Login credentials are your organization’s first line of defense against cybercriminals. Yet, in a surreal twist of fate, instead of providing protection, they have become one of the most powerful weapons in a threat actor’s arsenal. According to the 2024 Verizon Data Breach Investigations Report, stolen credentials are the top attack vector, used in 24% of incidents. Adding insult to injury, breaches using stolen credentials cost an organization an average of $4.81 million. 

This is not a call to give up on passwords; it’s an alarm bell indicating that it’s time to rethink password policies, embrace advanced authentication methods, and adopt a comprehensive, layered security approach strategically designed to protect against growing threats.  

The Growing Threat of Credential Theft 

Credential theft occurs when an unauthorized person acquires login information, such as usernames, passwords, or access keys. The appeal of credential theft lies in its ease and effectiveness. Threat actors use tried and tested methods to obtain credentials, such as phishing, keylogging, and brute force attacks, and automation tools enable even those with minimal technical expertise to succeed. Once acquired, attackers have a direct path into a company’s network; from there, they can move laterally or escalate privileges while appearing as valid users and bypassing traditional security measures.  

Credential theft is pervasive and has been the starting point for some of the most high-profile cyberattacks in recent memory. In 2021, hackers gained access to Colonial Pipeline’s network through a single compromised password that was likely reused by an employee and had previously been exposed in a different data breach. Okta suffered a massive data breach in 2023 when an attacker accessed an employee’s personal Google account and then found and exploited saved Okta service account credentials, which were stored in the employee’s Chrome browser on their Okta-managed laptop. Compromised credentials were also used to attack 23andMe (2023), Norton LifeLock (2022), Microsoft (2023), and many more.  

These examples make one thing crystal clear: password-only authentication is no longer sufficient. Organizations need to not only strengthen their password security strategies by incorporating advanced authentication methods but also improve overall security to detect threats before attackers take hold of systems and data. 

NIST’s Latest Password Guidelines 

NIST recently released its second public draft version of its password guidelines (SP 800-63-4), updating its recommendations to reflect the current threat landscape. Key suggestions include: 

• Prioritizing password length over complexity: Longer passwords are generally more secure than complex combinations of characters. (Ex: TomorrowWillBeAHappyDay vs. Hjdiwlj39^48r!) 

• Discouraging regular password updates unless compromised: Frequent changes often lead to weaker passwords, user fatigue, and reduced security. 

• Implementing password blocklists: Prevent commonly used passwords and monitor the dark web to identify and block previously breached passwords. 

• Requiring Multi-Factor Authentication (MFA) for all users: This extra layer reduces the risk of unauthorized access even if passwords are compromised.  

These guidelines acknowledge that the overly complex policies that organizations were using led to poor password practices and instead focus on the need to balance security with usability. 

The Evolution of MFA and the Rise of Passwordless Methods 

Although MFA still provides value, traditional methods, such as SMS codes and time-based one-time passwords (TOTP), have become more vulnerable to phishing attacks, AI-powered social engineering tactics, and MFA fatigue caused by excessive prompts; even man-in-the-middle attacks can intercept MFA codes. 

To overcome MFA’s challenges and known security risks, cybersecurity leaders are shifting towards passwordless authentication, which grants users access to systems and apps without passwords or security questions. Methods include: 

• Passkeys: Uses cryptographic credentials stored securely on specific devices (or device families) and tied to specific applications. 

• Device fingerprinting: Identifies a device’s unique attributes such as operating system, browser type, screen resolution, installed fonts, and more. 

• Geolocation: Verifies the physical location of login attempts. 

• Biometrics: Uses facial recognition, fingerprints, or iris scans for authentication. 

While these methods improve security and the user experience, they also introduce new challenges. For example, biometric authentication raises concerns about data privacy and could be compromised with AI-generated deepfakes. Organizations considering these advanced methods should evaluate whether they suit their infrastructure and users, especially as these approaches often complement rather than replace traditional MFA. 

Layering Security Is a Necessity, Not an Option 

No single security measure is foolproof. To effectively combat credential theft and other advanced threats, organizations must adopt a comprehensive, layered security approach that combines various defensive and proactive strategies.  

At a minimum, companies must implement NIST’s latest recommendations alongside zero trust principles and identity and access management (IAM) practices, while those with the proper use cases should begin shifting towards passwordless methods. Additionally, businesses should encrypt all personally identifiable information (PII) and other confidential data, rendering it useless even if stolen. 

Organizations relying on outdated solutions that lack comprehensive threat detection and response capabilities, such as traditional SIEMs, basic antivirus software, or rely on just an EDR alone, need to evolve to a next-gen managed detection and response (MDR) solution. On top of providing 24/7 real-time monitoring, CYREBRO’s proprietary security data lake (SDL) can collect, analyze, and correlate data from every log source. This type of comprehensive logging is critical for identifying suspicious patterns and build an attack story.  

With advanced threat hunting capabilities and human analysts at the helm, MDR solutions can proactively identify real threats and streamline the incident management process through playbooks and automated responses, significantly improving incident response (IR) efficiency and mean time to respond (MTTR) to minimize the impact of an attack. 

The Path to Enhanced Security 

Credential theft is rampant, and as long as credentials exist, they will always be attractive acquisitions for threat actors. Ultimately, the key to success lies in combining practical security measures and advanced authentication methods with a comprehensive MDR solution and proactive, threat-aware mindset. These strategies will create a resilient security framework capable of thwarting even the most sophisticated attacks.