Demo of the CyCognito PlatformSee the CyCognito platform in action to understand how it can help you identify, prioritize and eliminate your most critical risks. More...
State of External Exposure Management, Summer 2024 EditionDownload the report now to stay ahead of emerging threats and strengthen your organization’s security posture for 2024. More...
The Total Economic Impact™ of The CyCognito PlatformRead The Total Economic Impact™ of The CyCognito Platform — a Forrester study. Cost Savings And Business Benefits Enabled By The CyCognito Platform. More...
Leaked credentials refer to instances where private login details such as usernames and passwords, session cookies, or API secrets, are exposed to unauthorized parties. This data exposure can occur when credentials are obtained illicitly through various cyberattacks or accidental leaks.
Once obtained, these credentials can be misused for unauthorized access to systems, posing significant security risks to both individuals and organizations. The impacts of leaked credentials can include identity theft, financial fraud, and data breaches, requiring proactive management of credential security.
The risk of leaked credentials is heightened by the widespread reuse of passwords and insufficient password management practices. Users often keep the same passwords across multiple platforms, which means that if one account is compromised, others are at risk too. For organizations, even a single instance of leaked credentials can result in additional attacks and lead to catastrophic security breaches.
This is part of a series of articles about Exposure Management.
Data breaches are one of the most common sources of leaked credentials. During a breach, attackers infiltrate an organization’s database and extract sensitive information, including usernames, email addresses, and passwords. These breaches can occur due to vulnerabilities in software, unpatched systems, or weak security practices.
Once attackers have the credentials, they often sell or publish the data on the dark web, making it accessible to other malicious actors. The severity of the breach depends on the type of data stolen, but compromised credentials almost always lead to elevated security risks.
Session cookies are small pieces of data stored by a browser that identifies a user’s authenticated state on a website or application. If these cookies are improperly secured, attackers can intercept them through techniques like session hijacking or man-in-the-middle (MitM) attacks.
By gaining access to an active session cookie, attackers can impersonate the user without needing their actual password, bypassing authentication and taking control of the session. In addition to MitM attacks, session cookies are sometimes exposed through poor security practices like failing to enable secure flags or using unencrypted HTTP connections.
Phishing attacks involve tricking users into revealing their login credentials by posing as legitimate entities. Attackers often send emails or create fake websites that closely resemble trustworthy services, prompting victims to enter their usernames and passwords. Once entered, these credentials are captured by the attackers.
Phishing attacks are highly effective because they exploit human error rather than technical vulnerabilities, making them a persistent threat to both individuals and organizations.
Malware, such as keyloggers and credential-stealing trojans, is another major source of leaked credentials. Once installed on a victim’s device, malware can silently capture everything the user types, including login details. Some types of malware are designed to specifically target saved credentials in browsers or intercept them as they are entered.
Attackers can deploy malware through malicious email attachments, software downloads, or compromised websites, allowing them to harvest a large volume of credentials without the victim’s knowledge.
Misconfigurations in systems or security settings can inadvertently expose sensitive data, including credentials. For example, improperly configured cloud storage buckets, unsecured databases, or exposed APIs can leave login details vulnerable to unauthorized access.
Additionally, poor security practices, such as using weak passwords, failing to enforce multi-factor authentication (MFA), or neglecting regular password updates, increase the likelihood of credential leaks. These issues often result from human error or insufficient security protocols, making it easier for attackers to gain access to critical systems.
Related content: Read our guide to attack surface management.
There are several ways for leaked credential information to reach adversaries.
Direct attacks involve targeting systems or users to obtain credentials through brute force or password guessing techniques. In brute-force attacks, attackers attempt multiple combinations of usernames and passwords in rapid succession, relying on automation to expedite the process. Weak or commonly used passwords are particularly vulnerable in such scenarios.
Another type of direct attack is credential stuffing, where attackers use previously leaked credentials from other sources to try to access different accounts. This is particularly effective due to password reuse; if a user’s credentials were exposed in one breach, attackers might successfully use those same credentials on other platforms where the victim has an account.
Criminal marketplaces on the dark web serve as a key distribution channel for leaked credentials. Hackers sell or auction stolen usernames, passwords, and other sensitive information on these platforms. Buyers range from individual cybercriminals to organized groups who then use these credentials for malicious activities like account takeovers, identity theft, and fraudulent transactions.
In addition to raw credential data, many sellers offer “packages” that may include access to compromised email accounts, bank logins, or administrative credentials for online services. This ecosystem enables attackers with varying levels of skill to obtain the tools they need, often lowering the barrier to entry for cybercriminals.
Combolists are massive compilations of leaked usernames and passwords collected from various data breaches. These lists, often numbering in the millions or even billions of entries, are circulated on the dark web and are a primary resource for credential stuffing attacks. Attackers automatically try these credentials across websites to identify active accounts.
These lists rely on users’ common habit of reusing passwords across platforms. Once attackers find matching credentials, they can access accounts on various services, increasing the potential for financial loss, data theft, and further propagation of credentials. By continuously updating combolists with newly breached data, attackers maintain a supply of valid credentials.
Rob Gurzeev, CEO and Co-Founder of CyCognito, has led the development of offensive security solutions for both the private sector and intelligence agencies.
In my experience, here are tips that can help you better safeguard against leaked credentials and their impacts:
Download this report to learn about the historical trends behind the emergence of exposure management, how to develop a strategic plan and assemble a team to smoothly transition frameworks, and example tech stacks to consider for your organization.
Leaked credentials can lead to direct financial loss for both individuals and organizations. For individuals, attackers may gain access to bank accounts, payment services, or online shopping platforms, resulting in unauthorized transactions or identity theft.
For organizations, attackers might exploit stolen credentials to launch fraudulent activities, manipulate financial records, or steal sensitive business data. Additionally, businesses may face costly incidents such as ransom demands, where attackers threaten to release or misuse the stolen credentials unless a payment is made.
Leaked credentials can cause significant operational disruptions for organizations. When attackers gain access to critical systems, they can disable services, tamper with data, or lock users out of their accounts, halting normal business operations. This type of disruption often leads to downtime, affecting productivity and the ability to deliver services to customers.
In some cases, attackers use stolen credentials to launch more sophisticated attacks, such as lateral movement within a network or launching denial-of-service (DoS) attacks, which can cripple an organization's infrastructure.
Organizations that suffer from leaked credentials are often subject to legal and compliance consequences. Regulatory frameworks like the GDPR, HIPAA, or PCI DSS impose strict requirements for protecting user data, and failure to comply can lead to hefty fines and sanctions.
Leaked credentials involving personally identifiable information (PII) may require mandatory reporting to authorities and affected users, as well as conducting internal investigations. In addition to financial penalties, organizations may face lawsuits from affected customers or partners, particularly if negligence in safeguarding the credentials is proven.
Encrypting sensitive information transforms readable data into unreadable code, which is critical for safeguarding credentials from unauthorized access. Encryption ensures that even if data is intercepted or exposed, it remains inaccessible without the correct decryption key. This measure is essential for maintaining data confidentiality and integrity across different stages of the data lifecycle.
Organizations should employ strong encryption protocols like AES or RSA for sensitive data in transit and at rest. It's important to regularly update encryption keys and specify access controls to limit key distribution. Employing end-to-end encryption further secures communication between systems, protecting credentials from potential middle-man threats.
Multi-factor authentication (MFA) requires users to verify their identity through multiple methods before granting system access. This method significantly enhances security since it adds layers beyond just passwords, utilizing factors like biometrics, tokens, or SMS codes. Even if credentials are leaked, MFA complicates unauthorized entry attempts.
Organizations can encourage MFA adoption by integrating it with user-friendly technologies and seamless user experiences. Evaluating different MFA methods helps balance security needs and user convenience. Additionally, preparing users with clear guidelines on MFA setup and usage ensures widespread acceptance and effective implementation.
Regularly rotating credentials and setting expiration dates can reduce the risk of misuse over time. By frequently updating passwords and access tokens, businesses minimize the window of opportunity for attackers to exploit leaked credentials. This proactive security measure requires planning to avoid operational disruptions.
Implementing automated systems for credential management ensures consistent rotation and reduces human error. Leveraging password management tools allows users to maintain unique, strong passwords without the burden of manual tracking. Furthermore, setting policies for password strength and composition supports a systematic approach to credential security.
The zero trust security model operates under the principle of "never trust, always verify," requiring every user and device to prove legitimacy before access is granted. This approach limits the impact of compromised credentials by minimizing unnecessary access permissions and emphasizing strict authentication protocols across the network.
Organizations implementing zero trust should assess and segment their network to control resource access based on necessity. Utilizing microsegmentation further isolates threats by dividing networks into secure zones. Regularly reviewing access privileges and adopting dynamic authentication mechanisms ensures a resilient defense against credential-based threats.
Hard-coded credentials in source code present a significant security risk, as they can be exposed in public repositories or inadvertently shared. To mitigate this, developers should utilize environment variables, secret management tools, or vault systems to handle credentials securely and ensure they are not embedded within the codebase.
Educating developers about secure coding practices and conducting regular code reviews help identify potential hard-coded credentials before deployment. Incorporating automated scanning tools into the development pipeline can further detect and alert teams to such vulnerabilities. By fostering secure development habits, organizations reduce the likelihood of credential leaks in their code.
CyCognito proactively safeguards your organization from the risks of credential exposure and data leaks. Our advanced security solution employs a multi-layered approach to identify and mitigate potential threats:
By combining these capabilities, CyCognito empowers your security team to proactively protect your organization from cyber threats, minimizing the risk of data breaches and financial loss.
Download this report to learn about the historical trends behind the emergence of exposure management, how to develop a strategic plan and assemble a team to smoothly transition frameworks, and example tech stacks to consider for your organization.
CyCognito solves one of the most fundamental business problems in cybersecurity: seeing how attackers view your organization, where they are most likely to break in, what systems and assets are at risk and how you can eliminate the exposure.
Founded by national intelligence agency veterans, CyCognito has a deep understanding of how attackers exploit blind spots and a path of least resistance. Based in Palo Alto, CyCognito serves a number of large enterprises and Fortune 500 organizations, including Colgate-Palmolive, Tesco and many others.
For more information, follow us on Twitter @cycognito.
Privacy Policy Terms of Service Sitemap
Complimentary Report