If you didn’t hear about Iranian hackers breaching US water facilities, it’s because they only managed to control a single pressure station serving 7,000 people. What made this attack noteworthy wasn’t its scale, but how easily the hackers gained access — by simply using the manufacturer’s default password “1111.” This narrow escape prompted CISA to urge manufacturers to eliminate default credentials entirely, citing “years of evidence” that these preset passwords remain one of the most exploited weaknesses.
While we wait for manufacturers to implement better security practices, the responsibility falls on IT teams. Whether you manage critical infrastructure or a standard business network, allowing unchanged manufacturer passwords in your environment is like rolling out the red carpet for attackers. Here’s what you need to know about default passwords — why they persist, their business and technical consequences, and how manufacturers can implement secure-by-design best practices.
The pervasive threat of default passwords
Default passwords — the standardized credentials like “admin/admin” or “1234” shipped with countless devices and software systems — represent a glaring security gap that attackers love to exploit. Even though their risks are well-documented, they persist in production environments for numerous reasons:
- They simplify initial setup and configuration
- They streamline bulk device provisioning
- They support legacy systems with limited security options
- Manufacturers lack a secure-by-design mindset
The consequences of using default passwords include:
- Botnet recruitment: Attackers scan for vulnerable devices to build massive networks aimed at compromising other devices
- Ransomware entry points: Hackers use default password access to establish footholds for deploying ransomware
- Supply-chain compromises: One vulnerable device can provide access to entire networks or partner systems
- Complete security bypass: Even robust security measures become ineffective when default credentials remain active
Real-world consequences of default password attacks
Default passwords have facilitated some of the most destructive cyberattacks in recent history. For example, attackers created the Mirai botnet by trying factory default passwords on thousands of IoT devices. Using a list of 61 common username/password combinations, the hackers compromised more than 600,000 connected devices. The resulting botnet launched devastating DDoS attacks that reached an unprecedented 1 Tbps, temporarily disabling internet services including Twitter and Netflix, and causing millions in damages.
Supply chains are also vulnerable to default password attacks, with hackers targeting OEM devices with unchanged default credentials as beachheads in multi-stage attacks. Once inside, they install backdoors that keep their access open, then gradually move through connected systems until they reach your valuable data and critical infrastructure. These default passwords effectively undermine all other security controls, providing attackers with legitimate access that bypasses even advanced threat detection systems. The UK has recently moved to ban IoT devices shipping with default passwords.
The high cost of default password negligence
Failing to change default passwords can create consequences that go far beyond the initial security breach, including:
- Brand damage: Publicized breaches erode customer trust and trigger costly recalls, crisis management campaigns, and litigation that can continue for years, with expenses easily reaching millions of dollars.
- Regulatory penalties: New legislation like the EU’s Cyber Resilience Act and US state IoT security laws (like California’s) specifically target default password vulnerabilities, imposing significant fines for non-compliance.
- Operational burden: Implementing proper password policies up front is much more resourceful and cost-effective than emergency incident response, forensic analysis, and recovery efforts.
- Ecosystem vulnerability: A single compromised device can undermine interconnected environments — halting production in smart factories, jeopardizing patient care in healthcare settings, or creating cascading failures across partner networks.
Five secure-by-design best practices for manufacturers
Manufacturers must shift from passing security burdens to customers and instead build security into their products from inception:
- Unique credentials per unit: Embed randomized passwords at the factory, printed on each device’s label to eliminate shared default credentials across product lines.
- Password-rotation API: Allow customers to rotate or revoke credentials automatically on the first boot, making credential changes part of the standard setup process.
- Zero-trust onboarding: Require out-of-band authentication (e.g., QR-code scanning tied to user account) to verify legitimate device setup before granting system access.
- Firmware integrity checks: Sign and verify login modules to prevent unauthorized credential resets that could bypass security measures.
- Developer training and audit: Enforce secure-development lifecycles and run default-password scans pre-ship to catch vulnerabilities before products reach customers.
Protecting your organization today
Until manufacturers fully embrace secure-by-design principles, IT professionals must immediately act against default password risks. And one of the best ways to do that is by implementing rigorous password policies that include regular device inventories and immediate credential changes during deployment.
For the greatest protection, consider a solution like the Specops Password Policy to automate enforcement. Specops Password Policy simplifies Active Directory password management, allowing you to implement security standards that ensure compliance while blocking more than 4 billion unique compromised passwords. By taking these proactive steps, you’ll reduce your attack surface and protect your organization from becoming the next default password hacking headline. Book a live demo of Specops Password Policy today.
