Event 4723 records a self-service password change: the account holder supplies their current password to set a new one, which is the field-level fact that separates this event entirely from an administrative reset, 4724. SubjectUserSid and TargetSid are the same value here, the account changing its own password, whereas 4724's Subject and Target are, in the ordinary case, two different identities. That single structural difference is the whole distinction between these two events, and it is worth checking explicitly rather than assuming from context, since both events describe a password changed.
SubjectUserSid, SubjectUserName, and SubjectLogonId identify the account, and importantly the specific logon session, under which the change was made. TargetUserName, TargetSid, and TargetDomainName repeat the same account's identity in the Target fields, confirming the self-service nature of the change. SubjectLogonId ties the change back to a specific 4624, which is the pivot point for everything interesting this event can tell you: what kind of session was the user in when they changed their password, and where did that session originate.
The event carries a success or failure distinction, commonly rendered as an F or S suffix depending on how your SIEM parses the audit outcome. A successful change means the old password was verified and the new one accepted by whatever complexity and history policy applies. A failed attempt, Audit Failure, means the change was rejected, most commonly because the supplied current password did not match, though a new password failing a complexity or history check produces the same failure outcome from a different cause.
The routine case is exactly what it sounds like: users changing their password on a normal expiry cycle, or proactively after using it somewhere they later regret, or because a help-desk instructed them to do so following an unrelated support interaction. None of that needs special attention. What makes 4723 worth building detection around is timing relative to two other things: the session it happened in, and the pattern of failures immediately preceding a success.
A self-service password change made within minutes of an unfamiliar or otherwise suspicious logon, particularly a RemoteInteractive, RDP, session from a source or at a time the account does not normally use, is a recognizable post-compromise move: an attacker who has just gained access to an account changes the password specifically to lock the legitimate owner out and remove any dependency on a credential that could be independently rotated or revoked by the victim once they notice something is wrong. This is a persistence action, not merely a logon, and it should be triaged with the same urgency as any other confirmed account-takeover indicator.
Repeated Audit Failure 4723 events from one account in quick succession, followed by an eventual success, is the credential-stuffing tell for this event: it suggests the actor is testing a stolen or guessed current password across multiple attempts before finding one that works, at which point they immediately lock in a new password of their own choosing.