• Posted by: Eng. Donya Bino
• October 24, 2025

How Hackers Steal Passwords with Credential Dumping And How to Stop Them

Imagine someone breaks into one of your computers. Instead of trying to hack other accounts one by one, they do something smarter: they take the credentials your system already has and use them to sneak into other machines. That’s what credential dumping is all about.

Basically, attackers look for places where your passwords live in memory, system files, or cached credentials. On Windows, that usually means the LSASS process or the SAM database. If they get access, they can grab usernames, passwords, or even authentication tickets and move freely around your network.

Tools attackers like to use

You’ve probably heard of Mimikatz, it’s famous for taking passwords straight from memory. But attackers don’t just rely on one tool; they use anything that gives them access to credentials. Sometimes they dump system files, sometimes they copy memory from processes. The goal is always the same: get something that lets them log in as you or an admin without being noticed.

Why it’s dangerous

Even one set of admin credentials can let an attacker take over a whole network. They can move sideways to other computers, steal files, or even plant ransomware. The scary part? It often looks normal, because they’re using real accounts.

Signs something might be wrong

1. Strange processes dumping memory on machines.
2. Admin accounts logging in from places they never usually log in.
3. Odd tools running that shouldn’t be there.
4. Rapid logins to different computers in a short time.

If you see any of these, act fast. Credential dumping is usually step one for bigger attacks.

How to protect yourself

1. Limit admin rights: users don’t need admin on every machine.
2. Separate admin accounts from everyday accounts.
3. Enable MFA wherever possible.
4. Use modern security features like Windows Credential Guard.
5. Watch for suspicious process activity and unusual logins.
6. Rotate passwords, especially for high-privilege accounts.

Credential dumping isn’t magic; it’s just clever and fast. The best defense is making credentials hard to steal and easy to monitor. Keep an eye on what’s happening in your network, limit access, and you’ll make life a lot harder for attackers.