Exploring identity security in 2025: key trends and best practices

Why who matters more than where you are

The traditional perimeter is no longer what protects our critical information and systems. In 2025, securing data is dependent on identity. With distributed multi-cloud, multi-IDP environments, the business world is up against a stark reality: the username and password have become the most dangerous attack vector in cybersecurity. Today, making identity as a Tier 1 infrastructure is the difference between business continuity and a catastrophic breach.

What does Identity Security really mean?

What is identity security?

Identity security is about securely managing digital identities throughout their lifecycle. Key components of identity security include protecting user credentials, managing access rights, monitoring activity, and responding to potential threats. 

Digital identities are essentially the keys to the kingdom, as they allow access to critical business resources. So it’s no surprise that identity security plays a crucial role in protecting data, applications, and systems from unauthorized access.

At the heart of identity security is Identity and Access Management (IAM), which handles the everyday authentication and authorization processes for users. Privileged Access Management (PAM) adds extra layers of protection around those accounts that can essentially “hold the keys to the kingdom.” 

Why is identity security important for organizations today?

The numbers tell a sobering story. According to CyberArk’s 2024 Identity Security Threat Landscape Report, a staggering 93% of organizations have experienced identity-related breaches multiple times in the past year alone. Let that sink in.

The financial impact is far from pretty. Immediate remediation costs, regulatory fines and reputational damage are just a few examples of how inadequate identity security can quickly become an existential threat to business continuity and profitability.

Here’s the reality: the days of securing a network boundary are long gone. With cloud adoption accelerating and hybrid working the norm, what matters now isn’t where someone is connecting from, but verifying who they are and what they should access. The heart of modern cybersecurity is identity management.

Challenges in identity affecting security

One of the biggest headaches organizations must grapple with is tackling”identity sprawl”— the explosive growth of identities across diverse environments. An organization likely has identities scattered across multiple cloud providers, legacy systems, and specialized applications. Each user might have multiple accounts, and that’s not even considering machine identities.

CyberArk‘s recent survey discusses an often-overlooked risk: that non-human identities may have more privileged access than organizations realize. These automated accounts, service principals, and API keys can become a huge headache if not properly managed. According to the report, 87% of organizations experienced attacks targeting machine identities in the past year, with nearly half resulting in unauthorized access to critical systems.

Finally, there’s the classic security dilemma: how to balance strong identity protection with a good user experience? If it’s too strict, productivity suffers. If it’s too lax, the company is exposed. Finding the sweet spot requires sophisticated tools and thoughtful policies.

Trends in identity security for 2025

Managing multiple IDPs becomes the new normal

The days of relying on a single identity provider are fading fast. Forward-thinking enterprises are increasingly adopting multi-identity provider architectures, and for good reason. It offers greater flexibility, better security through diversity, and reduced dependency on any single vendor.

However, managing identities across these complex environments is difficult if you rely on traditional identity services. It requires sophisticated orchestration tools that work seamlessly across different systems, bringing access control and policy enforcement together. Orchestration becomes especially critical during mergers and acquisitions when disparate identity systems must be integrated without creating security gaps.

Identity security challenges in mergers and acquisitions (M&A)

When an organization merges with another company,  the identity landscape doubles in complexity with the M&A. The team wrests with conflicting identity systems while fending increasingly sophisticated AI-powered attacks. It sounds like a nightmare, but this scenario is becoming a reality for security leaders.

M&As are happening more often as buyouts and takeovers dominate the business news. These organizational changes present some of the most complex identity security challenges imaginable. When companies combine, they bring together different identity policies, overlapping user accounts, and often fragmented infrastructure.

In 2025, expect to see identity fabrics become a huge piece of the puzzle for effectively managing these transitions. The ability to harmonize identity systems while maintaining security will be a key differentiator for successful organizational integrations.

Increasing importance of CAEP

The Continuous Access Evaluation Protocol (CAEP) standard will be more prominent in 2025, as it enables real-time responses to changing risk factors. In other words, it allows security systems to continuously adapt instead of relying on static authentication moments.

This new movement of event-driven identity management with CAEP at the forefront— where security systems respond immediately to risk signals — will play a huge role in proactive security strategies. Organizations will increasingly move beyond point-in-time authentication toward truly adaptive security frameworks that evolve with emerging threats.

By tackling the challenges of session management across multi-IDP environments, the protocol enables real-time security, anticipates potential risks, and strengthens user trust.

Resilience is now a shared responsibility

If there’s one lesson organizations have learned the hard way, it’s that resilience shouldn’t be outsourced. Maintaining identity continuity has become an organizational imperative, and enterprises can no longer rely solely on a single IDP solution or vendor.

In 2025, we’ll see greater emphasis on robust failover mechanisms, backup IDP infrastructures, and continuous testing and validation. All of these practices will be crucial for maintaining uninterrupted access and operational resilience, even when primary systems are compromised.

The best response to these challenges is to adopt a proactive, continuous verification approach rather than relying solely on reactive measures. Real-time monitoring of identity-related events and swift policy enforcement significantly reduce risks and improve identity security outcomes.

As always, universal multi-factor authentication (MFA) is foundational — it’s simply one of the most effective ways to prevent unauthorized access. But, organizations shouldn’t stop there. Implementing a Zero Trust architecture further secures organizational resources by enforcing the principle of “never trust, always verify” across all access requests.

When organizations proactively implement these strategies, they can boost defenses, protect critical digital assets, and maintain compliance – even when the multi-cloud identity world seems like it’s spinning out of control.

To learn how IAM leaders are tackling identity security challenges today, download the 2025 State of Multi-Cloud Identity report.