Fundamentals
Trying stolen user names and passwords from one leak on many other sites, hoping people used the same password there.
Formal
An automated attack in which large lists of login details, taken from an earlier data breach elsewhere, are fed into the login pages of other services. It does not guess; it relies on people reusing the same password across accounts.
In plain English
A thief finds your house key on the street and then tries it on your car, your office and your summer house - just in case.
In practice
After a fitness app leaks its users' logins, attackers run the list against a Danish online shop; a few thousand customers find orders paid with their saved cards before the shop's IT lead blocks the flood of login attempts.
Why it matters
One leak at a small, careless site can unlock accounts at a bank or an employer, which is why a different password for each site and MFA matter so much.