Skip links

Identity-Based Cyberattacks: The 5 Biggest Threats Facing Businesses Today

Many cyberattacks no longer begin with attackers breaking through technical security controls. Instead, they start by gaining access as a legitimate user. For modern businesses, this represents a significant shift because the most valuable entry points are often employee identities, login credentials, and account permissions.

Identity-based cyberattacks target the processes used to verify who a user is, including passwords, multi-factor authentication (MFA), session tokens, and access rights. Once attackers gain access to an account, they can often operate undetected, steal sensitive data, compromise systems, redirect payments, or establish a foothold for future attacks.

In this guide, we’ll explore the five most common identity-based threats facing businesses today and the practical steps organisations can take to reduce risk.

1. Phishing and Social Engineering Attacks

Phishing remains one of the most successful methods used by cybercriminals because it targets people rather than technology.

While phishing traditionally relied on email, modern social engineering attacks now appear through:

  • SMS messages (smishing)
  • Collaboration platforms
  • Social media channels
  • Phone calls (vishing)
  • Messaging applications

The most convincing attacks do not depend on poor spelling or obvious warning signs. Instead, they use believable scenarios and a sense of urgency to manipulate users into taking action.

Business Impact

Attackers may attempt to:

  • Capture login credentials
  • Redirect invoice payments
  • Change supplier banking details
  • Gain access to email accounts
  • Fool employees into approving fraudulent requests

Once a single account is compromised, attackers often use it to target other employees using trusted internal communications.

How to Reduce the Risk

Organisations should:

  • Provide ongoing security awareness training
  • Encourage employees to report suspicious messages
  • Verify financial and supplier-related requests through a second communication channel
  • Implement strong identity and access controls
  • Separate high-risk duties where possible

A combination of employee awareness and technical safeguards provides the strongest defence against phishing attacks.

2. Credential Stuffing and Password Reuse

Credential stuffing is one of the simplest yet most effective cyberattack techniques.

Attackers obtain usernames and passwords from previously leaked data breaches and then attempt to use those credentials across multiple services and applications.

If users reuse passwords, attackers may gain access to business systems without needing to compromise them directly.

Why It Matters

A compromised account can provide access to:

  • Business email
  • Customer information
  • Cloud applications
  • Internal documents
  • Financial systems

In many cases, a password leaked years ago can still create risk if it continues to be reused across platforms.

How to Reduce the Risk

Businesses can significantly reduce exposure by:

  • Enforcing unique passwords
  • Using password managers
  • Implementing strong MFA
  • Monitoring for compromised credentials
  • Moving towards passwordless authentication and passkeys

Passkeys are particularly effective because they eliminate traditional passwords altogether, making credential theft and password reuse far less effective.

3. MFA Bypass Attacks

Multi-factor authentication is one of the most important security controls available today. However, not all MFA implementations provide the same level of protection.

Cybercriminals have developed techniques designed specifically to bypass weaker MFA deployments.

Common MFA Bypass Techniques

MFA Fatigue

Attackers repeatedly trigger authentication requests, hoping users will eventually approve one simply to stop the notifications.

Real-Time Phishing

Cybercriminals intercept login sessions and relay authentication requests in real time, enabling them to obtain access after MFA has been completed.

Exploiting Recovery Processes

Attackers may target:

  • Password reset procedures
  • Support desks
  • SIM swap attacks
  • Account recovery workflows

How to Strengthen MFA

Organisations should focus on resilient MFA strategies by:

  • Using Conditional Access policies
  • Reducing unnecessary approval prompts
  • Adding extra protections for high-risk users
  • Securing account recovery processes
  • Introducing passwordless authentication where appropriate

Having MFA enabled is important, but ensuring it is deployed effectively is what delivers meaningful protection.

4. Session Hijacking

Session hijacking targets authenticated user sessions rather than credentials.

Once users successfully sign in, systems typically create session tokens that keep them logged in. These tokens improve user experience by reducing the need for repeated authentication.

Unfortunately, they can also become attractive targets for attackers.

How Session Hijacking Works

If cybercriminals obtain a session token through:

  • Malware
  • Malicious browser extensions
  • Unsafe downloads
  • Compromised endpoints
  • Unpatched software

they may gain access without needing the user’s password or MFA approval.

Why Device Security Matters

Identity security and device security are closely connected.

Even when authentication controls are strong, compromised devices can provide attackers with alternative paths to sensitive data and applications.

How to Reduce Session Hijacking Risks

Businesses should:

  • Maintain regular patch management
  • Deploy endpoint security solutions
  • Limit browser-based risks
  • Require re-authentication for sensitive actions
  • Monitor for suspicious activity
  • Revoke active sessions when compromises are suspected

A layered security approach helps reduce the impact of stolen session tokens.

5. Insider Misuse and Excessive Permissions

Not all identity risks originate outside the organisation.

Insider misuse can be malicious, but it is often the result of poor access management processes rather than intentional wrongdoing.

Common Causes

As organisations grow, users often accumulate permissions over time.

Typical examples include:

  • Project-based access that is never removed
  • Shared accounts used for convenience
  • Inconsistent offboarding processes
  • Excessive administrative privileges

The result is that users frequently have access to information and systems they no longer require.

Business Risks

Excessive permissions can lead to:

  • Increased damage from compromised accounts
  • Greater risk of accidental mistakes
  • Compliance challenges
  • Slower investigations following incidents

The more access an account has, the greater the potential business impact if that account is compromised.

How to Reduce Insider Risk

Organisations should establish ongoing identity governance processes, including:

  • Regular access reviews
  • Role-based permissions
  • Privileged access management
  • Structured joiner, mover, and leaver procedures
  • Strong ownership of identity administration

Identity governance should become part of normal business operations rather than an annual compliance exercise.

How to Build Stronger Identity Security

Identity security is most effective when viewed as an ongoing programme rather than a collection of individual controls.

Businesses should focus on:

  • Strengthening authentication methods
  • Reducing unnecessary privileges
  • Improving user awareness
  • Monitoring identity-related risks
  • Reviewing access regularly
  • Implementing passwordless authentication strategies

By taking a proactive approach, organisations can significantly reduce the likelihood of identity compromise while improving resilience against emerging threats.

Conclusion

Identity has become one of the primary targets for modern cybercriminals. From phishing attacks and credential stuffing to MFA bypass techniques, session hijacking, and insider misuse, identity-based threats continue to evolve and grow in sophistication.

The good news is that most successful attacks exploit common weaknesses that can be addressed through better authentication practices, stronger governance, improved access controls, and ongoing security awareness.

By understanding these five common identity-based cyber threats and implementing practical safeguards, businesses can strengthen their security posture, reduce risk, and ensure employees can work securely without unnecessary disruption.