Snowflake’s Password Reckoning: The Identity Crisis That Could Reshape Cloud Security and AI Agents

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Featured ImageIntroduction: The Breach Wasn’t About Snowflake Being Hacked

The most uncomfortable cybersecurity incidents are often the ones that reveal there was no sophisticated exploit at all.

The Snowflake-related campaign that ultimately implicated Connor Moucka and his alleged co-conspirators is a powerful example. The attackers did not need to discover an exotic vulnerability in Snowflake’s infrastructure. Instead, they used legitimate customer credentials—some of them years old—to access more than 165 customer organizations.

That distinction matters.

When stolen credentials remain valid for years, when accounts have no second factor, and when network restrictions are missing, an attacker does not necessarily need to break through a sophisticated security system. Sometimes, the system simply opens the door for them.

The consequences were enormous. Among the stolen information were billions of records, including call and text records associated with nearly all of AT&T’s wireless customers. Moucka later pleaded guilty to multiple federal charges, including computer fraud, wire fraud, aggravated identity theft, and conspiracy.

The deeper lesson is not simply that passwords are dangerous.

It is that identity has become one of the most neglected layers of modern infrastructure.

And as companies increasingly depend on cloud services, automation, machine identities, APIs, CI/CD pipelines, and AI agents, the number of identities that can quietly accumulate excessive privileges is growing faster than many security teams can track.

Snowflake’s latest authentication changes therefore represent something bigger than a platform migration. They are an attempt to force organizations to confront years of accumulated identity debt.

The Real Problem: Credentials That Refuse to Die

A password is dangerous not merely because it can be stolen.

Its greatest weakness is that it can continue working long after everyone has forgotten that it exists.

An employee can leave a company. A contractor can change teams. A development environment can be retired. A data pipeline can be replaced. A cloud workload can migrate to another platform.

Yet the service account created years earlier may remain active.

If its password was exposed in an infostealer log, leaked through a developer workstation, copied into a configuration file, or accidentally committed to a repository, an attacker may still be able to use it.

That creates what can be called identity debt: authentication mechanisms and permissions that remain active despite the organizational context that originally justified them having disappeared.

The Snowflake campaign demonstrated just how dangerous that debt can become.

From Breach to Policy: Snowflake Forces the Issue

Snowflake is now pushing customers toward a fundamentally different authentication model for non-human identities.

During Phase 3 of its authentication rollout, legacy service users are being migrated to the SERVICE user type. These accounts cannot rely on traditional password authentication.

That sounds straightforward.

In practice, changing the authentication mechanism is probably the easiest part of the project.

The difficult questions are much more uncomfortable:

Who owns this account?

What application depends on it?

What data can it access?

Why does it still exist?

What happens if it suddenly stops working?

And perhaps the most important question of all:

Would anyone notice if this account disappeared?

If the answer is no, the organization may have discovered an identity that exists without accountability.

Snowflake’s Three-Phase Authentication Transition

Snowflake’s deprecation process has unfolded in three stages, gradually eliminating password-based authentication for non-human identities.

Phase 1: Human Authentication Changes

From September 2025 through January 2026, human users were required to present a second factor when accessing Snowsight.

Service users were not yet subjected to the same requirement.

This distinction was logical because machine identities operate differently from human identities. A service account cannot simply receive an SMS or approve a push notification like an employee.

But it also meant that the older service-account problem remained largely untouched.

Phase 2: New Non-Human Users Lose Passwords

From May through July 2026, newly created non-human users in affected environments had to use the SERVICE type.

The significance is easy to overlook.

Snowflake effectively stopped organizations from creating new password-dependent service identities while leaving many older identities in place.

That creates a natural transition period.

New accounts follow modern security principles.

Old accounts become the remaining concentration of risk.

Phase 3: The Legacy Accounts Finally Face the Deadline

From August through October 2026, legacy service accounts in covered Snowflake environments must migrate away from password authentication according to their account-specific enforcement dates.

These are the accounts that should concern security teams most.

They are older.

They may have changed owners.

Their documentation may be incomplete.

Their original developers may no longer work at the organization.

Their passwords may have been copied into systems nobody remembers.

And some may be powering critical business processes that cannot simply be switched off.

The deadline therefore

It is an identity-discovery deadline.

Step One: Build the Inventory Before the Deadline Builds It for You

The first mistake organizations can make is waiting until the enforcement date arrives.

An identity inventory created because an authentication mechanism is about to stop working is not the same thing as identity governance.

The immediate goal should be to answer three questions for every service account:

Which accounts still authenticate to Snowflake?

Who owns them?

What will break if their passwords stop working?

Snowflake provides useful information for answering the first question.

The ACCOUNT_USAGE schema can help identify users and their types, while login history provides information about authentication activity, including client and source IP information.

Together, these data sources can reveal which accounts remain active and where those accounts are being used.

That is valuable intelligence.

But it is not enough.

Snowflake cannot know why an account was created, which business application depends on it, which team owns it, or whether anyone would notice its disappearance.

That information may exist in an old ticket.

It may be buried inside documentation.

It may exist in a

Or it may not exist at all.

Deep Analysis: Finding the Accounts That Still Matter

Security teams should treat

A simple inventory query can begin with something like:

SELECT

NAME,

TYPE,

DISABLED,

CREATED_ON,

DEFAULT_ROLE,

DEFAULT_WAREHOUSE

FROM SNOWFLAKE.ACCOUNT_USAGE.USERS

ORDER BY CREATED_ON ASC;

The purpose is not simply to generate a list.

The objective is to identify old, active, poorly understood identities.

Login activity can then be investigated through

SELECT

USER_NAME,

EVENT_TIMESTAMP,

CLIENT_IP,

REPORTED_CLIENT_TYPE,

IS_SUCCESS

FROM SNOWFLAKE.ACCOUNT_USAGE.LOGIN_HISTORY

WHERE EVENT_TIMESTAMP >= DATEADD(day, -365, CURRENT_TIMESTAMP())

ORDER BY EVENT_TIMESTAMP DESC;

Security teams can then investigate accounts with authentication activity but unclear ownership.

For operational investigations, filtering for older identities can also be useful:

SELECT

NAME,

TYPE,

CREATED_ON,

DISABLED

FROM SNOWFLAKE.ACCOUNT_USAGE.USERS

WHERE TYPE IN (LEGACY_SERVICE, SERVICE)

ORDER BY CREATED_ON ASC;

The exact available fields and behavior should always be validated against the Snowflake version and account configuration in use.

The important principle is broader than any individual SQL query:

Inventory first. Change second.

Step Two: Every Service Account Needs a Human Owner

A service account is non-human.

Its responsibility cannot be.

Every machine identity should ultimately have a person or accountable team responsible for its lifecycle.

But ownership should mean more than putting a name in a spreadsheet.

The real test is much more practical:

Who receives the alert when this identity stops working at 2 a.m.?

If nobody knows, the account effectively has no owner.

That is a security problem and an operational problem at the same time.

An owner should understand why the account exists, what application uses it, what privileges it requires, how it is authenticated, and what conditions would justify disabling or deleting it.

Ownership must also include deprovisioning.

Teams frequently assign responsibility for keeping an account operational while failing to assign responsibility for killing it.

That creates permanent identities.

Permanent identities become attractive targets.

The Safer Approach: Disable Before You Delete

When nobody can establish what an account does, immediately deleting it can create unnecessary operational risk.

A controlled disablement window is often safer.

First, disable the account.

Then monitor systems for authentication failures, failed jobs, broken integrations, or unexpected application errors.

If nothing breaks over the defined observation period, the account may be a candidate for permanent decommissioning.

If something does break, the team has discovered a dependency that was previously undocumented.

That dependency should then be documented and assigned an owner before the account is restored or migrated.

In other words, failure becomes an information-gathering mechanism.

Step Three: There Is No Universal Password Replacement

One of the most important lessons from

Different workloads have different requirements.

Snowflake supports multiple approaches for SERVICE users, including workload identity federation, external OAuth, key-pair authentication, and programmatic access tokens.

Choosing between them requires understanding the workload itself.

Workload Identity Federation: The Strongest Default

Workload identity federation is particularly attractive because it can eliminate long-lived secrets altogether.

Instead of storing a password or static credential, a workload proves its identity through an external identity system.

There is nothing equivalent to a traditional password sitting inside a configuration file waiting to be stolen.

Where the underlying infrastructure supports federation cleanly, this should generally be the preferred direction.

The challenge is that federation requires the surrounding infrastructure to support the identity flow.

That can make implementation more complicated for legacy applications.

But complexity during migration is usually preferable to permanently preserving a credential that nobody knows how to rotate.

External OAuth: Powerful but Operationally Demanding

External OAuth can provide strong authentication by allowing an external identity provider to authorize access.

The trade-off is operational expertise.

Teams must correctly configure the identity provider, authorization server, scopes, roles, tokens, and trust relationships.

Misconfiguration can create a false sense of security.

OAuth is powerful, but it is not magic.

The identity architecture around it still needs ownership, monitoring, and lifecycle controls.

Key-Pair Authentication: Passwordless Does Not Mean Secretless

Key-pair authentication eliminates a traditional password from the request path.

That is an improvement.

But a private key is still a credential.

If that private key lives for years, sits in an exposed environment, or is copied across multiple systems, the organization has simply changed the shape of its secret.

The problem has not disappeared.

Organizations using key-pair authentication should therefore combine it with appropriate network controls and a defined rotation process.

A long-lived private key without lifecycle governance is still a long-lived secret.

Programmatic Access Tokens: Better Than Passwords, Still a Lifecycle Problem

Programmatic access tokens can be a direct replacement for password-based authentication.

For SERVICE users, Snowflake applies important controls around network policies and role restrictions by default, although authentication policies can change those requirements.

The important detail is that rotating a token does not automatically guarantee that the surrounding controls remain correct.

Security teams should verify the network policy, role scope, expiration, and owner during every rotation.

The rotation event should become a security checkpoint rather than a mechanical credential replacement.

Never Migrate a Bad Credential Into a New Format

This may be the most important lesson in the entire transition.

A company can technically meet

Imagine an organization takes an old service account with excessive permissions and a forgotten password and replaces that password with a long-lived private key.

The authentication method has changed.

The underlying risk has not.

The account still has excessive privileges.

The account may still have no owner.

The credential may still be copied across multiple systems.

And the organization may still have no reliable rotation process.

That is not security modernization.

It is credential-format migration.

Step Four: Assume the Old Password Is Already Compromised

Organizations should treat the credential being replaced as burned.

That means assuming it may already exist somewhere outside the company’s control.

The original article points to research from Mandiant and Snowflake indicating that at least 79.7% of accounts used in the UNC5537 campaign had previous credential exposure.

Even more concerning, the earliest infostealer infection associated with one of those credentials dated back to November 2020.

That illustrates the real danger of identity debt.

A stolen credential does not need to be exploited immediately.

An attacker can wait.

If the password remains valid for three years, then a credential stolen three years ago can potentially become a three-year-old skeleton key.

Password Replacement Does Not Clean Up the Past

Disabling a password in Snowflake solves one part of the problem.

It does not erase copies of that password.

Security teams should investigate where the credential may have been stored or reused.

Potential locations include:

CI/CD variables

Secrets managers

Configuration files

Developer workstations

Infrastructure-as-code repositories

Deployment scripts

Internal documentation

Runbooks

Backups

Local shell history

Monitoring configurations

Third-party integrations

If the same secret was reused elsewhere, those systems must be investigated too.

Otherwise, the organization may shut one door while leaving several others open.

Reduce Privileges During the Migration

Authentication migration is also an excellent opportunity for privilege reduction.

If a service account previously had broad access because “the application needed it,” the migration should force a second look.

What databases does the application actually access?

Which schemas does it use?

Which operations does it perform?

Does it require write access?

Does it need administrative privileges?

Does it need access from every network?

Does its role contain permissions accumulated over years?

These questions transform a migration project into a genuine security improvement.

The best migration is therefore not:

Password → token

It is:

Unknown identity → known owner → verified dependency → minimum privilege → controlled authentication → monitored lifecycle

The Bigger Threat: AI Agents Are Creating More Machine Identities

Snowflake’s authentication changes arrive at an interesting moment.

Organizations are rapidly adopting AI agents.

Agents are being given access to databases, repositories, cloud services, internal applications, APIs, ticketing platforms, communication systems, and corporate knowledge.

That creates a problem that looks remarkably similar to the service-account problem.

The technology is new.

The identity challenge is not.

An AI agent still needs an identity.

That identity still needs an owner.

It still requires permissions.

It still needs authentication.

It still needs monitoring.

And eventually, its access must be revoked.

AI Agents Could Turn Identity Debt Into an Avalanche

Traditional organizations might accumulate hundreds or thousands of service accounts.

Agentic environments could create significantly more machine identities.

An agent might create temporary credentials.

Another agent might call an API through a delegated identity.

A development agent might access Git repositories.

A security agent might query vulnerability databases.

A data-analysis agent might access sensitive warehouse tables.

A customer-service agent might retrieve information from CRM systems.

If these identities are created faster than organizations can govern them, the identity problem becomes nonlinear.

The challenge is no longer simply:

Who has access?

It becomes:

“Which humans, applications, agents, delegated identities, tokens, tools, and workflows can reach this resource—and why?”

The Identity of an AI Agent Must Be Accountable

Snowflake already recognizes automated AI agents as a distinct SERVICE_AGENT identity type.

That is significant because it acknowledges something many organizations are only beginning to understand:

AI agents are not ordinary users.

They are automated actors capable of making decisions and taking actions.

An agent with excessive privileges can potentially move much faster than a human.

A human might manually access one database.

An agent can potentially perform thousands of API calls in minutes.

A human may read one file.

An autonomous workflow can process an entire repository.

The identity controls therefore need to be stronger, not weaker.

What Organizations Should Demand From Agent Identity

Every AI agent should have an answer to several basic questions.

Who owns it?

What model or application operates it?

What identity does it use?

Which credentials can it access?

Which systems can it reach?

What actions can it perform?

What data can it read?

What data can it modify?

Can it create additional identities?

Can it delegate access?

How long should its privileges remain valid?

What happens when the project ends?

If those questions cannot be answered, the organization is not ready to give that agent broad production access.

Identity Governance Is Becoming Infrastructure Governance

For years, security teams often treated identity as an administrative discipline.

Create the account.

Give it permissions.

Reset the password.

Disable the account when someone leaves.

That model is increasingly obsolete.

Modern identity governance is becoming part of infrastructure security itself.

Cloud applications, APIs, workloads, containers, CI/CD systems, SaaS platforms, autonomous agents, and data platforms all depend on machine identities.

The identity layer has become the connective tissue between systems.

Compromise the identity layer and attackers may not need to exploit every individual application.

The Snowflake Incident Offers a Broader Warning

The Snowflake campaign should not be interpreted as a lesson about one vendor.

Its more important lesson applies across the entire technology industry.

Security architecture can be sophisticated while identity hygiene remains weak.

A company can have endpoint detection, cloud security, vulnerability scanners, firewalls, SIEM systems, and advanced threat intelligence.

Yet one forgotten credential can undermine much of that investment.

That is why identity deserves to be treated as a primary security boundary.

What Security Teams Should Do Before October

Organizations affected by

The migration should begin with discovery.

Identify legacy service identities.

Determine which ones are still active.

Map their login sources.

Find application dependencies.

Assign accountable owners.

Review permissions.

Choose an authentication method based on the workload.

Invalidate the old credential.

Search for credential reuse.

Rotate dependent secrets.

Test the new authentication method.

Monitor the workload.

Document the result.

Then establish a process ensuring the same identity debt does not return.

A Practical Identity Migration Workflow

A useful workflow can be summarized as follows:

Discover → Assign → Analyze → Reduce → Migrate → Revoke → Monitor → Review

Discovery tells you what exists.

Ownership tells you who is responsible.

Dependency analysis tells you what could break.

Privilege reduction limits the blast radius.

Migration replaces the obsolete authentication method.

Revocation eliminates the old credential.

Monitoring detects unexpected behavior.

Review prevents the environment from drifting back into the same state.

This final step is critical.

Without continuous governance, today’s clean identity inventory becomes tomorrow’s forgotten spreadsheet.

What Undercode Say:

The Password Was Never the Whole Problem

The Snowflake story is easy to summarize as another warning against passwords.

That interpretation is too shallow.

Passwords are certainly weak authentication mechanisms for machine identities, but the deeper problem is unmanaged identity.

A perfectly secure authentication technology attached to an abandoned, overprivileged account can still create significant risk.

Security begins by knowing what exists.

Identity Debt Is a Hidden Liability

Every organization has technical debt.

Legacy servers.

Old applications.

Unsupported dependencies.

Unused cloud resources.

Forgotten repositories.

Identity debt belongs on the same list.

The difference is that identity debt can remain invisible until somebody exploits it.

An old server may be discovered during an infrastructure audit.

An old credential can sit silently inside a password dump until an attacker decides to use it.

The Age of a Credential Should Be Treated as a Risk Signal

A credential that has existed for five years deserves more scrutiny than one created last week.

Age does not automatically mean compromise.

But age increases the probability that ownership, documentation, usage patterns, and security assumptions have changed.

Organizations should therefore treat credential age as an identity-risk indicator.

The older the identity, the stronger the case for revalidation.

Dormant Accounts Are Especially Dangerous

An account that logs in once every six months may look harmless.

It may actually be more dangerous than a heavily used account.

Rarely used accounts often receive less monitoring.

Their owners may have forgotten them.

Their credentials may never have been rotated.

Their permissions may reflect an old architecture.

Attackers understand this.

They search for weak identities that can operate quietly.

MFA Solves One Problem, Not Every Identity Problem

Multi-factor authentication is extremely valuable for human accounts.

But organizations cannot simply apply the same mental model to every machine identity.

A service account does not interact with authentication systems in exactly the same way as an employee.

Machine identities require workload-aware controls.

Federation, short-lived tokens, certificate-based mechanisms, scoped credentials, network policies, and workload identity systems can all become important.

The key is matching the control to the workload.

Least Privilege Should Become a Migration Requirement

Every authentication migration should trigger a privilege review.

If an identity has not been examined for years, there is a strong possibility that its permissions reflect historical requirements rather than current ones.

Migration provides a rare opportunity to ask:

What does this account actually need today?

That question can dramatically reduce the impact of a future compromise.

Network Restrictions Matter More Than Many Teams Realize

Authentication answers the question:

Who are you?

Network controls add another question:

Where are you allowed to authenticate from?

A stolen credential becomes considerably less useful when it cannot be successfully used from an unauthorized location.

Network restrictions should therefore complement authentication rather than replace it.

Defense in depth remains essential.

Secrets Management Is Not the Same as Identity Governance

Putting a credential inside a secrets manager is better than putting it inside source code.

But a secrets manager does not automatically answer who owns the identity, why it exists, or whether it still needs its permissions.

Secrets management protects credentials.

Identity governance determines whether those credentials should exist in the first place.

Organizations need both.

AI Makes This Problem More Urgent

The arrival of autonomous AI agents could dramatically increase the number of machine identities inside enterprises.

An organization might deploy hundreds of agents without realizing that each one potentially introduces another identity lifecycle.

That means identity governance must evolve alongside agentic AI.

Otherwise, companies could repeat the same service-account mistakes at a much larger scale.

Agentic Security Requires Intent, Not Just Authentication

Traditional identity systems tend to ask:

Can this identity access the resource?

Agentic systems increasingly need to ask:

Should this agent perform this action right now, for this reason, against this resource?

That is a much richer security model.

An agent may legitimately need access to a database while performing a specific task.

That does not necessarily mean it should have unlimited access to every table indefinitely.

Context and intent are becoming security signals.

Short-Lived Access Should Become the Default

Long-lived credentials create long-lived opportunities for attackers.

Short-lived credentials reduce the window in which stolen authentication material can be useful.

Where architecture permits it, organizations should prefer temporary, scoped identities over permanent secrets.

This principle applies to humans, workloads, and increasingly AI agents.

Security Teams Need Better Identity Telemetry

You cannot govern what you cannot observe.

Security teams should be able to determine:

Which identities exist?

Which are active?

Where are they authenticating?

What privileges do they possess?

What applications use them?

When were they last reviewed?

Who owns them?

Which credentials are approaching expiration?

Which identities have anomalous behavior?

This telemetry should become part of security operations rather than remaining buried inside individual cloud platforms.

The Spreadsheet Is Not a Long-Term Solution

Spreadsheets can help during an emergency migration.

They are not an identity governance platform.

They become outdated as soon as another developer creates an account, another workload changes, or another employee leaves the company.

A sustainable approach requires automation.

Discovery should be continuous.

Ownership should be enforced.

Unused identities should be detected.

Privileges should be reviewed.

Credential rotation should be tracked.

Deprovisioning should be part of the lifecycle.

Security and Reliability Are Converging

There is an important operational lesson here.

Identity governance is not simply about preventing attackers.

It is also about preventing unexpected outages.

An organization that does not know which application depends on an account cannot safely disable that account.

That means undocumented identity dependencies become reliability risks.

Security teams and platform engineering teams therefore have a shared interest in solving the problem.

The Best Migration Is the One You Never Have to Repeat

Snowflake’s enforcement deadline can force companies to clean up their old identities.

But the real success metric is what happens afterward.

If the company creates another generation of unmanaged service accounts, the same problem will return.

Organizations need lifecycle controls that begin when an identity is created and continue until it is destroyed.

That is the difference between migration and governance.

Identity Is Becoming the New Security Perimeter

Traditional network perimeters are disappearing.

Employees work remotely.

Applications run across multiple clouds.

Data moves between SaaS platforms.

APIs connect independent systems.

AI agents operate across services.

Machine identities cross organizational boundaries.

In that environment, identity increasingly becomes the security perimeter.

Who or what is requesting access may matter more than where the request originates.

The Next Major Breach May Not Require a Zero-Day

The cybersecurity industry spends enormous energy tracking zero-days.

They matter.

But attackers continue to benefit from something much simpler: valid credentials.

The Snowflake incident demonstrates why defenders cannot focus exclusively on software vulnerabilities.

Sometimes the attacker does not need to exploit the software.

They only need to authenticate successfully.

Identity Security Must Become Continuous

The era of annual access reviews is disappearing.

A service identity can become risky overnight.

A developer can leave.

A workload can change.

An API can be exposed.

An AI agent can receive a new tool.

A token can leak.

A role can accumulate permissions.

Identity governance must therefore become continuous rather than periodic.

✅ The Attack Used Valid Credentials Rather Than a Snowflake Software Exploit

The central claim is consistent with the description of the campaign: attackers used compromised customer credentials to access Snowflake customer environments rather than relying on a newly discovered Snowflake vulnerability.

The distinction is important because credential compromise represents an identity-security failure rather than a conventional software exploit.

✅ Legacy Service Accounts Are the Core Target of Snowflake’s Phase 3 Migration

The article correctly describes the transition from legacy service identities toward the SERVICE model, where password-based authentication is no longer available for the affected service-user model.

The practical challenge is identifying dependencies and ownership before authentication changes are enforced.

✅ Credential Exposure Can Remain Dangerous for Years

The cited campaign research illustrates why credential theft cannot be treated as an event that automatically becomes irrelevant with time.

A credential stolen years ago can remain valuable if organizations never revoke it, rotate it, or otherwise invalidate it.

⚠️ Passwordless Authentication Does Not Automatically Mean Secure Authentication

Replacing passwords with keys or tokens is an improvement only when the replacement credential has appropriate scope, lifecycle controls, ownership, and monitoring.

A permanent private key with excessive privileges can reproduce many of the risks associated with a permanent password.

⚠️ AI Agents Are Not Automatically Secure Simply Because They Use Modern Identity Systems

AI-agent identities can be governed more effectively than traditional service accounts, but the identity mechanism itself does not guarantee safe behavior.

Organizations still need authorization boundaries, least privilege, monitoring, expiration, ownership, and controls over what actions an agent can perform.

Prediction

(+1) Snowflake’s Authentication Changes Will Accelerate Enterprise Identity Modernization

Snowflake’s Phase 3 enforcement is likely to push organizations toward stronger workload identity practices, particularly federation, scoped tokens, key rotation, and more rigorous ownership models.

The most important effect may happen beyond Snowflake itself.

Once companies discover hundreds or thousands of poorly documented service identities in one platform, they are likely to realize the same problem exists across AWS, Azure, Google Cloud, GitHub, Kubernetes, CI/CD systems, SaaS applications, and internal APIs.

The next generation of identity security will therefore increasingly focus on machine-to-machine relationships rather than only human users.

AI agents will intensify that shift.

As agents become capable of taking real-world actions, companies will need identity systems capable of answering not only who an agent is, but what it is allowed to do, under what circumstances, and for how long.

The organizations that solve this early will have a significant advantage.

Those that continue accumulating unmanaged machine identities may eventually discover that their biggest security vulnerability was never a zero-day.

It was an account everyone forgot existed.

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