Hello everyone. We have a form in webstore which takes user's input and creates a customer record in NS and a script is deployed on customer record which assigns password manually to those customer records and sends a mail with credentials to the customer. But when a user goto login page and enters any password instead of the provided one, they are able to login. Can someone tell me is it a bug or setting password manually on customer record doesn't work for webstore login ?

assuming you are doing it in the right place (access subtab) it should work fine.