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How about online password managers?

Password management tools like Blackberry password managers and Roboform are great, but what if you don\’t have them with you? The Little Grey Cell Storage System(tm) is always available, but has a limited capacity (more limited for some of us than others). There are a number of free and paid online password managers available. Do you want to trust your passwords to this type of service?
I have been looking at a service in beta called Passpack. It has lot of great convenience features and flexibility that allows you to trade-off convenience for higher security. It can also import passwords from other password managers, including Roboborm.
These folks seem to understand security and implement it well. The passwords are strongly encrypted locally, using a strong passphrase. So far, I have not entrusted them with my most sensitive passwords, but I like the implementation, the features, and the backup in case I do not have my USB key with my Roboform passwords available (I have been known to leave it on the desk from time to time).
What do you think? Are online password managers secure and should we be trusting them with our most sensitive passwords?
Dennis H – August 18, 2008

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