Compromised credentials are at the heart of modern cyber threats, accounting for a significant portion of data leaks across industries. Approximately 77% of breaches occur on web applications involved in stolen login details, according to the Verizon DBIR 2024 Reportwhich highlights how these credentials have become a favorite tool for cybercriminals.

Techniques such as fill in credentialswhere attackers use automated tools to enter stolen usernames and passwords across multiple sites are particularly effective due to the widespread reuse of passwords. In addition, methods such as password spray—where a few common passwords are tried against many accounts—further increase the risk of compromise. Whether they are obtained through phishing attacks, brute force tacticsor leaked on the dark web, compromised credentials provide attackers with an easy way to infiltrate sensitive systems, escalate privileges, and gain access to valuable data.

How do cybercriminals use compromised credentials as a weapon?

Threat actors have perfected the art of weaponizing compromised credentials, turning them into powerful tools to bypass security measures and achieve their malicious goals. The process of weaponizing these credentials involves a series of sophisticated tactics and strategies that allow cybercriminals to exploit system weaknesses, gain unauthorized access, and launch further attacks. Here’s how they do it:

Mindmap for Arming Compromised Credentials

1. Credential filling

Credential stuffing is a technique in which attackers use large amounts of stolen username and password pairs, often obtained from previous data breaches, and use automated tools to attempt logins across multiple websites and services. This method takes advantage of the common practice of password reuse. Once a valid combination is found, attackers can gain access to user accounts, which can contain sensitive personal information, financial data, or even administrative privileges.

2. Escalation of privileges

Once inside a network, attackers often attempt to escalate their privileges. With initial access granted via compromised credentials, they can lateral movement tactics to gain control over more critical parts of the system. By using administrator accounts or other high-privilege credentials, attackers can move from one compromised account to another, increasing their control and ability to cause damage.

3. Business Email Compromise (BEC)

A Business Email Compromise (BEC) attack uses compromised credentials for corporate email accounts to impersonate executives or employees. Attackers send fraudulent emails from these accounts, often instructing recipients to wire money, provide sensitive information, or approve invoices. The authenticity of the email, sent from a legitimate account, makes the deception more convincing and successful.

4. Ransomware Deployment

Compromised credentials can also be a precursor to more devastating attacks like ransomware. Attackers gain access to a network using stolen credentials and then deploy ransomware to encrypt critical data. The ability to bypass security measures with legitimate credentials allows ransomware to spread faster and more effectively, often resulting in significant operational disruption and financial loss.

5. Account Takeover (ATO)

Account Takeover (ATO) is another common use of compromised credentials. Once attackers gain control of an account, they can change passwords, lock out the legitimate user, and use the account for a variety of malicious purposes, such as making fraudulent transactions, sending phishing emails, or exfiltrating data. This can be particularly damaging to organizations that rely on cloud services or remote access systems.

6. Phishing for further exploitation

With initial access gained through compromised credentials, attackers can launch phishing campaigns within the compromised environment to gather more credentials or deploy malware. By using the compromised account to send phishing emails, attackers increase the likelihood of success because the email comes from a trusted source within the organization.

7. Distributed Denial of Service (DDoS) attacks

In some cases, attackers use the compromised credentials to take over accounts and use them to build botnets for large-scale DDoS attacks.

How to Detect Compromised Credentials

Detecting compromised credentials before they are weaponized by cybercriminals is critical to preventing data breaches and protecting your organization’s assets. With the increasing sophistication of cyberattacks, organizations must employ proactive detection strategies to quickly identify compromised credentials. Here’s how to effectively detect compromised credentials:

• Dark web surveillance: The dark web is a hotspot for selling and trading stolen credentials. Using tools that continuously monitor dark web forums, marketplaces, and other hidden online spaces can provide early warnings if your organization’s credentials are exposed. SOCRadar Comprehensive threat intelligence excels in this area by continuously scanning the shallow, deep and dark web for any mentions of your organization’s credentials, providing you with immediate alerts and actionable information to prevent unauthorized access.

SOCRadar XTI Dark Web Monitoring

• Credential Stuffing Detection: Credential stuffing attacks are widespread and detecting them is crucial. Implementing systems that monitor for unusual login attempts, such as repeated failed login attempts from different IP addresses or locations, can help identify credential stuffing attempts. SOCRadar XTI integrates advanced analytics to detect and analyze suspicious login patterns in real-time, helping prevent credential stuffing attacks before they can cause significant damage. For more information on how to detect and prevent credential stuffing attacks with SOCRadar XTI, check out our detailed blog post.

• Identity and access intelligence: Identity and Access Intelligence tools play a crucial role in detecting compromised credentials. By analyzing login patterns, device fingerprints, and user behavior, these tools can flag unusual access attempts that could indicate a credential breach. SOCRadar XTI’s Identity & Access Intelligence module provides deep insights into compromised credentials and helps identify the root cause of the breach, allowing organizations to respond quickly and effectively.

SOCRadar XTI Identity & Access Intelligence

• Phishing detection and prevention: Phishing remains a common method of stealing credentials. By training employees to recognize phishing attempts and implementing robust email security solutions, you can significantly reduce your risk. SOCRadar Extended Threat Intelligence provides comprehensive phishing detection services that analyze and identify phishing attempts before they reach your employees, helping to protect your organization from credential theft.

• Behavioral analysis: Behavioral analytics is essential for identifying compromised credentials based on how users interact with systems. By establishing baseline behavior patterns for each user, any deviation from the norm, such as unusual login times, access from unknown devices, or abnormal account activity, can trigger alerts for potential credential compromise.
• Multi-factor authentication (MFA) warnings: Implementing MFA adds an extra layer of security, but it is also a valuable detection tool. If an MFA request is triggered unexpectedly or from an unusual location, it could indicate that credentials have been compromised. Monitoring and analyzing these alerts can help identify potential breaches early.
• Regular security audits and penetration tests: Performing regular security audits and penetration testing can help identify vulnerabilities that could lead to credential compromise. These practices allow you to simulate attacks and discover weaknesses in your system before a breach occurs. They are also a way to ensure that your detection systems are functioning correctly and efficiently.
• Leveraging Compromised Credential Databases: There are several databases of known compromised credentials that can be used to cross-reference your organization’s credentials. SOCRadar XTI provides access to extensive databases of compromised credentials, allowing you to monitor and identify if your employee or customer credentials have been exposed, so you can take preventative measures.

SOCRadar XTI Threat Hunt

Conclusion

Detecting compromised credentials requires a combination of advanced technology, proactive monitoring, and human intelligence. SOCRadar XTI provides a comprehensive suite of tools designed to help organizations detect, respond to, and prevent the misuse of compromised credentials. By using these strategies and leveraging the capabilities of SOCRadar Extended Threat Intelligence, organizations can significantly reduce the risk of credential-based attacks and improve their overall cybersecurity posture. Remaining vigilant and responding to potential threats is essential to maintaining the integrity and security of your digital environment.

Article Link: The Dominant Role of Compromised Credentials in Data Breaches – SOCRadar® Cyber ​​​​Intelligence Inc.