Many teams share login credentials through email or Slack because it's quick and easy. But these methods leave passwords sitting in inboxes and chat logs where they're harder to track and manage.
A password manager like LastPass stores and shares your team's credentials in encrypted vaults. Every password stays protected, and you control exactly who can access what. Your team gets the logins they need, and you maintain visibility over your accounts.
This guide walks you through 7 steps to set up secure password sharing for your team, from understanding the risks of unsecured sharing to revoking access when someone leaves.
Quick guide: How to share passwords with your team in 7 easy steps
- Understand why sharing passwords via email or chat creates security gaps.
- Set up LastPass Business to store and share your team's credentials securely.
- Create shared folders to organize team access by project or department.
- Assign role-based permissions so each team member only sees the passwords they need.
- Use hidden passwords so your team can log in without viewing credentials.
- Enable activity logs to monitor who accessed which password and when.
- Revoke access immediately when a team member leaves your organization.
How to share passwords with your team securely
1. Understand why sharing passwords via email or chat is risky
When you send a password through email, Slack, or text, that credential ends up stored in multiple places. It sits in your sent folder, their inbox, and possibly on servers you don't control.
If any of those accounts get compromised, your shared password becomes an open door. Bad actors often target email accounts specifically because they contain forwarded credentials. This is called credential harvesting.
The same applies to shared documents or spreadsheets. Even password-protected files can be cracked with readily available tools, which is why dedicated password manager is the better choice.
2. Set up LastPass Business for secure sharing
Start by creating your LastPass Business account and setting up your Admin Console. Before you invite anyone, decide how you want to organize your passwords. Think about which teams or projects need shared access, and sketch out a folder structure that makes sense for your organization.
From there, you can invite team members individually or sync with your existing directory service. LastPass integrates with Microsoft Entra ID, Google Workspace, Okta, and OneLogin, so you can automate adding and removing users as your team changes.
Once your team members accept their invitations, they'll create their own accounts with unique master passwords. Each person gets their own private vault, plus access to any shared folders you add them to.
3. Create shared folders for team access
Shared folders let you organize credentials by team, project, or department. Instead of sharing individual passwords one at a time, you group related logins together.
For example, you might create a "Marketing Tools" folder containing your social media accounts, email marketing platform, and analytics tools. When a new marketing team member joins, you simply add them to that folder. They gain access to everything they need in one step.
This approach saves time and reduces errors. You're not hunting down which passwords to share or forgetting to grant access to an important account. The folder structure also makes it easy to audit access across your organization.
4. Assign role-based permissions to control who sees what
Role-based permissions let you match access levels to job responsibilities. A senior manager might need full access to financial accounts, while an intern only needs access to the company blog.
LastPass offers 4 permission levels: users, helpdesk admin, admin, and super admin. Users can access and use shared passwords. Helpdesk admins handle day-to-day password support. Admins manage policies and user access. Super admins have full control, including emergency access to accounts.
Start with the principle of least privilege: give each person only the access they need to do their job. You can always expand permissions later. This approach limits your exposure if any single account gets compromised.
5. Use hidden passwords so team members can log in without seeing credentials
Hidden passwords let you share access to accounts without revealing the actual credentials. When you enable this option, your team members can log in through autofill, but they won't see the password characters.
This is especially valuable when working with contractors, freelancers, or temporary staff. They can access the tools they need to do their work, but they can't copy the password elsewhere or take it with them when the project ends.
Hidden passwords also protect against shoulder surfing, where someone glances at a screen and memorizes credentials. Your passwords remain masked during the entire login process.
6. Enable activity logs to track password access
Activity logs create a complete record of password activity on your team. You can see who accessed a specific credential, when they accessed it, and from which device.
This visibility serves multiple purposes. If something goes wrong, you can quickly identify who had access during that time period. For compliance requirements, you can generate reports showing your password management practices. And for day-to-day management, you can spot unusual patterns like a user accessing passwords they don't typically use.
If you need advanced monitoring, LastPass integrates with SIEM tools like Splunk and Azure Sentinel. This lets you detect anomalies and automate compliance reporting across your organization.
7. Revoke access immediately when team members leave
When someone leaves your team, you want to remove their access to shared credentials right away. Former employees, contractors, or partners who still have logins can create unnecessary risk for your organization.
With LastPass, you can revoke access with a single action. When you remove someone from a shared folder, they lose access to every password in that folder immediately.
For extra security, consider rotating passwords for sensitive accounts after someone leaves. Even if they memorized a credential, it won't work anymore. LastPass can generate new strong passwords with one click.
What are the biggest risks of unsecured password sharing?
When passwords travel through unsecured channels, they leave traces everywhere. Email servers store copies. Chat applications log messages. Screenshots can be taken. Each copy is a potential leak.
The problem grows when one of those locations is compromised. If someone gets into an email account, they'll often find forwarded passwords sitting right there, which can give them access to other services too.
There's also the accountability issue. When multiple people know a password directly, there's no way to tell who used it for what. If something goes wrong, you're left guessing instead of checking an audit trail.
When should you use shared passwords vs. individual accounts?
As a general rule, if a service supports multiple user logins, it's better to give each team member their own account. Individual accounts create clearer audit trails and let you revoke access for one person without affecting everyone else.
Shared passwords work best for accounts that don't support multiple users, or where the cost of additional seats doesn't make sense. Think social media accounts, shared inboxes, or tools your team only uses occasionally.
When you do share, keep the circle small. The fewer people who have access to a credential, the easier it is to manage and the lower the risk if something goes wrong.
How LastPass helps you share passwords securely with your team
LastPass gives your team encrypted password sharing with flexible options built for collaboration. You can share credentials one-on-one or with groups, and organize shared logins into folders by project, team, or department.
The hidden password feature lets team members log in to accounts without ever seeing the actual credentials. This is especially helpful when working with contractors or vendors who need temporary access to specific tools.
LastPass tracks user access history and lets you set sharing permissions for each user. When someone leaves your team, you can revoke their access right away, and all the passwords they had access to remain secure with the rest of your team.
With role-based administration and over 100 customizable security policies, admins can control exactly who accesses what. The intuitive folder system makes it easy for everyone on your team to find and use shared passwords without a steep learning curve.
Ready to secure your team's password sharing? Try LastPass today.
