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Experts Fear Crooks are Cracking Keys Stolen in LastPass Breach
(krebsonsecurity.com)
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this post was submitted on 06 Sep 2023
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And this is why you don't want cloud based password storage systems. If you want to use a password manager, use something entirely local like KeePassXC. The database it creates is so small you could fit it on a floppy so it's immensely portable.
Cloud based systems can be perfectly sound. You can read how other managers do it, which are also audited by security experts. It's just LastPass being bad.
And sure, local can be more secure, but you're then at higher risk of losing access to it, should the worst happen.
They are a real treasure trove though. Those crypto token thefts show there's much money in that. I wouldn't bet my most sensitive data they covered every single attack vector - external or internal. You managing your password locally may be much less secure but it's also much less likely you're directly targeted.
The accounts they're breaking the encryption on were never configured properly. These are old accounts from when LastPass had weak defaults and neither the user or LastPass updated those settings on old accounts. Those settings have always existed though and could have been improved by the user.
The problem is more that LastPass' system is bad. 1password (and probably others) mitigate a possible hack by having the keyring encrypted by something in addition to the password.