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Why digital identity and access management is critical for cyber security in 2026
It is two pm on a quiet Tuesday in 2026. A senior finance officer at a global logistics firm approves a high-value vendor payment. They just concluded a video call with the CFO, who authorised the transfer urgently. The voice was perfect. The mannerisms were identical. But the CFO was never on the call.
In an era of AI-generated deepfakes and sophisticated social engineering, this scenario is the reality of the modern threat landscape. If this happened within your organisation and your staff were deceived, do you have safeguards in place? Or would you be facing a devastating financial loss?
A protected organisation will have a digital identity framework that quietly flags the login location as anomalous and demands a hardware-based authentication token before releasing the funds.
As we begin to navigate 2026, we must be conscious that we are working in a digital-first environment. The network perimeter has dissolved and identity is the new frontline of security. Identity and Access Management (IAM or IdAM) is how we ensure that only the right people have access to the right resources at the right time and for the right
Modern threats to identity and access management
While IdAM systems are critical defences, they can still be vulnerable to sophisticated attackers. To protect your organisation, you must understand the security threats your IdAM system may face in 2026. These threats include:
- Credential theft and phishing: Stolen credentials remain the most frequent entry point for unauthorised access.
- Privilege escalation: Attackers who gain access to standard user accounts may attempt to elevate privileges to gain broader access.
- Insider threats: Authorised users, whether malicious or negligent, can misuse their access and compromise sensitive data.
- Access creep: Users often accumulate unnecessary access rights over time, expanding your attack surface.
- Weak authentication: Relying on passwords alone (without MFA) leaves you vulnerable to brute-force and password-spraying attacks.
- Shadow IT and unmanaged accounts: Unauthorised use of applications and unmanaged identities outside IT oversight can lead to data breaches.
- IdAM configuration errors: Misconfigurations in IdAM platforms, such as overly permissive access policies or neglected audit controls, can create exploitable vulnerabilities.
How to mitigate IAM threats in 2026
A layered and well-integrated IAM strategy is essential to mitigate these risks and build a resilient digital foundation. Consider these proactive steps:
Require MFA for all access points, particularly for privileged and remote accounts. This will reduce the risk of unauthorised access due to compromised credentials.
Example technologies: Duo Security, Microsoft Entra MFA, Google Workspace MFA.
SSO minimises password fatigue and reduces the attack surface by limiting the number of credentials users manage. Federation allows secure identity exchange between trusted parties. Essentially, you are simplifying user access while enabling secure identity sharing across your ecosystem.
Example technologies: Okta, PingFederate, Auth0.
Continuous identity lifecycle management ensures that access rights align with users’ current roles. Plus, automated access reviews limit access creep.
Example technologies: SailPoint IdentityNow, Saviynt IGA, One Identity Manager.
PAM solutions isolate and monitor high-access accounts to enforce the principle of least privilege and log activity for forensic analysis.
Example technologies: CyberArk Privileged Access Security, BeyondTrust PAM, Delinea Secret Server.
Routine IAM audits and automated compliance reporting help identify unused accounts, excessive privileges, and non-compliant access.
Supported by: Most IGA and PAM solutions.
IAM is a core component of zero trust security models, where no user or system is trusted by default. Transition to a zero-trust model to ensure continuous verification for every interaction.
Vendors supporting zero trust: Microsoft, Google, Zscaler, Palo Alto Networks.
Take charge of your identity security
To mature your IdAM strategy and prepare for the future, we recommend the following actions:
Conduct an IdAM assessment: Assess your existing IdAM system to understand your current state. This includes reviewing your existing identity stores, user access patterns, and current IAM tools to find the gaps.
Develop a forward-focused IAM strategy: Align your IAM initiatives with your broader business goals, compliance needs, and security policies.
Phase in implementation: Prioritise high-risk areas such as privileged access, remote access, and third-party access.
Integrate IAM with security operations: Link your identity data with security information and event management (SIEM) systems and incident response workflows.
Educate your people: Train staff on secure authentication practices and the importance of IAM policies.
Review and evolve: IAM is not a set-it-and-forget-it system. Regularly update your framework to adapt to evolving threats and changing business requirements.
How RSM can help
As we navigate the complexities of hybrid work, cloud adoption, and digital transformation, robust digital identity and access management will prove essential. Effective IAM protects against both external and internal threats, enforces compliance, and provides a seamless user experience.
At RSM, we help you implement, review and update your IAM framework, empowering you to face a digital future with confidence. By adopting a governance-driven approach, we will reduce your risk, while supporting you to capture new growth opportunities.
Contact your nearest RSM cyber security adviser to start building resilience, today.
Frequently asked questions
Identity and Access Management (IAM or IdAM) provides the framework of technologies, policies, and processes that allows you to manage digital identities and control user access to critical systems.
At its core, IdAM ensures that users, whether employees, contractors, partners, or customers, are who they claim to be (authentication) and have appropriate permissions to access your systems and data (authorisation).
As regulatory compliance, cyber security risks, and digital transformation pressures mount, IdAM has become a foundational element of modern IT and security strategy.
IAM is an ecosystem of multiple technologies working together. Each plays a vital role in protecting digital identities and controlling user access. This includes:
- Authentication and Single Sign-On (SSO): Verifies user identities and simplifies access by allowing a single login for multiple systems.
- Vendors: Okta, Microsoft Entra ID (formerly Azure AD), Ping Identity.
- Multi-Factor Authentication (MFA): Strengthens security by requiring two or more forms of verification. Something you know (password), something you have (token), and/or something you are (biometrics).
- Vendors: Duo Security (Cisco), RSA SecureID, Google Authenticator.
- Identity Governance and Administration (IGA): Manages the lifecycle of user identities, ensuring access rights are granted, reviewed, and revoked appropriately.
- Vendors: SailPoint, Saviynt, One Identity.
- Privileged Access Management (PAM): Secure, monitor and control access for accounts with elevated access to critical systems, enforcing the principle of least privilege.
- Vendors: CyberArk, BeyondTrust, Delinea (formerly Thycotic).
- Directory services and identity stores: Centralised repositories for user identities that integrate with IdAM tools to enforce access control policies.
- Vendors: Microsoft Active Directory, AWS IAM, LDAP-based directories.
- Identity federation services: Allow users to access systems across organisational boundaries with a single digital identity.
- Vendors: Auth0, ForgeRock, Microsoft Entra External ID.
The Australian Government has introduced a new Digital ID system, that allows Australians to verify their identity online. This is essentially an IdAM system on a national scale, streamlining access to online government services.
Most industries will benefit from identity and access management (IAM) systems. Some key sectors that benefit significantly include:
- Financial services: With stringent regulatory requirements, banks and financial institutions rely on IAM to protect sensitive customer data and prevent fraud.
- Health care: Patient information is highly sensitive; IAM solutions ensure that only authorised personnel have access to medical records, adhering to health data regulations.
- Retail: As e-commerce grows, retailers use IAM to manage customer identities securely, ensuring a smooth online shopping experience while protecting payment information.
