Password Managers are the Hot Targets 

Lastpass reported a security breach a month ago, which is the 8th security incident in the last 11 years. This incident was followed by a recent disclosure by a Google researcher. Many popular password managers like Dashlane, Bitwarden, and Safari can be phished.

There are many lessons that we all need to learn from these recurring incidents. This post is to uncover few points that we have seen have not been discussed by the info-sec community and the industry.

The Catch-22 - Phish or no Phish?

LastPass warned its users of an increased likelihood of Phishing attacks, Credential Stuffing, or other brute force attacks against online accounts associated with their LastPass vault.

This statement goes against what all the password managers like LastPass claims - "use of password manager protects users from phishing attacks".

In recent times there have been more incidents where password managers have been proved vulnerable to phishing attacks. You can find more details in this article Popular password managers auto-filled credentials on untrusted websites 

The Impact

In their blog post, Lastpass reported that customer’s personal information like email, phone number, billing address, IP address have been compromised. That is not all, what LastPass has not talked about is the additional information they collect from their users using their mobile app. 

The screenshots below show the permissions that Lastpass app takes on a user's phone.

These permissions enable the application provider like LastPass (other password managers take similar types of permission on user's device) to collect more information about the user than probably needed. 

In case of a breach, like what happened with LastPass, the severity of the incident and privacy impatc will be more if any additional information collected from the user's phone is also leaked.

The Passwords

Furthermore, LastPass has reported that customer’s vault containing clear text data, such as website url, and encrypted data of username and password were also obtained by the threat actors. 

Lastpass emphasised on the use of master key, and how a threat actor can not decrypt the password vault even if they have the encrypted data, as the master key, which is a master password set by the user and is not stored on lastpass network. 

While 1Password, a rival firm of Lastpass, claims through their blog that passwords of LastPass can be cracked in $100. They also talk about their superior method of  using secret key and Password Authenticated Key Agreement systems, which makes 1Password’s systems next to impossible to crack. 

With the device specific keys mentioned by 1Password, we feel syncing of the passwords across multiple devices becomes a risky affair. Since passwords need to be decrypted on another device and it needs the user chosen master password as well as the secret key from the earlier device. This problem cannot be solved without exposing the secret key or the user’s passwords (encrypted just with the user chosen master password), in transit. 

Conclusion

After a series of events involving Password Management products, enterprise must seriously think about how safe their user’s data and passwords really are. 

Not to forget, server doesn't care if the password is coming from a password vault or from an adversary, the server will authenticate as long as it can match the string. So no matter, how and where you store passwords, as long as there as passwords, Enterprises are always at risk.

For a better security, Enterprise must plan to remove passwords from their applications, servers and #GoPasswordless