Tips to Stop Credential-Based Threats
Credential-based attacks have become the path of least resistance for threat actors targeting small and mid-sized businesses (SMBs). In fact, 88% of basic web application breaches involve the use of stolen credentials, according to the 2025 Verizon DBIR. These incidents often follow a fast, targeted pattern: gain access via a login page, extract data, and exit—sometimes without any additional actions.
For many IT teams, the initial compromise didn’t come through a firewall or zero-day exploit. It came through a credential—the kind that was reused, guessed, or already floating around the dark web. In some cases, brute-force tactics or credential stuffing are used to break in. In others, a single set of exposed credentials is all it takes to unlock sensitive systems.
Despite this, credential security remains an afterthought in many SMB security programs. Whether due to limited staff, legacy systems, or misplaced confidence in endpoint or perimeter controls, password hygiene and exposure monitoring are still among the most overlooked aspects of defense.
If your organization is looking to tighten its identity posture while staying within your budget and staffing constraints, here are eight strategic actions to consider.
SMBs are no longer flying under the radar. Attackers see them as soft targets with predictable gaps: weak password policies, inconsistent MFA usage, and limited visibility into credential exposure.
Microsoft Security reports that 1 in 3 SMBs experienced a cyberattack in the past year, and Sophos found that compromised credentials were the most common root cause among businesses with 100–250 employees, playing a role in 30% of ransomware attacks in that segment. The recovery isn’t cheap either—those same organizations reported an average cost of $638,536 per incident.
Yet many SMB leaders still believe they’re too small to be worth targeting. That mindset is outdated. Even a single set of leaked credentials—especially for email, VPN, or Active Directory—can become the entry point.
Active Directory (AD) remains the backbone of identity for many small and mid-sized organizations. But the default Group Policy settings in many environments haven’t kept pace with modern guidance. Complexity requirements and arbitrary expiration rules persist—despite being deprecated by NIST password guidelines and widely criticized by identity experts.
What’s missing is continuous risk-based credential screening. It’s not enough to enforce password length and reject “123456.” Today’s attackers are using breach corpuses of billions of compromised credentials, and if your environment isn’t checking both new and existing passwords against those lists, you’re flying blind.
Most breaches start with valid credentials. That’s a clear red flag to re-center your identity strategy around credential security.
Remote work, hybrid environments, and BYOD policies have massively expanded the credential attack surface. The DBIR found that nearly half of breached credentials originated from unmanaged devices. That means employees logging in from personal laptops, shared tablets, or unpatched desktops—often with stored credentials, browser-saved logins, or infostealer infections no one knows about.
It’s no longer safe to assume that credential exposure starts with phishing. Many stolen passwords now come from malware logs sold on dark web marketplaces, captured long before an attack even begins.
If your security program isn’t accounting for the risks introduced by unmanaged devices and dual-use systems, you’re leaving a massive blind spot in your defenses.
Most SMBs have implemented multi-factor authentication in at least some capacity. But the implementation details matter. Weak second factors (like SMS), poor UX, and inconsistent enforcement across systems open the door to bypass techniques like MFA fatigue, SIM swapping, and adversary-in-the-middle attacks.
Prompt bombing, for example, was involved in 14% of social engineering breaches in this year’s DBIR. That’s a clear sign that MFA fatigue is no longer just an enterprise problem.
Where possible, SMBs should pair MFA with real-time credential screening and behavior monitoring. MFA should complement your credential defenses—not be your only line of protection.
One of the best-kept secrets in SMB cybersecurity is how usable the NIST Digital Identity Guidelines have become. Specifically, SP 800-63B offers clear, actionable guidance for password and credential management that’s designed to reduce user frustration while increasing security.
Key takeaways:
For IT teams trying to align with industry standards without enterprise-level overhead, this framework is a practical starting point.
Even with strong credential hygiene, no system is breach-proof. That’s why adopting a Zero Trust mindset is essential—assume compromise, verify everything, and minimize what any single credential can access.
A stolen password shouldn’t unlock the entire environment. By enforcing least-privilege access and segmenting critical systems, SMBs can contain damage and recover faster when something goes wrong.
At a minimum:
These aren’t just enterprise security best practices—they’re table stakes for any SMB looking to stay resilient in the face of credential-based threats.
According to Microsoft, fewer than 30% of SMBs manage security in-house. The rest rely on MSPs, VARs, and vendors to fill gaps in staffing, tools, and expertise. That’s not a weakness—it’s reality.
But not all partners are created equal. Look for providers who can:
The right cybersecurity partner won’t just sell you a dashboard—they’ll close the gap between what you should be doing and what you can do with the resources you have.
Credential-based attacks remain the most common initial access vector for SMB breaches—not because attackers are especially clever, but because too many businesses still leave the front door unlocked.
Stopping these threats doesn’t require an enterprise budget. It requires awareness, action, and the right tooling to detect and prevent password-based risks before they escalate into full-blown incidents.
It’s time to treat credentials not just as another compliance checkbox, but as your most critical attack surface.
Want help assessing your credential risk posture?
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