Why Lateral Movement Is a Major Cybersecurity Risk in 2025

Lateral movement remains one of the most dangerous - and increasingly common - phases of the modern cyberattack lifecycle. In 2025, the risk has only grown, as attackers begin moving laterally using faster, stealthier tactics powered by AI and credential abuse to move undetected across networks and compromise high-value assets.

Network monitoring tools play a critical role in detecting lateral movement attacks, although they often fail to identify an ongoing attack when it mimics legitimate user behavior.

From the $22 million Change Healthcare ransomware attack to the MOVEit breach that exposed sensitive data across industries, recent examples highlight how attackers use lateral movement to turn small breaches into enterprise-wide disasters.

With generative AI being used to automate post-exploit actions, lateral movement is becoming faster, stealthier, and harder to trace in 2025.

In this article, we break down what lateral movement is, how it works, and what practical steps small and mid-sized businesses can take to stop it.

Key Takeaways

• Lateral movement involves initial access, reconnaissance, credential dumping, and privilege escalation - each stage demands targeted defenses to prevent attackers from accessing as many devices as possible.

• Techniques like Pass-the-Hash and RDP exploitation let attackers escalate privileges and avoid detection.

• Strong defense strategies include network segmentation, Endpoint Detection and Response (EDR), and AI-powered anomaly detection.

• Augmenting internal teams with expert threat hunting solutions is crucial to effectively monitor for hidden threats, reduce alert fatigue, and ensure that critical alerts are prioritized for immediate attention.

Introduction to Lateral Movement

Lateral movement refers to the techniques used by cyber attackers to navigate through a compromised network or system, gaining access to sensitive data and other critical assets. This technique helps attackers evade detection, making it difficult for security teams to identify and contain the threat.

Lateral movement is a critical component of many cyber attacks, including ransomware, data breaches, and advanced persistent threats (APTs). To prevent lateral movement, it’s essential to understand the stages of lateral movement and implement effective security controls, such as network segmentation, endpoint security solutions, and identity and access management (IAM).

How Lateral Movement Happens

Lateral movement happens when an attacker gains initial access to a network or system and then moves laterally to gain access to other systems, data, or assets. This can occur through various means, including exploiting vulnerabilities, using stolen credentials, or leveraging legitimate user accounts. The attacker’s goal is to bypass security controls and move undetected through the network. Techniques such as remote desktop protocols, Windows Management Instrumentation (WMI), or Server Message Block (SMB) are often used to gain access to other systems. By moving laterally, attackers can steal sensitive data, disrupt operations, or gain a strategic advantage, all while evading detection.

Stages of Lateral Movement

The stages of lateral movement typically involve reconnaissance, credential dumping, and gaining access to other systems. During the reconnaissance phase, the attacker gathers information about the network, including host naming conventions, network hierarchies, and user behavior. This information helps identify potential vulnerabilities and targets for credential dumping. Once credentials are obtained, the attacker can use them to gain access to other systems, often employing techniques such as pass-the-hash or pass-the-ticket attacks. Each stage is crucial for the attacker to navigate the network and escalate their privileges.

Reconnaissance

Reconnaissance is the initial stage of lateral movement, where the attacker gathers information about the network and its systems. This can include identifying operating systems, network protocols, and user accounts. Tools such as network scanners or social engineering tactics are often used to gather this information. The goal of reconnaissance is to identify potential vulnerabilities and targets for lateral movement, setting the stage for subsequent attacks.

The Anatomy of a Lateral Movement Attack

Lateral movement refers to how attackers spread within a network after gaining initial access. The goal? Escalate privileges, locate sensitive data, and maintain long-term control.

The typical flow includes:

• Initial Access – Phishing, credential theft, or software exploits.

• Internal Reconnaissance – Mapping systems and user privileges.

• Credential Dumping – Extracting password hashes or authentication tokens.

• Privilege Escalation – Gaining administrative privileges to access more systems.

Attackers often “live off the land,” blending into normal network behavior using legitimate tools, making detection especially difficult. They maintain ongoing access to navigate through the system, escalate their privileges, and potentially avoid detection while searching for sensitive data or assets over an extended period.

Characteristics of Lateral Movement

Lateral movement is characterized by its ability to evade detection and bypass security controls. Attackers use various techniques to make lateral movement difficult to detect, including using legitimate user accounts, exploiting vulnerabilities, and leveraging network protocols. Lateral movement can occur across multiple systems and networks, making it challenging to identify and mitigate. The goal of lateral movement is to gain access to sensitive data, disrupt operations, or gain a strategic advantage.

To prevent lateral movement, organizations must implement robust security controls, including network segmentation, access controls, and endpoint security solutions. Additionally, monitoring network traffic and user behavior is crucial for detecting and responding to potential lateral movement attacks. By understanding the characteristics of lateral movement, organizations can better protect themselves against these types of attacks and prevent sensitive data from being compromised.

Real-World Examples: Lateral Movement in Action (2023–2024)

These recent high-profile attacks all relied on lateral movement:

• Change Healthcare (2024): Attackers used stolen credentials to move laterally across critical systems, starting from a compromised device, resulting in widespread disruption and a $22 million ransom payment.

• MOVEit Transfer (2023): A SQL injection flaw (CVE-2023-34362) allowed attackers to access internal databases and traverse multiple networks.

• Johnson Controls (2023): The Dark Angels ransomware group encrypted ESXi servers and exfiltrated 27TB of data, demanding a $51 million ransom.

• Kroll Cybersecurity (2023): SIM-swapping allowed attackers to bypass MFA, infiltrate email systems, and access sensitive communications - leading to reputational and legal fallout.

These breaches underscore how lateral movement isn’t just a technical detail - it’s often the reason a breach becomes a full-blown crisis.

Techniques Used in Lateral Movement

After breaching a system, attackers utilize remote services exploitation to identify vulnerabilities in remote access services such as communication and collaboration tools, bypassing security controls to infiltrate deeper into internal networks.

Pass-the-Hash (PtH) Attacks

Attackers authenticate using password hashes - no need to crack or even know the password, as long as they have valid login credentials. By obtaining credentials through techniques like social engineering and lateral movement, they can navigate networks and manipulate systems. With reused credentials and weak segmentation, a single hash can unlock dozens of systems.

Remote Desktop Protocol (RDP) Exploitation

RDP is a prime target for exploiting remote systems. Once hijacked, attackers can execute commands and steal data, targeting not only Windows but also macOS and Linux systems. RDP was a key vector in the Johnson Controls breach.

PowerShell Abuse

PowerShell lets attackers automate commands and run stealthy scripts that evade traditional detection, facilitating malicious lateral movement - especially when attackers use it to “live off the land.”

Remote Services and Admin Tools

Attackers frequently exploit SMB, WMI, SSH, and even native Windows tools like PsExec to hop across environments without raising alarms. They can also exploit a legitimate user’s SSH session to compromise additional users or systems within an encrypted Secure Shell (SSH) tunnel.

How to Detect and Prevent Lateral Movement

It’s not just about stopping the breach - it’s about stopping what happens after the breach.

Detecting lateral movement is a critical concern in cybersecurity, as it involves identifying unauthorized navigation within compromised networks, making lateral movement detection challenging. This often mimics legitimate user behavior, making detection challenging. Monitoring network activity for anomalies is essential as a proactive defense strategy.

Network Segmentation

Breaking your network into smaller, isolated segments helps contain threats and flags unusual east-west traffic early. This limits an attacker’s ability to move freely within the environment, reducing the chances of undetected lateral spread and protecting critical data.

Endpoint Detection and Response (EDR)

Solutions like SentinelOne provide visibility across endpoints and can flag abnormal behavior - like a finance system making admin requests it never should. EDR solutions can also detect unusual network traffic, complementing MDR solutions in prompting timely investigation of potential breaches.

User and Entity Behavior Analytics (UEBA)

UEBA tools baseline normal user behavior and alert you to suspicious deviations, helping to identify lateral movement - such as a user suddenly accessing systems outside their role or time zone.

AI-Powered Detection

Machine learning tools enhance your ability to detect lateral movement by spotting subtle patterns at scale. They also accelerate response times when speed matters most, helping to mitigate lateral movement attacks.

CyVent’s Role: Stopping Lateral Movement Before It Spreads

At CyVent, we specialize in tailored cybersecurity solutions to address today’s most pressing threats. Our AI-powered tools and expert guidance help you fortify your defenses, protect your data, and stay ahead of attackers.

Schedule a confidential call with CyVent today to discuss how we can help your business navigate the complexities of modern cybersecurity with confidence.

Frequently Asked Questions

What is lateral movement in a cyber attack?
The process of attackers moving across a network after the initial breach to access additional systems and sensitive data.

How do attackers gain initial access?
Typically through phishing, stolen credentials, or unpatched vulnerabilities. Once inside, they exploit internal security weaknesses to move laterally.

What’s credential dumping?
Credential dumping involves extracting usernames and password hashes from system memory, often using tools like Mimikatz.

How does network segmentation help?
It limits attacker movement by isolating systems, making it harder to pivot laterally and easier to detect anomalies.

How does AI support cybersecurity?
AI helps detect patterns, flag threats faster, and automate responses - crucial for minimizing attacker dwell time and stopping breaches before they spread.