What to Do When Your Passwords Are Leaked: 5 Immediate Steps to Contain a Credential Exposure

Why Credential Exposure Matters

Let’s face it-passwords are a prime target. One reused login, one successful phishing attempt, or one third-party breach is all it takes for attackers to gain a foothold in your environment. From there, the dominoes fall fast.

But here’s the upside: if you act quickly and smartly, you can prevent a password leak from turning into a full-blown security incident.

Let’s walk through how to detect leaked credentials-and the 5 critical steps you should take next.

Wait-How Do I Even Know My Passwords Are Leaked?

Great question. You can’t fix what you don’t know is broken. Here’s how you might detect a credential compromise:

• Dark web monitoring tools: These scan shady forums, paste sites, and breach dumps for your email or password data.

• Unusual login alerts: Think logins from far-off countries, impossible travel times, or strange behavior from familiar accounts.

• Vendor breach notifications: If a partner is compromised and notifies you, take it seriously-fast.

• Security assessments or penetration tests: These often catch weak or reused passwords before attackers do.

  
  

Tools to Monitor for Leaked Credentials

If you’re not already checking for exposed credentials, now’s the time.

Try:

·         Have I Been Pwned

·         Threat intelligence tools like SpyCloud, Recorded Future, or Constella

·         Your MDR or MSSP provider-who may already be doing this for you.

Loki Labs provides these services-and yes, we actually sift through the sketchy corners of the internet so you don’t have to. It’s gross, but we’ve got it covered.

Okay, So Your Passwords Are in the Wild-Now What?

1. Nuke the Passwords and Kill the Sessions

Step one: rotate the exposed credentials immediately. Change the password and revoke active sessions. If someone’s already inside, this boots them out.

If this escalates into an insurance claim, resetting credentials will be the first thing your insurer asks whether you did.

2. Hunt for Credential Reuse (Because It’s Everywhere)

Don’t stop with just one system. Track where else those credentials were used-internal systems, SaaS apps, even legacy admin accounts-and shut down every copy.

3. MFA Everything, Everywhere, All at Once

Multi-Factor Authentication (MFA) can turn a leaked password into a dead end. Make it the norm- not a “someday” project.

4. Watch the Logs Like a Hawk

Dive into your logs. Look for:

·         Logins from unusual locations

·         Privilege escalations

·         Unexpected API or administrative activity

The sooner you spot weirdness, the sooner you can contain it.

5. Rattle the Cages (aka Talk to Your Users)

Notify impacted users. Keep it short, calm, and useful. It’s also a great time for a quick refresher on phishing prevention.

Let’s Talk Prevention (So This Doesn’t Happen Again)

1. Use a Password Manager (Seriously)

These tools:

·         Prevent password reuse

·         Generate strong credentials

·         Let IT monitor password hygiene across the org

There’s no reason not to use one.

2. Force an Org-Wide Password Reset (Annually, at Least)

Flush out old credentials. Your CEO might complain now, but you’ll both be glad when it saves a six-figure incident response bill.

3. Make MFA a Default, Not a Debate

Optional MFA is ignored MFA. Set it everywhere-for everyone.

4.    Run Credential Audits Regularly

Remove stale accounts, orphaned service credentials, and old vendor logins.

5. Train Like It Matters

Users are your first line of defense. Teach them how to spot phishing, avoid bad password habits, and report issues quickly.

6. Monitor the Dark Web (Or Let Us Do It)

Loki Labs actively monitors the dark web for exposed credentials tied to your domain. We find the leaks so you don’t have to dig through digital dumpsters.

Final Word: One Password Shouldn’t Take Down Your Org

It only takes one compromised credential to spiral into ransomware, data theft, or a very awkward board meeting.

But with the right detection tools, a fast response, and good security hygiene, credential leaks can be contained before they escalate.

Know where your credentials live. Monitor for leaks. Enable MFA. Build security into your defaults-not your fire drills.

And if you need help? Loki Labs is here with dark web monitoring, security awareness training, and a gentle nudge to make that next password reset happen.