This is a quick video which shows in a very basic way how important encryption is. It is important to practice defense in depth, so even if an attacker manages to gain persistence on your network and is able to “man-in-the -middle” your network connections, encryption gives another layer of protection meaning communication is not in clear text, preventing login credentials being captured.
It’s important remember, that just because an attacker has gained a foothold, does not mean they can stay there or actually do anything. It standard user permissions are well controlled, then the attacker will need to elevate their privileges. One way of doing this is capturing passwords.
The more steps an attacker needs to take to carry out their intended actions to more chance you will have to hopefully detect them on the netywork.
Here we simulate an IT engineer logging in a server terminal session, and showing how encryption protects the connection compared to telnet which communicates in clear text.