EMA: IT and Data Management Research, Industry Analysis and Consulting

Identity Supply Chain – A New Approach to Identity Management and Security

Written by Ken Buckler | Jan 6, 2025 3:27:01 PM

In today’s interconnected digital landscape, identity has become the cornerstone of both organizational security and user experience. Whether onboarding a new employee or granting a customer access to services, the journey of identity—commonly referred to as the identity supply chain—encompasses a series of critical stages, from initial verification to continuous authentication and authorization.

However, each step in this supply chain presents unique challenges and vulnerabilities, offering potential entry points for cyber threats. A weak link can expose sensitive data, disrupt operations, and erode trust. As organizations increasingly rely on digital systems and remote access, understanding and securing the identity supply chain is no longer optional; it’s essential.

By addressing vulnerabilities at every level, organizations can strengthen their defenses and ensure seamless, secure identity management in an evolving threat landscape.

The Journey of Identity

The identity supply chain begins the moment an organization collects identity information, whether for a new employee, contractor, or customer. This journey unfolds across several stages, each with its own set of challenges and opportunities for securing digital identities. Understanding these stages is key to mitigating risks and ensuring seamless access without compromising security.

1. Onboarding and Identity-Proofing

The first step in the identity supply chain is onboarding, when identity information is collected and verified. For employees, this could involve government-issued IDs, background checks, and credential validation. For customers, it might include email verification, biometrics, or payment method authentication. At this stage, the primary risk lies in fraudulent or compromised documents being accepted, creating a foothold for attackers.

2. Credential Issuance

Once the identity is verified, credentials are issued. These can range from usernames and passwords to more sophisticated mechanisms like smart cards, biometric tokens, or multi-factor authentication (MFA) setups. If credentials are weak or improperly managed, attackers can exploit them through phishing, credential stuffing, or brute force attacks.

3. Authentication

Authentication ensures that the person accessing the system is who they claim to be. Organizations often use single-factor (passwords), two-factor (password + code), or multi-factor authentication methods. Weak or outdated authentication methods pose a significant risk, since attackers can bypass security controls through social engineering or technological exploits.

4. Authorization

After authentication, users are granted specific permissions to access systems, applications, or data. This step involves role-based access control (RBAC) or other policy-based mechanisms to enforce the principle of least privilege. Poorly configured access controls can lead to over-privileged accounts, increasing the risk of insider threats and lateral movement in case of a breach.

5. Ongoing Identity Management

The identity supply chain doesn’t end after access is granted. Continuous identity management ensures that access remains appropriate as roles, responsibilities, or account ownership change. Automated tools and periodic audits play a crucial role in preventing identity sprawl and reducing the attack surface.

6. Deprovisioning and Revocation

The final stage is deprovisioning—removing access when it’s no longer needed. Whether due to an employee leaving the organization or a customer no longer using a service, failing to revoke credentials promptly can leave dormant accounts open to exploitation.

Each stage in this journey is interconnected, creating a supply chain that is only as strong as its weakest link. Identifying and addressing vulnerabilities at every step is critical to building a secure and resilient identity framework.

Building the Identity Layered Model

Utilizing this identity journey and supply chain, we can build a layered model describing how identity should be implemented and protected. The Identity Layered Model is a comprehensive framework designed to understand and secure the complex journey of identity, from its physical roots to its interaction with applications and data. Inspired by the OSI model in networking, this structured approach breaks down identity management into distinct layers, each addressing a critical aspect of identity creation, authentication, authorization, and governance. By clearly defining these layers—from the physical identity that forms the foundation of trust to the application and data levels where identity interacts with organizational resources—this model provides organizations with a roadmap for building robust, scalable, and secure identity systems. Through this layered perspective, businesses can identify vulnerabilities, enforce security policies, and streamline identity processes, ensuring a strong defense against evolving threats.

Identity Layered Model

1. Physical Identity Layer

  • Represents the tangible aspects of identity, such as government-issued IDs, biometric data (fingerprints, retina scans), and physical attributes
  • Key Components
    • Physical identity documents (e.g., passports, driver’s licenses)
    • Biometric templates (e.g., facial recognition, iris scans)
    • Secure storage of physical identity proofs
  • Purpose: Establish the root of trust for digital and network identities through verifiable, tangible evidence

2. Digital Identity Layer

  • Converts physical identities into digital representations used in IT systems
  • Key Components
    • Usernames, email addresses, and unique identifiers
    • Public key infrastructure (PKI) certificates
    • Social and professional network profiles
  • Purpose: Bridge the physical identity with digital systems, forming the foundation for authentication and authorization

3. Credential Layer

  • Represents the mechanisms used to prove identity during access requests
  • Key Components
    • Passwords and PINs
    • Multi-factor authentication (MFA) factors (e.g., OTPs, hardware tokens)
    • Biometric-based authentication mechanisms
  • Purpose: Securely validate a claimed identity using one or more verification factors

4. Authentication Layer

  • Processes and protocols that verify the legitimacy of credentials and grant access accordingly
  • Key Components
    • Single sign-on (SSO) systems
    • Authentication protocols (e.g., OAuth, OpenID Connect, Kerberos)
    • Risk-based and adaptive authentication
  • Purpose: Ensure only legitimate users can access systems and services based on validated credentials

5. Authorization Layer

  • Determines which resources an authenticated identity can access and the actions they can perform
  • Key Components
    • Role-based access control (RBAC)
    • Attribute-based access control (ABAC)
    • Policy enforcement engines (e.g., XACML)
  • Purpose: Implement the principle of least privilege and define access permissions based on roles, attributes, and policies

6. Identity Management Layer

  • Encompasses the lifecycle management of identities, from creation to retirement
  • Key Components
    • Identity lifecycle automation
    • Access request and approval workflows
    • Audit and compliance reporting
  • Purpose: Ensure identities are accurately managed and maintained across their lifecycle to reduce identity sprawl and security gaps

7. Monitoring and Analytics Layer

  • Continuously observes identity-related activities to detect and respond to anomalies
  • Key Components
    • User behavior analytics (UBA)
    • Security information and event management (SIEM)
    • Identity threat detection and response (ITDR)
  • Purpose: Identify abnormal behaviors and potential breaches to mitigate threats in real time

8. Application and Data Layer

  • Represents the ultimate destination of identity interactions, where resources and data are accessed or manipulated
  • Key Components
    • Application-level identity mapping and controls
    • Data classification and access restrictions
    • Logging and auditing of data access
  • Purpose: Protect sensitive resources and ensure that identity-based access to applications and data is secure and auditable

The Identity Layered Model functions as an interconnected framework in which each layer builds upon the previous one to create a seamless, secure identity management system. At the foundation, physical identity anchors the trust that flows upward, while digital identity and credentials enable secure interactions with systems. Authentication and authorization layers ensure that only verified and properly authorized individuals gain access to the resources they need. Identity management ties these elements together by automating processes and maintaining accuracy across an identity’s lifecycle. At the top, monitoring and analytics provide continuous oversight, detecting anomalies and enhancing overall security. Finally, the application and data layer is where identities interact with organizational resources, ensuring that access aligns with established policies. This layered approach operates holistically, with insights and policies from upper layers guiding the secure and efficient operation of lower layers, creating a resilient and scalable identity ecosystem.

Securing the Identity Supply Chain

Securing the identity supply chain requires a holistic approach that addresses vulnerabilities at every stage, from onboarding to deprovisioning. With cyber-threats evolving daily, organizations must adopt robust practices and frameworks to ensure identities are verified, authenticated, and managed securely. One of the most effective strategies to strengthen the identity supply chain is the adoption of zero trust principles—a “never trust, always verify” approach to security. By securing each link in the identity supply chain, we secure the Identity Layered Model.

1. Enhance Onboarding and Identity-Proofing

Implement advanced identity-proofing techniques, such as AI-based document verification and biometric authentication.

Cross-reference identity data with authoritative databases to reduce the risk of accepting fraudulent credentials.

Use secure channels for transmitting sensitive information to minimize exposure to interception.

Treat every onboarding request as potentially risky. Apply strict verification protocols, regardless of the user’s location or perceived trustworthiness.

2. Strengthen Credential Issuance

Use strong, unique credentials, moving beyond passwords to passwordless authentication methods, like biometrics or hardware keys.

Employ credential lifecycle management to ensure credentials are rotated, updated, and retired securely.

Encrypt credentials during storage and transmission to prevent interception and misuse.

Enforce secure issuance mechanisms with adaptive, context-aware policies that evaluate the risk of credential requests.

3. Implement Robust Authentication

Mandate multi-factor authentication (MFA) across all access points.

Use adaptive authentication that evaluates contextual signals, such as device health, geographic location, and behavioral patterns.

Leverage identity federation and single sign-on (SSO) solutions for seamless yet secure authentication across systems.

Continuously validate authentication requests with real-time risk assessments, denying access unless the user and device meet strict security criteria.

4. Apply Granular Authorization Controls

Follow the principle of least privilege by granting users only the access they need to perform their roles.

Regularly audit permissions to identify and remediate over-privileged accounts.

Use role-based access control (RBAC) and attribute-based access control (ABAC) to define precise authorization policies.

Implement dynamic access control mechanisms that evaluate permissions in real time based on risk and context rather than static rules.

5. Optimize Identity Management

Automate identity lifecycle processes, including onboarding, updates, and deprovisioning, to reduce manual errors.

Continuously monitor and analyze user behavior to detect and respond to anomalous activities.

Consolidate identity management tools to reduce silos and improve visibility.

Ensure ongoing validation of user identity and behavior, applying conditional access policies even after initial authentication.

6. Ensure Effective Deprovisioning

Automate deprovisioning processes to promptly revoke access for terminated accounts.

Conduct regular audits to identify dormant accounts or credentials that may pose a risk.

Use tools that provide visibility into all active credentials and their associated permissions.

Assume every unused or dormant account is a potential threat. Automate checks and revocations to eliminate unnecessary risks.

7. Embrace Zero Trust Architecture

Segment networks and resources to limit lateral movement in case of a breach.

Require continuous validation of trust for users, devices, and applications, regardless of their location.

Use real-time analytics to dynamically assess and enforce identity security policies.

By embedding zero trust principles into the identity supply chain, organizations can mitigate risks and enhance security across every stage. The approach shifts the focus from perimeter-based defenses to identity-centric protection, ensuring that every access request is scrutinized and no trust is given without verification.

 

Embracing the Identity Supply Chain

The identity supply chain and the Identity Layered Model are deeply interconnected, providing a comprehensive framework for managing and securing identities throughout their lifecycle. The stages of the supply chain—identity-proofing, credential issuance, authentication, authorization, ongoing management, and deprovisioning—align naturally with the layers of the model, from the foundational physical and digital identity layers to the monitoring and data interaction layers. This integration ensures that each step in the supply chain is supported by a corresponding layer, creating a seamless system for addressing challenges and mitigating vulnerabilities.

By leveraging the layered model, organizations can enhance their identity supply chain with advanced security practices like multi-factor authentication, automated identity management, and granular access controls, all while adopting zero trust principles to continuously validate trust and enforce strict access controls. The layered model provides the structural backbone that strengthens every link in the supply chain, ensuring that risks are proactively addressed at every stage.

Securing this interconnected framework goes beyond protecting sensitive data or preventing breaches—it’s about fostering trust with employees, partners, and customers while enabling seamless, scalable identity management. By evaluating the identity supply chain through the lens of the layered model, organizations can identify vulnerabilities, implement robust security measures, and build a future-ready identity framework. Together, the supply chain and the layered model form a strategic approach to identity security that ensures resilience against evolving threats while supporting organizational goals.