Future Trends in Digital Identity Management

Digital identities provide access to systems and services in a variety of use cases as we explore identity management trends. A single identity may represent a person, device or organization, and access permissions must be managed properly to minimize the risk of cyberattacks. Efficient identity management is also required for streamlined workflows, regulatory compliance and reliable security. 

As digital access becomes more complex, businesses must look into the future to prepare for the unique challenges posed by the entrance of more devices into systems and the increasing sophistication of hackers. New trends in digital identity management provide the tools IT professionals and cybersecurity experts need to secure networks against fraud. 

Digital Identity Management Trends

Zero Trust Takes Center Stage 

Traditional access management falls short when it comes to the level of security necessary to protect modern networks. It assumes all users granted access to the network are trustworthy, and therefore every action and permission associated with their identities can safely be performed without further verification. However, this approach has a fatal flaw: Hackers using stolen credentials are given the same level of trust as legitimate users and may be able to penetrate deep into a network before the deception is discovered. 

This has given rise to the trend of the “zero trust” model, in which network insiders and outsiders are treated as posing equal levels of risk. Instead of relying only on preset permissions, rules or roles, zero trust systems monitor user behaviors and allow access based on perceived risk levels. Information is compartmentalized into “microsegments,” and as a user moves within the system, his or her behaviors generate a risk score. If the score is too high, further access requires re-authentication using multiple identifying factors. 

In addition to microsegmentation, companies opting for zero trust access can set additional restrictions based on location, IP addresses and specific permissions. Doing so ensures users aren’t allowed more access than is necessary to do their jobs, an identity management best practice known as the principle of least privilege (POLP) designed to minimize how much hackers can get away with using a single set of stolen credentials. 

Blockchain Leads to Decentralized Identities in Future Digital Identity Management Trends

Maintaining a centralized database of user identities is time-consuming for businesses and can pose a major security risk if the information is ever compromised. The rise of blockchain technology may make it possible to move to a decentralized model in which users create their own identities, register authenticating factors and have the information verified by a trusted third party before being stored in the blockchain. 

Each block in the blockchain contains digital information, such as an identity, and carries a unique identifying code called a “hash.” By adding identities to the blockchain instead of a central database, users make themselves part of what Gartner refers to as the identity trust fabric (ITF). The ITF technology is still being developed and will require better management of accessibility, privacy and security before it can be implemented on a broad scale. 

The shift to decentralized identities parallels the predicted demise of single-factor, password-based authentication. With 81 percent of data breaches attributed to weak or compromised login credentials, it’s necessary to adopt a system in which access requires stronger authentication credentials. Identities stored in the blockchain can be used to access applications from a variety of service providers without creating the points of vulnerability associated with password access. 

Advanced Analytics Allow Adaptive Access

Rule-based access control relies on rules established by a network administrator to determine if requests within the system should be approved or denied. This allows for a measure of control over who can access specific data and applications, when access is to be granted and whether any restrictions are created based on location or other attributes. However, it’s impossible to foresee every scenario in which a user or group of users may require access. Restrictive rules can create bottlenecks in workflows, and liberal rules increase security risks. 

Adaptive access offers a smarter alternative. Adaptive environments use a combination of advanced analytics information and machine learning technology to learn users’ behavioral patterns and grant or deny access based on whether or not behaviors are perceived as normal. This creates a more “risk-aware” system with an inherent ability to detect anomalies and trigger security actions as necessary. 

Intelligent digital identity management is a crucial factor in the fight against cybercrime. To prevent networks from falling victim to attacks, businesses must look forward and prepare to implement new security technologies. Adapting to the latest technologies means being able to use the tools available to establish proactive responses and protect systems from a growing number of threats. Businesses ready to evolve with these changes will be better able to manage risks and maintain the strong security required to protect networks in the modern technological era.

Identity and access management certifications

Crypto Transaction Privacy

Crypto transaction privacy implications must be considered in cryptocurrency payments and smart contract transactions. The digital world is becoming more and more intertwined with our everyday lives since the inception of the blockchain technology, Web3, metaverse, and crypto. With the advent of cryptocurrency, we now have a new way to conduct digital transactions. Cryptocurrency offers many advantages over traditional fiat currency but also comes with some risks and implications including crypto transaction privacy.

Crypto Transaction Privacy

Crypto Transaction Overview

Crypto and blockchain in general have been praised for their transparency, but crypto transaction privacy can be confusing and contradicting when we compare privacy of smart contracts to the privacy of the cryptocurrency payment transactions. While regulators are concerned with money laundering and illegal activity financing aspects of crypto transactions, parties to the smart contract transactions are concerned with the lack of privacy. This is because blockchain technology, the underlying cryptocurrency technology, is designed to be transparent. That means that every transaction made on a blockchain is visible to everyone on the public ledger.

While this transparency has benefits for regulators and others, it also means that some crypto transaction details are not private. When it comes to privacy in cryptocurrency transactions, there are a few key things to keep in mind. Crypto is designed to be decentralized which doesn’t rely on third-party intermediaries or a centralized figure. This means that all transaction data is stored on a public ledger (blockchain) that is viewable by anyone. However, this doesn’t mean that all transaction data is or should be completely public. In most cases, only the addresses involved in a transaction are visible. This means that identity is not directly attached to the transactions.

Benefits of Blockchain Transaction Privacy

One of the major benefits of crypto transaction privacy is the protection of user identities. When users transact using private currency, their personal information is not attached to the transaction and their identity is less likely to be stolen or compromised. Additionally, privacy coins can help protect users’ financial privacy because when users transact using a private currency, their financial information is not shared with anyone else. Their financial privacy is protected, and they can keep their transactions and finances confidential.

Drawbacks of Crypto Transaction Privacy

There are some potential drawbacks to using a private currency. One of the main drawbacks is that it can be more difficult to trace transactions back to the parties involved. Thus, tracking criminals or investigating illegal activity in private currency may be more difficult. Additionally, crypto currencies can be more volatile than traditional currencies. Their value can fluctuate more rapidly, and they may be subject to more fluctuations in the market, although, cryptocurrency volatility is expected to decrease as the crypto market matures.

Privacy Coins and Tokens in Crypto

Some digital currencies, such as Monero and Zcash, offer privacy features that make it difficult for third parties to track transactions. These “privacy coins” or “privacy tokens” use various methods to protect users’ identities and keep their transactions private.

One popular method is called ring signature which mixes a user’s transaction with other transactions, making it difficult to identify the sender. Another common technique is using “stealth addresses,” which create a one-time address for each transaction that can’t be linked back to the user.

Private coins have become increasingly popular as more people look for ways to keep their financial activities private. However, privacy tokens have also been associated with criminal activity, as you can use them to launder money or buy illegal goods.

However, there are some trade-offs to consider:

  • Transaction privacy can come at the expense of transparency. Auditing a blockchain may be more difficult if transaction details are hidden.
  • Private coins and tokens may be subject to more regulatory scrutiny than other cryptocurrencies. Authorities may be concerned about the use of these coins for illegal activity.

Smart Contracts in Crypto

When it comes to cryptocurrency transactions, one of the key considerations is transaction privacy. In some cases, crypto transactions can be completely anonymous, meaning there is no way for anyone to know who is sending or receiving funds. This can be a great advantage for people who want to keep their financial affairs private. However, it also has disadvantages for regulators and crime investigators tracking criminals who use crypto to launder money, finance terrorism, or trade illegal goods.

One of the key features of blockchain is the use of smart contracts in almost every transaction which is essentially an automated program that self executes whenever a transaction criteria is met. Part of the smart contract program may be to automatically pay a party with an agreed upon crypto when a certain action is taken. The challenge here is to keep certain actions and details of the transactions private while the payment data is kept transparent on the blockchain as much as possible or necessary for tracking and investigations.

This means that it would be much easier to track down and prosecute if someone were to try and launder money using a smart contract without disclosing other private and sensitive data.

According to Henry Bagdasarian, “while maintaining privacy in cryptocurrency payment transactions may not be possible in the long run due to regulations and compliance concerns, privacy in smart contracts for commerce and business transactions may be necessary to keep details and sensitive data out of the public view.”

Privacy and Security Considerations

Regarding privacy and security in cryptocurrency, there are a few key considerations to keep in mind. First and foremost, it’s important to remember that blockchain is a public ledger. This means that all transactions are recorded and visible to everyone on the network. However, the identities of the parties involved are not revealed in privacy coin transactions. In other words, while it is possible to trace a particular transaction back to a specific wallet, it is impossible to determine who owns the wallet in private coin transactions.

This transparency has led some people to believe that some crypto coins are not a good choice for privacy-conscious individuals. However, there are a few ways to increase privacy when using non-private coins. For example, some use a service like CoinMixer, which mixes your coins with other users’ coins, making it more difficult to trace a particular transaction back to the cryptocurrency owner. Alternatively, some people use “CoinJoin” to anonymize crypto transactions. This technique allows multiple users to combine their coins into a single transaction, making it more difficult to determine which coins belong to which user.

Of course, no matter what measures are taken to increase privacy, it’s important to remember that crypto currencies are not completely anonymous and future regulations may render many of these privacy techniques illegal including many of the privacy coins such as Monero which uses ring signatures and stealth addresses to make it virtually impossible to trace transactions back to their source.

Privacy When Trading Crypto

One way to maintain privacy during crypto trading is to use a decentralized exchange (DEX) which is a peer-to-peer network that allows users to trade directly with each other without the need for a central authority. This means there is no central control or data collection point, making it more difficult for third parties to track and trace transactions. DEXs have built-in mechanisms to obfuscate further transaction data, such as onion routing or zero-knowledge proofs.

Another way to maintain privacy during crypto transactions is to use a privacy focused token. These cryptocurrencies are designed with privacy and often utilize technologies like ring signatures or stealth addresses, making it more difficult for third parties to track and trace transactions. Privacy coins can be exchanged on centralized and decentralized exchanges, giving users more flexibility in their trade.

How to Achieve Privacy in Crypto?


Regarding financial privacy, cryptocurrencies offer more privacy because they are designed to be decentralized and peer-to-peer without needing third-party intermediaries. This means that there is no central authority that can snoop on or censor crypto transactions.

Crypto privacy can be further enhanced by using a decentralized exchange instead of a centralized ones. DEXs don’t require users to create accounts or submit personal information, so they offer a higher degree of anonymity.

There are also other mechanisms to increase privacy when making crypto transactions. For example, a “burner” wallet can be used for a single transaction before being discarded. Alternatively, a VPN or Tor can be used to mask an IP address, making it more difficult for someone to track activity.

Combining these methods help achieve digital currency transaction privacy to the extent that regulations allow which can change at any time making privacy coins, software, and methods illegal. By being vigilant about your privacy and using decentralized platforms wherever possible, you can help keep your financial information safe from prying eyes to the extent that the regulations allow.

The Benefits of Cryptocurrency Transaction Privacy

There are many benefits to keeping crypto transactions private. One benefit is that it helps keep an identity safe. For example, transactional history could be used to track users down and steal their identity.

Privacy can also help protect consumers from fraudsters. If someone knows what coins a person holds and where they’re stored, they could try to hack into the account to steal the coins. By keeping information private, we can keep ourselves safe from these attacks.

Conclusion

When we discuss crypto transaction privacy, it is important to distinguish between payment privacy and smart contract privacy. Payments may be subject to various regulations while smart contracts executed between two parties may not need to be fully disclosed. Cryptocurrency transactions are not always as private as many people think. While it is true that cryptocurrencies offer a higher degree of anonymity than traditional financial systems, there are still ways for third parties to track and trace crypto transactions. If you value your privacy, it is essential to be aware of the risks involved in using cryptocurrency and take steps to minimize the risks.

CMSC

Managing Vendor Onboarding Challenges

Taking on new suppliers as you grow your business is associated with a unique set of challenges and risks. Vendor partnerships increase the number of people with access to your systems, thus proper vendor onboarding and access management requires diligence when assessing potential security issues. 

Vendor onboarding

When Should Vendors be Allowed Access? 

Efficiency is key to success in the modern market. Companies failing to adapt to the pace of commerce become overwhelmed by the number of administrative tasks necessary to keep the business going and are eventually outpaced by competitors. 

Vendor onboarding and access management is one way to streamline your business processes and eliminate the bottlenecks created when performing transactions with partners outside your system. Onboarding your suppliers maintains efficiency by making it possible to communicate, place orders and send payments without leaving your company’s system or requiring additional software or services to handle supplier transactions. 

Onboarding supports flexible workflows and allows your system to remain both scalable and adaptable. If vendors are left out of the system, your company is forced to use outdated technologies to deal with an increasing number of supplier relationships. The segmented nature of these relationships increases the likelihood of duplicating suppliers for the same or similar products, paying more than you need to for essential supplies and failing to maintain the proper level of communication. 

Major Security Risks of Third-Party Access 

For vendor onboarding to be secure, however, you must understand the risks associated with each potential partner. Despite vendor access accounting for an average of 89 connections per week, only 34 percent of companies allowing vendor access actually know which system logins can be attributed to their suppliers. In a survey conducted by Bomgar, 69 percent of businesses said they could associate a security breach in the previous year with a problem with vendor access. 

These statistics highlight the critical importance of third-party access risk management, yet only 52 percent of companies have solid security standards governing vendor onboarding. To keep your network safe from accidental or deliberate breaches caused by third parties, consider these factors before clearing a vendor for system access: 

• Credit history, including bankruptcies and liens 
• Reliability with delivering orders and services
• How security risks are handled 
• How often security audits are performed 
• Maintenance of data security 
• Regularity of data backups 
• Number and types of devices used for network access 

Use these details to assess the level of risk for each vendor, and tailor your security efforts to address specific risks associated with each third party. 

Maintaining Compliance 

Regulatory compliance is a growing concern for all businesses. From credit card processing to email opt-ins, customers want to know their data is safe and that they have the choice to revoke a company’s privilege to use, transmit or store personal information. 

Vendors not in compliance with the regulations to which your business is subject are a risk not only to the network but also to the reputation of your company. Being flagged for noncompliance carries hefty fines and possible legal consequences, and it reduces consumer confidence when customers realize their data isn’t as safe with you as they thought. 

Discuss your company’s compliance strategies with each vendor you wish to onboard, and look into their histories to find out if they’ve dealt with any compliance or security issues in the past. Evaluate certificates of compliance for relevant regulations so that you know your company will be in the clear should you choose to allow network access. 

Steps for Successful Vendor Onboarding 

According to some statistics, about 60% of data breaches can be attributed to vendors and related vendor access incidents can cost businesses millions as evidenced by past vendor incidents. A strategic third-party onboarding process minimizes the risk of your business suffering loss from similar incidents. 

Onboarding should begin with an assessment of the potential risks associated with allowing a specific vendor to access your systems. It’s important to be as detailed as possible during the vetting process. Utilize all information available about each vendor to get a clear picture of how well they adhere to regulations. If their compliance and security measures check out, you can collect the information you need to add them to the system and allow for streamlined access. 

To keep company data safe, it’s essential to follow the same onboarding process for every vendor, every time. Implement monitoring solutions to track logins and system activity for all users, making use of modern technologies to detect potentially malicious activities. Train employees in all security measures relating to third-party access, including how to respond should monitoring software discover unauthorized activities. 

Whether it’s a new company or a group you’ve worked with for years, no exceptions should be made when onboarding any third party. Maintain the security of your system and prevent problems with compliance by establishing proper boundaries with vendors and re-evaluating access needs over time.

Identity and access management certifications

Artificial Intelligence in Information Security

Artificial Intelligence in Information SecurityWhether it’s another data breach at a major company or a shift in the way large businesses approach security, cybersecurity news continue to highlight the importance of strong identity and access management policies with help from artificial intelligence in information security and machine learning applications. Knowing the threats you may encounter and the protections available can guide you in making the best decisions to secure your systems.

 

Data Breach – Lessons Learned

When a tech giant experienced a “data issue” involving leaked “customer names and email addresses”, according to reported news, the online retailer blamed the data exposure on a “technical error.” Users affected by the problem were sent a vaguely worded email assuring them there was no need to change their passwords.

Many users assumed the email was a phishing attempt and were baffled. However, even though the company stayed quiet about the details, the reported leak was legitimate. No information was forthcoming from the company about the number of people affected or the root cause of the issue, but poor access management is one potential culprit. When permissions are granted beyond a user’s access needs, errors are more likely and hackers have more opportunities to gain entrance into a system.

This leak serves as a reminder to assess permissions and keep access privileges under control in enterprise systems. With so many users interacting throughout the network on the front and back ends, it’s critical to ensure each person only has access to the information and applications necessary to perform essential tasks.

The Rise of Next-Gen IDaaS

As traditional authentication methods lose efficacy, businesses need new ways to address identity management and enforce privilege levels such as the new generation of Identity as a Service (IDaaS) that is available to companies searching for smarter, stronger IAM tools.

For example, IDaaS provides fresh ways to manage customer identities and sign-on procedures. Companies interacting with large numbers of users on a daily basis can leverage enterprise-grade tools to improve the customer experience across all access points.

IDaaS solutions include tools designed to:

• Handle customer registration and authentication
• Improve customer preference and consent management
• Enable continuous integration
• Set up and maintain single-sign on (SSO) access
• Speed up self-service account recovery
• Centralize policy administration and enforcement
• Improve identity analytics

With these options readily available, companies are better able to monitor customers’ access behaviors to detect and stop fraud, and, deal with bottlenecks leading to registration abandonment.

More IDaaS solutions are likely to arise as customer access management increases in complexity. Companies need IDaaS to ensure a high level of security for sensitive data without hampering the customer experience. Being able to provide straightforward registration options and a seamless transition between applications removes potential barriers and allows customers to interact appropriately while preventing unwanted data access.

Do Enterprises Need Artificial Intelligence in Information Security?

With connectivity no longer limited to in-house networks and the number of internet-ready devices continuing to increase, enterprises need a better way to manage risk levels. Threats are becoming more numerous and sophisticated as hackers adapt to the changing landscape of modern networks. With IoT, BYOD, remote work and cloud-based collaboration becoming the norm, there are a growing number of endpoints at which malicious third parties can gain network access.

To address these changes, companies must be ready to switch from threat prevention to proactive detection and response. Outdated security protocols can’t offer the dynamic tools necessary to protect against numerous modern threats, which is why many businesses are turning to artificial intelligence (AI) and machine learning (ML).

With these sophisticated tools in place, enterprises can build security strategies designed to handle the 750 or more applications running on their networks and the 1,500 users accessing each application throughout the day. AI and ML are better at detecting unusual behavior anywhere on a network and can trigger immediate responses to detect a threat before it turns into a full-blown breach. Because these modern security resources can “learn” which behaviors are normal and which aren’t, enterprises no longer have to rely on periodic software updates to get all the information on new threats. Instead, AI and ML work together to “understand” when something is amiss and launch a defense as quickly as possible.

The smartest thing you can do to ensure your systems and data are protected against the growing number of unique threats from malicious parties is to be alert:

  • continue to watch the changing identity and access management landscape,
  • learn from security breaches in the news,
  • get more information about new solutions as they become available, and
  • implement the most relevant options for your organization.