Understanding Privileged Identity Management

Is privileged identity management necessary in 2024? 

If the facts are any indication, the answer is an unequivocal YES.  

Attackers are now targeting a range of employee roles – and bypassing traditional MFA to gain unauthorized access.  

Their targets are as varied as account managers, sales directors, Chief Executive Officers, Chief Technology Officers, and Chief Financial Officers. 

Below, we’re going to reveal what privileged identity management is and how you can leverage it to protect your business.  

What Is Privileged Identity Management? 

Definition and explanation of privileged identity management 

A common question we hear is, “What is the concept of privileged identity management?” 

Briefly, Privileged Identity Management (PIM) refers to the security practice of managing privileged accounts, which have elevated access to sensitive data.  

Like its cousin PAM (privileged access management), PIM (privileged identity management) is a subset of IAM (identity access management).   

Often, the privileged accounts targeted by hackers are Active Directory, superuser, administrator, or business user accounts. Both managers and C-suite staff may have access to these accounts.  

Such accounts are the prime focus because they provide extensive access to an organization’s critical resources.  

They are also harder to detect because their activities may register as normal to traditional threat detection systems. 

Essentially, PIM reduces the risk of unauthorized access by enforcing strict access controls and oversight. 

Importance of privileged identity management for enterprises 

So, why is privileged identity management important? 

PIM is especially critical for enterprises that want to protect sensitive data and maintain the integrity of their IT infrastructures.  

Privileged accounts fetch high prices on the Dark Web, while 60% of Dark Web listings are enough to topple the world’s biggest firms. The most popular items for sale include employee login credentials and Zoom account info. 

Still, 70% of adults worldwide don’t know how the Dark Web functions even though it occupies 96% of the internet. The “regular” internet we access every day comprises just 4% of the World Wide Web. 

Effective PIM strategies can help minimize the risk of password or credential-based data breaches.  

Key Features of Privileged Identity Management 

Role-based access control 

So, how many ways are there to manage privileged access? 

Several, if you incorporate an identity-centric approach called Zero Trust. 

A key component of Zero Trust is role-based access control (RBAC), which assigns permissions to users based on their roles. This ensures that users only have the access necessary to perform their duties.  

Another component is implementing Just-In-Time access, which we discuss below. 

Just-in-time access 

Just-in-Time (JIT) access provides users with temporary elevated privileges for a set period. Once the user has completed the specific task assigned, their privileges are automatically revoked. 

For example, businesses that use Entra ID (formerly Azure AD) have access to PIM just-in-time capabilities. Entra ID now combines PIM integration with Conditional Access, where a compliant device is required for role activation and access is determined by Authentication Strength. 

For example, you can require that only phishing-resistant authentication methods be used to access mission-critical resources such as prototypes, designs, blueprints, processes, and procedures. 

Automated provisioning and deprovisioning 

Automatic provisioning and deprovisioning is another method of managing privileged access.  

This occurs when employees join or leave your company. For example, employee A joins the company, while employee B moves from HR to Marketing.  

You’ll want to make sure employee A receives access to job-specific apps so they can perform their daily tasks. 

Meanwhile, you’ll want to revoke former privileges employee B had and replace them with new ones for their current Marketing role.  

If employee B leaves your business next year, you’ll want to revoke all privileges entirely. 

Automatic provisioning reduces insider threats and the risk of financial, reputational, and operational losses. 

Here’s a frightening statistic: 75% of insider threats are the result of malicious actions by disgruntled employees. So, managing privileged access is key to protecting your business. 

How Privileged Identity Management Works 

Identity verification and authentication 

Identity verification and authentication ensures that only authorized users can access privileged resources. Strong mechanisms like adaptive multi-factor authentication (MFA) add an extra layer of security. 

Continuous monitoring and auditing 

Continuous monitoring involves ongoing oversight over privileged activities to detect and respond to anomalies in real-time. By tracking access activities, you can identify and mitigate potential security threats promptly. 

Privilege elevation and de-escalation 

In the cybersecurity realm, privilege escalation refers to a type of cyber-attack where an attacker enters a system and later gains unauthorized elevated privileges. 

In early 2024, Akira (a ransomware group) exploited vulnerabilities in the VPN software of a multinational agricultural firm. The group managed to gain control of the VMware vCenter server to create a new virtual machine. This gave them free rein to carry out malicious actions like extracting credentials from the firm’s Active Directory database. 

Akira was able to bypass the Endpoint Detection and Response (EDR) software to extract the credentials, gain elevated privileges, and deploy ransomware. Plus, they did it all in under six hours. 

Meanwhile, privilege de-escalation refers to the process of combining PIM, EDR, and ITDR (Identity Threat Detection & Response) to remove key attack pathways through Active Directory that attackers use to deploy ransomware.  

Benefits of Privileged Identity Management 

Enhanced security and reduced risk 

Implementing PIM enhances security by ensuring that only authorized employees can access sensitive resources. With Entra ID’s Private Access, you can now deploy PIM with Global Secure Access to ensure that only trusted devices can access your most high-value private apps. 

Improved compliance and auditability 

Regulatory frameworks such as PCI DSS, GDPR, and HIPAA require stringent controls over access to sensitive data.  

Entra ID PIM provides detailed logs and reports on privileged account activities to ensure that your business can demonstrate regulatory compliance during audits. 

This commitment to data security builds trust with consumers and stakeholders. 

Streamlined access management processes 

PIM is a structured process that involves these key areas: 

• Identifying all privileged accounts 

• Enforcing a Zero Trust framework via the principles of least privilege, JIT, and RBAC 

• Unifying access policy across identities, endpoints, and networks  

• Combining EDR, PIM, and ITDR for continuous access monitoring 

• Controlling identities and access in multi-cloud environments

Best Practices for Privileged Identity Management 

Regular access reviews and entitlement recertification 

Regular reviews and entitlement recertification can help keep your business more secure. The process of recertification usually involves these key steps: 

• Identifying the privileged accounts to be reviewed 

• Notifying employees and managers who are responsible for privilege re-certification of their responsibilities  

• Conducting the review 

• Generating reports that summarize the findings 

• Escalating any issues to IT staff for investigation and remediation 

• Documenting the process as a reference for future recertifications and compliance purposes 

Monitoring and alerting for suspicious activities 

Monitoring suspicious activities in PIM involves several key strategies. Below, we discuss them in the context of Entra ID: 

• The comprehensive audit logs in Entra ID allows you to analyze any unusual activities detected. You can set up alerts when changes occur, especially when privileged users join or leave your business. 

• Entra ID can integrate with SIEM (Security Information and Event Management) tools like Microsoft Sentinel to detect and respond to threats in real-time. 

• Microsoft Entra ID Protection can secure workload identities across sign-in behavior and offline indicators of compromise. 

• Identity Threat Detection & Response (ITDR) solutions can integrate with SIEM, XDR (Extended Detection Response), and SOAR (Security Orchestration, Automation, and Response) solutions within Entra ID to detect anomalies in authentication protocols, analyze user authentication across on-prem and cloud in real-time, and instruct the IdP (Identity Provider) to block access during a security incident. 

At this point, you may be wondering, “What do I need to do to set up a Privileged Access Management tool?” 

So, let’s say you want to set up Entra ID. 

First, you’ll need one of the necessary Entra ID Governance licenses. 

Next, you’ll want to sign in to the Microsoft Entra admin center to assign and activate roles. 

You can also configure role settings by using the Activation Maximum Duration slider to set the maximum time an activation request remains active before it expires. 

Finally, you can require users to satisfy Entra ID Conditional Access policies. 

Employee training and awareness 

As mentioned, privileged accounts are prime targets for attackers. 

It’s important to educate employees on what privileged accounts are and why it’s important to secure them.  

Employees should learn about: 

• Zero Trust principles such as least privilege, JIT, and RBAC 

• Procedures for requesting & receiving approval for access rights 

• The importance of adaptive multi-factor authentication 

• The use of strong passwords  

• Avoiding poor password practices 

• How to use audit logs and monitoring tools to detect suspicious activities 

• Initial response actions and reporting procedures in the event of a breach 

Considering the threat landscape, securing privileged accounts is more important than ever.  

In 2024, CISA released a Cybersecurity Advisory (CSA) that reveals the tactics, techniques, and procedures (TTPs) used by cyber criminals to access both privileged and no-privileged accounts. 

You can also engage your employees with gamification: check out the Department of Defense’s interactive Cyber Awareness Challenge for securing privileged accounts. Although the challenge focuses on mitigating threats to DoD Information Systems, it may prove beneficial as a training tool for your business. 

According to a 2022 report by the Journal of Cybersecurity Education, simulations and gamifications are highly effective in improving declarative knowledge and interest in cybersecurity topics. In addition, the Ponemon Institute reports that training with realistic simulations has an ROI of 40%. 

Implementing Privileged Identity Management 

Strategies for implementing privileged identity management 

Implementing privileged identity management involves several key considerations:  

• What constraints must the employee agree to before gaining access to privileged data? 

• What is the appropriate response in the event of an incident? 

• How will the effectiveness of training awareness programs be measured? 

• How frequently should training be held? 

• What is the best option for conducting awareness training? 

Next, key strategies for PIM implementation include: 

• Implementing RBAC to assigning privileges based on roles rather than individual users 

• Enforcing adaptive multi-factor authentication and password vaulting 

• Adopting the Zero Trust principles of least privilege and JIT 

• Automating privileged account lifecycle management 

Integration with existing identity management systems 

One of the most popular questions we get is, “What features should I look for in a Privileged Identity Management solution?” 

First, PIM solutions should integrate with existing directory services such as Active Directory to streamline user management. 

Second, you’ll want to choose a solution that offers password vaulting or integration with a password manager for secure password generation and storage. 

Third, integration with an identity management system that offers adaptive MFA can add another layer of security. 

Finally, you’ll want to look for the following key features: 

• Just-in-time access (JIT) for temporary, time-limited access 

• Cloud and on-prem support

• Role-based access controls (RBAC) 

• Automated discovery to immediately identify current and orphaned privileged accounts 

• Continuous session monitoring, reporting, and analytics 

• Integration with SIEM and SOAR solutions (for example, CyberArk and BeyondTrust support these integrations) 

• AI and ML-powered activity monitoring to compare current actions to historical behaviors, uncover hidden risks, and take prompt action against immediate threats 

Choosing a PIM solution can be a daunting task. If you aren’t ready to make the leap, start with an industry-leading, affordable password manager that offers supreme protection for your most sensitive data. Or integrate your current PIM solution with LastPass to implement federated SSO for streamlined privilege identity management across multiple cloud platforms. Enjoy a no-obligation free LastPass Business trial on us today.