Government agencies have long been a target for gaining illegal access to systems and networks due to the heightened nature of the information they have access to. Exposed data like credentials, personally identifiable information (PII), and device information stolen via data breaches or infostealer malware infections are extremely valuable to cybercriminals – and pose a threat to our national security, operational integrity, and public trust.
Vulnerable accounts and machines aren’t just weak points; they are entryways for espionage, cyber warfare, and infrastructure sabotage.
SpyCloud’s latest analysis uncovers a sobering reality: breaches exposing government data continue to rise and infostealer malware is much more than just a commercial security problem. In 2024 alone, over 1,000 breaches containing .gov data were reported – a staggering 65% increase since 2021. The exposed data includes 127,000 .gov credentials that can give bad actors direct access to systems that maintain sensitive, high-value citizen and agency data.
As cyber threats continue to evolve, government agencies face unique challenges in safeguarding digital identities. Understanding and acting on the risks is crucial to fortifying defenses and maintaining public trust.
Here, we’ll explore the unique challenges faced by government agencies, provide a detailed look at government exposure in cybercriminal and threat actor communities, and suggest identity threat protection practices based on these findings.
Risks for Government Agencies
Government agencies face a complex array of identity security challenges that, while having a lot in common with private sector organizations, can raise the pressure even higher for more comprehensive security practices. These challenges stem from the sensitive nature of the data they handle, the intricate and sometimes outdated systems they operate, and the unique and diverse range of threats they encounter.
Handling of sensitive data
Government databases store vast amounts of sensitive information, including personal details of citizens, classified national security data, and critical infrastructure information. This makes them prime targets for cybercriminals aiming to access, exfiltrate, or exploit such data. The exposure of this information can have far-reaching consequences, from identity theft to national security implications
A diverse threat landscape
Government entities are targeted by a wide range of threat actors, including nation-states, organized crime groups, and insider threats. These adversaries employ effective methods to compromise identities, such as deploying infostealer malware to harvest credentials. In fact, infostealers were responsible for the theft of more than 548 million credentials in 2024 alone, highlighting the vast scale of data harvesting and emphasizing the need for stronger cybersecurity measures.
Escalating nation-state threats
Alongside cybercriminal groups, near-peer adversaries including China are increasingly using sophisticated cyber espionage and economic espionage tactics to target U.S. government agencies and critical infrastructure. The FBI has identified China’s government-backed cyber operations as a top counterintelligence priority, warning that its efforts include tactics aimed at influencing lawmakers and public opinion to shape policies in its favor while simultaneously working to establish itself as the world’s dominant superpower through large-scale cyber operations.
These tactics pose a significant risk to government agencies with the malicious access that may be at the ready for this global power – reinforcing the need for advanced identity security measures and intelligence-driven cybersecurity strategies.
Supply chain vulnerabilities
Government reliance on various third-party vendors introduces additional risks. Supply chain attacks can serve as indirect routes for adversaries to access sensitive government systems. Last year, the largest US-based DIB suppliers exposed nearly 27 million breach records and were found to have over 11,000 employees infected with malware that siphon access and authentication data to government networks including plaintext credentials, device information, secure network subdomains and IP addresses.
These exposures open a window to the agencies they partner with and pose considerable risk. Thorough vetting of vendors and continuous monitoring of supply chain processes are essential to mitigate attacks that may leverage this third-party data.
Insider threats and privilege misuse
Insider threats, whether malicious or accidental, also pose significant challenges. Misuse of privileged access can lead to unauthorized data exposure or manipulation. Implementing strict access controls and monitoring user activities are critical steps in minimizing these risks.
Addressing these unique challenges requires a comprehensive and adaptive approach to identity security tailored to the specific needs and vulnerabilities of government agencies.
The Growing Threat to Government Credential Security
Government credentials are not just valuable to cybercriminals – the access they grant is highly sought-after for nation-state adversaries conducting malicious activities. China, in particular, has been linked to large-scale cyber intrusions targeting U.S. government agencies, defense contractors, and public officials. These operations go beyond theft; they’re part of a broader effort to infiltrate and manipulate U.S. policy and intelligence.
SpyCloud’s latest research reveals ongoing wider issues, with the increase in .gov exposures and the ongoing struggle with proper cyber hygiene practices such as enforcing unique and complex passwords. The persistent reuse of passwords across personal and government devices significantly increases the risk of account takeovers and other manners of cybercrime like fraud, espionage, and ransomware.
Weak Password Hygiene
- 67% of .gov passwords were found to be exposed in two or more breaches in the last year – despite ongoing security awareness efforts.
- The most commonly exposed passwords associated with .gov email addresses in 2024 included weak, predictable choices such as:
- Guest
- Abcd1234
- Password
- Pass1
- 123456
Best Practices for Identity Threat Protection in Government Cybersecurity
Effective identity threat protection is crucial for government agencies to safeguard sensitive systems, secure digital identities, and ensure mission success. Implementing the proper security measures can prevent cybercriminals from accessing sensitive data and disrupting critical operations.
Here are five cyber best practices government agencies can implement to protect their organizations and citizens:
01
Predict and prevent cyber threats
Government systems are high-value targets for cybercriminals, making it essential to stay ahead of potential threats. Continuously monitoring for exposures, including data exfiltrated from malware-infected devices used by government employees and contractors, enhances awareness of true risks and provides strategic insights to thwart adversarial behavior. Automated remediation of the exact credentials and cookies stolen from these devices ensures security teams proactively address them before they are exploited.
02
Safeguard digital identities
Identity security remains a critical challenge for government agencies, particularly due to high rates of password reuse among employees. To effectively protect digital identities, strong authentication protocols, which include real-time monitoring and remediation of dark web-exposed credentials is essential to secure all user accounts, including those of employees and citizens, against account takeovers, and to stop follow-on attacks of the agency itself, including ransomware.
03
Investigate and unmask malicious actors
Effective cybersecurity requires a proactive approach to identifying and neutralizing cyber threats. This involves utilizing advanced cybercrime investigation tools to track digital footprints, enabling the profiling, geolocation, and dismantling of cybercriminal networks. High-fidelity analytics are essential for conducting pattern-of-life analysis, which helps security teams understand threat actor behaviors, anticipate potential cyber threats, and attribute crimes to specific actors.
04
Protect critical infrastructure and mission-critical operations
Safeguarding essential services and national infrastructure from cyber disruptions is a top priority for government agencies. Effective protection begins with identifying high-risk systems and proactively securing them against potential cyberattacks. This targeted infrastructure protection minimizes vulnerabilities and fortifies critical systems. Additionally, implementing comprehensive cyber defense measures, including continuous monitoring for malware infections and credential exposures, is crucial for preventing unauthorized access and operational disruptions.
05
Continuous identity intelligence and data-driven security decisions
Staying ahead of evolving cyber threats requires data-driven decision-making. Gathering deep cyber threat insights based on the identity data circulating in criminal communities is crucial for identifying emerging risks and informing strategic security decisions. Real-time identity intelligence with advanced analytics further enhances proactive cyber operations support, enabling end-to-end defense measures from threat prevention to complex cybercrime investigations.
Strengthening Government Cybersecurity with SpyCloud
Government agencies face an ever-evolving threat landscape, with cybercriminals increasingly targeting sensitive systems through digital identity exposures. SpyCloud empowers federal organizations to proactively predict, prevent, and respond to identity threats. By leveraging advanced identity intelligence and automated remediation solutions SpyCloud helps secure identities, prevent account takeovers, identify threat actors, and protect critical infrastructure.
Protect government identities and disrupt cybercrime with SpyCloud’s proactive identity threat protection.
Download the latest Identity Exposure Report to explore threat trends and discover how SpyCloud’s solutions can enhance your cybersecurity strategy.
Keep reading
