stuff.
I used to use 1Passwd, which stored the passwords in a local file, and that could be said to be marginally more secure, except that it generally uses something like iCloud or Dropbox to sync the passwords, so there's still a single point of failure... The main reason I moved away from 1Password was that they gave me a shitty response when I asked them if they were going to support Chrome. I decided at that point that I didn't want to give them my money anymore, and so I didn't upgrade to 1Password 3.
The big difference between "hosted service" and "encrypted file in the cloud" is that the hosted service has, by definition, to store the key next to the lock to be practical.
The key for your encrypted file stays in your head (and/or in your wallet), so even a full-on total breach of Dropbox/iCloud, your key is safe, and 8 million rounds of 265-bit AES and a good password (my current KeePass settings) is still unbreakable[1].
1: Unless (perhaps) you have the attention of certain governments. And they always have the option of using a $5 wrench on you, anyway.
As far as I know, LastPass does not "store the key next to the lock."[1] The browser extension encrypts/decrypts locally. If you use your password file through the web site you're still downloading your encrypted DB from them and encrypting/decrypting locally (whether with the extension, or I believe they also have a pure JS implementation).
[1] Or so they say. I've never MITMed their SSL, and their software is not open source AFAIK. This is not to say someone couldn't e.g. distribute a trojaned version of their browser extensions. If you poke around the developer(s) have at least revealed the encryption method for the your DB so you can verify how it is encrypted for yourself, which is a good sign if nothing else.
Why can't the hosted service use an "encrypted file in the cloud" as its implementation? As long as it requires client-side code to do the decryption, the key stays in your head alone.
> except that it generally uses something like iCloud or Dropbox to sync the passwords, so there's still a single point of failure
No. This is the strength of two-factor authentication, something you know, and something you have. If someone gets your 1Password keyfile, it's useless without your decrypting password.
I use 1Password, rather than lastpass. On that system, your password file is stored locally by default, so their isn't a centralized password store to attack. If you do syncing of passwords between machines, you keep an encrypted password file in your dropbox account.
I think it's a risk with a solution like this, but much less of a risk of having to remember all these passwords myself (a practice which tends to devolve to re-using passwords).
This is why I use 1password and not LastPass - the encrypted password file is stored locally - optionally in Dropbox, which is what enables moble and remote (http online through Dropbox) to work.
LastPass encrypts your passwords using your master password as (at least part of) the key. This means that they do decryption of passwords client-side as well. The entire password file is not stored locally but they had an intrusion of some sort a number of months back which demonstrated that they have a pretty good system set up along with quite a bit of monitoring. Truecrypt in dropbox is obviously a good choice if you're super paranoid but after seeing LastPass respond to security really well and it having an overall pretty simple UX, I don't have any reason to not recommend it.
I use KeePass right now synced with Dropbox - what keeps me up at night is the fact that if the bad guys got my password file today, there could turn out to be a vulnerability in it discovered years from now that could allow them to get my password.
