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I've heard that encryption program, Truecrypt can create a hidden encrypted drive within an encrypted drive; and even if an attacker accesses the first encrypted drive he/she cannot prove the hidden drive exists.

I'm not sure what you call this model of encryption security. Are there any password managers for Linux that use this model of security? In other words, are there any password managers that require a password to access and then a second password to access even more top-secret passwords?

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    That's known as "deniable encryption", I believe. – Ethan Kaminski Jul 19 '15 at 23:33
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    You can use a local password store on such an encrypted partition. – Neil Smithline Jul 20 '15 at 1:11
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    @EthanKaminski: From what I read, the deniable encryption principle introduces a "fake" and "true" concept. Can you explain how it's multilayered in its approach and to what OP asked..? – user2339071 Jul 20 '15 at 6:10
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AFAIK there is no such functionality.

If you need such two level of password database, you should merely just use two databases. As mentioned by Neil Smithline in his comment, your second database may be on a separate partition protected by deniable encryption.

However, be conscious that deniable encryption proved to be often counter-productive. Initially designed to allow someone to give one key hoping that the "attacker" would not "question" him anymore, it turns out that due to this system the attacker as no way to know when the user as given all his keys so he will continue to "question" him no matter (and by "question", one must often understand "torture"..).

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