Synamedia showed off the new service at CES 2019, a technology show that takes place in Las Vegas every year, and explained it looks at various user behaviours to make its assertions.
The fraudulent behavior can also generate a message that, in some instances, asks a Netflix or other account holder if they would like to upgrade to the streaming service's premium option that includes sharing.
It is expected anything from sending an email alerting the user to more premium account models that allow more than one person to access the service to a complete account ban entirely are possible repercussions.
But you have to pay a certain price to watch these web series, create an account and get a password.
FOX News reports that the company found research showing about 26% of millennials give other people their credentials for video streaming services.
It seems like if you share with family you might be OK, but sharing with friends or a wider community could see your account being shut down.
Synamedia aims to crack down on password sharers with a new system that streaming services can pay to access.
"Casual credentials sharing is becoming too expensive to ignore".
"It uses AI, machine learning and behavioral analytics to identify, monitor and analyze credentials sharing activity across consumer accounts", the company said in a statement. "It's a great way to keep honest people honest while benefiting from an incremental revenue stream", said Jean Marc Racine, CPO and GM EMEA of Synamedia.
The system can work out if the service is being used in a "wrong" location - and knows when people are using it in their homes or holiday homes, for example.
The Synamedia Credentials Sharing Insight doesn't just crack down on small-time sharing issues, like a user having the same login as their younger brother in college. It is already in trials with some pay-TV operators.