Verizon Report: Proactive Credential Screening - Your First Line of Cyber Defense

The cybersecurity landscape is currently facing unprecedented challenges, marked by an alarming surge in sophisticated attacks. And businesses are falling behind in robust, proactive defense strategies and real-time intelligence to effectively combat these evolving threats creating a perfect storm for criminals. As highlighted in the most recent Verizon report, a critical element in this increasingly challenging environment is the pervasive threat of compromised credentials.

Verizon's 2025 Data Breach Investigations Report (DBIR)

Credential abuse (22%) and exploitation of vulnerabilities (20%) continue to be the leading initial attack vectors. The report analyzed over 22,000 security incidents, including 12,195 confirmed data breaches, underscoring the critical need for enhanced security measures focused on these areas. The human element remains a significant factor, with a substantial overlap noted between social engineering and credential abuse. Furthermore, the DBIR highlights concerning trends such as the doubling of third-party (like a vendor, supplier, etc.) involvement in breaches to 30%, emphasizing the risks associated with supply chains and partner ecosystems, and a 34% surge in the exploitation of vulnerabilities.

Compromised credentials and exploited vulnerabilities serve as primary pathways for various malicious activities, including Account Takeover (ATO), ransomware, and other forms of online fraud.

Account Takeover (ATO) as a Major Threat

Account Takeover is repeatedly emphasized as a significant risk. Criminals leverage stolen email addresses, user IDs, and passwords to take control of legitimate user accounts, leading to fraud events. 

Ransomware and Other Fraud Losses

Ransomware attacks have seen a significant rise of 37% since last year and are now present in 44% of breaches. For small and medium-sized businesses (SMBs) that may lack proper IT and cybersecurity maturity, the impact is disproportionate, with ransomware appearing in 88% of their breaches. Compromised credentials often provide attackers with the initial access needed to deploy ransomware. Beyond ransomware and ATO, the use of stolen credentials facilitates various other online fraud activities.

What Can be Done? - The Power of Proactive Credential Screening

myNetWatchman (mNW) has a long history of tackling the risk of compromised credentials. Our proactive credential screening process involves evaluating credentials for potential compromise at various points, including login, signup, and account reset.

Proactive Screening Consists of Two Key Elements.

First, by continuously collecting data on compromised credentials from sources like the darknet, phishing attacks, and malware-infected devices, we capture fraudsters' live use. This "inline real-time credential screening," or proactive screening, integrates directly into customer credential processes—signup, account reset, or login—to proactively prevent the use of credentials already known to be in criminal possession.

Second, a vast dataset is crucial for proactive credential screening. This dataset should extend beyond basic breach information and password lists to include userID/password and email/password combinations. Such comprehensive data provides deeper insights into potential account-related risks.

Such proactive screening and monitoring services offer a comprehensive approach to combating threats:

• Stopping Account Takeover: By identifying and preventing the use of compromised credentials at login or signup, ATO attempts can be significantly reduced. Solutions can also monitor company domains and users to alert organizations to attack activity and compromised accounts.

• Preventing Credential Stuffing: Proactive screening helps identify users attempting to log in using credential pairs known to be compromised, preventing credential stuffing attacks. Compromised Credential Pentests can also assess a site's vulnerability to credential stuffing.

• Detecting Compromised Users and Employees: Solutions can detect if customers' email accounts, used for actions like account creation or reset, have been compromised. Scanning employee credentials for compromised passwords helps ensure compliance and identifies employees using credentials known to be compromised, uncovering threats in Active Directory.

• Mitigating Ransomware and Fraud: By preventing initial access often gained via compromised credentials, proactive screening can help reduce the risk of ransomware and other online fraud.

• Breach Response: When a breach is suspected, these services can help determine its extent and identify which credentials were used or previously exposed.

Part of a Multi-Layered Defense

Experts emphasize the need for a multi-layered defense strategy, including strong password policies, timely patching of vulnerabilities, and comprehensive security awareness training. Proactive credential screening is a crucial component of this strategy, complementing other security measures by directly addressing one of the leading initial attack vectors.

The findings from sources like the Verizon DBIR underscore that compromised credentials are a persistent and growing threat enabling ATO, ransomware, and widespread online fraud. myNetWatchman’s proactive approach to credential screening, leveraging real-time intelligence and comprehensive data, is no longer optional but a necessary investment for businesses seeking to safeguard their assets, protect customers, and ensure resilience in today's challenging digital world.