Leaked Credentials 

What are leaked credentials?

Leaked credentials comprise sensitive login information such as usernames, passwords, and email addresses exposed through data breaches or compromised via phishing and insider threats. These credentials are sold on dark web marketplaces, where cybercriminals access and misuse them. According to Verizon’s 2024 Data Breach Investigations Report, compromised credentials are the most common entry point for data breaches, more prevalent than phishing or exploiting vulnerabilities. The report highlights that in the past decade, 31% of breaches involved stolen credentials, making them a primary focus for cyber security efforts. 

Misused credentials can lead to significant financial loss, damage to reputation, and legal consequences, impacting millions of individuals and organizations worldwide.

How credentials get leaked

Credentials can be compromised through various methods, including but not limited to the following: 

• Phishing attacks
  • Phishing is a common method used by attackers to trick individuals into sharing credentials.
• Data breaches
  • Attackers exploit system vulnerabilities or human errors to extract sensitive data, using methods such as SQL injection, ransomware, and DDoS attacks.
• Insider threats
  • Employees or contractors may misuse their system access, intentionally or unintentionally, leaking sensitive data outside the organization.
• Credential reuse
  • Using the same password across multiple platforms poses a risk; if one account is compromised, all other accounts with the same credentials are at risk.
• Credential access techniques
  • Keylogging, credential dumping, and exploiting legitimate access help attackers gather credentials and deepen their network access.
• System misconfigurations and vulnerabilities
  • Poorly configured systems or outdated software can expose sensitive data, providing attackers a way to steal credentials.
• Kerberos authentication attacks
  • Kerberos is a secure network authentication protocol. However, it can be exploited through methods like ticket forging or manipulation. For instance, the MITRE ATT&CK framework categorizes such attacks as T1558, which involves stealing or altering Kerberos authentication tickets within a network.

Where do leaked credentials end up?

Leaked credentials are the entry point to attacks, as cybercriminals will proceed to sell or trade them on dark web marketplaces. These underground forums are a hotbed of bad actors who use exposed credentials for their malicious activity, be it credential stuffing or account takeover attacks: 

Account takeover (ATO)

Attackers use leaked credentials – bought on dark web marketplaces or threat groups on Telegram channels — to hijack user accounts and conduct account takeover attacks. During an ATO, the attacker uses compromised login details to access the victim’s account to commit crimes like sensitive information theft, fraudulent transactions, or account permissions for other malicious activities such as impersonating the victim.

Credential stuffing

During a credential-stuffing attack, cybercriminals utilize automated tools to inject volumes of stolen login credentials into multiple sites for possible unauthorized access.

Because users tend to use one password across multiple sites, the attackers will successfully log into the other sites, given that the original breach did not prompt users to change their passwords.

The impact of leaked credentials

The potential damage that can incur from exposed credentials is severe, particularly for businesses:

Financial loss: This includes unauthorized access to business systems, which may further lead to actual monetary loss due to fraudulent transactions, misappropriation of company funds, or exposure of sensitive financial information.

Reputational damage: When customer data regarding personal information is compromised, the decline of trust can be significant. This reputational damage can have lasting implications, especially when working in industries where data privacy is critical.

Legal liabilities: Companies working in highly regulated industries are at risk regarding potential lawsuits filed by their consumers or partners, followed by fines against them in cases of poor protection of sensitive information. For example, consumers might sue them for data breaches, and regulators fine them for not upholding data security laws such as GDPR, NIST, ISO, CCPA, etc.

Operational disruption: Credential leaks lead to the shutdown of systems, loss of data, and expensive efforts towards recovery. A lot of resources and time are involved in dealing with the effects of these leaks, which cause significant disruption to business operations.

Preventing Credential Leaks

Although no method is entirely foolproof, cybersecurity professionals can implement several best practices to minimize the risk of credential leaks and their potential impact. These include encryption techniques, advanced security protocols, and comprehensive security training:

Encryption Techniques

To protect sensitive credentials, businesses should implement robust encryption strategies:

• Hashing: Converts plaintext passwords into irreversible unique hashes. SHA-1, while once widely used, is now considered weak due to vulnerabilities. More secure algorithms, such as SHA-256, should be used.
• Salting: Adding a random string (salt) to passwords before hashing ensures that identical passwords generate unique hashes, safeguarding against rainbow table attacks.
• Encryption: Ensures data is encoded so only authorized parties can decrypt it.
  • Symmetric encryption (e.g., AES) uses the same key for both encryption and decryption.
  • Asymmetric encryption (e.g., RSA) uses a public key for encryption and a private key for decryption, enhancing security for data exchanges over unsecured networks.

Advanced Security Protocols

Leverage modern security protocols to manage authentication and minimize credential leak risks:

• OAuth: An authorization protocol that allows users to access third-party services without exposing their passwords. It uses tokens for authentication, reducing the need to send sensitive data across networks.
• OpenID Connect: Extends OAuth 2.0 by adding an authentication layer, using JSON Web Tokens (JWTs) to verify user identities, further reducing the need for storing credentials locally.
• Secure Token Services (STS): Issues security tokens to authenticate and authorize users without storing credentials, further protecting sensitive information. Expiration timers and encryption enhance its effectiveness.

Security Awareness and Training

Since human error is a frequent weak link in security, training employees is crucial:

• Educate staff on credential theft tactics such as phishing and social engineering, providing examples of real-world breaches.
• Implement strong password policies that require long, complex passwords and utilize password managers to reduce the risk of password reuse.
• Promote secure handling and sharing of credentials, avoiding insecure methods like email or messaging apps for sharing sensitive information.

Ongoing Updates and Incident Response

• Regular Software Updates: Ensure timely patching of vulnerabilities through automated tools for operating systems, applications, and firmware.
• Incident Reporting: Foster a culture where employees are encouraged to report suspicious activity without fear of blame. Provide clear steps for responding if credentials are compromised.

How to find leaked credentials on the dark web

To learn more about the forums where cybercriminals gather and sell compromised data, check out Top 5 Data Leak Sites on the Dark Web. Make sure your cybersecurity team is the first to discover leaked credentials by setting alerts to monitor these popular data leak sites for any mention of your company’s domain, name, or subdomains.

Webz.io’s guide, Top Data Breach Detection Tools, describes different types of data breach detection and prevention tools available on the market to help prevent credential exposure. Cybersecurity teams can employ advanced tools to discover leaked credentials, actively monitoring the dark web and other forums where such data may be traded. 

• Search techniques: Using advanced search techniques, cybersecurity professionals can explore dark web forums and marketplaces to uncover leaked credentials relevant to their business.
• Leaked credentials databases: These databases compile compromised login credentials, allowing security teams to assess whether their organization’s data has been exposed.
• Leaked credential detection tools: With proactive monitoring, businesses can detect leaks early and mitigate risks immediately. Tools like Lunar, our dark web monitoring platform provide real-time monitoring of leaked credentials, helping organizations respond swiftly to potential threats and secure their systems before   significant damage occurs.

Lunar is a leaked credential tool that continuously scans the dark web for compromised domains, devices, ransomware indicators, leaked IPs, and personal information (PII). By regularly reviewing leaked credentials reports, Lunar can help businesses stay informed about new threats and trends.

Organizations can employ leaked credentials detection measures and take action swiftly by accessing leaked credentials in real-time from various online platforms—including deep web, dark web, hacking forums, and illicit marketplaces