Hardcoded passwords could compromise system security in a way that cannot be easily remedied.
It is never a good idea to hardcode a password. Not only does hardcoding a password allow all of the project's developers to view the password, it also makes fixing the problem extremely difficult. Once the code is in production, the password cannot be changed without patching the software. If the account protected by the password is compromised, the owners of the system will be forced to choose between security and availability.
Example: The following code hardcodes a password:
...
pwd = 'tiger'.
...
[1] Standards Mapping - OWASP Top 10 2010 - (OWASP 2010) A7 Insecure Cryptographic Storage
[2] Standards Mapping - OWASP Top 10 2007 - (OWASP 2007) A8 Insecure Cryptographic Storage
[3] Standards Mapping - OWASP Top 10 2004 - (OWASP 2004) A8 Insecure Storage
[4] Standards Mapping - Security Technical Implementation Guide Version 3 - (STIG 3) APP3210.1 CAT II, APP3340 CAT I, APP3350 CAT I
[5] Standards Mapping - Common Weakness Enumeration - (CWE) CWE ID 259, CWE ID 798
[6] How To: Encrypt Configuration Sections in ASP.NET 2.0 Using DPAPI Microsoft
[7] Standards Mapping - FIPS200 - (FISMA) IA
[8] Standards Mapping - SANS Top 25 2009 - (SANS 2009) Porous Defenses - CWE ID 259
[9] Standards Mapping - SANS Top 25 2010 - (SANS 2010) Porous Defenses - CWE ID 798
[10] Standards Mapping - Payment Card Industry Data Security Standard Version 1.2 - (PCI 1.2) Requirement 3.4, Requirement 6.3.1.3, Requirement 6.5.8, Requirement 8.4
[11] Standards Mapping - Payment Card Industry Data Security Standard Version 2.0 - (PCI 2.0) Requirement 3.4, Requirement 6.5.3, Requirement 8.4
[12] Standards Mapping - Payment Card Industry Data Security Standard Version 1.1 - (PCI 1.1) Requirement 3.4, Requirement 6.5.8, Requirement 8.4