The most glaring problem is the complete lack of encryption. Unlike a password manager that stores credentials in an encrypted vault (requiring a master password to unlock), a password.txt file is just raw text. If an attacker obtains the file, they have immediate, full access to every account listed.
: "Info-stealer" malware scans your browser's saved passwords, cookies, and system information, then exports them into text files before uploading them to a hacker's server. Warning Signs : password.txt file
Surprisingly, a physical piece of paper in a locked drawer in your home is often safer than a password.txt file on your computer. A hacker in another country cannot "remote into" a physical notebook. However, this lacks the convenience of digital tools and offers no backup if the paper is lost or destroyed. How to Transition Safely The most glaring problem is the complete lack of encryption