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How it works: Physical devices store the "top" decryption keys. Shared passwords are generated internally and never leave the HSM.

How it works: Users never see the password. They request access to a resource (database, server), and a broker (like Teleport or HashiCorp Vault) injects the credential automatically.

Regulations like GDPR, HIPAA, and SOC2 require individual authentication. Shared passwords violate the principle of non-repudiation — meaning you cannot prove who performed an action. This can lead to heavy fines and legal liability.

If you are investigating the kshared password top dangers, here is what you need to know.