Threat Actors may register malicious network provider dynamic link libraries (DLLs) to capture cleartext user credentials during the authentication process. Network provider DLLs allow Windows to interface with specific network protocols and can also support add-on credential management functions. During the logon process, Winlogon (the interactive logon module) sends credentials to the local mpnotify.exe process via RPC. The mpnotify.exe process then shares the credentials in cleartext with registered credential managers when notifying that a logon event is happening.
This type of attack technique cannot be easily mitigated with preventive controls since it is based on the abuse of system features.