One comment in that thread[1] gives a full explanation of what such a Raspberry Pi device hooked up to the router can do: forward all the network traffic, replace router's stock firmware with its own, install software on the network connected devices via known vulnerabilities, spoof websites by acting as custom DNS server. In my opinion, it looks like "a Pi-hole[2], but for phishing". [1] https://www.reddit.com/r/wha…
I still don't understand how this device could steal login details. Everything should be encrypted and authenticated through PKI when using any website that accepts login details. Whenever I visit a website with an expired certificate, for example, Chrome gives me a big red warning banner before allowing me to continue to the site.
any site that is loaded via http can have content mutated -- forcing users to http (and then acting as MITM), injecting javascript, other payloads.
If you can get a foothold on client computers you can also do things like inject trusted CA's to allow yourself to act as MITM without any cert issues raised.
DNS can be mutated.
Auto update software that does not check the cert chain and hash of the deliverable can be used to inject and run code.
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Hundreds (if not thousands) of repeatable attack vectors given physical access to the network like this.