One of the more popular online password managers has been hacked. LastPass’s servers were breached and user data stolen, including hashed user passwords, cryptographic salts, password reminders, and e-mail addresses.
According to LastPass staff, your passwords are still secure, because only the encrypted versions were obtained. Analysts have confirmed that the risk to LastPass users is minimal, mostly due to safeguards employed by the service.
Still, if you use LastPass, you should immediately change your master password. You will in fact be prompted to do so when you log in.
Although LastPass had effective safeguards in place, the fact that they were hacked (again) leaves me wondering whether it’s ever a good idea to use any Internet-based password manager. I strongly recommend using an offline password manager like the excellent Password Corral or Password Safe. Both are freeware.
Ars Technica and Brian Krebs have more details on the hack and its implications for users.