How to Manage Secrets Securely Using AWS Secrets Manager

AWS
EmpowerCodes
Oct 30, 2025

As cloud applications grow in complexity, securely managing sensitive information such as API keys, database passwords, and authentication tokens becomes critical. Hardcoding secrets into applications or storing them in plain text files increases the risk of unauthorized access and security breaches. AWS Secrets Manager provides a secure, scalable, and automated way to store, rotate, and manage secrets across cloud environments.

This guide explains how AWS Secrets Manager works, why it is essential, and how to use it effectively for secure secret management.

What is AWS Secrets Manager?

AWS Secrets Manager is a fully managed service that helps you store, retrieve, and manage application secrets securely. It allows developers and DevOps teams to centralize sensitive information and control access using fine-grained policies.

With Secrets Manager, you can:

  • Store and encrypt secrets securely

  • Retrieve secrets programmatically

  • Automatically rotate secrets without downtime

  • Control and audit access to sensitive data

  • Integrate with AWS services and applications seamlessly

It is widely used for managing database credentials, API keys, OAuth tokens, and third-party service secrets.

Why Use AWS Secrets Manager?

Many organizations still store secrets in configuration files, environment variables, Git repositories, or shared documents. These methods are risky and difficult to manage at scale.

AWS Secrets Manager helps solve these challenges through:

1. Centralized Secret Storage

All secrets are stored in an encrypted and managed vault, eliminating scattered and insecure storage methods.

2. Automated Rotation

Secrets Manager can rotate secrets automatically at defined intervals, reducing the exposure window and preventing stale credentials.

3. Secure Access Control

Secrets are accessed using AWS Identity and Access Management (IAM) policies. This ensures only authorized systems or users can retrieve them.

4. Audit and Monitoring

All secret access and retrieval actions are logged using AWS CloudTrail, supporting compliance and security auditing.

5. Strong Encryption

Secrets are encrypted using AWS Key Management Service (KMS), ensuring that data is protected at rest and in transit.

What Types of Secrets Can You Store?

AWS Secrets Manager supports a wide range of secret types, including:

  • Database usernames and passwords

  • API keys and access tokens

  • SSH credentials

  • OAuth client secrets

  • Third-party service credentials

  • Application configuration values

You can also create custom secret types depending on your application’s needs.

How AWS Secrets Manager Works

A typical workflow includes:

  1. Store a secret in Secrets Manager

  2. Grant applications or users permission through IAM

  3. Retrieve the secret via API, SDK, or CLI when needed

  4. Enable automatic rotation if required

  5. Monitor access through logging and auditing tools

Secrets Manager ensures that applications can retrieve secrets programmatically without exposing them in code or configuration files.

Key Features of AWS Secrets Manager

1. Secret Encryption with KMS

All secrets stored in Secrets Manager are encrypted using AWS KMS keys, adding an extra layer of security.

2. Secret Rotation

You can configure Secrets Manager to rotate secrets automatically for services like Amazon RDS, Redshift, and DocumentDB, as well as custom secret types.

3. Fine-Grained IAM Permissions

IAM allows for granular control, such as enabling only a specific Lambda function or microservice to retrieve a particular secret.

4. Versioning and Staging

Secrets Manager supports multiple versions of a secret and provides staging labels such as AWSCURRENT, AWSPREVIOUS for safe rotation.

5. Integration with AWS Services

Secrets Manager integrates easily with services such as Lambda, RDS, ECS, EKS, API Gateway, and CloudFormation.

Best Practices for Managing Secrets Securely

Adopting the right practices maximizes the security benefits of Secrets Manager.

  1. Never Hardcode Secrets in Code
    Always retrieve secrets at runtime instead of embedding them in code or config files.

  2. Use Least Privilege IAM Access
    Provide the minimum required permissions for users or applications to access secrets.

  3. Enable Automatic Rotation
    Rotate secrets regularly to reduce risks from compromised credentials.

  4. Enable Audit Logging
    Use CloudTrail and CloudWatch to monitor secret retrieval and changes.

  5. Set Up Multi-Region Replication for Disaster Recovery
    For high availability applications, replicate secrets across regions.

  6. Define Secret Naming Conventions
    Maintain a consistent naming standard for easy lifecycle management.

Typical Use Cases for AWS Secrets Manager

AWS Secrets Manager is suitable for a wide range of industries and applications:

  • Storing database credentials for microservices and serverless applications

  • Securing DevOps automation pipelines with protected API tokens

  • Managing access for container workloads running on ECS or EKS

  • Protecting credentials for third-party SaaS services

  • Storing and rotating SSH keys for EC2 instances

It ensures consistent and secure secret distribution across environments such as development, testing, and production.

Cost Considerations

AWS Secrets Manager is a paid service and pricing generally includes:

  • Charge per secret stored per month

  • Charge per 10,000 API calls

  • Optional charges for rotation using AWS Lambda

Although there is a cost, it is often far less than the financial and reputational impact of a security breach due to leaked credentials.

For small projects, AWS Parameter Store (part of Systems Manager) can be an alternative. However, Secrets Manager is recommended for automatic secret rotation and enterprise-grade management.

Final Thoughts

Managing secrets securely is essential for any modern cloud application. AWS Secrets Manager provides a robust, scalable, and automated way to protect sensitive information while simplifying secret distribution and access control. By using features like encryption, rotation, IAM access policies, and auditing, organizations can significantly reduce the risk of credential leaks and enhance their security posture.

Whether you are building a small application or running enterprise-scale workloads, implementing AWS Secrets Manager early helps ensure secure, compliant, and future-ready secret management.