How are passwords encrypted and stored?

Your passwords are encrypted using AES-SHA 256 Cryptographic Hash Algorithm and stored inside your device. Since each account has its own cryptographic key, your encrypted backup file is only usable with your account. You are the only one with access to your passwords or who can reupload your backup. Make sure you save the encrypted file somewhere safe or in multiple locations. You can also synchronize your passwords on multiple devices to keep as copies.