Uncovering the risks of unmanaged identities

Every organization manages thousands of identities, from admins and developers to service accounts and AI agents. But many of these identities operate in the shadows, untracked and unprotected. These unmanaged identities quietly expand your attack surface, weaken compliance, and threaten business continuity, posing significant risk. So, how can you uncover, secure, and manage what you can’t see?

Unmanaged identities defined

Unmanaged identities are those that are not tracked, governed, or protected by identity management systems. This can happen unintentionally or when gaps in your normal identity or security processes leave an identity stranded.

Unmanaged identities can be both human and machine identities. Below are the major identity types, with examples of how leaving them unmanaged can present significant risks for your organization.

• IT admins: Unmanaged IT admin identities can lead to excessive permissions and the creation of backdoor accounts, increasing the risk of unauthorized access and potential damage. Shared privileged accounts make it difficult to track individual actions, especially when IT operations are outsourced, creating oversight challenges.
• Workforce users: Workforce identities are vulnerable to human error, which is a top breach vector. The rise in remote work increases exposure to identity-based attacks, making them prime targets for ransomware. Orphaned accounts and privilege creep can lead to unauthorized access and fraud.
• Developers: Often require access to critical systems and data, which can lead to security risks if not properly managed. They may include remote third parties or short-term hires, increasing the risk of unmanaged access. Developers’ need for fast access can also lead to bypassing security protocols.
• Machine & AI: Machine identities, including AI agents, are proliferating due to automation and AI workflows. If compromised, they can enable unauthorized access to automated systems and sensitive data. AI poisoning and the rise of agentic AI expand the attack surface, posing significant risks if left unmanaged.

This last category of machine and AI identities is gaining increased attention as organizations build out and deploy their AI systems and need to actively secure these elements.

The unique challenge of managing agentic AI identities

AI agents are capable of making decisions, interacting with other agents, and completing tasks independently.

Unmanaged AI agents often operate independently, making it difficult to track and monitor their activities without a centralized management system. These agents can adapt and change their behavior autonomously, which complicates efforts to predict and control their actions. While performing their duties, AI agents can even spin up other models and agents that have access to valuable data.

Because they can exist across various platforms and environments, including cloud, on- premises, and hybrid systems, organizations often have fragmented visibility. The ease of deploying and scaling AI agents has led to rapid proliferation, outpacing traditional management and oversight capabilities.

The risks associated with unmanaged identities

The risks are manifold and can be broken down into three broad categories:

Security risks
Unmanaged identities significantly expand the attack surface, providing more entry points for attackers. They are prime targets for credential theft, which can lead to lateral movement within an organization’s network. Forgotten or over-permissioned accounts can facilitate privilege escalation, allowing attackers to gain unauthorized access to sensitive data. Real-world breaches have been linked to unmanaged identities, underscoring the critical need for effective identity management.

Compliance and regulatory risks
Organizations are required to meet various compliance standards such as GDPR, HIPAA, and SOX. Unmanaged identities can lead to audit failures and noncompliance due to incomplete identity inventories. The potential for fines and reputational damage is significant if unmanaged identities lead to data breaches.

Operational risks
Inefficient access management due to unmanaged identities increases IT overhead and complexity. Unauthorized access or accidental deletions can disrupt business operations, leading to breaches, financial losses, and diminished customer trust.

Why are unmanaged identities so hard to control?

Several factors contribute to the difficulty in controlling unmanaged identities:

• Lack of centralized visibility: Organizations often lack a unified view of identities across different environments.
• Siloed IT and security teams: Disconnected teams create gaps in identity management.
• Rapid cloud adoption and DevOps practices: These can outpace traditional identity management processes.
• Inadequate offboarding processes: Failure to properly deprovision accounts when employees or contractors leave.
• Shadow IT and business-led technology adoption: These create identities outside the purview of IT departments.

Best practices for discovering and managing unmanaged identities

Everyone from the C-suite to IT, security, and identity teams should recognize that a large percentage of identities in their environment may be unknown and therefore unmanaged. Fortunately, modern identity solutions are helping organizations regain visibility and control.

Here are some best practices:

• Continuous identity discovery and inventory: It’s important to continuously discover new human and machine identities throughout your multi-cloud and on- premises environments.
• Automated provisioning and deprovisioning: Implement automated lifecycle management processes so that dormant or unused identities get disconnected.
• Least Privilege and Just-in-Time access: Limit access rights to all identities – human and machine – to the minimum necessary, and provide access only when needed.
• Regular audits and access reviews: Conduct periodic reviews to ensure compliance and identify anomalies.
• Leveraging identity governance and Privileged Access Management (PAM) solutions: Use advanced tools to manage and secure identities and select a vendor that understands how to find, manage, and protect identities in all types of complex IT environments.

The role of modern identity security solutions

Unmanaged identities present a clear and present danger to organizations. They increase the risk of security breaches, compliance failures, and operational disruptions. It is imperative for organizations to prioritize identity discovery and management as a core security practice. Modern identity security solutions such as PAM, Cloud Infrastructure Entitlement Management (CIEM), and Identity Governance and Administration (IGA) play a crucial role in uncovering and remediating unmanaged identities.

In the age of digital transformation, visibility and control over all identities is non-negotiable. By implementing robust identity management practices and leveraging modern identity security solutions, organizations can safeguard their digital assets and ensure business continuity.

Discover how Delinea can help de-risk your identity sprawl and rein in your identities.