Attackers love stolen credentials– because they work. Security teams struggle to spot the difference between a real user and an attacker using real credentials. These credentials circulate on dark web marketplaces and can be available to multiple threat actors for months at a time.
Valid credentials enable attackers to operate within expected authentication parameters. They look just like real users to many security controls like behavioral analytics and anomaly detection systems. In fact, threat actors actually analyze normal usage patterns and try to replicate them to avoid detection. They even harvest session tokens and circumvent weak or push-based MFA implementations through real-time phishing or token replay attacks.
Once inside, attackers move fast. They run scripts that map out shared drives and identity stores. They hunt for service accounts with too many permissions and use them to gain admin access. From there, they spread through the network, steal data, deploy ransomware, or hijack email accounts for wire fraud. They look like legitimate users to your security systems the entire time.
The 2025 Specops Software Breached Password Report found over 1 billion passwords stolen by infostealer malware in just one year. With that many credentials circulating on the dark web, continuous monitoring has become essential for catching breaches early.
What is the financial impact of compromised credentials?
The average cost of a data breach has reached $5.3 million in 2025. Credential-based attacks drive much of this damage.
Direct financial impacts hit hard. According to IBM, ransomware payments average $1.5 million per incident. Regulatory fines above $50,000 have increased 22.7% annually, while penalties exceeding $100,000 rose 19.5%. Security talent shortages affect 53% of breached organizations, adding $1.76 million per incident.
Secondary impacts compound these losses. Following a breach, 63% of organizations implement price increases to recover costs. Class-action litigation follows 76% of major breaches. Perhaps most damaging, 68% of customers abandon companies after a breach.
Last year, Snowflake discovered how detrimental stolen credentials can be. Threat actors had purchased legitimate login credentials from dark web marketplaces – passwords harvested by infostealer malware and packaged into “stealer logs.” Using these credentials, they walked right into Snowflake’s cloud storage and accessed data from 165 companies. One victim, Neiman Marcus, watched helplessly as 65,000 customers’ personal information – gift card numbers, contact details – appeared for sale on underground forums for $150,000. For Neiman Marcus, the aftermath meant more than $1.5 million in investigation costs and customer compensation. They were just one company among 165, each facing their own million-dollar cleanup.
How can a breach damage reputation?
When attackers use stolen credentials, they don’t just steal data – they steal trust. Norton LifeLock built its brand on protecting passwords. Then December 2023 happened. Attackers used credential stuffing to break into 925,000 password vault accounts, accessing names, phone numbers, and addresses. The irony was devastating – a password protection company that couldn’t protect against stolen passwords. Customers who trusted Norton with their digital security felt betrayed. The damage went deeper than any financial loss.
LastPass learned the same lesson in 2022. For security companies, breaches hit differently. Their entire business depends on one promise: we keep you safe. When that promise breaks, customers don’t just lose data – they lose faith. Both companies discovered that rebuilding trust takes years of flawless performance and radical transparency. Some customers never come back.
What are the regulatory and legal risks?
Stolen credentials don’t just compromise systems – they can trigger a cascade of legal obligations. By way of example, Okta’s 2023 nightmare started with stolen support credentials. Threat actors bought these credentials on the dark web and used them to access customer data – names, addresses, phone numbers. Then the clock started ticking. GDPR gives you 72 hours to report a breach. Okta missed that deadline. That single delay opened them up to fines reaching 4% of their global revenue. They also blew past California’s CCPA deadlines, adding another violation to the list.
Regulators understand why credential breaches are so dangerous. Stolen passwords let attackers move through systems for months, looking exactly like authorized users. That’s why GDPR and CCPA demand rapid detection and notification. The penalties reflect the risk: crushing fines, consent decrees that last for years, and regulators taking control of your security program.
The pain doesn’t stop with regulatory fines. Customers file class-action lawsuits. Insurance companies review your delayed notification and deny your claim. Suddenly you’re operating under a consent decree where regulators must approve every security decision, no matter how routine. This microscope-level oversight can last three, five, even ten years.
For global companies, each region brings its own compliance nightmare. A single breach touching European data means GDPR’s 72-hour rule applies. The same breach affecting Californians triggers CCPA’s timeline. Every country defines breaches differently, sets unique deadlines, and threatens distinct penalties. One stolen password can trigger legal obligations in dozens of countries simultaneously.
How does continuous monitoring help?
The best defense against stolen credential attacks is…finding the stolen credentials before attackers use them.
Continuous dark web monitoring works around the clock, scanning the places where criminals trade passwords – underground forums, paste sites, hidden marketplaces. When your credentials surface, you know immediately. Then you can lock accounts, reset passwords, kill sessions and more – all before an attacker can make their first move.
Today’s monitoring platforms do more than just find stolen passwords. They reveal how attackers operate. Which credentials are they targeting? How are they packaging the data? What companies are they planning to hit next? This intelligence shapes your entire defense strategy. You stop reacting to attacks and start preventing them.
The math is simple. Continuous monitoring with platforms like Lunar costs a fraction of what you’ll spend on a single breach. It catches stolen credentials in that critical window between theft and use. It keeps you compliant with detection requirements. Most importantly, it turns the tables – letting you act before attackers do.
Learn how Lunar by Webz.io streamlines dark web coverage and action: webz.io/lunar
