One chestnut from my history in lottery game development:
While our security staff was incredibly tight and did a generally good job, oftentimes levels of paranoia were off the charts.
Once they went around hot gluing shut all of the “unnecessary” USB ports in our PCs under the premise of mitigating data theft via thumb drive, while ignoring that we were all Internet-connected and VPNs are a thing, also that every machine had a RW optical drive.
99% of password theft currently comes from phishing. Most of the people that get fished don’t have a freaking clue they got fished oh look the Microsoft site link didn’t work.
Complex passwords that never change don’t mean s*** when your users are willing to put them into a website.