Imagine this: a single compromised password shuts down a company’s operations. The outage costs millions of dollars, triggers legal action by clients, partners, and regulators, and tarnishes the company’s brand and reputation for months or years.
This isn’t a hypothetical scenario — it happens alarmingly often. According to the ITRC Annual Data Breach Report, 3,158 data compromise events were reported in the US alone in 2024. Of these, 2,850 were data breaches, and 84% involved sensitive personally identifiable information (PII). Hundreds of millions of accounts were compromised in six massive data breaches involving companies such as Ticketmaster and the telecoms giant AT&T.
Cybercriminals use compromised credentials to break into systems, launch attacks, and commit theft and fraud. It’s critical for organizations of all sizes to understand how credentials are compromised and what they can do to protect themselves.
What are compromised credentials?
Compromised credentials are stolen, leaked, or exposed login details, such as usernames and passwords. Cybercriminals can use them to gain unauthorized access to systems and accounts.
Credentials can be compromised in various ways. For example:
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Phishing: In phishing attacks, cybercriminals send deceptive messages and use fake websites to trick users into handing over their usernames and passwords.
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Data breaches: Cybercriminals infiltrate a company’s systems and steal databases of user credentials.
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Infostealers: Often distributed through malicious emails or pirated software, infostealer malware raids computers and devices for credentials stored in browsers and apps.
Stolen credentials are offered for sale on the dark web. Other cybercriminals buy them and use them to launch attacks. For example, credential stuffing, in which they test stolen credentials by attempting to access multiple sites.
Insider threats and human error
Credentials can also be compromised because of mistakes or lax security practices by people within your organization. For example:
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Using weak or easily guessed passwords such as password123.
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Sharing login credentials between users.
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Reusing passwords across systems or accounts.
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Recycling old passwords they’ve used before.
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Falling for phishing or other social engineering attacks.
Verizon found that 81% of company breaches are due to weak or reused passwords (source: Verizon 2023 Data Breach Investigations Report).
For example, in 2021, a ransomware attack shut down the Colonial Pipeline, which supplies nearly half the fuel for the eastern United States.
The attackers used a stolen VPN password bought on the dark web. A Colonial Pipeline employee had reused the password across platforms, leaving the company vulnerable when the password fell into the wrong hands. In addition to the cost of a six-day shutdown, the company paid the attackers a ransom of $4.4 million.
How to protect yourself and your organization
Implement strong password policies
Ensure everyone uses passwords that are unique, difficult to guess, and regularly updated:
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Enforce unique and complex passwords for every account.
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Use password managers to generate and store passwords securely.
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Require multi-factor authentication (MFA).
Educate your employees about phishing and social engineering
Create a culture of security awareness throughout your organization:
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Provide regular security awareness training for everyone.
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Implement simulated phishing tests so that people stay alert.
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Ensure everyone knows how to recognize phishing and social engineering attacks and how to avoid falling for them.
Use a dark web monitoring solution
Dark web monitoring solutions like Cybercheck scan dark web forums, marketplaces, and groups for compromised credentials. If cybercriminals are trading information about you or your organization, you’re alerted immediately so you can act before a breach occurs.
Solutions that monitor compromised credentials are key to a cybersecurity strategy that’s:
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Proactive, detecting threats before they impact your business.
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Cost-effective, preventing damaging data breaches.
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Compliant, helping you to keep confidential information safe and secure in line with your regulatory duties.
Don’t let cyber criminals make you their next victim
Protect yourself and your business with a proactive cybersecurity strategy.
