Cyber attackers are successfully evolving their tactics by exploiting any business vulnerability and gaining access to the software, data, and other sensitive information that organizations house. Cybersecurity threats are so advanced, pervasive, and costly that risk has become far more than just the cost of doing business. A ransomware attack, for instance, could be a lot more than a one-time payment for a decryption key; it could cause an entire business to come to a screeching halt.   

Because of how organizations work - with some apps in the cloud, data on their network, and users often working from locations like home offices or branch locations from devices both on and off the network - defending against an abundance of threats means taking the most holistic approach possible. Identity and Access Management (IAM) is a framework of policies and technologies that ensure the right individuals have access to the right resources at the right times for the right reasons. It encompasses the processes and tools used to manage user identities and control access to critical systems within an organization.   

What Is Identity and Access Management (IAM)?  

The concept of managing identity to ensure the right access existed long before cybersecurity professionals made it an official security framework. Consider how to get books at the library, you need to have a recognized library card for a registered user, or how to get cash from an ATM, you need a unique personal identification number. Password and PIN technology continue to be foundational to IAM frameworks, but IAM goes beyond just the solution level. Identity and Access Management comprises whole systems that are essential for protecting sensitive data and ensuring that only authorized personnel can access specific information or perform certain tasks.  

The relationship between IAM and Zero Trust   

Zero Trust is another security model, operating on the principle of "never trust, always verify." Unlike traditional security models that assume everything inside the network is safe, Zero Trust requires continuous verification of every user and device attempting to access resources, regardless of whether they are inside or outside the network perimeter. IAM provides the mechanisms and processes necessary to enforce Zero Trust principles.   

Why Is IAM Important?  

IAM plays a crucial role in mitigating business risk by providing a structured approach to managing digital identities and access permissions.   

The role of IAM in data security   

By implementing IAM practices, organizations can:  

• Enhance security: Identity and Access Management strategies promote one of the strongest ways to reduce the risk of data breaches by ensuring only authorized users have access to sensitive information.   
• Improve efficiency: Organizing under an IAM approach, security leaders can streamline access management processes, reducing the burden on IT staff.  
• Ensure compliance: Meet regulatory requirements by maintaining detailed records of user access and activity.  
• Paves the way for passwordless: Moving beyond a reliance on passwords is key to evolving security strategies to keep up with threats. IAM tools and techniques help modernize cybersecurity, reduce the use of passwords, and limit the potential for end user error.   

Benefits of implementing IAM solutions   

Focusing on implementing IAM solutions and processes offers business benefits beyond just reducing the risk of security incidents. IAM tools and techniques support:  

• Enhanced data security and protection: IAM solutions significantly enhance data security by ensuring that only authorized users can access sensitive information. By implementing strong authentication and access controls, organizations can protect against unauthorized access and lateral movement across the network.  
• Streamlined user access management: IAM systems simplify the management of user access rights, reducing the administrative burden on IT staff. Automated processes for provisioning and deprovisioning users, along with centralized management of access permissions, make it easier to ensure that access rights are up-to-date and consistent across the organization.  
• Improved operational efficiency: By automating many of the tasks involved in managing user identities and access rights, IAM solutions increase operational efficiency. This allows IT staff to focus on more strategic initiatives rather than spending time on manual access management tasks.  

Impact of IAM on regulatory compliance  

IAM solutions also help ensure compliance with various regulations such as GDPR, HIPAA, and SOX. These regulations often require strict controls over access to sensitive data and detailed auditing of user activity. By implementing IAM, organizations can:  

• Maintain compliance: Ensure that access controls meet regulatory standards.  
• Audit trails: Provide detailed logs of user activity to support compliance audits.  
• Data protection: Protect sensitive data by enforcing strong access controls.  

Basic Components of IAM  

 The 4 pillars of IAM  

IAM is all about preventing unauthorized access, and the four pillars of IAM are the strategies used to protect your tech stack. These pillars organize IAM practices and protocols to help secure your entire infrastructure, from users to devices to cloud apps and more.   

• Identity Governance and Administration (IGA): IGA is the process of managing approved user lists for access to software, apps, and other tools. It specifies what users can and cannot do and determines the access and authorization protocols.   
• Access Management (AM): AM grants temporary access under special circumstances and enforces access control without impacting the user experience. Examples of AM are MFA (multi-factor authentication) and RBAC (role-based access control).  
• Privileged Access Management (PAM): PAM includes specialized access controls for unique users. These capabilities go beyond just access to admin capabilities, like naming users who can add, amend, or delete other users or install and uninstall software.   
• Network Access Control (NAC): NAC keeps track of device information, such as network privileges, and monitors any changes to the network.                                                           

The components of IAM 

In addition to the four pillars - or strategies - of IAM, there are also the basic components that make up the practices of IAM. These components are the physical actions, processes, and protocols of identity and access management  

Authentication   

Authentication verifies the identity of a user attempting to access a system and is the process that we’re all most familiar with as end users. Common authentication methods include:  

• Passwords: The most basic form of authentication.  
• Biometrics: Uses physical characteristics like fingerprints or facial recognition.  
• Tokens: Hardware or software tokens that generate a one-time passcode.  

Additionally, protocols such as OAuth and SAML enable secure authentication and authorization across different systems.  
 
With the right credentials, the user can access their permitted tools and resources. Authentication permissions can also be time-based, so that even a user with the right credentials is only allowed to perform certain activities or have specific access for a certain amount of time.   

Authorization  

Authorization determines what an authenticated user is allowed to do. While authentication confirms the user's identity, authorization creates the boundaries and jurisdictions within which the user can operate. The authorization framework distinguishes the access of different users and controls role-based access in the IAM system.   

Access control mechanisms include:  

• Role-Based Access Control (RBAC): Assigns permissions based on the user’s role within the organization.  
• Attribute-Based Access Control (ABAC): Grants access based on user attributes, such as department or job title. Members of the marketing team, for instance, likely don’t need access to accounting software or IT admin dashboards.   
• Least Privilege: Ensures users have the minimum level of access necessary to perform their job functions. This is a key zero trust function and helps to prevent lateral movement across the network, which is often what most threat actors use to find the most sensitive data to encrypt during a ransomware attack.  

Administration  

The administration component of the IAM system manages users' accounts, groups, permissions, and password policies. It monitors the creation and modification of user accounts and ensures that strong authentication methods are used. The administration framework forms the basis for authorization and authentication and manages users' accounts and permissions to groups.  

Creating user accounts and granting access to necessary resources is called user provisioning, while deprovisioning is the process of revoking access when an employee leaves the organization or no longer requires access. Efficient user provisioning and deprovisioning are critical to maintaining security and ensuring that only authorized users have access to sensitive information.   

Auditing and Reporting (A&R)  

The A&R component focuses on what users do with their given access, such as the resources or tools they access and how they use the data. This helps the organization track and detect unauthorized or suspicious activities.  

Auditing and reporting involve examining, recording, and reporting users' access logs and security-related activities within the system. This keeps the system secure and supports compliance with necessary regulations, such as CPRA, HIPAA, PCI DSS, and GDPR.  

IAM Technologies and Tools  

To support each of these pillars and components, IAM requires a certain number of technologies and tools.  

Single sign-on (SSO) solutions  

Single sign-on technology allows users to access multiple applications with a single set of login credentials. This simplifies the user experience and reduces the number of passwords users need to remember, enhancing security and user convenience.  

Multi-factor authentication (MFA)  

Multi-factor authentication requires users to provide two or more verification factors to gain access to a system. Instead of just being able to use a password to log on, you need to provide an additional “proof” of identity. Common factors include:  

• Something you know: Password or PIN.  
• Something you have: Security token or smartphone. 
• Something you are: Biometric verification like a fingerprint or facial recognition.  

MFA adds an extra layer of security, making it more difficult for unauthorized users to gain access.  

Certificate-based authentication is a security mechanism that uses digital certificates to verify the identity of devices or users, ensuring that only authorized entities can access a network or service. Some of the most common Certificate Authorities (CAs) that issue SSL/TLS certificates for securing internet communications include DigiCert, Synamtec, GlobalSign, GoDaddy, and Entrust.  

Privileged Access Management (PAM)  

Privileged access management focuses on controlling and monitoring access to critical systems and data by privileged users, such as administrators. PAM solutions help prevent misuse of privileged accounts and ensure that sensitive data is only accessible to those with the necessary authorization.  

How a Password Management Tool Complements IAM 

Password management tools, like LastPass, play a vital role in rolling out IAM solutions. Passwords are still one of the most common ways to authenticate access to certain systems and applications, and these tools help manage and store passwords securely, ensuring that users follow best practices for password hygiene. By integrating with IAM systems, password managers can: 

• Simplify password management: Automatically generate strong, unique passwords for each account. Create your own password minimum strength requirements as part of setting a strong security policy, organization-wide.  
• Reduce password fatigue: Two-thirds (66%) of people use the same or similar passwords for multiple accounts, which means that knowing one user password might be enough to break into numerous accounts, each with their own invaluable data. Password managers minimize the need for users to remember multiple passwords. 
• Enhance security: Protect against password-related breaches by storing passwords in a secure, encrypted vault. 

Implementing IAM in the Enterprise  

Best practices for IAM deployment  

Identity and Access Management will look different at every organization, but most can start with these best practices:  

• Conduct a risk assessment: Identify and assess risks to prioritize IAM implementation efforts. Start with the most business-critical systems.   
• Define clear policies: Establish clear policies and procedures for identity and access management. What access control mechanisms will you use and why?  
• Implement strong authentication: Authentication is one of the first steps of access. Use MFA and other strong authentication methods. The IAM framework supports a “layered” approach to identity and access security, so consider multiple authentication tactics.  
• Regularly review access rights: Security is not “set it and forget it”. Periodically review and update access rights to ensure they remain appropriate.  
• Considerations for long-term scalability and flexibility: IAM solutions should integrate into existing systems and applications, and tools should have a clear way to adapt to changing security requirements and business processes. 

Challenges and potential solutions  

Like anything in cybersecurity, implementing IAM can present several challenges, including:  

• Complexity: Managing identities and access across multiple systems can be complex.  
• Solution: Use centralized IAM tools and automation to simplify management.  

• User resistance: Employees may resist changes to access management processes.   
• Solution: Promoting a culture of security starts at the top. Provide training and communicate the benefits of IAM to users.  

• Integration issues: Integrating IAM with existing systems can be difficult.   
• Solution: Choose IAM solutions with robust integration capabilities and support. LastPass offers many out-of-the-box integrations with service providers and vendors.   

IAM Risks 

Common vulnerabilities in IAM systems 

IAM is a strong security framework, but implementing the necessary procedures, policies, and tools presents some vulnerabilities to keep in mind.   

• Weak passwords: Passwords are part of Identity and Access Management, which means that some logins are only as strong as the strongest password. Users may create weak passwords that are easy to guess.  
• Solution: Use a password management tool to enforce strong password policies and add MFA for additional security.   

• Insider threats: Employees with legitimate access may misuse their privileges. 
• Solution: Implement PAM and regularly review access rights. You can also mitigate the risk of insider threats by conducting thorough background checks on employees with access to sensitive data.  

• Orphaned accounts: Accounts not properly deactivated when users leave an organization can be exploited.  
• Solution: Have strong documentation processes for deprovisioning user access. Coordinate with HR and people teams to regularly review employee lists.   

• Unencrypted transmission of sensitive data: Transmitting sensitive IAM data over unsecured channels can lead to information being intercepted.  
• Solution: Implement strong encryption whenever possible to protect sensitive data and communications.  

Ensuring secure IAM infrastructure 

To secure IAM infrastructure long-term, organizations should:  

• Regularly update systems: Keep IAM systems and software up-to-date with the latest security patches. Establish a regular cadence to run any software release updates. Not only do updates often include access to the latest product features, they are key to updating any known security vulnerabilities.   

• Conduct security audits: “Switching on” your IAM security measures is only the start. Regularly audit IAM systems to identify and address vulnerabilities.  

Investing in IAM is not just about checking a box under “safeguarding data”; it's about ensuring long-term security success and business resilience. Identity and Access Management is a foundational part of a modern, comprehensive cybersecurity strategy that helps businesses enhance security, streamline access management, and ensure compliance with regulatory requirements. LastPass offers powerful IAM tools that help organizations protect their data, reduce IT management burdens, and secure hybrid and distributed work. Start your LastPass trial here.