How a CloudTrader security lapse exposed passwords for 126K users

In February 2023, a database security lapse at CloudTrader, a U.S.-based cloud trading software provider, recieved little public attention despite exposing 126,882 subscriber records. The incident revealed a deeply concerning oversight: plaintext passwords stored without any hashing or salting, leaving user credentials fully accessable to anyone who obtained the data. The breach also exposed email addresses, phone numbers, full names, and IP addresses.

Why Exposed Plaintext Passwords Put You at Risk

Unlike hashed passwords, plaintext credentials require no cracking, meaning attackers can use them immediately for account takeover attacks across any site where users reused the same password. This type of exposure is partcularly dangerous because it enables instant, large-scale credential stuffing campaigns. Every CloudTrader account in this breach became a potential key to other online accounts.

What Was Exposed in the CloudTrader Breach

• Email Address
• Phone Number
• Plaintext Password
• First Name
• Last Name
• IP Address

Why the CloudTrader Breach Still Matters Today

Plaintext passwords from 2023 remain dangerous because many users have not changed their credentials since the breach occurred. Attackers hold onto stolen data for months or years, testing it across banking, email, and social media platforms. If you used CloudTrader before February 2023, your login credentials may still be actively circulating on dark web markets.

How Database Breaches Work

A database breach occurs when an attacker gains unauthorized access to a backend database, often through SQL injection, misconfigured access controls, or compromised admin credentials. Once inside, the attacker can export entire tables of user records in minutes. In CloudTrader's case, the absence of password hashing meant the exported data was immediately usable with no additional effort.

Check If Your Data Was Exposed

HEROIC's breach search engine indexes over 400 billion records from known data breaches, including incidents like the CloudTrader leak. Enter your email address to instantly check whether your personal information was part of this or any other known breach, and take action to protect your accounts before attackers do.