Slightly off topic, but in a similar vein.
My ISP - iinet - generates a password for you when you register. This is a blanket password for everything, including your email account.
They also use this password to verify your identity when you contact them for any admin matter.
I sent a couple of very long emails to their security centre explaining why I thought sharing passwords with every admin person in the company was a bad idea. They did not share my concerns. They didn't seem to get that if you share the password with everyone it isn't really a secret password anymore.
Cheers,
Simon.



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