LastPass can invisibly integrate with the standard Windows Login process to automatically create new users and sign existing users in. To do this, we install a DLL that hooks the Windows login flow using sanctioned/standard Windows protocols.  When we receive the password, we hash it and then use the hash to create the user’s LastPass credentials.  We never store anything on disk and are careful to not leave anything in memory.

With Windows Login Integration, users within the LastPass Enterprise system will be provisioned using their Windows username followed by the @companydomain.com address that your Enterprise use.  New users to LastPass will be created upon their first login to the Windows domain after the Login integration with LastPass is added. From that point on, users will login to the Windows domain as they normally would, and will automatically be logged into LastPass as well.

Instructions for set up can be found in the Enterprise console -> Set Up tab -> Create New User -> Automatic Provisioning Using Windows Login Integration.