What is Credential Theft?

Credential theft is a type of cyberattackWhat is a Cyberattack? A cyberattack is a deliberate and malicious attempt to exploit vulnerabilities in computer systems, networks, or software applications to cause damage, steal information, disrupt services, or… in which attackers steal a victim’s login details, such as usernames, passwords, or other forms of authenticationWhat is Authentication? Authentication is the process by which the identity of a user or system is verified. It ensures that the entity attempting to access a resource is who…. This stolen information is then used to gain unauthorized access to online accounts, networks, and sensitive data. Credential theft can target individuals, businesses, or government agencies, often resulting in identity theftWhat is Identity Theft? Identity theft is a type of fraud in which an individual’s personal and sensitive information is stolen and used by someone else without the former’s permission…, financial loss, or corporate espionage.

Attackers use various methods to steal credentials, including phishingWhat is Phishing? Phishing is a type of cyberattack in which attackers send fraudulent communications, or direct people to counterfeit websites in order to trick those individuals into revealing sensitive… attacks, malwareWhat is Malware? Malware, a portmanteau of “malicious software,” constitutes a broad category of software specifically designed to infiltrate, damage, or disrupt computer systems, networks, and devices without the user’s…, and social engineeringWhat is Social Engineering?  Social engineering is a manipulative tactic cybercriminals use to deceive individuals into divulging confidential information or performing actions that compromise security. Unlike technical attacks, which exploit… tactics. Moreover, the growing number of digital platforms and remote work environments has widened the attack surface for credential theft. Once crooks get their hands on these credentials, they are either sold on the Dark Web or used to infiltrate systems to carry out further attacks.

How Does Credential Theft Happen?

Credential theft can occur in several ways, depending on the attacker’s strategy and the vulnerabilities they exploit:

• Phishing Attacks: One of the most common methods, phishing, involves sending deceptive emails or messages that trick users into revealing their login details. These messages usually pretend to come from trusted sources, such as banks or colleagues, and direct victims to fraudulent websites designed to capture and steal their credentials.
• Malware: Malefactors also deploy malicious software that records keystrokes (keyloggers), captures screenshots, or steals stored credentials from web browsers. Malware is delivered via email attachments, links, infected websites, or software downloads.
• Credential Stuffing: In this method, attackers use stolen username and password combinations from a previously known breach to try to access other accounts. This is effective because many users reuse the same credentials across multiple platforms.
• Man-in-the-MiddleWhat is a Man-in-the-Middle Attack? A Man-in-the-Middle (MitM) cyberattack is a threat where an attacker secretly intercepts and possibly alters the communication between two parties who believe they are directly… Attacks: Cybercriminals can intercept communication between a user and a website or service, capturing login credentials in the process. This is particularly common on unsecured Wi-Fi networks.
• Brute Force Attacks: Using automated tools, attackers attempt to guess a user’s password by trying multiple combinations until they find the correct one. This method is often used on accounts with weak or simple passwords.

Credential theft can also occur through more sophisticated means, such as exploiting vulnerabilities in authentication systems or using advanced social engineering tactics to deceive even security-aware individuals.

What are the Dangers of Credential Theft?

The dangers of credential theft extend beyond inconvenience. The repercussions can be severe, depending on the type of account compromised and the information accessed. For instance:

• Financial Loss: Stolen credentials for banking or payment accounts can lead to unauthorized transactions, draining personal or business funds. Malicious actors can also use the stolen information to apply for a loan or a credit card in the victim’s name.
• Identity Theft: Credential theft is often a precursor to full-scale identity theft. With access to personal information, fraudsters can open accounts, file illegitimate tax returns, or commit other forms of malfeasance under the victim’s identity.
• Data Breaches: In corporate settings, stolen credentials can lead to widespread data breaches, exposing sensitive information such as customer records, trade secrets, or intellectual property. This can result in regulatory fines and legal liability.
• Account Takeover: Once threat actors have access to an account, they can lock the rightful owner out, change passwords, and potentially impersonate the victim. This is particularly concerning for email and social media accounts, where attackers can manipulate communications and spread misinformation.
• Network Compromise: Stolen credentials can give attackers access to entire networks, enabling them to deploy ransomwareWhat is Ransomware? Ransomware is a type of cyberattack in which the attacker infects a computer with malicious software that encrypts the victim’s data. The computer usually becomes locked, presenting…, steal more data, or move laterally within the system to escalate privileges and gain control over critical infrastructureWhat is Critical Infrastructure? Critical infrastructure refers to the fundamental systems, assets, and facilities that are essential for the functioning of a society and its economy. These are the foundational….

How to Protect Against Credential Theft

Protecting against credential theft requires a combination of strong cybersecurity practices and vigilance:

• Use Strong, Unique Passwords: Avoid using easily guessed passwords (such as 12345 or 00000), and don’t use the same password across several accounts. Password managers can be useful here, as they generate and store strong passwords securely.
• Enable Multi-Factor Authentication (MFAWhat is Multi-Factor Authentication? Multi-Factor Authentication (MFA) is a robust security method that enhances digital identity verification by requiring users to provide multiple authentication mechanisms before gaining access to a…): This adds an extra layer of security, like a one-time PIN that is sent to your device or a biometric you carry with you. This makes it harder for crooks to access accounts even if they have stolen credentials.
• Be Cautious of Phishing Attempts: Always verify the sender of emails and be wary of unexpected requests for login information. Avoid clicking on links in unsolicited messages, especially those that ask for personal details.
• Keep Software Updated: Regularly updating your software, operating system, browsers, and anti-malware software helps protect against vulnerabilities that attackers may exploit to steal credentials.
• Monitor Accounts for Anomalous Activity: Regularly check your bank and online accounts for unauthorized access or unusual transactions. Detecting these early can limit the fallout caused by credential theft.
• Avoid Public Wi-Fi for Sensitive Transactions: When accessing important accounts, such as banking or work-related systems, avoid using unsecured public Wi-Fi. If required, use a Virtual Private Network (VPN) to encrypt your Internet connection.

By staying informed and adopting these practices, people and companies can significantly lower the risk of credential theft and its potentially devastating consequences.

For more essential cybersecurity definitions, check out our glossary page here.