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How does LastPass keep your data secure? Can their employees see your data?

I've always used offline ways for (password/sensitive data) storage, but lately I keep hearing good things about LastPass. Indeed, it is more practical having it always accessible from every computer you're using without syncing and related problems, but the security aspect still troubles me.

I'm trying to work out if it would be a safe and/or good idea to entrust it with more sensitive data (e.g., bank PIN codes, financial/business related stuff and so on - you know, the things that would practically hurt if lost/phished)?

For example, if someone is sniffing your wifi network, would such data be easier than usual to sniff out while using LastPass?

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related: webapps.stackexchange.com/questions/11361/… –  Cawas May 9 '11 at 2:21
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migrated from programmers.stackexchange.com Feb 19 '11 at 15:15

This question came from our site for professional programmers interested in conceptual questions about software development.

1 Answer

In a nutshell: Your data is encrypted by the LastPass application with your master password on your computer and is sent encrypted to the LastPass server for storage. Your master password never leaves the computer. Their employees can not see your data without the password.

For further details take a look at the review epsiode and the following Q&A episode of Steve Gibson's Security Now! podcast on LastPass. (The podcast has 288 episodes and counting). If this man uses and trusts LastPass so can you.

By the way, I do to. I store my credit card PIN codes, bank account passwords, software licence keys, ebay, paypal and GMail logins with full confidence in LastPass.

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I trust Steve Gibson. –  Al E. Feb 20 '11 at 13:44
    
If Steven Gibson trusts it, then I do. I'm a current customer and I had no idea he had endorsed it. Awesome. –  daveslab Mar 1 '12 at 20:55
    
By the way, his analysis starts at about 53 minutes in, so no need to listen to the first part. –  daveslab Mar 1 '12 at 22:00
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