Stolen passwords are still a problem. But in 2026, hackers are finding easier ways into US companies.
The biggest shift is this: attackers now exploit software vulnerabilities more often than stolen credentials as the first step in a breach, according to Verizon’s 2026 Data Breach Investigations Report. Verizon says 31% of breaches now start with software vulnerabilities, overtaking stolen passwords as the top entry method.
That changes the security conversation completely.
Hackers have found a better door than passwords
For years, companies trained staff to spot phishing emails and avoid weak passwords. That still matters. But hackers don’t need to trick your finance manager if they can exploit an unpatched VPN, cloud tool, router, or third-party app.
Verizon’s 2026 DBIR says attackers are shifting from “tricking people” to exploiting systems, with software vulnerabilities now ahead of credential abuse as an entry point.
That doesn’t mean passwords no longer matter. It means passwords are now just one part of a much bigger attack surface.
A modern company runs on SaaS tools, cloud dashboards, identity systems, developer extensions, VPNs, APIs, backup platforms, and vendor accounts. Every one of those can become a door.
And hackers are checking all of them.
The new attack path looks less like Hollywood hacking
The old image of a hacker guessing a password in a dark room feels outdated now. The 2026 version looks more ordinary.
An employee installs a useful coding extension. A helpdesk resets an account too quickly. A company delays a software patch. A supplier gets breached. A cloud backup bucket sits exposed.
Then the attacker moves.
Google Cloud’s Mandiant team says ransomware groups are now targeting backup infrastructure, identity services, and virtualization management systems, not just laptops and file servers. In some cases, attackers exploit misconfigured Active Directory Certificate Services templates to create admin accounts that bypass password rotation.
That is the nightmare scenario.
The attacker doesn’t just break in. They also attack the company’s ability to recover.
Developer tools are becoming a major weakness
One of the clearest examples comes from the recent GitHub incident covered by Memeburn. Attackers allegedly used a poisoned Visual Studio Code extension to compromise an employee device and gain access to around 3 800 internal repositories.
That matters because developer tools often sit close to the most sensitive parts of a company.
They can access code, tokens, cloud keys, build systems, and deployment pipelines. If attackers compromise those tools, they don’t need to break the front door. They can slip into the workshop where the doors are made.
This is why software supply chain attacks feel so dangerous in 2026. A company may secure its own systems well, then still get exposed through a plugin, package, open-source dependency, or third-party workflow.
For teams using AI coding assistants, npm packages, GitHub Actions, VS Code extensions, and cloud CI/CD pipelines, this is no longer a niche developer issue.
It’s a boardroom issue.
AI is helping attackers move faster
AI has not replaced cybercriminals. It has made them faster.
Verizon’s 2026 DBIR says 15% of different attack techniques now receive a boost from generative AI, including work such as spotting gaps and writing malware.
That doesn’t mean every breach involves a sci-fi bot. It means criminals can scale boring tasks that used to take more time.
They can draft better phishing emails. They can translate scams. They can scan code for weak spots. They can write convincing internal messages that sound like HR, compliance, or IT.
And on mobile, the risk rises further. Verizon says mobile threats are becoming more effective, with 40% higher click rates compared with traditional email-style phishing.
That makes sense. People treat phones differently. You scan a QR code. You tap a link in a taxi. You approve a login while half-reading a message.
Hackers know this.
MFA is not dead, but weak MFA is not enough
Multi-factor authentication still helps. But attackers have learned to work around weak versions of it.
Some phishing campaigns now steal not just passwords, but also session tokens, which can let criminals access accounts after a user has already passed MFA. Microsoft recently flagged a phishing campaign that targeted more than 35 000 users across 13 000 companies in 26 countries, with about 92% of attacks aimed at US-based organizations. Attackers collected Microsoft credentials and tokens in real time, effectively working around MFA protections.
That’s the key change.
A password can be changed. A stolen session can look like a legitimate user already inside the system.
So companies need stronger protections such as phishing-resistant MFA, device checks, session controls, and stricter identity monitoring.
Account recovery is becoming the soft spot
There’s another weak link companies often ignore: account recovery.
Many firms harden login screens but leave recovery workflows exposed. A fake employee can call the helpdesk. A convincing voice can pressure support staff. A rushed reset can hand attackers access without needing the original password.
Recent security analysis warns that account recovery has become a critical enterprise weakness because older methods such as SMS codes or verbal checks can fall to social engineering and AI-driven impersonation.
This is especially relevant for large US firms with many employees, contractors, and outsourced support desks.
The more complex the company, the easier it becomes for an attacker to sound “normal.”
What this means for South African companies
This may sound like a US-company problem. It isn’t.
South African firms use the same cloud tools, developer platforms, banking apps, SaaS products, and remote work systems. A Johannesburg fintech, Cape Town startup, or Sandton retailer can face the same attack chain.
Memeburn has already covered how South African banking fraud is moving beyond stolen passwords, with criminals using Remote Access Trojan scams to take live control of victims’ devices. In that case, the attacker doesn’t just steal login details — they control the session itself.
That same logic applies to companies.
The next breach may not start with a stolen password. It may start with:
| Attack path | Why it works |
| Unpatched software | Attackers exploit a known flaw before teams fix it |
| Malicious extensions | Trusted tools run with broad permissions |
| Session token theft | MFA gets bypassed after login |
| Helpdesk abuse | Attackers trick staff into resetting access |
| Cloud backup attacks | Criminals destroy recovery options before ransomware |
The lesson is simple: companies can’t treat cybersecurity as a password problem anymore.
They need to patch faster, reduce unnecessary access, audit developer tools, lock down recovery workflows, protect backups, and watch for strange behaviour after login.
Because in 2026, the most dangerous attacker may not guess your password.
They may never need it.
FAQs
Are stolen passwords still a major cybersecurity risk in 2026?
Yes. Stolen passwords still matter, especially when people reuse them across work and personal accounts. But the bigger shift is that attackers now also exploit software flaws, sessions, tools, and recovery systems.
What is the biggest way hackers are breaking into companies now?
According to Verizon’s 2026 DBIR, software vulnerability exploitation has overtaken stolen credentials as the top breach entry point. That means unpatched systems now create one of the biggest risks.
What should companies do first?
Start with the basics: patch critical systems, protect admin accounts, audit third-party tools, and secure backups. Then move toward phishing-resistant MFA and stricter checks for account recovery.
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