Compromised Credentials: Examples & Mitigation Strategies

What are Compromised Credential Attacks?

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Compromised credential attacks happen when cybercriminals use stolen credentials, such as usernames, passwords, or access keys, to gain access to systems, applications, or accounts. By exploiting legitimate user credentials, these attacks bypass traditional security measures.

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Unlike brute-force attacks, which systematically attempt every possible password combination, compromised credential attacks use compromised passwords obtained through methods like phishing, data breaches, or keylogging. These stolen credentials are often used across multiple platforms, targeting accounts where security measures like multifactor authentication are not enabled.

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Common Ways Credentials Get Compromised

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Attackers use a combination of technical exploits and psychological manipulation to steal login credentials, giving them unauthorized access to user accounts and sensitive systems. Below are the most prevalent methods used to compromise credentials:

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Common Ways	Description
Credential Stuffing	Attackers use automated tools to test stolen credentials, often sourced from data breaches, across multiple platforms, exploiting password reuse.
Phishing	Fake emails, websites, or messages trick users into revealing their user credentials, such as passwords, by mimicking trusted entities.
Leaked Credentials	Sensitive credentials that are unintentionally exposed or improperly stored in public-facing repositories can be exploited by attackers.
Data Breaches	When organizations are breached, large volumes of compromised passwords are stolen, often ending up on the dark web for further exploitation.
Weak Passwords	Simple or common passwords make it easier for attackers to break into accounts using automated methods.
Keylogging Malware	Malicious software records keystrokes, capturing usernames, passwords, and other sensitive information as users type on compromised devices.
Social Engineering	Attackers manipulate individuals into providing valid credentials, often by impersonating trusted parties or creating a sense of urgency.
Brute-Force Attacks	By systematically trying every possible combination of letters, numbers, and symbols, attackers attempt to crack passwords and compromise accounts with weak security.

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Recent Compromised Credential Attack Examples

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Compromised credential attacks continue to target prominent organizations, exposing sensitive data and highlighting the need for robust security measures. Here are some notable examples:

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Microsoft Executive Accounts Breach

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In early 2024, Microsoft disclosed a breach involving a Russian-aligned threat actor, Midnight Blizzard, who compromised corporate email accounts. The attackers exploited OAuth tokens to bypass multi-factor authentication and access Microsoft Exchange Online mailboxes. This breach exposed communications between Microsoft and U.S. federal agencies, emphasizing the risks associated with legacy security systems. The incident showcases how sophisticated attackers can use compromised credentials to infiltrate even highly secure environments.

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Okta Data Breach

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In October 2023, Okta, a leader in identity management services, revealed that attackers had accessed its customer support system using stolen credentials. This breach allowed unauthorized individuals to access sensitive customer support cases, which included potentially exploitable information. The breach demonstrated that even companies specializing in identity security are at risk when compromised credentials are involved.

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PayPal Data Breach

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In December 2022, PayPal experienced a credential-stuffing attack that compromised nearly 35,000 user accounts. Attackers used automated tools to exploit reused passwords, gaining access to personal data such as names, addresses, and Social Security numbers. While PayPal offered identity monitoring services to affected users, the incident highlighted the ongoing issue of password reuse among users.

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Risks of Compromised Credentials

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When user credentials are compromised, the consequences can extend far beyond the initial breach. Organizations and individuals face significant risks that can disrupt operations, damage trust, and result in severe financial and reputational harm. Below are the key risks associated with compromised credentials:

Financial Loss: Attackers often use stolen credentials to transfer funds, make fraudulent purchases, or steal sensitive financial information. Companies may also incur substantial costs from mitigating the breach, compensating affected users, and dealing with regulatory penalties. According to industry reports, the average cost of a data breach is over $4 million, making financial loss one of the most immediate and damaging consequences.
Reputational Harm: Data breaches involving compromised credentials can hurt an organization’s reputation. Customers and partners may lose trust, fearing their data is not secure. This erosion of trust can lead to long-term revenue loss as customers take their business elsewhere. Additionally, media coverage of breaches often amplifies the damage, making it difficult for organizations to recover their credibility.
Account Takeover: With valid credentials, attackers can hijack user accounts to access sensitive systems, steal additional data, or impersonate legitimate users. Account takeovers can lead to further security breaches, such as spreading malware, sending phishing emails, or making unauthorized changes. For businesses, this can disrupt operations and compromise customer relationships.

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How to Detect Compromised Credentials

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Detecting compromised credentials requires proactive monitoring and advanced tools to identify unusual behaviors or security breaches. Below is a breakdown of effective methods for identifying and addressing potential threats:

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Method	Description
Monitoring User Behavior with UEBA Systems	Use User and Entity Behavior Analytics (UEBA) to detect anomalies in user actions and identify threats.
Establishing Baselines for Typical User Activity	Create benchmarks for normal user behavior to quickly flag irregular activities.
Identifying Deviations in User Behavior	Detect patterns or behaviors that deviate from established baselines to identify potential compromises.
Using SIEM Platforms	Aggregate and analyze security events through Security Information and Event Management (SIEM) tools.
Analyzing Security Logs for Suspicious Activities	Continuously monitor logs to detect unusual activity, such as failed logins or privilege escalations.

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How to Prevent Compromised Credential Attacks

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Preventing compromised credential attacks requires implementing robust security measures and educating users to reduce vulnerabilities. Here are effective strategies to mitigate these risks:

Enforce Strong Password Policies: Require users to create complex, unique passwords that include a mix of characters, numbers, and symbols. Discourage password reuse across accounts.
Enable Multi-Factor Authentication (MFA): Add an extra layer of security by requiring a second form of verification, such as a one-time code or biometric authentication. Multi-factor authentication ensures that even if credentials are compromised, attackers cannot readily access sensitive systems.
Monitor Accounts for Suspicious Activity: Regularly track user accounts for unusual behaviors, such as logins from unfamiliar locations or unexpected changes in account settings. Monitoring compromised accounts is important for swiftly identifying and mitigating unauthorized access.
Conduct Regular Security Awareness Training for Employees: Educate employees about phishing, social engineering, and the risks of using weak or reused passwords. Use simulated phishing campaigns to test awareness.
Use CAPTCHAs for Logins: Prevent automated tools from attempting unauthorized logins by requiring CAPTCHA verification during authentication.
Regularly Update and Patch Systems: Ensure that operating systems, applications, and devices are updated promptly to address known vulnerabilities and reduce exposure to exploits.
Implement Role-Based Access Control (RBAC): Restrict access to sensitive data and systems based on user roles and responsibilities to limit unnecessary exposure.
Deploy Security Tools: Use advanced tools such as SSPM to monitor, detect, and respond to security threats in real-time, enhancing your organization’s overall security posture.

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Mitigation Strategies for Compromised Credentials

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Effective mitigation of compromised credentials requires swift and decisive action to limit the impact of a breach and restore system integrity. Below are important steps to take after detecting compromised credentials:

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Mitigation Strategies	Description
Password Reset	Require affected users to reset passwords immediately. Encourage the use of strong, unique passwords to prevent further exploitation.
Stop Compromised Account Activity Immediately	Suspend or deactivate accounts displaying suspicious activity to prevent attackers from causing further harm.
Revoke Unauthorized Access or Privileges	Remove access rights granted to unauthorized users or applications to contain the breach. This is particularly important for privileged accounts.
Notify Affected Users or Stakeholders	Provide prompt and clear communication to those impacted, offering guidance on securing their accounts and mitigating risks.
Conduct a Forensic Investigation of the Breach	Identify how the credentials were compromised, such as through phishing or malware, and assess the extent of the damage to strengthen defenses.
Implement Incident Response Protocols	Activate predefined response plans to ensure a structured and timely resolution of the breach. This should include identifying compromised systems, containing the threat, and recovering securely.
Audit and Update Affected Systems	Review logs, update patches, and apply configuration changes to address vulnerabilities exposed during the attack.

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How to Protect Against Compromised Credential Attacks with Reco

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Reco provides advanced solutions to detect and mitigate compromised credential attacks, offering powerful tools for proactive security. Here’s how Reco can help:

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Comprehensive Credential Monitoring

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Reco continuously monitors for compromised credentials across various platforms, including dark web marketplaces and known breach databases. By identifying exposed credentials early, Reco enables organizations to proactively enforce password resets and secure affected accounts before attackers can exploit them.

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Advanced Threat Detection with Behavioral Analytics

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Reco establishes baselines for normal user activity by using AI-driven User and Entity Behavior Analytics (UEBA). It identifies deviations in behavior, such as unusual login patterns, access from unfamiliar locations, or abnormal data usage, which are strong indicators of credential-based attacks. This allows organizations to detect and respond to threats in real-time.

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Automated Incident Response and Mitigation

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Reco automates key aspects of incident response to contain threats swiftly. For example, it can:

Immediately disable compromised accounts or suspicious activity.
Notify users and stakeholders of security risks.
Provide actionable insights for security teams to remediate vulnerabilities, ensuring comprehensive protection.

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Conclusion

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Compromised credentials remain a critical threat to organizational security, allowing attackers to exploit weaknesses and bypass defenses. A business can mitigate these risks by implementing effective password policies, multi-factor authentication, advanced monitoring tools, and employee education. Swift detection and response to breaches are equally necessary in order to contain exposure and prevent further damage. By maintaining awareness and enhancing security protocols, organizations can reduce the risks of credential attacks and protect sensitive information.

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Learn how to protect your SaaS ecosystem from compromised credential attacks, download the CISO Guide to SaaS Security.

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