Hackers Are Stealing Employee Credentials: Inside the Surge of Identity-Driven Attacks (And How to Fight Back)

Imagine this: You’re wrapping up a productive workday, when your accounts team receives an urgent request to change a supplier’s bank details. The email looks legitimate—maybe even expected. But just days later, you discover thousands of dollars have vanished, rerouted to a hacker’s account. Your company’s reputation is on the line, and your team’s trust has taken a hit.

If this scenario feels unsettlingly plausible, you’re not alone. A new wave of identity-driven cyber-attacks is sweeping across organizations of all sizes. According to eSentire’s Threat Response Unit (TRU), identity-related threats targeting employee credentials have not just increased—they’ve exploded, rising by a staggering 156% between 2024 and early 2025. Today, these attacks account for nearly 6 in 10 confirmed cyber incidents across over 2,000 organizations.

So, what’s fueling this spike? Who are these hackers, and how are they slipping past even the most vigilant employees? Most importantly, what can you really do to protect your team, your data, and your bottom line?

Let’s break it down—clearly, simply, and with real-world advice you can use right now.

The Credential Crisis: Why Employee Logins Are Worth Their Weight in Gold

First, let’s address the “why.” Why are cybercriminals so obsessed with employee credentials?

Think of your company’s digital environment as a high-security building. Passwords, multi-factor authentication codes, and session tokens are the keys. If attackers can get their hands on even one set of keys, they can often stroll right in—bypassing locked doors without tripping the alarm.

But there’s more. Compromised credentials allow cybercriminals to:

Impersonate employees in business email compromise (BEC) scams
Access sensitive data stored in cloud services, email, or CRM systems
Manipulate financial transactions by rerouting payments to their own accounts
Install additional malware to expand their foothold in your network
Sell login details on underground marketplaces for quick profit

Here’s why that matters: Unlike old-school hacks that rely on finding and exploiting technical flaws, credential-based attacks exploit human nature—our willingness to trust and our tendency to reuse passwords. And with the rise of “phishing-as-a-service,” even amateur criminals can now rent state-of-the-art tools for a modest monthly fee.

Phishing-as-a-Service: Industrializing Credential Theft

If hacking once conjured up images of hoodie-clad geniuses coding in dark basements, today’s reality is very different. Credential theft has become a business—complete with customer support, subscription pricing, and regular software updates.

Meet Tycoon 2FA: The Uber of Phishing

One of the most powerful platforms driving this surge is Tycoon 2FA—a phishing-as-a-service (PhaaS) platform purpose-built to steal Microsoft business account credentials and session cookies. For as little as $200-$300 a month (a fraction of most IT budgets), cybercriminals get access to:

Professional email templates that mimic trusted brands or partners
Adversary-in-the-middle (AitM) capabilities to intercept and bypass multi-factor authentication (MFA)
Anti-debugging and evasion features to slip past security tools
Credential exfiltration tools for easy data theft
Ongoing customer support and frequent updates

From January to May 2025, Tycoon 2FA has outpaced rivals like EvilProxy and Sneaky 2FA, becoming the tool of choice for threat actors targeting business users.

How Tycoon 2FA Works (in Simple Terms)

A target receives a convincing phishing email. The message often uses logos, language, and sender addresses that mimic real vendors or internal departments.
The victim clicks a link and enters their credentials on a fake login page. Tycoon 2FA captures everything—even temporary session cookies that can bypass MFA.
Attackers log in to real business accounts, skip past MFA, and begin their exploits—commonly hijacking email threads to redirect invoices or steal more data.

This isn’t just theory—it’s happening every day. According to eSentire, attackers using Tycoon 2FA often zero in on employees in accounts receivable or finance, aiming to reroute legitimate payments to attacker-controlled bank accounts. The impact? Immediate financial loss and long-term reputational damage.

Infostealers: The Low-Cost, High-Volume Credential Harvesters

Phishing isn’t the only game in town. For hackers seeking a cheaper, “set-and-forget” option, infostealer malware offers a scalable solution.

What Are Infostealers?

Infostealers are lightweight malware programs designed to quietly siphon off credentials and other sensitive data from infected devices. Once installed (often via malicious downloads, fake software, or drive-by attacks), they scan for:

Saved passwords from browsers, email clients, and apps
Banking or crypto wallet information
Password manager databases
VPN, FTP, and remote desktop credentials
Browser extensions and local files

The stolen data—sometimes entire “logs” containing dozens of passwords—is then uploaded to command-and-control servers and bundled for resale on underground markets. Prices? Often as low as $10 per log, making credential theft accessible to even the smallest-time crooks.

A Closer Look: Lumma Stealer’s Global Footprint

One standout is Lumma Stealer, a notorious infostealer active since 2022. Known for its automation and sophistication, Lumma uses built-in filters to flag high-value data, making it fast and efficient for resellers.

Authorities haven’t been idle. In a recent international crackdown, Microsoft and global law enforcement partners seized over 2,300 domains linked to Lumma Stealer—a major blow, but not enough to stem the tide. (For more, see the joint law enforcement efforts here.)

Business Email Compromise (BEC): The Billion-Dollar Threat

If you’re wondering what all this credential theft actually enables, look no further than business email compromise. According to the FBI, BEC scams have cost companies over $55 billion globally since 2013, with over 300,000 reported incidents.

Here’s how a typical BEC attack unfolds:

Credential theft: Attackers harvest login credentials through phishing or infostealers.
Account takeover: They log in as a trusted employee, monitoring email threads for financial transactions.
Invoice manipulation: When the time is right, they impersonate suppliers or executives, requesting payment changes or urgent wire transfers.
Funds diversion: Unsuspecting staff follow instructions, and money disappears into untraceable accounts.

Let me explain why this works so well: BEC attacks prey on trust and routine. Because the request appears to come from a familiar address—and often references real, ongoing business—it bypasses the usual skepticism that flags generic phishing emails.

Why Are Credential Attacks Skyrocketing Now?

It’s not just slicker tools. The landscape itself has changed.

Key Drivers Behind the Surge:

Widespread cloud adoption: With more business data and processes moving online (think Microsoft 365, Google Workspace, Salesforce), a single set of credentials can unlock a treasure trove.
Hybrid and remote work: Employees access company systems from personal devices and networks, expanding the attack surface.
Phishing kits and PhaaS: Criminals don’t need technical chops—they just rent what they need.
Credential reuse: Many employees reuse passwords across multiple services, multiplying the risk.
Growing underground markets: Stolen credentials are easy to sell, fueling a vicious cycle.

According to eSentire’s TRU, infostealers alone accounted for 35% of all malware threats they disrupted in Q1 2025. Identity-based attacks now offer higher returns—and lower risk—than traditional exploits like ransomware or zero-day vulnerabilities.

How to Protect Your Organization: Proven Strategies Against Credential Theft

The bad news? No silver bullet can eliminate credential theft overnight. The good news? You can dramatically reduce your risk with a multi-layered, people-first approach.

1. Move Beyond Passwords: Phishing-Resistant Authentication

Standard multi-factor authentication (MFA) is better than nothing—but modern attackers, especially those with AitM tech, can intercept many one-time codes.

What works better?

Phishing-resistant MFA: Use methods like hardware security keys (e.g., YubiKey) or biometric authentication, which are far tougher to intercept.
Passwordless authentication: Platforms like Microsoft Authenticator and Google Advanced Protection offer options that ditch passwords entirely.

2. Adopt a Zero-Trust Security Model

“Never trust, always verify.” That’s the zero-trust mantra. Instead of assuming that anyone inside your network is trustworthy, zero-trust:

Verifies every user and device, every time they request access
Monitors for abnormal behavior (like logging in from an unusual location)
Limits permissions to only what’s truly necessary

This approach shrinks the window of opportunity for attackers—even if they do get credentials.

3. Monitor and Respond in Real Time

Speed matters. The sooner you catch suspicious activity, the less damage is done.

Enable real-time monitoring for unusual logins, rapid data downloads, or new device registrations
Set up alerts for changes to payment details or executive accounts
Develop an incident response plan so your team knows exactly what to do if a compromise is detected

4. Educate and Empower Employees

Technology is just half the battle. Arm your staff with the knowledge they need to spot (and report) threats:

Run regular phishing simulations to build “muscle memory” for suspicious emails
Train on password hygiene—no sharing, no reusing, and always opting for passphrases or password managers
Promote a “see something, say something” culture so employees feel safe reporting potential scams

5. Patch, Update, and Harden Endpoints

Infostealers often exploit out-of-date software or browser vulnerabilities. Keep systems current:

Automate patches for operating systems, browsers, and plugins
Restrict admin rights to limit malware’s ability to spread
Deploy endpoint detection and response (EDR) tools for early threat detection

What If You’ve Already Been Compromised?

It happens—even to the best-prepared teams. If you suspect employee credentials have been stolen:

Reset passwords and revoke active sessions immediately
Alert your IT/security team and document all relevant details
Notify affected vendors or banks if financial accounts are at risk
Communicate transparently with any affected employees or partners
Review logs for suspicious activity and tighten policies moving forward

The key is speed and transparency. The faster you act, the better your chances of minimizing harm.

The Takeaway: Credential Attacks Are Here to Stay—But You Don’t Have to Be a Victim

Credential theft isn’t just another tech buzzword. It’s an urgent, real-world threat that’s reshaping the cybersecurity landscape—one stolen login at a time. But while attackers are getting smarter, so can we.

By embracing phishing-resistant authentication, zero-trust principles, and real-time monitoring—while empowering every employee as a frontline defender—you can turn your biggest risk into your strongest defense.

Ready to go deeper? Subscribe for more actionable advice on cybersecurity trends, or check out resources like CISA’s guidance on phishing-resistant MFA.

Stay aware, stay proactive—and help your team become the one hackers can’t crack.

Frequently Asked Questions (FAQ)

Why are hackers targeting employee credentials instead of traditional technical vulnerabilities?

Hackers target credentials because it’s often easier and more profitable than exploiting software flaws. Credentials grant direct access to business systems, data, and funds—no need to break down digital doors when you can just turn the key.

What is phishing-as-a-service (PhaaS), and how does it work?

Phishing-as-a-service platforms, like Tycoon 2FA, provide ready-made phishing kits and infrastructure to cybercriminals for a subscription fee. They include fake login pages, evasion tools, and support—making it easy for even non-technical users to launch convincing attacks.

How can I tell if my organization has been affected by credential theft?

Warning signs include unexplained logins from unusual locations, sudden changes to finance/payment processes, unauthorized data downloads, and alerts from security tools. Regular monitoring and user awareness are critical for early detection.

Are infostealers still a big threat in 2025?

Yes. Infostealers like Lumma Stealer remain widespread and are responsible for a significant portion of malware incidents. They automate credential theft and feed the thriving underground market for stolen logins.

What is “phishing-resistant” authentication, and why is it recommended?

Phishing-resistant authentication methods—like hardware security keys or biometrics—can’t be easily intercepted or replayed by attackers. They’re far more effective than traditional one-time codes or passwords, especially against advanced phishing scams.

How does zero-trust security differ from traditional network security?

Unlike the old “castle and moat” model, zero-trust assumes no one is inherently trustworthy—inside or outside the network. Every user or device must continually prove their identity and authorization, minimizing the risk of lateral movement by attackers.

What should I do immediately if a credential breach is suspected?

Reset affected account passwords, revoke all sessions, notify your IT/security team, and monitor for further suspicious activity. Communicate openly with stakeholders and review your authentication and monitoring policies.

Ready to stay a step ahead of attackers? Subscribe or follow us for regular updates on the latest cybersecurity threats—and proven tactics to keep your business safe.

For more on cybersecurity, visit trusted sources like CISA, FBI Cyber Crime, and Krebs on Security.

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Hackers Are Stealing Employee Credentials: Inside the Surge of Identity-Driven Attacks (And How to Fight Back)

The Credential Crisis: Why Employee Logins Are Worth Their Weight in Gold