Navigating the LastPass Security Incidents: What SMBs Need to Know

Discover the details of recent LastPass security incidents and how they impact SMBs. Learn if it's time to move away from LastPass and how Uprise can help!

Recent security incidents involving LastPass have left many small and medium-sized businesses (SMBs) questioning the safety of their password management practices. In this blog, we will discuss the LastPass incidents, explore whether SMBs should consider alternative password managers, and explain how working with an IT firm like Uprise Partners can help keep your business secure in the face of such events.

The LastPass Incidents: What Actually Happened?

Two separate incidents involving LastPass raised concerns among users and businesses relying on the popular password manager. Here, we'll delve into each incident, but you can read the official post from LastPass and their follow-up post from March for additional context.

Incident 1: Unusual Activity in LastPass Development Environment

In August 2022, LastPass detected unusual activity within their development environment. According to the initial post from August 25, 2022, an unauthorized party had gained access to portions of the LastPass development environment through a compromised developer account. They managed to take some source code and proprietary technical information, but there was no evidence of access to customer data or encrypted password vaults.

On September 15, 2022, LastPass provided an update on the investigation's conclusion. They confirmed that the threat actor's activity was limited to a four-day period in August 2022, with no evidence of further activity. The investigation also revealed that the threat actor gained access by impersonating the developer after they successfully authenticated using multi-factor authentication. LastPass reassured users that their development environment is separate from the production environment and does not contain customer data or encrypted vaults.

On November 30, 2022, LastPass detected unusual activity within a third-party cloud storage service shared with its affiliate, GoTo. They believed the unauthorized party gained access using information obtained during the August incident. However, due to LastPass's Zero Knowledge architecture, customers' passwords remained encrypted and safe.

In December 2022, LastPass released another update explaining the details of the second incident. A threat actor had targeted a senior DevOps engineer by exploiting vulnerable third-party software. The actor gained unauthorized access to cloud backups, including system configuration data, API secrets, third-party integration secrets, and encrypted and unencrypted LastPass customer data.

These incidents highlight the importance of staying informed about the security measures and updates provided by password managers like LastPass. It's essential for SMBs to make informed decisions about the tools they use to protect their sensitive information. Although the first incident did not result in any access to customer data or encrypted password vaults, the second incident involved unauthorized access to encrypted and unencrypted customer data. 

Incident 2: Unauthorized Access to Third-Party Cloud Storage

On November 30, 2022, LastPass detected unusual activity within a third-party cloud storage service shared by both LastPass and its affiliate, GoTo. They immediately launched an investigation, engaged Mandiant, a leading security firm, and alerted law enforcement. They determined that an unauthorized party, using information obtained in the August 2022 incident, was able to gain access to specific customer information. However, LastPass's Zero Knowledge architecture ensured that customers' passwords remained safely encrypted.

These incidents highlighted potential risks associated with using LastPass and prompted many users to question whether they should continue using the password manager. While LastPass was quick to address both incidents, it is essential for SMBs to consider the security implications and evaluate their options for password management.

Should SMBs Move Away from LastPass?

The LastPass incidents have caused concern among small and medium-sized businesses (SMBs) that rely on the password manager to secure their digital assets. The question now is whether SMBs should move away from LastPass.

It's worth noting that while the incidents were undoubtedly concerning, LastPass took immediate action to address the security issues and maintain transparency with their customers. They engaged leading security firms and deployed containment and mitigation measures to minimize risks. LastPass's Zero Knowledge architecture also ensured that customer passwords remained encrypted, even during the incidents.

However, it is crucial for SMBs to assess their risk tolerance and make informed decisions about their cybersecurity. While LastPass remains a reputable password manager, these incidents have demonstrated that no tool is entirely immune to security breaches. SMBs may choose to explore alternative password managers or opt for a more comprehensive security solution that includes password management as part of a broader cybersecurity offering.

When evaluating password managers, SMBs should consider factors such as encryption methods, security architecture, and the vendor's history of addressing security incidents. It is essential to select a solution that aligns with the organization's risk tolerance and security requirements.

While LastPass has taken steps to address the security vulnerabilities and has been at least somewhat transparent, their initial handling appears to have been meant to minimize the incident. Ultimately, it's crucial for SMBs to individually weigh the pros and cons of continuing to use the platform. Alternatives such as 1Password, Bitwarden, and Keeper offer similar features and may provide a greater sense of security and trustworthiness. When making your decision, you should consider factors like ease of use, integration with existing systems, and cost. This is an area where working with an ITSM provider, like Uprise Partners, can help SMBs to respond quickly and efficiently to these sorts of shifts.

The Value of Password Managers for SMBs

Despite concerns surrounding the LastPass incidents, password managers remain an essential tool for SMBs. They help create strong, unique passwords, securely store them, and simplify password management. To ensure you choose a secure password manager, look for features such as end-to-end encryption, two-factor authentication, and a strong track record of addressing security issues promptly.

Looking for more guidance? Check out our blog on password security for SMBs.

How Uprise Partners Can Help Keep Your Business Safe

As an IT firm, Uprise Partners keeps a close eye on IT security news and updates, ensuring that our clients stay informed and protected. When incidents like the LastPass events occur, we can quickly assess the situation, recommend appropriate actions, and help implement any necessary changes.

Staying Informed

We stay up-to-date with the latest IT security news, including incidents involving popular tools like LastPass. This allows us to promptly inform our clients of any potential risks and recommend the best course of action.

Expert Guidance

Our team of experts can provide insights and recommendations on whether to switch to a different password manager or take other security measures. We help you weigh the pros and cons based on your specific business needs and requirements.

Seamless Transition

If you decide to move away from LastPass or adopt any new security measures, we can assist with the implementation process, ensuring a smooth transition and minimal disruption to your business operations.

Ongoing Support

At Uprise Partners, we don't just help you navigate one-time incidents; we provide ongoing IT support and monitoring to keep your business secure and running smoothly. Our proactive approach to IT security helps prevent potential issues before they become major problems.


The LastPass incidents serve as a reminder of the importance of password security for SMBs. While it may be tempting to abandon password managers altogether, they remain a valuable tool for maintaining secure password practices. By working with an IT firm like Uprise Partners, you can stay informed, make informed decisions, and have the support you need to keep your business secure in an ever-evolving digital landscape.

Malinda Gagnon

Malinda is CEO at Uprise and has more than 20 years of experience in business strategy and technology at companies including Google and WPP, and has advised clients such as Procter & Gamble, General Electric, VW, BlackRock, and Walmart.

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