Alert! Very Serious LastPass Security Glitch:

Am a week or so late to this, just now exploring implied severity, and if the previous admissions properly provided enough information to LastPass users to minimize the damage involved.

 From Schneier Security: 

LastPass Breach

Last August, LastPass reported a security breach, saying that no customer information—or passwords—were compromised. Turns out the full story is worse:   

While no customer data was accessed during the August 2022 incident, some source code and technical information were stolen from our development environment and used to target another employee, obtaining credentials and keys which were used to access and decrypt some storage volumes within the cloud-based storage service. To date, we have determined that once the cloud storage access key and dual storage container decryption keys were obtained, the threat actor copied information from backup that contained basic customer account information and related metadata including company names, end-user names, billing addresses, email addresses, telephone numbers, and the IP addresses from which customers were accessing the LastPass service.

The threat actor was also able to copy a backup of customer vault data from the encrypted storage container which is stored in a proprietary binary format that contains both unencrypted data, such as website URLs, as well as fully-encrypted sensitive fields such as website usernames and passwords, secure notes, and form-filled data.

That’s bad. It’s not an epic disaster, though.

These encrypted fields remain secured with 256-bit AES encryption and can only be decrypted with a unique encryption key derived from each user’s master password using our Zero Knowledge architecture. As a reminder, the master password is never known to LastPass and is not stored or maintained by LastPass.  ....   " 

Intro above, see also the comments in the above ... 

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Further, see much more in 'Steve Gibson's Security-Now episode 904 at:

https://twit.tv/shows/security-now/episodes/904?autostart=false

 And his further detailed show Notes:  https://www.grc.com/sn/SN-904-Notes.pdf  (may be being updated, check in later) 

Still examining, will provide followups.  ...