diff --git a/src/auth/auth.service.ts b/src/auth/auth.service.ts
index 773e33af..0e641fe6 100644
--- a/src/auth/auth.service.ts
+++ b/src/auth/auth.service.ts
@@ -50,14 +50,14 @@ import { UserRole } from '../types/prisma.types';
 import { FraudService } from '../fraud/fraud.service';
 
 type JwtPayload = {
-   sub: string;
-   email: string;
-   role: UserRole;
-   type: 'access' | 'refresh';
-   jti: string;
-   family?: string;
-   exp?: number;
- };
+  sub: string;
+  email: string;
+  role: UserRole;
+  type: 'access' | 'refresh';
+  jti: string;
+  family?: string;
+  exp?: number;
+};
 
 @Injectable()
 export class AuthService {
@@ -264,40 +264,49 @@ export class AuthService {
     }
   }
 
-  async login(data: LoginDto, ipAddress?: string, userAgent?: string) {
-    await this.preflightChecks(data, ipAddress, userAgent);
-
-    const user = await this.usersService.findByEmail(data.email);
-    if (!user) {
-      // Record failed attempt even if user doesn't exist (prevent enumeration)
-      await this.rateLimitService.recordFailedAttempt(data.email, ipAddress, userAgent);
-      throw new UnauthorizedException('Invalid credentials');
-    }
-
+  /**
+   * Verify a fetched user's credentials: account state checks (blocked/
+   * deactivated/unverified) and bcrypt password comparison.
+   *
+   * Centralises the post-findByEmail gating plus the bcrypt compare and the
+   * rate-limit / fraud / lockout-email side effects. Extracted from login()
+   * for testability and readability (issue #744).
+   *
+   * @throws UnauthorizedException on any gate failure or password mismatch
+   */
+  private async verifyCredentials(
+    user: {
+      id: string;
+      email: string;
+      password: string | null;
+      isBlocked: boolean;
+      isDeactivated: boolean;
+      isVerified: boolean;
+    },
+    password: string,
+    ipAddress?: string,
+    userAgent?: string,
+  ): Promise<void> {
     if (user.isBlocked) {
       throw new UnauthorizedException('Your account has been blocked. Please contact support.');
     }
-
     if (user.isDeactivated) {
       throw new UnauthorizedException(
         'Your account has been deactivated. Please contact support to reactivate your account.',
       );
     }
-
     if (!user.isVerified) {
       throw new UnauthorizedException('Please verify your email before logging in.');
     }
 
-    const passwordMatches = await comparePassword(data.password, user.password ?? '');
+    const passwordMatches = await comparePassword(password, user.password ?? '');
     if (!passwordMatches) {
-      // Record failed login attempt
       const shouldLock = await this.rateLimitService.recordFailedAttempt(
-        data.email,
+        user.email,
         ipAddress,
         userAgent,
       );
-
-      await this.fraudService.evaluateFailedLogin(data.email, ipAddress, userAgent);
+      await this.fraudService.evaluateFailedLogin(user.email, ipAddress, userAgent);
 
       if (shouldLock) {
         const lockoutDuration = 30;
@@ -306,7 +315,6 @@ export class AuthService {
             `Failed to send account locked email to user ${user.id} (${this.hashEmail(user.email)}): ${err.message}`,
           );
         });
-
         throw new UnauthorizedException(
           `Account locked due to too many failed login attempts. Please try again in ${lockoutDuration} minutes.`,
         );
@@ -314,6 +322,19 @@ export class AuthService {
 
       throw new UnauthorizedException('Invalid credentials');
     }
+  }
+
+  async login(data: LoginDto, ipAddress?: string, userAgent?: string) {
+    await this.preflightChecks(data, ipAddress, userAgent);
+
+    const user = await this.usersService.findByEmail(data.email);
+    if (!user) {
+      // Record failed attempt even if user doesn't exist (prevent enumeration)
+      await this.rateLimitService.recordFailedAttempt(data.email, ipAddress, userAgent);
+      throw new UnauthorizedException('Invalid credentials');
+    }
+
+    await this.verifyCredentials(user, data.password, ipAddress, userAgent);
 
     if (user.twoFactorEnabled) {
       const hasTotpCode = Boolean(data.totpCode?.trim());