0
Password managers arguably provide greater security since it allows users to easily create unique, difficult-to-guess passwords for every website they log in to.
But, if someone has a keylogger on their computer, isn't all this security defeated as soon as the user inputs their master password to get into the password manager?
Even if the user implements one-time passwords or two-factor authentication, the password manager still inserts the password of your saved websites in when you log into them (e.g. auto-type in KeePass).
From this, it seems that if you have a keylogger on your computer, you're totally screwed when it comes to passwords...
Or are you?
3In most cases, at least with the browser implemented solutions, the way the password is transferred into the password field within the browser is very difficult to intercept. Like all things when it comes to security if your system is already infected most security precautions are not actually useful. Password managers are solving an entirely different set of problems, preventing your password from being stolen by malware on the machine it resides on, isn't one of them. – Ramhound – 2015-01-16T20:10:02.840
A keylogger, by itself, cannot read the password database. However, if there is any malware on the machine, the database may very well be compromised by some other means. – bwDraco – 2015-01-16T21:43:12.017