REPORT
The Global Financial Impact of Active Directory Authentication Attacks
and Strategic Mitigation
Roman Kuznetsov @ 08.06.2025
Follow Roman Kuznetsov on LinkedIn

This is the summary of the report. Download to read the full version.

The Global Financial Impact
of Insecure Active Directory

Authentication attacks and operational inefficiencies create a staggering, continuous drain on enterprise resources. Explore the true cost.

Total Estimated Annual Loss

$34,1 Billion

$19,1B

Direct Attack Costs

+

$15,0B

Operational Inefficiencies

Deconstructing the Cost

Interactively explore the two primary drivers of financial loss: direct costs from data breaches and the pervasive "hidden costs" of operational waste. See how global breach statistics translate into billions in damages and calculate how much password-related issues might be costing your own organization.

The Path to $19,1 Billion

The baseline estimate for direct breach costs is derived from global data, assuming Active Directory's central role in identity management. Hover over the bars to see how we get from total reported breaches to the final AD-related financial impact.

The Hidden Cost Calculator

Operational waste, especially from password resets, is a constant drain. Estimate the annual cost for your organization based on the number of employees. Adjust the slider to see the impact.

Estimated Annual Operational Cost:

$493,500

Loss Scenarios Based on AD Involvement

The final loss figure depends heavily on the assumed rate of AD's involvement in breaches. This chart shows a range from a conservative 50% to a more aggressive 90%, illustrating the potential scale of the problem.

The Passwordless Solution

Explore the strategic shift from vulnerable, costly passwords to secure, efficient passwordless Multi-Factor Authentication (MFA). Discover the tangible benefits, from eliminating entire categories of cyberattacks to boosting productivity and delivering a clear return on investment.

The Password Problem

  • 💀Primary Attack Vector: Passwords are the main target for phishing, credential stuffing, and brute-force attacks.
  • 🔄Operational Drain: Constant password resets and lockouts consume significant IT help desk resources and budget.
  • 😠User Friction: "Password fatigue" leads to poor security hygiene (reuse, simple passwords) and lost productivity.

The Passwordless Advantage

  • 🛡️️Enhanced Security: Eliminates the password as a vulnerability, reducing the attack surface by an estimated 82%.
  • 💰Cost Savings: Drastically cuts help desk calls, saving millions annually and freeing up IT for strategic work.
  • 😊Improved Experience: Streamlines logins, boosts user productivity, and fosters a stronger security culture.

Return on Investment (ROI) of Passwordless MFA

The value of passwordless MFA extends beyond security. It delivers measurable financial returns by reducing operational costs and boosting workforce efficiency. Hover over the chart segments to see the key areas of impact.

A Specialized Solution: SystoLOCK

For organizations with on-premises Active Directory, specialized solutions provide a direct path to modern security. SystoLOCK is engineered to integrate seamlessly into existing Windows domain environments, eliminating passwords without requiring a disruptive cloud migration. Explore its key features and benefits below.

🔑

Password Elimination

Replaces passwords with strong cryptographic credentials, stopping brute-force, credential theft, and pass-the-hash attacks by removing the password entirely.

🏠

On-Premises Control

Operates within your network, with no cloud reliance, ensuring full data sovereignty and control, ideal for regulated industries.

🎣

Phishing Resistance

Prevents social engineering and MFA fatigue attacks. By removing the initial password step, it breaks the chain for common phishing and MFA bombing tactics.

🔗

Seamless Integration

Works with existing AD & PKI without schema changes, leveraging your current infrastructure investment for faster, lower-risk deployment.

🌍

Broad Compatibility

Protects Windows, RDP, VPN, Cloud Apps, and more, providing a consistent passwordless experience across the entire enterprise IT landscape.

Compliance Support

Helps meet standards like NIS2, DORA, and PCI DSS, strengthening security posture to facilitate adherence to stringent regulatory frameworks and mitigate compliance risk.