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A trust boundary violation occurs when a value is passed from a less trusted context to a more trusted context.
For example, a value that is generated by a less trusted source, such as a user, may be passed to a more trusted source, such as a system process. If the less trusted source is malicious, then the value may be crafted to exploit the more trusted source.
Trust boundary violations are often caused by a failure to validate input. For example, if a web application accepts a cookie from a user, then the application should validate the cookie before using it. If the cookie is not validated, then the user may be able to craft a malicious cookie that exploits the application.
To maintain a trust boundary, validate data from less trusted sources before use.
In the first (bad) example, the server accepts a parameter from the user, then uses it to set the username without validation.
In the second (good) example, the server validates the parameter from the user, then uses it to set the username.
Wikipedia: Trust boundary.
Common Weakness Enumeration: CWE-501.