Compromised Credentials are Killing Your Security—Here’s How to Fight Back

It's mind-blowing:?1 billion passwords stolen by malware.?That’s not a typo, nor is it just another?Forbes article?headline. The enormous volume of compromised credentials is a stark reminder of just how precarious credential hygiene has become. In an age where SaaS applications drive productivity and innovation, credentials have also become prime targets for cybercriminals.

According to a report by Specops Software, cybercriminals are feasting on poor credential practices. Meanwhile, IBM sounds an even graver alarm: cyberattacks stemming from stolen or compromised credentials have surged by 71% year over year. Worse, 60% of breaches can be pinned on weak passwords.

60% of breaches are attributed to weak passwords.

Even with all our advancements in cybersecurity, passwords and credential hygiene remain a fundamental problem. Sure, there is much discussion and optimism about the future of passkeys, but widespread adoption is still a ways off, and passwords remain our reality. That’s why implementing a robust strategy to identify and mitigate credential risks is not optional. It’s an immediate necessity to safeguard your organization today and prepare for the challenges of tomorrow.

Weak identity security has proven to be more than a vulnerability—it IS the vulnerability, and shadow SaaS only amplifies the problem. In this article, we’ll explore how to strengthen your credential hygiene program so bad actors aren’t logging in to your applications, systems, and networks.

Why Credentials Matter More Than Ever

At Grip, we frequently talk about SaaS identity sprawl, and for good reason. Identities aren’t static like individual applications; identities are a complex, interconnected web of permissions, access points, and roles. They permeate every corner of your organization’s digital framework but also introduce significant vulnerabilities when left unmanaged. That’s why securing identities needs to be the first priority in SaaS security, laying the foundation before tackling application misconfigurations.

With the rise in remote and hybrid work environments, employees have become the new perimeter of security. Weak, reused, or shared credentials provide a connection to what might otherwise be a siloed application. Just one reused password provides attackers with the “in” that they are looking for, and they exploit your credential weaknesses with ruthless efficiency.

So, what’s the solution? Hint: it’s not another lunch-and-learn on creating strong passwords. Given the increasing volume of breaches from compromised credentials, it's time to take a comprehensive approach to SaaS identity risk management. Let’s break it down:

Discovery: Know Thy Apps and Users

You can’t secure what you don’t know about. Thus, the first principle of SaaS identity risk management is discovery, and that includes uncovering the shadow applications your employees are using that are unbeknownst to you. Who’s using what SaaS app? How are they accessing it? How strong are the credentials tied to it? Unknown apps mean the identities tied to them are wild cards that could jeopardize your entire security posture.

Analysis: Evaluate the Weak Links

Discovery alone isn’t enough. Once you have visibility, it’s time to dig deeper, isolating the weak, reused, or shared credentials. This isn’t just about finding vulnerabilities; it’s about understanding user behavior. Are employees circumventing policies? Are they reusing passwords for convenience? Have any of their passwords been compromised? These patterns are red flags that demand action.

Action: Fix the Problem at Its Root

Armed with insights, it’s time to act. ?Enforce corrective actions, like requiring users to reset their password, or based on usage and risk score, prioritize SaaS that needs stronger policies, like single sign-on (SSO) or multi-factor authentication (MFA). ?Automated password rotations should also be part of your strategy. A static password is an evergreen vulnerability; regular rotations minimize the window of opportunity for attackers. The goal here is to minimize your SaaS identity attack surface proactively, before it’s too late.

Prevention: Stay Ahead of Threats

Prevention is an ongoing journey. SaaS identity risk management is not a one-time fix but a continuous effort to stay ahead of evolving risks. By monitoring SaaS usage and identifying potential vulnerabilities in real time, you can make prevention a seamless part of your organization’s workflow. Tools like Grip Extend play a critical role here, stepping in to provide real-time security interventions—prompting users to justify new SaaS apps, and encouraging stronger credential practices as they are engaging with the app. It’s about creating a culture where prevention isn’t an afterthought but a natural part of how your team operates.

Response: Act Fast, Act Smart

When things go wrong—and they will—have a response plan ready. Start by notifying users about poor hygiene practices and enforcing policies to bring them into compliance. This might mean requiring password resets or, in more extreme cases, cutting off access for non-compliant users. Yes, it may ruffle feathers, but the alternative is far worse. And if you suspect an identity or application has been compromised, act decisively. Automated password resets can immediately lock out attackers and stop them from using stolen credentials to infiltrate your network. Your goal should always be to act swiftly and limit the damage before it spreads.

Elevating the Conversation

Good credential hygiene isn’t just about protecting data; it’s about safeguarding your organization’s future. Compromised credentials are no longer an “IT problem”—they’re a business risk, a compliance nightmare, and a reputational landmine. With a 71% increase in attacks tied to compromised credentials, the stakes couldn’t be higher. The time to act isn’t tomorrow—it’s now. Shadow SaaS and unchecked credential hygiene are the enemies of organizational resilience, and the longer these risks go unaddressed, the closer you inch toward catastrophe. Success isn’t about achieving perfection but establishing a system that can adapt, recover, and thrive as SaaS and AI usage grows. And it all starts with making SaaS identity risk management the foundation of your security strategy.

See how Grip supports and automates good credential hygiene. Book time with our team to receive a personalized demo now.

This article was originally published on the Grip.Security blog.