Credential stuffing and password-based attacks remain among the most common – and most successful – cyber threats facing Australian organisations today. Despite advances in detection tools, artificial intelligence, and threat intelligence feeds, attackers continue to exploit a simple reality: people reuse passwords, and systems often rely too heavily on them.
For boards, executives and IT leaders, understanding how these attacks work is critical. It’s not just a technical issue – it’s a governance, risk and compliance challenge. In fact, many organisations are now turning to solutions such as GRC software in Australia to strengthen oversight of identity management, access controls and cyber risk exposure at a strategic level.
Here’s what credential stuffing is, how password-based attacks operate, why they remain so effective, and what Australian businesses can do to reduce their risk.
What’s Credential Stuffing?
Credential stuffing is a type of automated cyber attack where criminals use stolen username and password combinations to try and gain unauthorised access to other accounts. Here’s how it typically works:
- A data breach occurs somewhere online – perhaps a retail site, streaming service, or social media platform.
- Millions of login credentials are leaked and made available on the dark web.
- Attackers use automated bots to test those credentials against other websites and systems.
- If users have reused the same password elsewhere, attackers gain access.
Because password reuse is so common, even a small success rate can result in thousands of compromised accounts. Credential stuffing is not about “hacking” in the traditional sense. There’s no need to break encryption or exploit complex vulnerabilities. Instead, attackers take advantage of weak password hygiene and scale their efforts using automation.
How Password-Based Attacks Work
Credential stuffing is just one category of password-based attack. Others include:
- Brute Force Attacks: Attackers systematically guess passwords by trying multiple combinations until one works. Weak or short passwords are especially vulnerable.
- Password Spraying: Instead of targeting one account with many password attempts, attackers try one common password (e.g. “Password123”) across many accounts. This avoids triggering account lockout mechanisms.
- Phishing-Based Credential Theft: Users are tricked into entering their login details on fake websites or via malicious emails. Once captured, those credentials can be reused in credential stuffing campaigns.
- Keylogging Malware: Malicious software records keystrokes on infected devices, capturing usernames and passwords without the victim’s knowledge.
All of these techniques exploit the same weakness: reliance on passwords as the primary authentication method.
Why Credential Stuffing Is So Effective
There are several reasons why these attacks continue to succeed.
- Password Reuse Is Widespread: Many users rely on the same password across multiple platforms. If one site is compromised, the damage spreads.
- Automation at Scale: Attackers use botnets and automated scripts to test thousands of login attempts per minute. This makes credential stuffing cheap, fast and scalable.
- Low Barrier to Entry: Cybercriminals don’t need advanced technical skills. Tools and stolen credential lists are widely available online.
- Inconsistent Monitoring: Some organisations lack robust monitoring of login anomalies, such as multiple failed login attempts from unusual locations or IP addresses.
- Delayed Detection: In many cases, compromised accounts go unnoticed for weeks or months, giving attackers time to extract data or escalate access.
The Business Impact of Password-Based Attacks
For Australian organisations, the consequences can be significant:
- Data breaches involving customer information
- Regulatory scrutiny under the Privacy Act and Notifiable Data Breaches scheme
- Reputational damage and loss of customer trust
- Financial losses from fraud or ransomware
- Operational disruption
Credential stuffing attacks have been used as entry points for larger breaches, including ransomware campaigns. Once attackers gain access to an account, they may escalate privileges or move laterally within the network. From a governance perspective, repeated credential-based incidents often point to deeper weaknesses in access management and security controls.
Warning Signs of a Credential Stuffing Attack
Organisations should monitor for:
- Spikes in failed login attempts
- High volumes of login attempts from a single IP address
- Logins from unusual geographic locations
- Increased account lockouts
- Customer complaints about suspicious account activity
Proactive monitoring and alerting can significantly reduce dwell time and limit damage.
How to Defend Against Credential Stuffing and Password Attacks
There is no single solution. Defence requires layered controls across technology, policy and governance.
- Enforce Multi-Factor Authentication (MFA): MFA dramatically reduces the effectiveness of credential stuffing. Even if a password is compromised, attackers cannot access the account without a second authentication factor. Where possible, adopt phishing-resistant MFA methods such as hardware tokens or app-based authentication rather than SMS alone.
- Implement Strong Password Policies: Encourage long, unique passphrases rather than complex but short passwords. Password managers can help users maintain unique credentials across systems.
- Deploy Bot Mitigation Controls: Web application firewalls (WAFs), rate limiting, CAPTCHA challenges and behavioural analytics can detect and block automated login attempts.
- Monitor for Compromised Credentials: Use threat intelligence services to identify when employee or customer credentials appear in breach databases. Prompt password resets can reduce exposure.
- Apply Zero Trust Principles: Adopt a “never trust, always verify” model. Continuous authentication, device validation and least-privilege access reduce the impact of compromised credentials.
- Strengthen Governance and Oversight: Technology controls must be supported by clear accountability. Boards and executives should receive regular reporting on:
- Authentication controls
- MFA adoption rates
- Privileged account management
- Incident response readiness
- Compliance with relevant Australian regulations
This is where integrated risk management platforms can play a significant role, ensuring cyber risks are documented, assessed and monitored within a broader governance framework.
The Role of Governance in Reducing Credential Risk
Credential stuffing is often treated as a technical nuisance. In reality, it is a governance issue. Boards are increasingly expected to demonstrate active oversight of cyber risk.
Questions that should be asked include:
- Are we enforcing MFA across all critical systems?
- Do we monitor authentication logs in real time?
- How quickly can we detect and respond to compromised accounts?
- Is identity and access management aligned with our risk appetite?
Embedding identity security within a structured governance, risk and compliance program ensures accountability doesn’t sit solely with IT teams. It becomes an organisational priority.
Moving Beyond Password Dependency
The long-term solution to password-based attacks lies in reducing reliance on passwords altogether. Passwordless authentication methods – such as biometrics, hardware security keys and passkeys – are gaining adoption globally. While not yet universal, these technologies significantly reduce the attack surface associated with credential theft. Australian organisations planning digital transformation initiatives should consider passwordless strategies as part of their roadmap.
Credential stuffing and password-based attacks are not new, but they remain persistent and highly effective.
Their simplicity is precisely what makes them dangerous – for Australian organisations, the path forward involves:
- Reducing password reuse
- Enforcing multi-factor authentication
- Monitoring login behaviour
- Strengthening governance and oversight
- Integrating cyber risk into enterprise-wide risk management
By treating credential security as both a technical and governance priority, businesses can significantly reduce their exposure to one of the most common entry points for cyber attackers. In a threat landscape defined by automation and scale, resilience begins with something deceptively simple: how we manage and protect our credentials.
