Understanding Credential Theft Risks and Prevention

Credential theft is a cybersecurity threat that should be tackled with extra vigilance. By understanding how digital identity theft occurs and coming up with an effective approach to defense, you’re likely to reduce your risk significantly.

According to a report by Statista.com, around 3,158 cases of data compromises were reported in 2024 in the United States. These compromises included data exposure, leakage, and breaches, and affected more than 1.35 billion people.

Businesses can form a strong defense against credential theft by training their employees on security awareness and implementing multi-factor authentication (MFA).

What Is Credential Theft?

In the field of cybersecurity, credential theft refers to the unauthorized acquisition of an individual’s passwords, usernames, and other online identity credentials. Cyber attackers who unlawfully acquire these personal credentials can use them to access different organizational systems. This can, therefore, cause:

Potential reputational damage
Financial losses
Data breaches

Attackers use malware, fake login pages, and phishing emails to coerce users to give out their login details.

How Does Digital Identity Theft Work?

Understanding how credential theft works is a crucial step in preventing attacks and helps you protect business information. Here’s a detailed breakdown of how cyber attackers steal your credentials online:

Phishing Attacks

Phishing attempts are among the most common kinds of cybersecurity crimes. Attackers send fake messages or emails to unsuspecting victims pretending to be legitimate sources. They proceed to lure users into downloading a file or clicking a link, which often leads to malware infection or stolen login information.

Malware Attacks

Malicious software, also known as malware, is meant to gain access to devices and get sensitive data, such as personal credentials. Malware is capable of recording your keystrokes, spying on your online activity, and reading files. Hackers can do significant damage to your devices, misuse them, and delete your personal information.

Man In the Middle (MitM) Attacks

This form of cybercrime involves intercepting communication between two persons to gain access to private information unlawfully. In this case, the two parties are a legitimate service or website and a user. Hackers often execute this tactic through malicious browser extensions or on unsecured Wi-Fi networks.

Credential Stuffing and Brute Force

Cyber criminals use automated tools to systemically guess passwords and usernames until they land on the correct combination. Credential stuffing involves using stolen credentials from past data breaches to access different accounts.

It works when users reuse their passwords. Therefore, employees should learn never to reuse passwords as a way of preventing data breaches.

What Are Some Cybersecurity Strategies to Prevent Credential Theft?

Businesses should implement robust cybersecurity strategies to protect themselves against credential theft. Some of the key online security tips that organizations should adopt to keep their sensitive information safe include the following:

Training Employees on Security Awareness

Employees should learn how to respond to and recognize digital identity theft attempts more effectively. Some of the warning signs to look out for in phishing emails or messages include the following:

Suspicious attachments or links
Grammatical errors
Typos

Moreover, employees should learn how to validate SSL certificates, check for HTTPS in URLs, and double-check accurate website addresses before keying in their login details. As a business owner, come up with a clear protocol on how employees should report questionable login attempts, websites, or emails to help facilitate prompt action.

Leverage Zero Trust and Multi-Factor Authentication (MFA) Policies

MFA requires the user to provide additional verification, like biometric data, a unique code, or a physical device, before gaining access to a service or website. This policy adds an extra layer of security and makes it much more difficult for hackers to access your accounts even after stealing your credentials.

On the other hand, a Zero Trust policy assumes that anyone trying to access your account is hostile and requires authorization and authentication. This policy maintains strict access controls even for those already in the network perimeter.

Regularly Check the Dark Web

By frequently checking the dark web for any signs of stolen credentials, organizations can notice potential threats early. It also helps identify exposed information promptly and take the necessary steps to reinforce security protocols and change necessary passwords.

Implement CAPTCHA

Completely Automated Public Turing test to tell Computers and Humans Apart (CAPTCHA) is a common cybersecurity tool that’s used to differentiate between automated bots and humans. Users are expected to complete tasks such as typing distorted characters or selecting certain images to avoid automated tools commonly used in digital identity theft.

However, organizations are advised to use CAPTCHA alongside other cybersecurity strategies, as some bots are learning to bypass it.

Frequently Asked Questions

What Are Some Signs That Your Account May Be Compromised?

It’s important you recognize signs of credential theft early to mitigate the effects. Some of the indicators to watch out for include the following:

Password reset requests that you didn’t initiate
Several failed login attempts
Strange messages, posts, or transactions on your business or personal accounts

What Is the Purpose Behind Credential Theft Attacks?

The main reason behind digital identity theft attempts is to gain access to credentials and use them to log in to systems that have valuable and sensitive information. With this kind of access, cyber criminals can commit fraud, conduct espionage, and propagate malicious activities across various connected systems.

What Can You Do If You Suspect Credential Theft?

First, you can file a report with the relevant authorities to resolve any issues with financial institutions and creditors. Also, request your financial institutions and creditors to freeze your accounts to avoid any transactions. A credential theft protection service will also help you through the recovery process and offer any extra support.

Protect Your Business From Credential Theft With EMPIST

Credential theft is a cybersecurity threat that affects your business significantly. It’s vital to watch out for signs of digital identity theft and take the necessary steps to protect your organization.

EMPIST provides an Identity Theft Detection & Response (ITDR) solution that detects, monitors, and responds to any fraudulent activity on your accounts. With ITDR, you can detect impossible travel, suspicious logins, or behavior anomalies across critical systems like Microsoft 365.