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Passwords work, users accept them, IT has to deal with them. We all know that authenticating users and controlling access to application data is the logical starting point for corporate security programs. However, a persistent problem which may potentially be the bigger risk to the business are the credentials hard-coded into custom applications.
Most of the corporate authentication effort is on identifying interactive users, especially those connecting remotely. Password management, including password change policies and mandatory password strength testing, help to keep this process rationally secure. Unattended enterprise applications, however, are another story.
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