Why Sharing Credentials is a Critical Risk – and Why Individual Accounts are Essential

Sharing login credentials (usernames, passwords, API keys, SSH keys, etc.) is one of the most common yet dangerous security anti-patterns in organizations. It dramatically increases the risk of compromise, makes auditing impossible, and violates virtually every compliance framework (NIST, ISO 27001, CIS, PCI-DSS, SOC 2, etc.). Administrators who allow or participate in credential sharing are effectively creating a single point of failure that can lead to data breaches, ransomware, regulatory fines, and reputational damage.

The secure, scalable solution is simple: every person (and every service) must have their own individual account with the minimum privileges required for their role.

Key Reasons Sharing Credentials is Dangerous

  1. Loss of Accountability (“Who Did What?”): When multiple people use the same account, audit logs cannot attribute actions to a specific individual. In case of an incident (malicious or accidental), you cannot prove who performed a damaging action. This destroys non-repudiation and makes internal investigations or forensic analysis nearly impossible.
  1. Amplified Impact of a Single Compromise: If one person’s laptop, phone, or personal email is compromised (phishing, malware, lost device), the attacker immediately gains access to everything that shared account can do. One weak or reused password = total compromise of the shared account.
  1. Password Reuse and Poor Hygiene Become Catastrophic: People reuse passwords across personal and work accounts. If a shared password is exposed in an unrelated breach (e.g., LinkedIn, Dropbox, gaming site), attackers will try it everywhere — including your shared admin account. Shared credentials are rarely rotated properly because “it would lock everyone out.”
  1. Insider Threat and Offboarding Nightmares: When an employee, contractor, or partner leaves, you cannot reliably disable their access if they know a shared password. Disgruntled insiders (or former insiders) retain access indefinitely.
  1. Violation of Least Privilege: Shared accounts are almost always over-privileged (“everyone needs admin”). Every user of that account inherits the maximum permissions, even if they only need read access.
  1. Regulatory and Compliance Penalties: Virtually every regulation and framework explicitly requires individual accountability:
    • NIST 800-53: AC-2 (Account Management), IA-2 (Identification and Authentication)
    • ISO 27001: A.9.2.3 (Management of privileged access rights)
    • PCI-DSS Requirement 8: Unique IDs and accountability
    • SOC 2: CC6.1–CC6.3 (Logical access controls)
    • Auditors will flag shared credentials as a critical finding.
  1. Third-Party and Supply-Chain Risk: Vendors or contractors often request shared credentials “for convenience.” This gives external parties permanent keys to your kingdom and makes vendor risk management impossible.

Real-World Consequences (Examples)

Target 2013 breach: Attackers stole network credentials from a third-party HVAC vendor who has been given overly broad access.

SolarWinds 2020 supply-chain attack: Shared or weakly protected service accounts were abused.

Numerous ransomware incidents trace back to shared local admin or domain admin passwords.

Recommended Practice: Individual Accounts + Proper Controls

Every human and non-human identity must have:

  • A unique account tied to their identity ([email protected] or service-specific)
  • Multi-factor authentication (MFA/2FA) enforced everywhere possible
  • Role-Based Access Control (RBAC) or Attribute-Based Access Control (ABAC) with least privilege (just enough permissions to do their job)

Action Items for Account Administrators

  • Immediately inventory all shared accounts (admin, root, service accounts, etc.).
  • Create individual accounts for every person who currently uses a shared credential.
  • Implement MFA on every account — no exceptions.
  • Train staff: “Never ask for or share passwords — if someone needs access, create them an account with appropriate rights.”

Bottom Line

Sharing credentials is not a shortcut — it is a ticking time bomb. The minor inconvenience of managing individual accounts is vastly outweighed by the catastrophic risk of sharing them.

Security is a team sport, but every player needs their own jersey. Stop sharing credentials today.