Local Accounts: These are specific to a single computer (or workstation) and are stored in that system's Security Accounts Manager (SAM). They are authenticated by the local system, meaning it checks the login credentials when a user logs on. This type of account is typically used for standalone machines or smaller networks.
Since local accounts are managed individually on each machine, it can be harder to maintain them across an extensive network. For example, if you need to update permissions or reset a user's password, you'd have to do it on each machine where the local account exists.
Attackers often target local accounts because they are tied to individual machines and can be easier to exploit if the system is not adequately secured. It is generally recommended to use domain accounts, which offer better centralization and control.
Domain Accounts:
Domain accounts, stored in Active Directory (AD) and authenticated by Domain Controllers (DCs), offer the convenience of allowing users to access multiple systems within the domain without needing separate accounts for each system.