Cyberattacks using compromised credentials have surged 71% year-on-year, targeting everyone from everyday users to high-profile individuals and organizations. Political figures, international journalists, large tech enterprises, crypto firms—all were recent targets of account takeover (ATO) attacks. ATO methods are favored among cybercriminals for a simple reason: breached passwords are easy to access, and brute-force techniques are often effective due to the widespread use of weak and poorly secured credentials.
While exploiting weaknesses in traditional authentication methods has long been a go-to strategy for cyber attackers, the rise of AI-generated deepfakes, automated credential stuffing, and advanced fraud tools has made ATO attacks even more effective at bypassing security defenses.
Mechanics of ATO attacks
Cybercriminals use a range of tactics to carry out ATO attacks, with the same intended result: with valid login credentials in hand, attackers can gain access to legitimate accounts and hijack them for malicious purposes.
ATO attacks typically begin with an initial breach, where attackers obtain login credentials by using a range of nefarious methods—from targeted attacks that rely on tricking individuals into revealing their credentials to large-scale data breaches that expose usernames and passwords en masse. Once the attacker has access to even one set of valid credentials, the door is open for launching more advanced stages of the attack.
Credential Stuffing
Credential stuffing is a common tactic where attackers use automated tools to test stolen username-password combinations across a wide range of websites and services. This method is especially effective because many users recycle the same passwords on multiple platforms. If any of the credentials are valid, the attacker can gain access without raising suspicion—no extensive brute-force attack required.
Phishing and Social Engineering
Attackers also employ phishing and social engineering to trick users into giving up their passwords voluntarily. In these scenarios, phishing emails, fake login pages, and even voice or SMS-based scams convince users they're interacting with a legitimate organization. Once the victim enters their information, it's immediately captured and used for unauthorized access.
Lateral Movement
If system access is granted using legitimate credentials, attackers can move quietly within the network, accessing more sensitive areas like internal databases, financial systems, or administrative tools. Security professionals consider this lateral movement one of the more vexing phases of an ATO attack; because they're using valid login details from trusted users, cyber attackers are harder to detect and can go undetected by security systems.
Preventing and Mitigating ATO Attacks
To defend against account takeover attacks, users should start by implementing strong password practices. This means creating long unique passwords for every account and encouraging end users to avoid the temptation to reuse the same password across services. Proper password creation protocols significantly limit the damage done if one set of credentials is compromised.
Multi-Factor Authentication
Organizations at large should implement MFA across all systems and accounts, as well as at the policy level; by making MFA mandatory, firms greatly reduce the chances of a successful ATO, even if a password is compromised. Also, reusing passwords across platforms makes it far easier for attackers to compromise multiple accounts with a single stolen credential, so firms should prohibit password recycling as a matter of policy.
Monitoring Security Events
While MFA greatly reduces the risk of ATO, it’s not enough on its own. Organizations should be wary of unusual login patterns, failed login attempts, and logins from unfamiliar locations, as these could signal a potential ATO. Advanced monitoring tools and security information and event management (SIEM) systems can help detect these anomalies early and trigger an appropriate response. Regular security training for employees is equally vital—raising awareness about phishing, password hygiene, and social engineering helps prevent breaches caused by human error.
Password Managers
Password managers are highly recommended for streamlining and simplifying the process of creating, storing, and using strong passwords. These tools can automatically generate and store complex passphrases, eliminating the need to remember each one individually (or even worse—write them down). By using a password manager, users can maintain strong password security standards with the least amount of user experience friction.
Security Audits and Penetration Testing
Organizations should carry out regularly scheduled security audits and penetration testing activities. These proactive measures help identify weaknesses in systems and processes before attackers can exploit them. By routinely evaluating their security posture, firms can fix vulnerabilities, update outdated systems, and verify that their defenses are strong enough to protect against continuously evolving threats.
User Education and Training
At the individual level, users should take the initiative in setting up MFA for both their personal and work-related online accounts. Pairing MFA with strong passwords for each account provides an essential layer of protection. Users should also make it a habit to stay informed about the latest cybersecurity threats and recommended practices, whether it's learning how to spot phishing emails or understanding new password scamming techniques.
Don’t Become an ATO News Headline
By implementing and following password security best practices, organizations and end users can create more resilient, adaptable defenses against evolving ATO threats. Specialized solutions can also dramatically reduce ATO risk—for example, Specops Secure Access adds an MFA layer to your password authentication measures, while Specops Password Policy enforces strong password creation while scanning your Active Directory for over 4 billion compromised passwords.
Speak to expert today and find out how Specops can help your organization prevent ATO compromises.