I remember shopping at a well known, large electronics store in NY. The cashier insisted on taking down my phone number and email. When I asked why, he said "if you decide to return the items". I told him I will produce the receipt, but this turned into an argument. I didn't want to waste other people's time over a 30$ purchase, so I just left without buying. This is just a small example of the abuse that we put up with everyday
For the famous people, it's a 'nice' extortion, for some 'glossy magazine babe' who claims she is all natural, to come up with evidence of implants, etc. would be devastating to her number of followers, and thus sponsors/payments.
That said, let's hope we're beyond the point of anyone caring about pictures of the human body or whether someone's had plastic surgery.
If I were threatened with something like this, which could be pretty embarrassing since I lost so much weight and have loose skin, I'd tell the hackers that I'll release even more if they leak mine and then attempt to find dirt on them.
Even if they want to use them for ML, this shouldn't be reason to reduce the perceived sensitivity of the data to let them sit on an online device, as the harm hasn't reduced. Hopefully we'll see more threat models based on the impact of harm, not on the convenience to business.
Anyone using Cisco could be breached by someone logging in with the default passwords Cisco keeps adding (and removing when discovered).
These are basic stuff, a newbie IT should know these things.
I will also assume that (large) organizations test the updates, and have an action plan in place (i.e. apply fix/patch/update XYZ, study what it does, read the documentation, make the future-state-config, deploy that config, validate the config). I know, simple words, we 'all' (in the profession) know this but when you need to patch x1000, and the boss is barking.......
Therefore auditors will look and find nothing, but the accounts are buried there within the system if you know about them (i.e. by exploring a firmware dump and finding the password hash and reversing it).
If these are documented (e.g. IBM has these notorious RedBooks of 500-700-1000 pages) then one should spend the time to study before implementing, securing, auditing, and-other-verbs.
Again, the only 'excuse' I can accept (not really) is that "management" knows that the staff is not enough and they cut corners.. in which case you crucify the COO in your report, not the poor admin(s).
Being caught in a lie about your main product being fake is a win for the public in my book.