By NHI Mgmt Group Editorial TeamBased on Entro Security: “Best practices for IaC and secrets security” (May 20, 2024)

TL;DR: Hardcoded secrets, secrets sprawl, weak access controls, and infrequent rotation make Infrastructure as Code a recurring source of exposure, according to Entro Security. Vaults reduce blast radius, but they do not solve lifecycle, logging, or post-retrieval leakage, so secrets governance must extend across the toolchain.


At a glance

What this is: This is an analysis of why Infrastructure as Code secrets security fails when credentials are hardcoded, broadly shared, or left to sprawl across pipelines and repositories.

Why it matters: It matters because IAM and NHI teams need governance that covers creation, storage, retrieval, logging, and rotation, not just a vault at the centre.


Context

Infrastructure as Code speeds delivery, but it also creates a governance gap when secrets are embedded directly in playbooks, templates, and build artefacts. In that model, access to code becomes access to credentials, and standard secrets controls only catch part of the exposure surface.

The problem is not just storage. Once a secret is copied into repositories, logs, environment variables, or deployment outputs, the credential lifecycle extends beyond the vault and beyond the team that originally provisioned it. That makes Infrastructure as Code secrets security an NHI governance problem as much as a DevOps hygiene problem.


Key questions

Q: What breaks when secrets are hardcoded into DevOps pipelines?

A: Hardcoded secrets break rotation, ownership, and offboarding at the same time. They become embedded in repositories, build systems, and configuration files, which means the credential can survive long after the workflow changes. That creates hidden persistence and makes remediation dependent on finding every copy first.

Q: Why do leaked IaC secrets create such a broad impact?

A: Leaked IaC secrets often reach multiple systems at once because the same credential may authenticate to cloud services, databases, or automation tools. Once one file or log exposes the value, the blast radius depends on the privilege attached to that secret, not just on where it was first stored.

Q: What are the signs that secrets management is failing in IaC pipelines?

A: Common warning signs include the same secret appearing in several repositories, rotation being delayed because dependencies are unclear, and audit logs showing secret retrieval outside normal deployment paths. Those signals usually mean the organisation lacks a coherent inventory and lifecycle view of its secrets.

Q: Should organisations prioritize vaulting or rotation first for compromised secrets?

A: They should do both, but rotation usually comes first when compromise is suspected because vaulting does not invalidate a leaked secret already in circulation. Vaulting helps prevent future exposure, while rotation and revocation reduce the attacker’s usable window right now.


Technical breakdown

Hardcoded secrets turn code repositories into credential stores

When passwords or API keys are written directly into Terraform, Ansible, or other IaC files, the source repository becomes an identity-bearing control point. Version control, forks, cached artifacts, and developer access can all expose the credential. The core failure is that the secret is no longer governed as a living credential with ownership, rotation, and revocation rules. It becomes part of the deployment text, which means any copy of the file can become a valid access path. This is why hardcoding is not just poor hygiene. It collapses the boundary between code distribution and credential distribution.

Practical implication: treat IaC repositories as potential secret-exposure points and block committed credentials before they become persistent access.

Vaults reduce blast radius but not post-retrieval leakage

A vault centralises secret storage, but it does not control what happens after retrieval. Once an application, script, or operator fetches a secret, the unsealed value can appear in logs, process arguments, environment variables, memory dumps, or debugging output. That means the main exposure window shifts from storage to runtime handling. The operational mistake is assuming that central custody equals end-to-end protection. In practice, the vault is only one node in a larger delivery chain, and the credential still needs governance after release. Ephemeral issuance, scoped access, and runtime logging discipline matter just as much as the vault itself.

Practical implication: govern the credential after retrieval, not only inside the vault, and reduce the lifetime of any exposed value.

Secrets sprawl demands toolchain-wide control, not local fixes

Secrets sprawl occurs when the same credential pattern is scattered across repositories, config files, cloud services, and pipeline systems without a single inventory or lifecycle view. That creates fragmented ownership, inconsistent rotation, and weak auditability. The article also points to consistent governance across the toolchain, which matters because CI/CD, logging, and incident response all become part of the trust boundary. If those systems are not integrated, teams cannot reliably answer where a secret exists, who can use it, or whether it was already exposed. The security issue is not scale alone. It is unmanaged duplication across controls that were never designed to cohere.

Practical implication: build a cross-toolchain inventory for secrets and tie it to rotation, logging, and revocation workflows.


Threat narrative

Attacker objective: The attacker aims to turn a leaked deployment credential into access that reaches cloud infrastructure, data stores, or build systems.

  1. Entry occurs when a secret is hardcoded into IaC and committed to a repository or shared deployment artefact, giving the credential a wider audience than intended.
  2. Credential access follows when the file is copied, indexed, logged, or otherwise retrieved from the code or pipeline environment.
  3. Escalation happens when the exposed secret is reused to reach cloud resources, databases, or automation systems that trust that credential.
  4. Impact is data exposure, infrastructure misuse, or financial loss once the credential is used outside its intended deployment context.

Read our 52 NHI Breaches Analysis report for a comprehensive view of breaches impacting Non-Human Identities including AI Agents.


NHI Mgmt Group analysis

Hardcoded credential exposure is a lifecycle failure, not a code-style issue: Secrets written into IaC break the assumption that credentials remain separately governed from deployment artefacts. Once the secret lives inside versioned code, every copy inherits access potential, which means the credential lifecycle and the software delivery lifecycle have merged. That merger is the real risk, because revocation and ownership become ambiguous the moment code is cloned or shared. The implication is that secrets governance must be designed around artifact movement, not just secret storage.

Vault-centric thinking creates a false endpoint: A vault can centralise custody, but it does not solve what happens before retrieval or after release. Logs, environment variables, and debug output become secondary exfiltration paths, which means the operational control plane extends far beyond the vault boundary. This is why blast-radius reduction is useful but incomplete. Practitioners need to govern the full credential path, from creation to runtime use to disposal, rather than treating vault placement as the end of the problem.

Secrets sprawl is identity sprawl in disguise: When the same credential appears across repositories, pipelines, and cloud services, ownership fragments and the ability to prove who can use what weakens. That fragmentation undermines access review, incident response, and revocation because no single team can see the full credential estate. The issue is not just exposure volume. It is the loss of authoritative inventory across NHI touchpoints. Practitioners should treat sprawl as a governance defect in identity distribution, not a storage inconvenience.

Continuous logging and context-aware rotation are the missing controls: The article correctly points out that rotation only works when teams understand who depends on a secret and where it is used. That requirement is often underestimated in IaC environments because dependency graphs are dynamic and short-lived workloads can appear and disappear faster than manual governance cycles. The practical conclusion is that secrets control must be attached to usage context, or rotation becomes disruptive and incomplete.

Infrastructure as Code has become a privileged identity supply chain: Build systems, repositories, and deployment tools now move credentials as frequently as they move code. That makes SLSA-style governance relevant to secrets handling because provenance, review, and multi-party approval reduce the chance that a compromised account can silently propagate exposure. The broader lesson is that identity control has to follow the delivery chain, not just the runtime environment.

What this signals

Secret governance has to move upstream: The main failure is not simply insecure storage, but the point at which deployment code becomes a credential distribution mechanism. Once that happens, standard IAM review cycles are already late. Practitioners should push detection into source control, build pipelines, and deployment outputs so exposure is caught before credentials spread.

Runtime handling is the blind spot: Vaulting can still leave secrets exposed in logs, environment variables, and command lines after retrieval. That means operational teams need to think in terms of exposure windows, not just storage locations. The control objective is to shorten the period during which any secret exists in an ungoverned form.


For practitioners

  • Block committed secrets at source Scan IaC repositories and CI output for passwords, API keys, and tokens before they reach version control or shared artefacts.
  • Separate secret storage from deployment text Replace inline credentials with vault references or placeholders so the IaC code never contains reusable secrets.
  • Reduce post-retrieval exposure Limit where retrieved secrets can appear by tightening logging, shell history, environment variable handling, and debugging output.
  • Map secret dependencies before rotation Identify which applications, services, and roles depend on each credential before changing it, so rotation does not break live workloads.
  • Integrate CI/CD governance with secret controls Apply consistent approval, access control, and audit logging across source, build, and deployment systems that touch secrets.

Key takeaways

  • Hardcoded secrets in IaC collapse the boundary between code and credential governance, which makes repositories and pipelines part of the attack surface.
  • The article shows that vaults reduce blast radius but do not prevent exposure after retrieval, so runtime handling remains a live risk.
  • Teams need inventory, logging, and context-aware rotation across the whole toolchain if they want to control secrets at scale.

Standards & Framework Alignment

This section maps relevant standards and security frameworks to the operational risks and controls described in this guidance.

OWASP Non-Human Identity Top 10 and MITRE ATT&CK address the attack and risk surface, while NIST SP 800-53 Rev 5 and CIS Controls v8 set the governance and control requirements practitioners need to meet.

FrameworkControl / ReferenceRelevance
OWASP Non-Human Identity Top 10NHI-02 — Secret LeakageHardcoded IaC secrets leak into repositories, logs, and deployment artefacts.
NHI-07 — Long-Lived SecretsInfrequent rotation leaves hardcoded credentials usable for too long.
NHI-05 — Overprivileged NHIExposed secrets become worse when they carry excessive access scope.
Recommendation — Scan IaC and pipelines for exposed secrets and revoke any credential found in code or logs. Replace long-lived IaC credentials with short-lived secrets and enforce rotation tied to usage. Reduce secret scope so any leaked credential cannot access more than the task requires.
NIST SP 800-53 Rev 5IA-5 — Authenticator ManagementIaC secrets are authenticators that require lifecycle management and rotation.
Recommendation — Apply IA-5 to govern secret issuance, rotation, and revocation across deployment workflows.
CIS Controls v8CIS-5 — Account ManagementSecrets in IaC are account-like access paths that need lifecycle oversight.
Recommendation — Use account management controls to inventory, review, and remove stale secret-backed access.
MITRE ATT&CKTA0006;TA0008 — Credential Access; Lateral MovementLeaked IaC secrets enable credential access and downstream movement into cloud systems.
Recommendation — Map exposed IaC secrets to credential-access and lateral-movement detections in your pipeline.

Key terms

  • Infrastructure As Code Secrets Security: Infrastructure as Code secrets security is the practice of keeping credentials out of code while controlling how they are issued, used, and revoked in automated delivery. It combines repository hygiene, pipeline governance, logging, and lifecycle management so secrets do not become durable artefacts.
  • Secrets Sprawl: The uncontrolled proliferation of sensitive credentials, API keys, tokens, passwords, certificates, across codebases, cloud environments, CI/CD pipelines, and configuration files. In 2024, over 50 million leaked secrets were found on the dark web.
  • Post-retrieval leakage: Exposure that happens after a secret is fetched from a vault or secret store. The secret may appear in logs, environment variables, shells, or debug output, which means storage security alone does not protect the full credential lifecycle.
  • Dependency-aware rotation: Dependency-aware rotation is the practice of changing a secret only after every consuming application, pipeline, and service is known. It reduces outage risk by treating rotation as a coordinated lifecycle event rather than a simple vault update.

Deepen your knowledge

NHI governance, agentic AI identity, and machine identity lifecycle are core topics in our NHI Foundation Level course, the industry's only accredited NHI security programme. If you are building or maturing an IAM programme, it is worth exploring.
NHIMG Editorial Note
Published by the NHIMG editorial team on June 23, 2026.
Updated on October 6, 2026.
NHI Mgmt Group, the independent authority on Non-Human Identity, IAM, and Agentic AI security. nhimg.org