Cybercriminals shift to stolen credentials and AI-enabled attacks

Ransomware attacks are increasingly relying on stolen passwords rather than traditional malware, according to Cloudflare’s latest annual threat report. Attackers now exploit legitimate account credentials to blend into regular traffic, making breaches harder to detect and contain.

Manufacturing and critical infrastructure organisations account for over half of targeted attacks, reflecting their high operational stakes.

Cloudflare highlighted that AI is enabling attackers to prioritise speed and scale over technical sophistication. Generative AI lets criminals automate fraud, hijacking email threads and targeting a ~$49,000 sweet spot to maximise profit while avoiding scrutiny.

Nation-state actors also leverage legitimate platforms for command-and-control operations, with Russia, China, Iran, and North Korea each following distinct cyber strategies.

Researchers warned that modern ransomware is less a malware crisis and more an identity and access challenge. Attackers using authorised credentials can bypass defences and execute high-impact extortion, marking a significant shift in global threat vectors.

The report urges businesses to strengthen identity security, monitor access, and defend against AI-driven attacks that exploit impersonation and automation at scale.

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