Why Shared and Generic Accounts Still Dominate the Workforce

Posted
September 4, 2023
by
Mina Roohi
-
4 mins read
Last update:
March 18, 2025
Workers working behind machines in a factory

Today that security and accountability are top priorities, shared and generic accounts continue to play a significant role in many industries. While unique user credentials and personalized access management are widely advocated, the persistence of shared accounts highlights the practical challenges businesses face. Let’s explore why organizations still rely on these accounts and the security risks they introduce.

Why Do Shared and Generic Accounts Persist?

Despite advancements in identity and access management (IAM), many industries and workplaces still depend on these accounts. Here’s why:

1. Operational Necessity

Certain work environments, such as manufacturing plants, healthcare facilities, and retail stores, require employees to quickly access shared systems. Employees frequently shift between tasks and workstations, and therefore, assigning unique workstations and individual accounts to each employee would be impractical and inefficient. In many cases, the number of employees varies significantly, making it challenging and costly to manage individual accounts for every worker. Additionally, standard Windows operating systems have practical limitations on the number of user accounts they can efficiently manage.

2. High Workforce Turnover

Industries with high employee turnover, like hospitality, frontline healthcare, and retail, struggle with managing individual user accounts. In a factory, for example, temporary workers or contractors hired for busy production periods may require access to equipment or safety systems for a short duration. Similarly, in retail, seasonal workers hired for busy shopping periods, such as Black Friday, need quick access to point-of-sale systems. Or, in a hotel, seasonal staff such as front desk workers need temporary access to booking systems during peak seasons, like holidays. With constant new hires, frequent staff changes, and irregular shifts, creating and deleting accounts for each employee becomes impractical and time-consuming. As a result, many organizations use shared accounts to reduce the time and effort, though this can bring its own challenges, such as security risks and inefficiencies.

3. Cost Savings

Licensing costs for enterprise applications and identity management solutions can be high or quickly add up, especially when an organization has a high turnover or a large number of temporary, seasonal, or shift-based workers. Imagine a busy hotel during peak season, where many seasonal staff are hired for just a few months. If each worker required an individual license, the costs would be substantial. The same goes for manufacturing or retail, where temporary workers are brought in to meet demand. Organizations often resort to shared accounts to avoid paying for individual licenses.

4. Restricted Access to Personal Devices

In sectors such as manufacturing, healthcare, and law enforcement, workers may not have access to personal mobile devices due to safety regulations or security policies. In a manufacturing plant, for instance, employees may be working near heavy machinery or hazardous materials, where the presence of personal devices could cause distractions or pose safety risks. Additionally, workers in these sectors often wear protective gear such as gloves, helmets, or specialized clothing that makes it difficult, if not impossible, to use a smartphone for authentication purposes. These restrictions limit workers' ability to use multi-factor authentication (MFA) solutions that rely on personal mobile devices, such as receiving authentication codes or using biometric authentication through smartphones, making shared accounts a more practical alternative.

5. Lack of IT Resources

Small and mid-sized businesses often face significant challenges when it comes to managing complex authentication systems, especially when they have limited IT support. These organizations may not have the budget or technical resources to implement and maintain advanced solutions. As a result, they need a more straightforward approach to access management that doesn't require extensive technical expertise. This is why for them shared accounts provide a practical yet insecure solution by reducing the IT workload.

The Challenges of Shared and Generic Accounts

While shared accounts offer convenience, they come with notable security and management risks that organizations must consider. One of the primary concerns is security vulnerabilities. Shared accounts lack individual accountability, making it difficult to track who accessed a system or performed specific actions. This absence of tracking increases the potential for insider threats, unauthorized access, and compliance issues. Additionally, poor auditability is another significant risk, particularly for industries like healthcare and finance that require strict adherence to regulations such as HIPAA and GDPR.

Shared accounts make it nearly impossible to maintain proper audit trails, heightening the risk of non-compliance and resulting in potential penalties. Moreover, the increased risk of credential theft is prevalent when multiple employees use the same account, often leading to credentials being written down or stored insecurely. This opens the door for phishing attacks, credential leaks, and unauthorized access.

IDmelon: Addressing the Pain Points of Shared Accounts

At IDmelon, we fully understand the significant challenges shared and generic accounts present for organizations. We’ve designed a solution that tackles these pain points head-on, ensuring both security and efficiency without disrupting existing systems. Our solution integrates seamlessly into your current workflows, providing secure, personalized access while maintaining the convenience that shared accounts offer. By utilizing passwordless authentication and identity-based access control, we ensure that each user is accountable and that sensitive data is protected without adding unnecessary complexity. With IDmelon, you can maintain the balance between operational efficiency and robust security, making shared accounts safe and manageable, all without any disruption to your existing systems.

Get started by talking to an expert at https://idmelon.com/contact-sales.

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