The same is possible with SMB and probably with anything else that relies on NTLM authentication. The two domains involved may even have different NetBIOS names. As I see it, this is as feature rather than a bug. It is a kind of "poor man's single sign-on" which can be used in workgroup environments without a domain. Let us assume a local user (logged on as DUCK-TECH\dduck) tries to access a remote server. The client tries to log on with credentials as follows: USER: dduck PASSWORD: quack (the password is not sent across the network, but verified through a challenge-response scheme) REALM (i.e. domain or computer): DUCK-TECH If DUCK-TECH is not either the server's domain or a domain trusted by the server's domain, the account DUCK-TECH\dduck cannot have any privileges on the server and the server cannot perform an authentication against DUCK-TECH. It will hence replace the realm DUCK-TECH with its own default realm: Let us assume the server is a member of a domain called ACME, which has no trust relationship with DUCK-TECH. The server will now try to authenticate the user with those credentials: USER: dduck PASSWORD: quack REALM: ACME If these credentials are OK (i.e. there exists an account ACME\dduck with "quack" as its password), the user is allowed in. The permissions for ACME\dduck apply. Note that a valid user name and password are still required for this to work. I wouldn't consider it a security hole at all.