Why digital identity is the new perimeter in a zero-trust world

Back in the day, you had a traditional firewall system that was a trust seal for your computer system. With the firewall defense feature, you knew (for sure) that your system is protected. 

But technology doesn't remain the same; today we live in a digital world where everything is digitized - from smart homes to cars and computer systems, you have a digital identity seal for everything. 

So, let's talk about digital identity, which has become a primary perimeter in a zero-trust world. With time, digital identity has replaced traditional security defences, including firewalls. 

Digital identity (works on) a hybrid cloud-first approach. Here, the data is not confined to a physical sense. As you are cognizant that attackers mostly choose verifiable credentials and identities, making (IAM) Identity Access Management a primary need for system integrity.

If you verify the unique machine identity and users before access, it can help you achieve a manageable control point for cyber and digital security. 

Why is digital identity the new perimeter? 

Do you know that about 80% of online breaches involve stolen credentials? That's why most FinTech companies and Banks are highly vigilant about digital threats and thefts. 

Moreover, compromised third-party accounts have become the fastest route to critical infra. Therefore, identity is no longer a security feature; it has become a significant perimeter. 

Let's dive in and see some key reasons why digital identity is the new perimeter. It's time to rethink how you approach security with these reasons:

Slow death of the traditional perimeter 

Technologies change everything at a rapid pace. For many years, companies relied on traditional security systems and firewalls for digital defense. However, post-pandemic, the cloud-first approach started gaining importance, whereas traditional systems (started) losing importance. 

With cloud adoption, your company data, apps, and websites moved to SaaS platforms and other popular IaaS platforms. Of course, this changed the dynamics.

Then, remote work also picked up, and people started working from (any part of) the world and often on unattended devices. Today, IT companies no longer control the apps and endpoints, so the need for digital identity has grown stronger.

Apparently, security is not about location or device anymore; it is more about the (access point) you control. 

The identity backbone 

Zero trust has become a core part of security concerns. Meaning, never trust and always verify is the new mantra for digital security. In this process, most companies adopt a continuous verification process. 

What's that?

Well, this is to ensure that key devices and users remain reliable even after they log in from a device. Other than this, most companies also leverage the power of adaptive signals. These signals provide details of exact location, biometrics, and devices to provide real-time context to websites or apps. 

Most companies use the least privilege feature, which limits the usage to overentitled accounts. Of course, without the IAM feature, zero trust has no relevance, but with it, it has the potential to become an operational reality. You now know about the digital identity background, so let's move to the governance part.

Governance and control

When you adopt a new technology and integrate it with your company systems, the control part may fail somewhere. Do you know the reason? Because strong governance is what determines whether your company passes or fails.

When you adopt digital identity verification, it may require regular reviews and access, which is tied to accountability and not only audits. Most agencies also automate lifecycle management to eliminate risky accounts. With that, you can also leverage the specialized session-monitoring feature, which provides real-time alerts.

You can also expect an external access governance feature with vendor risk assessment. With robust scrutiny, you can turn your IAM from mechanical to strategic. 

Rise of machine identity  

Systems now have a machine identity of their own. Surprised? Don't be. In the last few years, machine identities have outnumbered human identities.

IoT devices, APIs, and RPA bots all require special authentication. AI-friendly machine learning IAM systems are the (new way) to look forward. For example, artificial intelligence, or AI, is reshaping IAM in two ways -

Attackers use automated list-based attack and AI generated fraud for access. Defenders leverage AI for predictive access, risk-based access, and anomaly detection.

That said, overreliance on a particular technology is risky. At the end of the day, AI is not a replacement but an aiding tool; human oversight is (still) relevant. 

Contextual security 

Contextual security follows a risk-based approach in - IAM. It helps evaluate real-time factors such as device health, user behavior, location, and time.

As mentioned above, it helps to determine access beyond the static need for a password. Contextual security provides seamless access for routine logins and low-risk controls, while interrupting only (risky ones). Of course, it also aligns with the key principle of never trust a device and always authenticate before you log in. 

Why should you adopt IAM for digital identity and cybersecurity? 

By adopting the core principles of identity and access management (IAM), you can control identities, i.e., centralize authentication with a strong foundation.

Basically, you can integrate with a zero-trust policy, where you can use identity signals in access decisions (you make). Also, you can automate the governance feature to reduce human errors (with automated certifications).

The best part is that you can expand this to machines, which can help you govern all non-human identities. You can track access-related incidents on a (real-time) basis to make your company site or app compliance-ready. 

Wrapping up

Without strong digital identity support, companies will be vulnerable to attacks and digital threats. Of course, today cloud apps are everywhere, but digital identity is the common thread - a new perimeter or approach to managing digital security.

If your company masters the use of IAM, it will not only secure against today's cyber threats but will also enable you to be prepared for digital transformation in the coming years.

As companies move towards a cloud-first or AI-based approach, the traditional security measures can no longer be trusted. If you move towards continuous verification and a digital identity approach, you can protect your data and customer credentials in this increasingly complex digital world. It is time to change the way you look at digital identity.