How to Detect and Prevent Identity-Based Attacks

TL;DR

Identity-based attacks exploit stolen credentials and authentication tokens to bypass traditional security defenses, making them harder to detect than perimeter-based threats. Organizations can defend against these attacks through the real-time monitoring of authentication anomalies, privilege changes, and behavioral patterns across Active Directory and cloud identity systems, combining this capability with rapid recovery capabilities to minimize damage.

Identity-based attacks have become the top threat to enterprise security. Attackers steal legitimate credentials instead of breaking through perimeter defenses. This makes detection harder because compromised accounts look like normal user activity while adversaries move laterally, escalate privileges, and steal data.

Cloud adoption and hybrid infrastructure create more entry points. Active Directory and Entra ID are prime targets because compromising these systems unlocks access to your entire environment. Attackers use credential theft, token hijacking, and privilege exploitation to gain control. 

The key is detecting these attacks early and responding fast. Without proper visibility into identity systems, a minor breach can spiral into a full compromise that impacts your entire organization.

Understanding Identity-Based Attacks

Adversaries have changed their tactics. Instead of hammering away at network perimeters with brute-force attacks, they’re taking a more calculated approach: stealing and exploiting legitimate user credentials. This shift makes sense when you consider that most organizations have strengthened their external defenses, but their identity systems often remain exposed and vulnerable.

What Are Identity-Based Attacks?

Identity-based attacks target the authentication mechanisms that control access to your systems. Attackers steal usernames and passwords, manipulate authentication tokens, or exploit poorly configured permissions to impersonate authorized users. Once they’ve gained access using these stolen credentials, they blend in seamlessly with your legitimate employees, accessing business-critical resources.

The real danger lies in how these attacks exploit the trust relationships built into your infrastructure. When an attacker compromises a domain admin account or service principal, they automatically inherit all the permissions associated with that identity. Your systems process their requests as they would any authenticated user, without raising red flags. Traditional security alerts remain silent because, from the system’s perspective, everything looks normal.

How Identity Attacks Differ from Traditional Threats

Traditional attacks work by breaching network perimeters through exploits, malware, or unpatched vulnerabilities. These methods generate recognizable signatures: unusual traffic patterns, exploit attempts, or malicious payloads that security tools can identify and block.

Identity attacks bypass perimeter defenses entirely by using valid credentials, making detection significantly harder since activity appears legitimate.

Identity attacks operate completely differently: They work within your established trust boundaries. An attacker using stolen credentials generates authentication logs that look identical to those of the legitimate user. They access the same resources through the same network paths and execute similar commands. Detection requires behavioral analysis sophisticated enough to distinguish normal patterns from malicious intent, and most security tools struggle with this challenge because the attacker isn’t breaking in; they’re walking in through the front door with what appears to be a valid key.

Why Organizations Are Increasingly Vulnerable

Hybrid infrastructure has created a complex web of identity management challenges. Organizations now juggle identities across on-premises Active Directory, Entra ID, SaaS applications, and cloud platforms. Each system maintains its own identity stores, permissions, and authentication mechanisms, all of which must synchronize correctly. When configuration drift occurs between these systems, it creates gaps that attackers actively hunt for and exploit.

According to Cybersecurity Dive, 69% of business leaders lack full insight into identity vulnerabilities across their networks, while 94% find that managing multiple identity platforms increases security complexity. This visibility gap becomes particularly dangerous when you consider that organizations average five different identity management platforms running simultaneously. 

Attackers understand these blind spots intimately. They probe for misconfigurations, search for dormant accounts with elevated privileges, and identify weak authentication controls that provide easy access to your environment.

Common Types of Identity-Based Attacks

Attackers use various techniques to compromise identities, each designed to exploit specific weaknesses in authentication systems. Understanding these attack methods helps you recognize warning signs and implement appropriate defenses. Let’s examine the most common tactics adversaries employ when targeting identity infrastructure.

Credential Theft and Password Spraying

Credential theft remains the foundation of most identity-based attacks. Attackers harvest credentials through phishing campaigns, infostealer malware infections, and purchased breach databases. Once they obtain a list of usernames, they often employ password spraying, a technique where they try a small number of commonly used passwords against many accounts. This approach avoids triggering account lockout policies that would activate after too many failed login attempts on a single account.

Password spraying is remarkably effective because users frequently choose weak passwords. An attacker might try “Password123!” or “CompanyName2024″ against thousands of accounts within your organization. Even a 1% success rate gives them multiple entry points. Billions of exposed passwords continue to circulate in criminal communities, providing attackers with extensive lists to test against your authentication systems.

Organizations with inactive or dormant accounts face heightened risk. These forgotten accounts, particularly those with elevated privileges, rarely receive security updates or password changes. This makes them easy targets for attackers who scan for accounts that haven’t authenticated recently but still maintain active status in your directory.

Privilege Escalation Exploits

After gaining initial access with a standard user account, attackers immediately look for ways to escalate their privileges. They scan for misconfigured permissions, service accounts with excessive rights, or vulnerabilities that allow them to assume higher-level access. Domain admin accounts represent the ultimate prize because they control your entire Active Directory environment.

Attackers exploit several common misconfigurations during privilege escalation:

  • Service accounts often run with domain admin privileges when they only need limited permissions. 
  • Local administrator accounts frequently share identical passwords across multiple systems, allowing lateral movement once compromised. 
  • Outdated delegation settings may grant users unintended control over sensitive resources.

The gap between initial compromise and privilege escalation has shrunk dramatically, and attackers now achieve domain admin access in hours rather than days.

Token Hijacking and Session Manipulation

Authentication tokens and session cookies eliminate the need for repeated password entry, but they also create new attack vectors. When an application issues a token to confirm your identity, that token becomes as valuable as your password. Attackers who steal these tokens can impersonate you without knowing your credentials.

Cloud environments, in particular, rely on token-based authentication. Applications like Microsoft 365 use OAuth tokens that remain valid for extended periods. Infostealer malware specifically targets these tokens, extracting them from browser storage or memory. The attacker then replays the stolen token to access your applications, completely bypassing multi-factor authentication because the session was already authenticated.

Session hijacking attacks focus on maintaining persistent access. After stealing a valid session token, attackers can access resources until that token expires, which might be hours or days later. Some sophisticated malware monitors for new tokens continuously, ensuring that the attacker maintains access even after password resets.

Golden Ticket and Pass-the-Hash Attacks

These advanced Active Directory attacks exploit how Windows handles authentication. A Golden Ticket attack occurs when an attacker compromises the Kerberos Ticket Granting Ticket (KRBTGT) account in Active Directory. This special account encrypts all authentication tickets in your domain. With access to its password hash, attackers forge tickets that grant them unlimited access to any resource in your environment for years.

Pass-the-Hash attacks work differently but achieve similar results. Rather than cracking a password, attackers steal the password hash itself and use it directly for authentication. Windows systems accept these hashes for NTLM authentication, allowing attackers to authenticate as any user whose hash they’ve captured. They move laterally across your network, using stolen hashes to access additional systems and harvest more credentials.

The following table compares these advanced identity attack techniques to help you understand their characteristics and potential impact.

Attack Method

Primary Target

Detection Difficulty

Persistence Duration

Golden Ticket

KRBTGT account hash

Very High

Up to 10 years (ticket lifetime)

Pass-the-Hash

NTLM password hashes

High

Until password change

Token Hijacking

OAuth/session tokens

Medium

Token validity period (hours to days)

Privilege Escalation

Misconfigured permissions

Medium

Until misconfiguration is fixed

Both attacks leave minimal forensic evidence in standard security logs. The authentication requests appear legitimate because they use valid credentials or tickets. Detection requires specialized monitoring that analyzes ticket lifetimes, authentication patterns, and unusual privilege usage-capabilities that standard security tools often lack.

How to Detect Identity-Based Attacks

Detection requires looking beyond traditional security alerts. Identity-based attacks generate authentication events that mirror legitimate user behavior, which means standard signature-based detection fails. You need systems that establish baseline behaviors for each identity and flag deviations that suggest compromise. The faster you spot anomalies, the less time attackers have to escalate privileges and move laterally through your environment.

Monitoring Authentication Anomalies

Authentication logs contain critical signals about potential compromise. Start by examining impossible travel scenarios, meaning an account authenticating from geographically distant locations within a timeframe that makes physical travel impossible. An account that logs in from New York at 2 PM and then authenticates from Singapore at 2:15 PM indicates credential theft or token replay.

Failed authentication attempts followed immediately by successful logins deserve scrutiny. This pattern suggests password spraying that eventually found a working credential. Similarly, watch for authentication success rates that suddenly spike for accounts that previously failed frequently. Attackers often test stolen credentials across multiple services, creating authentication patterns that differ markedly from the legitimate user’s habits.

Off-hours authentication represents another red flag. Most employees access systems during business hours according to predictable schedules. When dormant accounts suddenly authenticate at 3 AM or privileged accounts log in during weekends without corresponding change management tickets, investigate immediately. These temporal anomalies often indicate compromised credentials being tested or exploited.

Tracking Privilege Changes in Real Time

Monitoring who modifies permissions reveals attacker attempts to escalate privileges. Every change to group memberships, role assignments, or delegation settings should trigger alerts, especially modifications to high-privilege groups like Domain Admins, Enterprise Admins, or Azure Global Administrators.

Attackers typically escalate privileges within hours of initial access, making real-time privilege monitoring essential for early detection.

Track permission changes across your entire identity infrastructure. An attacker who gains access to a standard user account will attempt to add that account to privileged groups or assign administrative roles. They might also create new service principals with excessive permissions or modify existing ones to grant themselves broader access. Each of these actions leaves audit trails that real-time monitoring can catch before the attacker completes their objectives.

Analyzing Access Patterns and Behaviors

Behavioral analysis identifies compromised accounts by detecting activity that deviates from established patterns. Attackers accessing cloud services through compromised credentials often exhibit behaviors that differ from those of legitimate users, particularly in their resource access patterns and configuration changes.

Here’s how to build effective detection capabilities using behavioral indicators:

  1. Baseline normal behavior: Document typical authentication times, frequently accessed resources, common IP addresses, and standard privilege levels for each identity over a 30-60 day period.
  2. Score deviations: Assign risk scores to activities that differ from baseline patterns, with higher scores for multiple simultaneous anomalies like unusual access times combined with unfamiliar locations.
  3. Correlate across systems: Connect authentication events in Active Directory with cloud resource access in Entra ID and application usage in Microsoft 365 to identify cross-platform attack patterns.
  4. Alert on high-risk combinations: Trigger immediate investigation when accounts exhibit multiple suspicious behaviors within short timeframes, such as privilege escalation followed by bulk data access.

Protecting Your Environment with Cayosoft Guardian

Detecting identity-based attacks requires purpose-built tools that understand how attackers compromise and exploit directory services. Generic security solutions often miss the subtle indicators of identity compromise because they weren’t designed specifically for Active Directory and Entra ID environments. You need specialized protection that continuously monitors your identity infrastructure, detects threats in an ongoing manner, and enables instant recovery when attacks occur.

Real-Time Threat Detection for Active Directory

Cayosoft Guardian continuously monitors your Active Directory and Entra ID environments for unauthorized changes, suspicious activity, and potential security breaches. The platform analyzes every modification to user accounts, group memberships, permissions, and directory configurations, providing real-time alerts when it detects anomalous behavior that suggests compromise.

The solution tracks the specific attack patterns that adversaries use to exploit directory services. When an attacker attempts privilege escalation by adding accounts to the Domain Admins or Enterprise Admins groups, Guardian immediately flags this activity. It detects unusual permission changes, suspicious service principal modifications, and attempts to manipulate delegation settings that could grant attackers broader access to your environment.

Continuous monitoring of directory changes enables detection of identity-based attacks within minutes rather than days or weeks.

Guardian’s auditing capabilities provide the detailed forensic information you need to investigate potential compromises. Every change includes who made it, when it occurred, what was modified, and the source system that initiated the change. This audit trail is essential for understanding attack scope and determining which systems or accounts may have been affected during an incident.

Instant Recovery from Identity Attacks

Time matters when responding to identity-based attacks: The longer attackers maintain privileged access, the more damage they inflict on your environment. Cayosoft Guardian addresses this challenge with instant recovery capabilities that restore compromised objects, attributes, or entire directory structures without requiring lengthy backup restoration processes.

When an attacker modifies permissions, creates backdoor accounts, or alters group memberships, you can reverse these changes immediately at the attribute level. This granular recovery approach means you don’t need to restore entire backup files or roll back large portions of your directory; you target the specific modifications the attacker made and undo them within minutes.

The recovery process works seamlessly across hybrid environments. Whether attackers compromised your on-premises Active Directory, cloud-based Entra ID, or both, Guardian provides unified recovery capabilities. This is a critical capability when dealing with sophisticated attacks that span multiple identity platforms or exploit synchronization between on-premises and cloud directories.

Cayosoft Guardian vs. Traditional Backup Approaches

Understanding the differences between Cayosoft Guardian and traditional backup solutions helps clarify why specialized identity protection tools deliver faster response times and more precise recovery options during security incidents.

Capability

Cayosoft Guardian

Traditional AD Backup

Recovery Granularity

Attribute-level restoration

Full object or forest restoration

Recovery Time

Minutes

Hours to days

Hybrid Environment Support

Unified AD and Entra ID recovery

Typically separate processes

Real-Time Monitoring

Continuous change detection and alerting

Scheduled backups only

Attack Pattern Recognition

Built-in threat detection logic

None

Integration with SIEM for Enhanced Visibility

Cayosoft Guardian integrates with security information and event management (SIEM) platforms to provide extensive threat detection and analysis. This integration connects directory-specific threats with broader security events across your environment, enabling correlation that identifies complex attack patterns spanning multiple systems.

The platform feeds detailed Active Directory and Entra ID events into your SIEM, enriching your security analytics with identity-specific context. When your SIEM detects suspicious network traffic or application access, it can correlate these events with recent privilege changes or authentication anomalies that Guardian identifies. This correlation reveals attack chains that would remain invisible when analyzing systems in isolation.

Guardian augments your existing security infrastructure rather than replacing it. The solution works alongside your current backup systems, providing faster recovery options for targeted attacks while maintaining disaster recovery capabilities. IT teams gain the flexibility to respond appropriately based on incident severity, using Guardian for quick remediation of specific compromises and traditional backups for broader restoration scenarios.

Ready to strengthen your defenses against identity-based attacks? Schedule a demo to see how Cayosoft Guardian can protect your Active Directory and Entra ID environments with real-time monitoring, instant recovery, and integrated threat detection capabilities.

Conclusion

Identity-based attacks represent a fundamental shift in how adversaries compromise organizations. They bypass traditional security controls by exploiting legitimate credentials and trust relationships within your infrastructure. Detection demands continuous monitoring of authentication patterns, privilege changes, and behavioral anomalies across both on-premises and cloud identity systems. Recovery speed determines how much damage attackers inflict after gaining access.

Your response strategy should combine behavioral analysis, real-time alerting, and instant recovery capabilities purpose-built for Active Directory and Entra ID environments. Generic security tools miss the directory-specific attack patterns that signal compromise. Implement solutions that understand how attackers manipulate identity systems, provide granular visibility into directory changes, and restore compromised objects within minutes rather than hours. Organizations that successfully defend against these threats treat identity protection as a specialized discipline requiring dedicated tools and expertise.

FAQs

An identity-based attack occurs when cybercriminals compromise legitimate user credentials to access systems rather than exploiting network vulnerabilities or deploying malware. These attacks are particularly dangerous because authenticated activity appears normal to security tools, making detection significantly more challenging than traditional breach methods.

Multi-factor authentication adds a critical security layer that prevents attackers from accessing accounts even when they’ve stolen passwords, though sophisticated adversaries can still bypass MFA through token hijacking and session manipulation techniques. Organizations should implement phishing-resistant MFA methods and monitor for authentication anomalies even when MFA is enabled.

Most organizations take days or weeks to detect compromised credentials because identity-based attacks blend seamlessly with legitimate user behavior. Real-time monitoring solutions purpose-built for Active Directory and cloud identity platforms can reduce detection time to minutes by analyzing authentication patterns and privilege changes as they occur.

Password resets only partially address active attacks since adversaries often steal authentication tokens or create backdoor accounts before credentials are changed. Complete remediation requires identifying all compromised accounts, revoking active sessions and tokens, removing unauthorized privilege escalations, and monitoring for persistence mechanisms that attackers may have established.

Phishing campaigns and infostealer malware represent the primary methods attackers use to harvest credentials, with compromised passwords from third-party data breaches also providing initial access. Organizations face additional risk from poorly secured service accounts, dormant privileged accounts, and weak authentication controls on external-facing applications.

Want to See Cayosoft in Action?

Cayosoft is recognized by Gartner as an ITDR solution provider and provides solutions that make identities more resilient to attacks and guarantee a fast forest recovery, if needed. Learn how Cayosoft Guardian facilitates granular change tracking, post-breach analysis, and long-term AD security improvements. Schedule a demo to see the capabilities in depth.