Understanding Privileged Access Management (PAM): A Critical Cybersecurity Strategy

Introduction to Privileged Access Management (PAM)

In today's threat landscape, bad actors target smaller businesses because of the downstream effect: access to all of its customers. Thus, understanding how PAM fits into a robust defense-in-depth strategy is critical to mitigating the risks your business faces.  

If you’re wondering what PAM is, you’ve come to the right place for the answer. 

What is PAM and its crucial role in cybersecurity

As we explore new frontiers in generative AI, attack surfaces are multiplying exponentially. 

With AI-driven cyberattacks, Gartner sees an increased role for IAM (and by extension PAM) — and recommends a strong focus on identity-first security. 

Definition of Privileged Access Management

What is PAM, and why is it needed? 

Privileged Access Management or PAM comprises a suite of tools that control and monitor how privileged users get just-in-time (JIT) access to critical systems and sensitive data.  

These users include domain-level administrators and superusers who possess elevated permissions. By securing these accounts, PAM helps prevent supply chain attacks. 

But, what is an example of privilege management? 

According to Gartner, there are four (4) major Privileged Access Management (PAM) tool categories:  

• Privileged Account and Session Management (PASM) involves monitoring privileged accounts and sessions to ensure that only authorized users receive elevated privileges. PASM tools prioritize password vaulting and audit trails to meet compliance requirements such as HIPAA, GDPR, and PCI DSS.  
• Privilege Elevation and Delegation Management (PEDM) comprises a set of PAM tools for managing the temporary elevation of users so they can perform tasks requiring higher-than-normal privileges. This is done through just-in-time (JIT) access, which provides elevated privileges only when necessary and for a limited time. 
• Secrets management refers to PAM tools for storing sensitive data such as encryption keys, passwords, and API keys — usually in secure vaults. 
• Cloud Infrastructure Entitlement Management (CIEM) refers to PAM tools for managing permissions to resources within cloud environments.

Both IAM (identity access management) and PAM are critical tools in a robust security arsenal in today’s treacherous threat landscape.  

But, what is the difference between IAM and PAM?  

In a nutshell, IAM controls access for all users in an organization, while PAM tools secure high-risk, high-privilege accounts. If you have Microsoft 365, you already have access to a cloud-based IAM solution: Microsoft Entra ID (formerly Azure Active Directory). However, you’ll still need to manage high-privilege permissions. This is where PAM comes in.  

The need for PAM in safeguarding sensitive data and critical systems

The necessity for PAM arises from the increasing frequency and sophistication of attacks targeting privileged accounts: 74% of all breaches involve privilege misuse and stolen credentials via social engineering. 

Cybercriminals often exploit these accounts to gain unrestricted access to sensitive data and critical infrastructure.  

Implementing PAM ensures that access is tightly controlled and continuously monitored. This approach reduces the attack surface, strengthening security defenses and minimizing the risk of operational disruptions. 

The essence of privileged accounts

Privileged accounts hold the keys to your organization's most sensitive data and systems; understanding their essence is crucial to safeguarding against privilege-based attacks. 

Overview of privileged accounts

Privileged accounts are special user accounts with elevated rights and permissions. 

These accounts have more access rights than regular user accounts. 

Users can perform critical tasks that can affect the security and functionality of an organization's IT infrastructure, such as system configurations, software installations, and network management.  

Given their broad access capabilities, privileged accounts are both essential and vulnerable. 

Types of privileged accounts

Privileged accounts exist in both on-premises and cloud environments. 

The most common types of privileged accounts include: 

• System admin accounts: These users often have full superuser permissions to manage systems and applications. In particular, system admins are responsible for the provisioning of SSH (Secure Shell Protocol) keys. These cryptographic keys are used to authenticate user identities and ensure secure communications between two hosts over an insecure network. System admins use tools like ssh-keygen to generate secure SSH public and private keys. 
• Network admin accounts: These users often have full superuser permissions to configure, maintain, and modify network hardware and software. They can be considered domain-level users if they have domain control privileges. Network admins may assist system admins in SSH key management by setting up secure network protocols that support SSH key authentication. They may also monitor network traffic to identify unauthorized SSH key usage. Poor SSH key management may leave enterprise networks vulnerable to attacks that exploit SSH keys with root permissions. 
• Database administrator (DBA) accounts: These superusers are responsible for the performance and security of databases. They handle tasks like backups, data modeling, and performance monitoring. DBAs are often involved in the provisioning of databases. 
• Developer accounts: These users require privileged access to test, debug, and deploy apps within certain environments. 
• Service accounts: These automated accounts run backups and scheduled jobs without human intervention. 
• IT security accounts: These accounts have unrestricted access to all critical system resources. They are typically used for implementing security measures against cyberattacks and data breaches.  

The risks associated with privileged accounts and cyberattacks

Accounts with privileged credentials are prime targets for cybercriminals due to their extensive access rights. 

Once compromised, these accounts can be exploited to gain unauthorized access to sensitive data. The risks associated with unprotected privileged accounts include:  

1. An increased attack surface: Privileged accounts provide access to a wide range of resources. This access increases the attack surface, making the system more vulnerable to attacks. 
2. Misuse of privileges: Privileged accounts can be misused intentionally or unintentionally. For example, an administrator can accidentally modify critical system settings. Meanwhile, a hacker may install malware to disrupt operations or create a backdoor account to maintain stealth system access. 
3. Lifecycle management challenges: The lifecycle of privileged accounts, from creation to decommissioning, can be complex to manage. Without proper lifecycle management, unused or forgotten privileged accounts can remain active, providing potential entry points for attackers. 
4. SSH key risks: SSH (Secure Shell Protocol) keys are often used for authentication in privileged accounts. If these keys aren’t properly managed and stored, they can be stolen and used for unauthorized access. A key example is the recent CVE-2024-31497 vulnerability, which hackers exploited to gain possession of cryptographic key pairs and access to enterprise servers.  
5. Endpoint attacks: Endpoints, such as BYOD devices, can be targeted by attackers to gain access to privileged accounts. For example, malware can be used to steal privileged credentials. With fewer businesses paying cash to decrypt, malicious actors are now switching to infostealer malware like Lokibot, Darkgate, and Emotet to exfiltrate credential data to remote servers. 
6. Pass-the-Hash attacks: In this type of attack, an attacker steals the hash of a user’s password (often a privileged account) and uses it to authenticate on a remote server. 
7. Privilege escalation attacks: In these attacks, an attacker gains access to a system with a low-level account and then exploits its vulnerabilities to increase their privileges.

To mitigate these risks, we recommend implementing robust privileged access management (PAM) strategies, such as: 

• Zero Trust (which includes least privilege or just-in-time access — more below) 
• Multi-factor authentication (MFA) and SSO (single sign-on) 
• Regular audits 
• Securing SSH keys in LastPass

Core Components and Examples of PAM

How PAM works: a look at key features

Below, we dive into the key features that make PAM an ally in fortifying your system’s security. 

Functionality of PAM solutions: least privilege, access control, real-time monitoring

First, what is a PAM solution? 

PAM solutions function by enforcing the principle of least privilege, which restricts user access rights to the minimum necessary to perform specific tasks. Key features of PAM include: 

• Least privilege: This principle restricts the user’s access rights to the bare minimum needed to perform necessary tasks. Thus, the potential damage from a compromised account is significantly reduced — this is especially critical in mitigating supply chain attacks. 
• Role-Based Access Control (RBAC): Ensures that only authorized users can access sensitive data and systems. 
• Real-time monitoring: Continuous tracking of user activities to detect and respond to suspicious behavior promptly.

Automate provisioning, workflow, and compliance requirements

As mentioned, PAM is a subset of IAM. Here’s how a PAM solution can help streamline provisions, workflows, and compliance: 

8. Automated provisioning and de-provisioning lifecycle management: Automated synchronization between IAM and PAM ensures swift updates to user status in the PAM system. When a user is on-boarded, promoted, or exits the organization, their privileged access permissions can be automatically modified or revoked. 
9. Session monitoring and audit trails: PAM augments IAM with detailed logs of privileged account actions, including resources accessed, reasons for access, and timestamps. Audit trails serve as valuable documentation or proof that your organization has implemented controls to ensure transparency and data privacy as required by regulatory standards. 
10. A unified identity repository and granular visibility: PAM integrates with IAM’s centralized directory services and logging system (like Microsoft Entra ID). This provides a single repository for both privileged and non-privileged user identities and a 360-degree view of access activities. 
11. Strong authentication mechanisms: By utilizing IAM's MFA capabilities, PAM tools establish a robust authentication process for accessing privileged accounts. 
12. Single sign-on (SSO) security and streamlined workflows: Integrating PAM with IAM’s SSO capabilities allows both regular and privileged users to authenticate once and gain access to multiple resources. 

Privilege management in action: use cases

In light of credential attacks, Privileged Access Management (PAM) and Identity Access Management (IAM) are both critical components of a robust cybersecurity framework.  

Read on to discover privilege management use cases that enable Zero Trust and defense-in-depth, strategies focused on preventing lateral movements in enterprise networks. 

Examples of privilege management in enterprise environments

In large enterprise environments, PAM helps manage thousands of privileged accounts across diverse systems. Here’s how privilege management works in such a setting:  

13. Role-Based Access Control (RBAC): RBAC allows you to assign permissions to users based on their roles. For example, only system administrators can install software or modify system configurations. 
14. Just-In-Time (JIT) Privileged Access: JIT access grants temporary elevated privileges to users only when needed. For instance, a help desk technician may receive temporary admin privileges to troubleshoot a platform issue and provide guidance to a user. This access expires once the task is completed. 
15. Privilege elevation: Users may require temporary elevated privileges for certain tasks. For example, a Microsoft 365 plan with Intune now allows support-approved elevations. This means end users can now access specific apps or tasks that typically require elevated privileges. 
16. Session monitoring and recording: Monitoring and recording privileged sessions help organizations track and audit the activities of privileged users. 
17. Unauthorized privilege escalation prevention: Enforcing measures like MFA, least privilege, timely security patches, and password security to prevent unauthorized privilege escalation is crucial. The most concerning privilege escalation vulnerability thus far has been CVE-2024-30051, a Microsoft DWM Core Library Privilege Escalation Vulnerability that allowed hackers who had already breached a system to gain complete SYSTEM privileges.  
18. Unauthorized Resource-Based Constrained Delegation (RBCD) prevention: In light of attackers manipulating RBCD to gain SYSTEM privileges on Windows machines, Microsoft has provided two important mitigations: enabling LDAP channel binding & signing and setting the ms-DS-MachineAccountQuota attribute to 0. It’s important to note that Azure AD joined devices are immune, while hybrid-joined devices connected to on-premises domain controllers remain susceptible.  
19. Password management: Proper password management practices, such as using the NIST new password guidelines for 2024, automatic password rotation, and vault storage, are essential to robust privilege management. This helps prevent unauthorized access, reducing the risk of credential-based supply chain attacks.

As can be seen, privilege management is critical to enterprise security. 

Real-world applications: securing endpoints and managing access rights in SaaS apps

PAM is also critical in securing endpoints and managing access rights within SaaS applications. It does this through a combination of authentication, authorization, and privilege access management. 

PAM solutions monitor and record privileged user sessions in real-time to detect any suspicious activities or unauthorized access attempts.  

Session recordings capture all user actions, commands, and keystrokes performed during the session, providing a detailed audit trail for forensic analysis, compliance reporting, and incident response. 

Implementing a Robust PAM Strategy

A robust PAM strategy ensures that your critical systems are shielded from unauthorized access. 

Key steps to deploying an effective PAM solution

Discover and inventory privileged accounts and credentials

The first step in deploying a PAM solution is to discover and inventory all privileged accounts and credentials within the organization.  

Many compliance standards, such as PCI DSS, HIPAA, and GDPR, require organizations to maintain proper controls over privileged accounts.  

By inventorying privileged accounts, your business can ensure compliance with these standards and demonstrate that you have implemented appropriate security measures to protect sensitive data and address potential security gaps. 

Implement least privilege access and Just-in-Time access principles

Next, organizations should implement the principles of least privilege and just-in-time access.  

This approach minimizes the duration and scope of privileged access, reducing the risk of misuse or compromise. 

Secure and manage privileged credentials, sessions, and access rights

Once a threat actor compromises a privileged account, they can access all of your confidential data, modify your security settings, spread viruses across your network, and access any third-party system connected to your infrastructure. 

Thus, securing privileged credentials, access rights, and sessions are crucial components of a robust PAM strategy. This includes: 

• Automatic time-outs that require session re-authentication: this ensures the person accessing the resource is still authorized. 
• Credential vaulting and automatic password rotation with a password manager 
• Strong authentication mechanisms with SSH keys and MFA. Watch out for strange high-volume MFA requests aimed at high-privilege accounts. 
• Establish thresholds for alerts, especially when old or disabled privileged accounts are reactivated without authorization. 

Best practices for sustaining a strong security posture with PAM

Mastering PAM is no longer a luxury, but a necessity.  

Read on to discover how implementing these best practices can fortify your security posture and protect your most sensitive assets. 

Regular audits of privileged activity and access rights

Conducting regular audits of privileged activity and access rights ensures that your employees are complying with your security policies.  

These audits provide valuable insights into the effectiveness of your PAM strategy and highlight areas for improvement. 

Real-time monitoring for suspicious activity and compliance adherence

Real-time monitoring is essential for detecting and responding to suspicious activity promptly.  

By continuously tracking privileged access and usage patterns, your business can quickly pivot in the face of potential threats.  

Take, for example, the January 12, 2024 password spray attack by Russian hacker group Midnight Blizzard (APT29 or Cozy Bear), which infiltrated a Microsoft corporate account with elevated privileges belonging to the tech giant’s leadership team. 

This attack prompted CISA to issue an emergency directive (ED 24-02) for affected parties to enact immediate security measures released by Microsoft.  

With continuous, real-time tracking, your business will be ready for such an eventuality. 

Continuous improvement and adaptation to emerging cybersecurity threats

The threat landscape is in constant flux, so your PAM strategy should stay one step ahead.  

Continuous improvement and adaptation may mean switching from an expensive on-prem PAM solution to a leading-edge cloud-based one.  

A cloud-based PAM solution provides: 

• Access to a credential vault to secure API keys, database credentials, authentication tokens, and SSH keys, which considerably reduces secrets sprawl. Wondering if a vault is worth your investment? According to GitGuardian’s State of Secrets Sprawl report, an eye-watering 12.8 million secrets or hard-coded credentials were exposed on GitHub.com in 2024. And, that’s not counting the 11,000 exposed secrets in the Python Package Index (PyPI). 
• Enhanced access controls for privileged user management without the expense of on-prem architecture 
• A directory integration that enables secure employee onboarding and exits. For example, Microsoft Active Directory integrates with LastPass. This simplifies privileged account oversight and employee management through real-time provisioning and deprovisioning of user accounts in both Active Directory and LastPass. 

Safeguarding Your Digital Assets with PAM

As can be seen, IAM and Privileged Access Management (PAM) are critical in stopping attackers in their tracks. 

Both IAM and PAM provide a comprehensive approach to securing privileged and non-privileged accounts.  

By adopting robust IAM and PAM strategies, your business can enhance its security posture, protect its hard-earned reputation, and retain its competitive edge.  

Worried about your privileged accounts being targeted in a sophisticated AI-enabled supply chain attack? So are SMBs in these industries: 

• Professional and legal services 
• High tech 
• Manufacturing 
• Healthcare 
• Finance 
• Wholesale & retail  

If you do business in any of the above, don’t wait to experience PAM-level security with your free trial of LastPass Business. You can manage privileged credentials with a secure vault, implement role-based access controls, and deploy automatic password rotation.