{"id":84928,"date":"2024-02-15T09:57:48","date_gmt":"2024-02-15T14:57:48","guid":{"rendered":""},"modified":"2024-06-07T14:07:06","modified_gmt":"2024-06-07T18:07:06","slug":"how-passwords-are-hacked-and-what-fraudsters-do-with-them","status":"publish","type":"rbc_my_money_matter","link":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/cyber-security\/cyber-security-for-business\/how-passwords-are-hacked-and-what-fraudsters-do-with-them\/","title":{"rendered":"How passwords are hacked and what fraudsters do with them"},"content":{"rendered":"<div class=\"wp-block-rbc-single-article-header\">\n\t<section class=\"section-grey cover pad-t-hlf\">\n\t\t<div class=\"section-inner w-half w-mob-full centered-margin cover section-grey pad-tb-0\">\n\t\t\t\t\t\t\t<div class=\"inline-block pill-container pill-taxonomies\">\n\t\t\t\t\t<div class=\"mar-b-hlf mob-mar-b snipe pill is-style-blue-pill\">\n\t\t\t\t\t\t<a class=\"primary-taxonomy\" href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/cyber-security\/\">\n\t\t\t\t\t\t\t<span>Cyber Security<\/span>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<h1 class=\"mar-b-hlf mar-t-0 mob-pad-lr-hlf h2 has-black-color\">How passwords are hacked and what fraudsters do with them<\/h1><p class=\"mar-b-0 mob-pad-lr-hlf author-text\">By Diane Amato<\/p>\t\t\t\t\t<div class=\"featured-image-wrapper pos-rel\">\n\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"823\" src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/02\/shutterstock_400892836.jpg?quality=80\" class=\" cover-image  wp-post-image\" alt=\"laptop with a password screen\" srcset=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/02\/shutterstock_400892836.jpg 7360w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/02\/shutterstock_400892836.jpg?resize=300,241 300w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/02\/shutterstock_400892836.jpg?resize=768,617 768w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/02\/shutterstock_400892836.jpg?resize=1024,823 1024w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/02\/shutterstock_400892836.jpg?resize=1536,1234 1536w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2024\/02\/shutterstock_400892836.jpg?resize=2048,1646 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t<\/section>\n\t<div class=\"article mar-t-dbl\">\n\t\t\t\t<section>\n\t\t\t<div class=\"section-inner socials-section\">\n\t\t\t\t<div class=\"top-socials-bar mob-mar-b-hlf\">    <div class=\"social-links mob-mar-b-hlf mob-mar-t-hlf\">\n            <a class=\"social-button-wrapper sharing-custom sharing-email\" href=\"mailto:?subject=How passwords are hacked and what fraudsters do with them &#038;body=Hi, I thought you might be interested in this article from RBC My Money Matters: https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/cyber-security\/cyber-security-for-business\/how-passwords-are-hacked-and-what-fraudsters-do-with-them\/\">\n        <img decoding=\"async\" src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/plugins\/rbc-blocks\/assets\/img\/icons\/icon-email.svg\"\n          alt=\"envelope icon\">\n        <span>\n          Email        <\/span>\n      <\/a>\n      <div class=\"social-button-wrapper sharing-copy-wrapper\">\n        <button class=\"sharing-custom sharing-copy\" data-url=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/cyber-security\/cyber-security-for-business\/how-passwords-are-hacked-and-what-fraudsters-do-with-them\/\">\n          <img decoding=\"async\"\n            src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/plugins\/rbc-blocks\/assets\/img\/icons\/icon-related.svg\"\n            alt=\"copy icon\">\n          <span id=\"sharing-copyUrl-Label\">\n            Copy URL          <\/span>\n        <\/button>\n        <input type=\"text\" class=\"sharing-copy-text\" aria-labelledby=\"sharing-copyUrl-Label\">\n      <\/div>\n    <\/div>\n  <\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section>\n\t\t\t<div class=\"section-inner w-half w-mob-full centered-margin pad-tb-0 mob-mar-t-hlf mob-mar-b\">\n\t\t\t\t<p class=\"cover-pub-line text-xs mar-b-hlf\">Published February 15, 2024 \u2022 4 Min Read<\/p>\t\t\t<\/div>\n\t\t<\/section>\n\t<\/div>\n<\/div>\n\n\n\n<section class=\"wp-block-rbc-section-block  pos-rel\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner w-half w-mob-full\" style=\"border-radius:0x\">\n<p><strong>You\u2019ve likely heard the importance of creating a strong password and keeping it safe from hackers. But what happens when your passwords have been compromised?<\/strong><\/p>\n\n\n\n<p>Whenever we are asked to create a new password \u2013 whether it\u2019s for a shopping site, a new social media account or a financial institution \u2013 we are reminded to create strong, hard-to-guess passwords and to keep them confidential. While there is a great deal of guidance out there for creating and maintaining strong password habits, we don\u2019t always know the risks of ignoring these guidelines. What could go wrong with a hacked password? And how likely is it that your password will be hacked, anyway?<\/p>\n\n\n\n<p>We shed some light here.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How hackers steal passwords<\/h2>\n\n\n\n<p>Some of the most common passwords in the world are: 123456, password, qwerty and guest. So, if your password isn\u2019t among these popular, easy-to-guess options, you\u2019re fine, right? Not so fast. There are a number of ways hackers can steal passwords beyond attacking this low-hanging fruit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Data breaches<\/h2>\n\n\n\n<p>According to data from the <a href=\"https:\/\/www.idtheftcenter.org\/\" target=\"_blank\" data-dig-id=\"LP-84928-fcc0e68e\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Identity Theft Resource Centre\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">Identity Theft Resource Centre<\/a>, there were 2,116 data breaches in 2023, up from 1,802 in 2022. That translates to 233.9 people affected by data breaches. These breaches can expose usernames and passwords, as well as other personally identifiable information, such as health information, social security\/ social insurance numbers and credit card numbers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Password cracking<\/h2>\n\n\n\n<p>Using software and bots, hackers can guess passwords over and over until a match is found. Using this technique, it\u2019s easiest for hackers to guess words that are found in the dictionary, as well as shorter passwords. For instance, an eight-character password can be hacked in about eight hours.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Guessing<\/h2>\n\n\n\n<p>If a hacker has information about you \u2013 such as your birthday, your pet\u2019s name, your mother\u2019s maiden name \u2013 and you use those details in your password, it\u2019s easier for them to guess your password. Hackers can also try some of those common passwords listed above to try to guess yours.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Physical theft<\/h2>\n\n\n\n<p>By looking over your shoulder \u2013 such as in a co-working space or a coffee shop \u2013 a hacker can see your password as you type it in on your screen. When entering a password in a public space, be sure to use the \u201chide password\u201d feature so it\u2019s not visible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Keylogging<\/h2>\n\n\n\n<p>Keylogger is a common type of malware that, when downloaded onto your device, will record your keystrokes. They will then use this information to steal your credentials or any other sensitive information you might type on your computer\u2019s keyboard.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Phishing<\/h2>\n\n\n\n<p>In a common phishing attack, a hacker pretends to be a legitimate company and requests sensitive information to perform an action that is important to you \u2013 such as unlocking funds or releasing a delivery. Often, they request a username and password.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What happens when your password has been hacked?<\/h3>\n\n\n\n<p>When your password is hacked, one of two things commonly happen. Either the cybercriminal will use it to commit additional crimes, or they will sell the password on the dark web to other fraudsters.<\/p>\n\n\n\n<p>Today, there are approximately 24 billion usernames and password combinations in circulation in cybercriminal marketplaces, demonstrating clear demand for credentials. Here, cybercriminals can make illegal transactions while keeping their identities secret.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How to know if you have been hacked<\/h3>\n\n\n\n<p>In some cases, you may find out right away if your password has been compromised. In others, it could take some time before you realize it.&nbsp; Here are some warning signs that may indicate you\u2019ve been hacked: <\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>Friends or family receive messages or emails form your account that you didn\u2019t send<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Your passwords stop working \u2013 a cybercriminal may change your password to lock you out<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Fraudulent transactions \u2013 such as purchases made from your accounts that you didn\u2019t make<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Notifications \u2013 companies may send out a security alert if their systems were breached and your data was a part of it<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Your data is detected on the dark web \u2013 there are dark web monitoring programs that can automatically scan for your data<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">How to protect your passwords<\/h4>\n\n\n\n<p>To keep your passwords out of the hands of fraudsters, follow <a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/cyber-security\/understanding-cyber-security\/cyber-safety-101-3-tips-for-easy-password-protection\/\" target=\"_blank\" data-dig-id=\"LP-84928-0bb8b4b9\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"these three tips\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">these three tips<\/a> for easy password protection. If you find out that your password has been compromised, be sure to immediately change it. Always remember to create strong passwords, stay alert to phishing attempts and be aware of your surroundings when entering passwords in a public place.<\/p>\n\n\n\n<p>Looking for more great tips? Our Cyber Security Playbook,&nbsp;<a href=\"https:\/\/discover.rbcroyalbank.com\/the-cyber-safety-vault-playbook-protect-yourself-and-your-family-in-the-digital-world\/\" target=\"_blank\" data-dig-id=\"LP-84928-d29ed69f\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"The Vault\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">The Vault<\/a>,&nbsp;is packed with great tips for making your passwords stronger and harder to crack. And it has more helpful steps and information to boost your cyber skills.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-rbc-rbc-default-collapsible\"><p><button class=\"collapse-toggle collapsed\" data-target=\"#collapse834a1009\" data-toggle=\"collapse\" aria-expanded=\"false\" aria-controls=\"collapse834a1009\" data-dig-id=\"LP-57738-834a1009\" data-dig-category=\"LP\" data-dig-action=\"accordion closed\" action-closed=\"accordion closed\" action-opened=\"accordion open\" data-dig-label=\"Things our lawyers want you to know\"><span>Things our lawyers want you to know<\/span><span>Things our lawyers want you to know<\/span><\/button><\/p><div class=\"collapse-content collapse\" id=\"collapse834a1009\">\n<div class=\"wp-block-rbc-collapsible-inner-block collapse-inner\">\n<p>This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.<\/p>\n<\/div>\n<\/div><\/div>\n\n\n\t\n\t<div class=\"wp-block-tk-spacer id-75e60904-86c0-4add-a6ed-7431c1cbbc24\" aria-hidden=\"true\"><\/div>\n\t\n\n\n<p class=\"has-text-align-center h5 mar-b\"><strong>Share This Article<\/strong><\/p>\n\n\n\n\t\t<div class=\"socials-block\">\n\t\t\t    <div class=\"social-links mob-mar-b-hlf mob-mar-t-hlf\">\n            <a class=\"social-button-wrapper sharing-custom sharing-email\" href=\"mailto:?subject=How passwords are hacked and what fraudsters do with them &#038;body=Hi, I thought you might be interested in this article from RBC My Money Matters: https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/money-academy\/cyber-security\/cyber-security-for-business\/how-passwords-are-hacked-and-what-fraudsters-do-with-them\/\">\n        <img decoding=\"async\" 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class=\"wp-block-tk-spacer id-44a4a423-1d8e-4eff-bbf0-05be136d5fa2\" aria-hidden=\"true\"><\/div>\n\t\n\n\n\t\t\t<div class=\"wp-block-rbc-single-post-topics related-topics-links\">\n\t\t\t\t<p class=\"h5 mar-r-hlf\">Topics:<\/p>\n\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/cyber-security\/\" class=\"btn topic mar-t-0 mar-r-qtr mar-b-hlf\">Cyber Security<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n\n\n\n<section class=\"wp-block-rbc-section-block  pos-rel mob-pad-t-dbl\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner\" style=\"border-radius:0x\">\n<h2 class=\"wp-block-heading mar-b mob-mar-b-dbl mar-t-0\" id=\"h-read-this-next\">Read This Next<\/h2>\n\n\n\t\t\t<div class=\"related-posts-type-2\">\n\t\t\t\t<div class=\"related-post-list\">\n\t\t\t\t\t<ul class=\"grid-wpr eh-wpr\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li class= 'grid-one-third grid-tb-full grid-mob-full 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mar-b'>\n\t\t\t\t\t\t\t\t\t\t<article class=\"col-wpr mar-b-0 mar-r-0 mar-l-0\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"postcard-img-ctr post-card-image col-md-12 col-xs-6 mob-mar-b-0 pad-l-0\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2026\/03\/Digital-Safety-Scams-Personal-Article-Image_EN.jpg?quality=80&amp;w=1024\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Paperback booklet on a table.\" srcset=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2026\/03\/Digital-Safety-Scams-Personal-Article-Image_EN.jpg 1080w, https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2026\/03\/Digital-Safety-Scams-Personal-Article-Image_EN.jpg?resize=300,225 300w, 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class=\"card-title h4 mar-t-0\">Digital Safety and Scams: How to Protect Yourself Online<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<\/article>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n<\/section>\n<style class=\"advgb-styles-renderer\">\n\t\t.wp-block-tk-spacer.id-75e60904-86c0-4add-a6ed-7431c1cbbc24 {\n\t\theight: 96px;\n\t}\n\n\t@media ( max-width: 480px ) {\n\t\t.wp-block-tk-spacer.id-75e60904-86c0-4add-a6ed-7431c1cbbc24 {\n\t\t\theight: 30px;\n\t\t}\n\t}\t\n\t\t.wp-block-tk-spacer.id-44a4a423-1d8e-4eff-bbf0-05be136d5fa2 {\n\t\theight: 60px;\n\t}\n\n\t@media ( max-width: 480px ) {\n\t\t.wp-block-tk-spacer.id-44a4a423-1d8e-4eff-bbf0-05be136d5fa2 {\n\t\t\theight: 30px;\n\t\t}\n\t}\t<\/style>","protected":false},"excerpt":{"rendered":"<p>The top cyber threats to watch out for in 2023 \u2014 and how to help protect your 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