Regulatory Pressure Mounts as Default Password Attacks Escalate

Default passwords continue to be a primary entry point for attackers targeting critical infrastructure and manufacturing environments. These credentials, often unchanged from factory settings, are widely documented and easily accessible to threat actors.

Recent high-profile incidents, such as the breach of a US water facility using the password "1111," have underscored the urgent need for change. Such attacks demonstrate that even a single device with default credentials can jeopardize entire systems, regardless of other security measures in place.

The persistence of default passwords is largely due to legacy practices and the convenience they offer during device setup and bulk provisioning. However, this convenience comes at the cost of significant security risk.

Regulatory Agencies Intensify Calls for Secure-by Design Practices

Regulatory bodies like the US Cybersecurity and Infrastructure Security Agency are now explicitly urging manufacturers to eliminate default passwords from all products. Secure by Design alerts emphasize that relying on customers to change passwords is inadequate and that manufacturers must take responsibility for embedding security from the outset.

Global regulatory momentum is growing. The UK has banned IoT devices from shipping with default passwords, and the EU’s Cyber Resilience Act introduces strict penalties for non-compliance. These measures reflect a consensus that only manufacturer-led action can adequately address the threat.

The new regulatory environment demands unique credentials per device, enforced password rotation on first use, and robust authentication mechanisms. Manufacturers failing to comply face not only legal consequences but also reputational and financial damage.

Did you know?
The Mirai botnet, which launched one of the largest DDoS attacks in history, was created by exploiting default passwords on over 600,000 IoT devices. This single vulnerability led to internet outages affecting major platforms and millions of users worldwide.

NIST 2025 Guidelines Redefine Password Security Standards

The National Institute of Standards and Technology has updated its guidelines for 2025, shifting away from traditional complexity requirements toward longer, more secure passwords and passwordless authentication. The guidelines now require minimum password lengths, screening against compromised credential databases, and support for advanced authentication options.

NIST’s approach also encourages adaptive password policies tailored to organizational risk profiles and continuous monitoring for emerging threats. By integrating password managers and eliminating shared credentials, organizations can significantly reduce the risk of credential-based attacks.

These evolving standards are influencing regulations worldwide and setting new benchmarks for password security in manufacturing and beyond.

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Business and Technical Consequences of Non-Compliance

Failure to address default password risks can result in severe business and technical consequences. Organizations face brand damage, regulatory penalties, and operational disruptions when breaches occur due to unchanged credentials.

Attackers exploit default passwords to build botnets, deploy ransomware, and establish persistent access throughout supply chains. A single compromised device can cascade into widespread outages, data theft, and loss of customer trust.

Manufacturers and operators must recognize that legacy password practices undermine even the most advanced security controls, making prompt action essential for resilience.

Five Secure-by-Design Best Practices for Manufacturers

Manufacturers can proactively address regulatory demands and security threats by adopting secure-by-design best practices. This includes embedding unique, randomized credentials for every device at the factory and enabling password rotation or revocation on first boot as part of the standard setup.

Requiring out-of-band authentication, such as QR code scanning, for device onboarding further enhances security. Additionally, implementing firmware integrity checks helps prevent unauthorized credential resets.

Training developers and auditing products for default password vulnerabilities before release further strengthen security. By integrating these measures, manufacturers can protect customers, ensure regulatory compliance, and enhance the overall security of the manufacturing ecosystem.