It was created in 1973 by Peter Kirstein:
So from the beginning I put password protection on my gateway. This had been done in such a way that even if UK users telephoned directly into the communications computer provided by Darpa in UCL, they would require a password.
In fact this was the first password on Arpanet. It proved invaluable in satisfying authorities on both sides of the Atlantic for the 15 years I ran the service during which no security breach occurred over my link. I also put in place a system of governance that any UK users had to be approved by a committee which I chaired but which also had UK government and British Post Office representation…
This article has been indexed from Schneier on Security