Employee onboarding creates a busy period for IT departments. New hires require devices, accounts, access permissions, and passwords, all needing to be provided within a strict deadline.
This typically involves sharing a temporary "first-day" password so employees can initially access systems. The problem is that these passwords often do not remain temporary. They might be transmitted via email or SMS, reused for different accounts, or never altered, introducing unnecessary risk during the onboarding phase.
For malicious actors, weak or poorly handled onboarding credentials can offer an easy pathway into corporate networks. To make the onboarding process more secure without hindering new employees, it is crucial to grasp why common password-sharing methods create vulnerabilities.
When ease of use overrides security
The most frequent method for sharing initial credentials with new employees is sending them in plain text through email or SMS. This is fast and convenient, especially during hectic onboarding periods, but it also presents a clear point of exposure. If those messages are intercepted, forwarded, or accessed on an unsecured device, attackers can gain instant entry to corporate accounts and systems.
The alternative is sharing passwords verbally, either face-to-face or over the phone. While this lowers the chance of digital interception, it introduces its own operational difficulties. IT teams and new hires need to coordinate availability, and the process frequently fails when managers or third parties are asked to relay credentials for IT. The more individuals involved in handling a password, the higher the likelihood of it being mishandled or leaked.
Neither method offers a particularly secure or scalable solution for managing onboarding credentials. In numerous cases, organizations are balancing ease of access against security, and temporary passwords end up becoming a lasting weakness rather than a short-term onboarding measure.
A more secure method for onboarding passwords
Traditional onboarding methods introduce risk because organizations are compelled to share temporary passwords in the first place. Addressing this issue are specialized solutions like Specops First Day Password, included as part of Specops uReset, which eliminates the need to distribute first-day passwords entirely.
Instead of receiving a temporary credential via email, SMS, or phone, new employees set their own password through a secure enrollment process. Users receive an enrollment link through their personal email, text message, or a "reset my password" option on their domain-joined device. After verifying their identity using a personal email address or mobile number, they can create a password that adheres to the organization's policy requirements from the start.
This method reduces the risk linked to intercepted or mishandled onboarding credentials while simplifying the process for both IT teams and new employees.
The danger of temporary passwords becoming permanent
Most onboarding credentials are intended to be temporary, with employees expected to create a new password after their initial login. However, it is common for busy users to overlook this step and postpone changing their password. Onboarding workflows might also fail to enforce a reset, or temporary credentials may remain active without anyone noticing.
This creates a problem because first-day passwords are rarely designed with long-term security in mind. They are simpler, more predictable, or generated in bulk to accelerate onboarding. If those credentials stay active, they become an easy target for attackers seeking low-effort ways into corporate systems.
Recent incidents demonstrate how dangerous unchanged default or temporary credentials can be, particularly when they are left exposed on internet-facing systems or linked to sensitive user data.
Exploiting weak credentials in critical infrastructure
In November 2023, the Municipal Water Authority of Aliquippa in Pennsylvania, USA, was targeted by the Iranian-linked hacktivist group Cyber Av3ngers. The hackers exploited programmable logic controllers (PLCs) protected by the default credential "1111", which enabled them to take control of a remote booster station serving two townships. While there was no threat to water supply, the severity of the risk was emphasized by CISA alerting other facilities to update the default credentials in similar systems and disconnect PLCs from the open internet.
The incident serves as a clear example of how setup credentials can become a long-term security vulnerability. A password intended for initial deployment or testing remained active on production systems, providing attackers with a straightforward route into operational technology environments.
Breaching a hiring platform through a poorly protected admin account
In 2025, researchers discovered that McDonald's AI-powered hiring platform, McHire, could be accessed through a weak legacy administrator account reportedly using "123456" as both the username and password. The platform, operated by Paradox.ai, handled large volumes of applicant information as part of the recruitment and onboarding process.
Using the default credentials, the researchers were able to access a test "restaurant" environment within the McHire platform. From there, they could view chat interactions linked to more than 64 million job applications. Paradox.ai responded quickly after the issue was responsibly disclosed, resolving the vulnerability and updating its security policies. However, the incident highlights how easily forgotten default or test credentials can create serious exposure when they remain connected to live systems.
Secure your onboarding processes with Specops
Passwords are not going away anytime soon; even as passkeys and passwordless authentication gain popularity, passwords still play a central role in most onboarding and access management processes.
That means organizations need secure, reliable methods for managing credentials throughout their entire lifecycle, including the very first password a user receives. Sharing temporary credentials or forgetting to reset default passwords introduce unnecessary risk that attackers are quick to exploit.
Reducing that risk does not have to make onboarding more complex. By allowing users to securely create their own passwords from day one, organizations can enhance security while providing IT teams with a more scalable and manageable onboarding process.
Specops helps organizations strengthen password security at every stage of the user lifecycle, from onboarding and password creation through to ongoing policy enforcement and breached password protection. If you would like to see how our solutions could work in your organization, book a demo today.