It's probably a bit more complicated than that. Usually the things that I encounter have to do with how HTTP requests are logged.
For example, putting sensitive information in a URL that's loaded over HTTPS is considered insecure because many companies have policies where they log every URL that their employees visit. (Think of a password reset link.)
A lot of inexperienced programmers don't realize this, because they don't realize that you can man-in-the-middle yourself, and that most corporate computers come preconfigured to allow the employer to man-in-the-middle everyone.
So, if a password reset link never expires, it means that some guy in IT can own an account that was reset on a corporate computer.
(This, basically, is how they catch people viewing porn on their work computers.)
Anyway, my point is that the problem is probably something where a junior programmer transmitted a password in a way that they didn't realize was being logged.