Credential Theft

A surge in stolen usernames and passwords sits behind 68% of all confirmed breaches cited in Verizon’s 2025 Data Breach Investigations Report — up ten points from the prior year. Attackers leveraged pilfered credentials earlier this year to pivot from compromised Snowflake customer accounts into downstream ransomware deployment, keeping Fortune 500 security teams on high alert. The lesson is clear. Credential theft unlocks the door to bigger threats such as ransomware, business email compromise (BEC), and silent data exfiltration. A human-centric security strategy that protects people and their identities is now mission-critical.

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What Is Credential Theft?

Credential theft is the unlawful acquisition of an individual’s or a machine’s authentication secrets — most often usernames, passwords, session tokens, or private keys. Attackers exfiltrate or harvest these secrets so they can impersonate legitimate users and move undetected through networks, cloud services, and SaaS platforms. Because modern enterprises rely on identity-based access controls, a single stolen credential can provide instant entry to email, VPNs, privileged consoles, and business-critical apps.

Unlike credential stuffing, which automates large-scale login attempts using already compromised credentials, credential theft is the act of stealing those secrets in the first place. It also differs from phishing, which tricks a user into revealing information directly; credential theft covers a broader set of tactics that include malware keyloggers, memory scraping, token hijacking, and database compromise. Common attacker objectives include:

  • Gaining footholds in internal systems for lateral movement
  • Abusing cloud workloads and APIs
  • Escalating privileges to deploy ransomware or siphon sensitive data

Stolen identities remain the most efficient path for adversaries, which is why preventing credential theft — and monitoring for its tell-tale signs — belongs at the centre of any modern defence programme.

How Credential Theft Happens

Attackers use a diverse toolkit of methods to steal credentials, often combining multiple techniques to maximise their success rate.

  • Phishing and social engineering (email, SMS, voice): These remain the most prevalent attack vectors, with adversaries crafting convincing messages that trick users into entering credentials on fake login pages or sharing sensitive information over the phone. Modern phishing campaigns often target specific individuals with personalised content that bypasses traditional security awareness training.
  • Malware and keyloggers: Malicious software installed on victim devices can capture keystrokes, steal saved passwords from browsers, or harvest credentials directly from memory. Advanced malware strains can operate undetected for months while continuously exfiltrating authentication data.
  • Adversary-in-the-middle attacks: Attackers position themselves between users and legitimate services to intercept login credentials as they travel across networks. These attacks often occur on compromised Wi-Fi networks or through DNS hijacking that redirects traffic to attacker-controlled servers.
  • Credential dumping tools (e.g., Mimikatz): Specialised tools extract plaintext passwords, hashes, and Kerberos tickets directly from system memory on compromised machines. Once attackers gain initial access, these utilities can harvest credentials from multiple users on the same system.
  • Token theft and session hijacking: Attackers steal authentication tokens or session cookies to impersonate legitimate users without needing their actual passwords. This technique is particularly effective against cloud applications and can persist even after password changes.
  • Exposed credentials in public repos or breaches: Developers accidentally commit passwords and API keys to public code repositories, while massive data breaches expose millions of credentials on the dark web. Attackers mine these sources for valid credentials that users often reuse across multiple accounts.

Why Stolen Credentials Are So Valuable to Attackers

Stolen credentials provide attackers with legitimate digital identities that can bypass most security controls. Once inside a network, adversaries use these stolen identities to move laterally between systems, accessing file shares, databases, and applications that the compromised user would typically have access to. This lateral movement often leads to privilege escalation as attackers target administrative accounts or exploit trust relationships to gain higher-level access.

The economic value of stolen credentials extends beyond immediate use. Cyber criminals actively trade username and password combinations on dark web marketplaces, where corporate credentials can sell for hundreds or thousands of dollars, depending on the target organisation’s profile. Advanced Persistent Threat (APT) groups often purchase or harvest these credentials months before launching sophisticated campaigns, using the time to map network architectures and identify high-value targets.

Modern credential theft transcends traditional password concerns because it fundamentally compromises digital identity. Attackers don’t just steal what you know — they steal who you are in the digital realm. This identity theft allows them to maintain persistent access even after security teams detect and remediate the initial compromise, since the stolen identity continues to appear legitimate to automated security systems. The result is a security challenge that requires defending people and their identities rather than just perimeters and passwords.

Credential Theft vs. Credential Stuffing: What’s the Difference?

These two terms are often used interchangeably, but they represent distinct phases of a cyber-attack. Credential theft is the initial act of stealing login credentials through various methods like phishing campaigns, malware infections, or data breaches. It’s the process by which attackers obtain usernames and passwords in the first place.

Credential stuffing, on the other hand, occurs after credentials have already been stolen. This attack technique involves using the pilfered credentials to systematically test them across multiple websites and applications. Attackers use automated tools to rapidly attempt logins on different platforms, hoping that users have reused the same password combinations.

The key relationship is that credential stuffing relies entirely on credential theft to supply its ammunition. Without the initial theft of credentials, there would be nothing to “stuff” into login forms. However, credential theft can exist independently — attackers might steal credentials to target specific systems rather than test them broadly across the internet.

Poor password best practices and cyber hygiene makes credential stuffing devastatingly effective. When users reuse the same password across multiple accounts, a single credential theft incident can unlock access to dozens of other services. Understanding how credential stuffing attacks work is crucial for building comprehensive defence strategies that address both the theft and subsequent abuse of stolen credentials.

Signs and Symptoms of Credential Theft

Early detection of credential theft can mean the difference between a minor security incident and a major breach that devastates your organisation.

  • Unusual login behaviour from unfamiliar locations, IP addresses, or times: Login attempts from geographic locations where users don’t typically work, unfamiliar IP addresses, or access during odd hours can signal that attackers are using stolen credentials. Modern identity systems should flag when users suddenly log in from different countries or through VPN services they’ve never used before.
  • Multiple failed login attempts or unexpected account lockouts: A surge in failed login attempts across multiple accounts often indicates brute force attacks or credential stuffing campaigns using stolen passwords. When legitimate users find themselves locked out of systems they use regularly, it may mean attackers are testing their credentials.
  • Unexpected password reset notifications or account recovery requests: Users receiving password reset emails they didn’t initiate, or IT teams seeing unusual spikes in account recovery requests, can indicate that attackers are attempting to gain control of accounts. These notifications should always be treated as potential indicators of compromise.
  • Changes to account permissions or privilege escalations: Unauthorised modifications to user roles, access levels, or system permissions often signal that attackers have gained administrative access and are expanding their foothold. Security teams should monitor for any permission changes that weren’t requested through proper channels.
  • Alerts from identity management or access control tools: Modern identity platforms generate alerts for suspicious authentication patterns, impossible travel scenarios, or deviations from normal user behaviour. These automated alerts serve as early warning systems that can detect credential abuse before human analysts notice patterns.
  • Unusual account activity or resource usage: Mass file copying, deletion, or movement of large datasets outside normal business processes can indicate that compromised credentials are being used to exfiltrate data. Users accessing systems or applications they don’t typically use should also trigger an investigation.
  • Simultaneous logins from impossible locations: When the same user account appears to be active from multiple geographic locations that would require impossible travel times between login sessions, this indicates credential sharing or theft. Identity systems should automatically flag these “impossible journey” scenarios.

How to Prevent Credential Theft: Best Practices

Preventing credential theft requires a multi-layered approach that combines technical controls with human-centred security practices. The most effective strategies address both the methods attackers use to steal credentials and the organisational weaknesses that make theft possible in the first place.

Strong Authentication

Moving beyond traditional passwords represents the single most effective defence against credential theft. Multifactor authentication (MFA) adds critical layers of protection, but organisations should prioritise phishing-resistant methods like FIDO2 security keys, passkeys, or hardware tokens that attackers cannot easily bypass. These modern authentication methods eliminate the risk of credential theft through phishing since there are no secrets to steal. Even if attackers compromise passwords, they cannot complete the authentication process without the physical token or biometric verification.

Least Privilege Access

Limiting user access to only the systems and data they need for their specific roles dramatically reduces the impact of credential theft. When attackers steal credentials from accounts with minimal privileges, they gain limited access to sensitive systems and cannot easily escalate their attacks. Organizations should regularly audit user permissions and implement the principle of least privilege, along with just-in-time access controls, which grant elevated privileges only when necessary for specific tasks. This approach ensures that even compromised credentials provide attackers with minimal opportunities for lateral movement or data exfiltration.

Credential Hygiene

Strong password practices form the foundation of credential protection, starting with eliminating password reuse across systems and enforcing regular rotation policies for privileged accounts. Organisations should implement password managers to generate and store unique, complex passwords for each system. Continuous monitoring for leaked credentials allows security teams to proactively reset compromised passwords before attackers can use them. Dark web monitoring services can alert organisations when employee credentials appear in breach databases or criminal marketplaces.

Security Awareness Training

Human-centred security education helps users recognise and resist credential theft attempts before they succeed. Security awareness training programmes should focus on identifying sophisticated phishing emails, social engineering tactics, and suspicious authentication requests that bypass traditional security controls. Regular simulated phishing exercises help reinforce these lessons while identifying users who need additional support. The most effective training emphasises real-world scenarios that employees encounter daily rather than abstract security concepts.

Monitor and Respond

Identity threat detection and response (ITDR) systems provide continuous monitoring for credential abuse and suspicious authentication patterns. Behavioural analytics can identify when legitimate credentials are being used in unusual ways, such as accessing systems outside normal business hours or from unfamiliar locations. Anomaly detection helps security teams spot the early signs of credential theft before attackers can achieve their objectives. These systems should trigger automated responses like forcing re-authentication or temporarily restricting access while security teams investigate potential threats.

The Human Factor in Credential Theft

Despite advances in cybersecurity technology, human behaviour remains the most exploitable weakness in credential protection. Users continue to reuse passwords across multiple accounts because managing unique credentials for dozens of systems feels overwhelming and impractical. When attackers launch sophisticated phishing campaigns that mimic trusted brands and services, even security-conscious employees can fall victim to well-crafted social engineering tactics that exploit psychological triggers like urgency and authority.

Building a security-first culture requires more than periodic training sessions and policy reminders. Organisations must create environments where secure behaviours become second nature through positive reinforcement, rather than relying on punitive measures when mistakes occur. This cultural shift happens when leadership demonstrates that security is everyone’s responsibility and provides employees with tools that make secure choices easier than risky ones.

The most effective human-centric security solutions recognise that people need systems that protect them without creating friction in their daily work. Modern approaches focus on invisible security controls like adaptive authentication that evaluates risk in real-time and single sign-on platforms that reduce password fatigue. When security solutions enhance rather than hinder productivity, employees become partners in defence rather than obstacles to overcome.

Credential Theft Is a People Problem as Much as a Tech Problem

When adversaries steal credentials, they gain legitimate access to internal systems, cloud applications, and sensitive data that serves as the foundation for ransomware deployment, business email compromise, and massive data breaches. The solution demands more than advanced technology alone. It requires a comprehensive strategy that combines phishing-resistant authentication, continuous monitoring, and least-privilege access controls with security-aware employees who understand their role as the first line of defence.

Organisations that treat credential protection as both a technical challenge and a human challenge — investing in user education, security culture, and solutions that make secure behaviours easier than risky ones — position themselves to detect, prevent, and respond to credential theft before it escalates into business-threatening incidents. The future of enterprise security depends on recognising that people and technology must work together to protect the identities that define modern digital business.

How Proofpoint Can Help

Proofpoint’s human-centric security approach recognises that credential theft succeeds because attackers target people, not just technology. That’s why we focus on protecting the individuals who represent both the greatest risk and most vigorous defence against these attacks. Our integrated platform combines advanced threat detection with user behaviour analytics to identify credential abuse, while providing security awareness training that empowers employees to become informed defenders. By addressing both the technical and human elements of credential security, Proofpoint helps organisations build resilient defences that enhance productivity while maintaining the user experience that modern businesses require. Contact us to learn more.

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