Understanding IAM Compliance: Overcoming Challenges and Meeting Regulations

Key Takeaways

• Identity and Access Management (IAM) compliance is about following rules that protect data and systems. These rules help stop unauthorized access. 
• Meeting these regulations can be tough but it is essential for security and trust. Solutions like automated tools and clear policies can help organizations meet these goals.

Challenges Organizations Face in IAM Compliance

Access Creep

Access creep happens when employees gain more access than they need over time. For example, someone who changes roles might keep old permissions. This increases the risk of unauthorized access. Companies need to track and update access regularly. Without control, access creep can lead to data breaches and regulatory fines.

Complicated Regulations

Compliance rules are different across industries and regions. Laws like GDPR and HIPAA have specific requirements. Keeping up with these can be overwhelming. Misunderstanding the rules or missing updates can cause penalties. Businesses need simple ways to stay informed about regulations.

Non-Scalable, Manual Processes That Cause Roadblocks

Manual IAM processes are slow and prone to errors. For example, granting access manually for every new hire takes time. As businesses grow, these processes don’t scale. Roadblocks slow productivity and can lead to compliance failures. Automated systems can solve this problem by making processes faster and more accurate.

Unreliable or Incomplete Visibility

Incomplete visibility means not knowing who has access to what. If businesses can’t see access levels, they can’t manage them. This makes it hard to prove compliance. Regular audits and tracking tools are critical for fixing this issue. Reliable visibility helps businesses stay secure and compliant.

Legacy Systems

Older systems often lack modern security features. They may not integrate well with current tools. This makes it harder to enforce compliance. Updating or replacing legacy systems can be expensive but is often necessary. Modern solutions improve security and simplify compliance management.

7 Major Regulations Driving IAM Compliance Requirements

1. General Data Protection Regulation (GDPR)

The General Data Protection Regulation or GDPR protects the personal data of European Union residents. It requires businesses to control who accesses data and how it is used.

GDPR was enacted in 2016 by the European Parliament, the Council of the European Union, and the European Commission, and became enforceable on May 25, 2018. It applies to any business operating in the EU or handling EU resident data, regardless of its location. Its global impact has made GDPR the gold standard for privacy regulations worldwide.

Failure to comply can result in hefty fines. GDPR emphasizes transparency and accountability in data management. For instance, in January 2022, Google was fined  150,000,000 Euros for not providing an equally easy option for refusing cookies by the French data protection authorities.

What Causes GDPR Non-Compliance?

• Misconfigured Access Controls: Poorly implemented access permissions can inadvertently expose sensitive EU resident data to unauthorized users.
• Inadequate Data Retention Policies: Storing personal data beyond its intended purpose or timeframe can lead to non-compliance.
• Third-Party Risks: Sharing data with non-compliant vendors or partners outside the EU can result in hefty fines.
• Failure to Document Consent: Not maintaining proper records of user consent for data collection and processing can breach GDPR requirements.

2. Health Insurance Portability and Accountability Act (HIPAA)

HIPAA or the Health Insurance Portability and Accountability Act focuses on safeguarding health information. HIPAA compliance requires strict access controls to protect patient data. Healthcare providers and their partners must meet these rules. Violations can lead to significant financial and reputational damage.

HIPAA was enacted in 1996 by the U.S. Congress and is overseen by the Department of Health and Human Services (HHS). This act sets national standards for electronic health care transactions and data privacy - which in general anyone involved the healthcare industry go out of their way to follow.

HIPAA fines can easily cost millions. Case and point on December 3, 2024, the HHS office filed a fine to Gulf Coast Pain Consultants 1.19 Million USD for failure to comply with HIPAA guidelines with a former contractor.

The fact is that these types of Health insurance and medical data compliance fines can cost companies a whole lot more money than just using an IAM at a fraction of the cost!

What Causes HIPAA Non-Compliance?

• Unauthorized Data Sharing: Employees sharing patient data via unapproved communication channels can lead to violations.
• Unsecured Medical Devices: IoT-enabled medical devices without proper encryption and authentication can become entry points for breaches.
• Neglected Employee Training: Insufficient training on HIPAA policies can result in accidental data mishandling.
• Improper Disposal of Records: Physical or digital records not securely destroyed may expose protected health information (PHI).

3. California Consumer Privacy Act (CCPA)

CCPA or the California Consumer Privacy Act gives California residents control over their personal data. What this means is businesses must allow users to access, delete, or opt out of data sharing. IAM systems help track and manage these permissions, ensuring compliance.

Passed in June 2018 by the California State Legislature, CCPA took effect on January 1, 2020, and is enforced by the California Attorney General. 

As of February 2024, the California Attorney General fined Doordash over $375,000 for failure to comply with CCPA laws. Although in this case, it has more to do with selling personal information to third parties, in general, compliance fines can start at around $2500 to $7500 for businesses that do not meet with compliance.

What Causes CCPA Non-Compliance?

• Failure to Honor Opt-Out Requests: Not complying promptly with user requests to stop data sharing can trigger penalties.
• Inaccurate Data Mapping: Businesses failing to map where consumer data resides may miss key compliance requirements.
• Selling Data Without Disclosure: Selling personal data without clear disclosure violates CCPA’s transparency principles.
• Non-Responsive to Consumer Rights: Ignoring requests for data access, deletion, or correction can attract fines and legal action.

4. Sarbanes-Oxley Act (SOX)

SOX or the Sarbanes-Oxley Act is what makes sure there is financial transparency and prevents fraud. It requires strict controls over financial data. IAM systems help by managing who can access financial records. This reduces the risk of unauthorized changes or leaks.

This falls under the jurisdiction of the SEC and can lead to HUGE fines! One good example of this would be in 2021, when Kraft Heinz was fined 62 million USD for inflating cost savings.

The Securities and Exchange Commission typically does not treat accounting or financial misconduct lightly. Which is why financial mishaps should be prevented by making sure only select individuals have access to specific files and that there are audits in place to educate teams and prevent this.

What Causes SOX Non-Compliance?

• Weak Internal Controls: Poor segregation of duties or lack of access management can lead to fraudulent activities.
• Inaccurate Financial Reporting: Failing to implement automated auditing tools can result in errors in financial disclosures.
• Overlooked Audit Trails: Not maintaining comprehensive logs of who accessed or modified financial data can breach compliance.
  

5. Payment Card Industry Data Security Standard (PCI DSS)

PCI DSS protects payment card information. Businesses that handle credit card data must follow these rules. IAM tools are crucial for securing systems and tracking access to sensitive information.

The standard was first introduced in 2004 by the Payment Card Industry Security Standards Council (PCI SSC), a group founded by major credit card companies like Visa, MasterCard, and American Express.

Alot of this has to with sensitive payment information that needs to be safe guarded. For instance in 2013, a data breach in Target resulted in the company needing to pay 18.5 Million USD is settlements. While rare, this full lawsuit couldve been avoided through the use of CIAM and IAM frameworks that have multiple layers of security safeguarding sensitive information.

What Causes PCI DSS Non-Compliance?

• Unencrypted Data Storage: Storing credit card information without encryption can result in data breaches and non-compliance.
• Shared Credentials: Allowing multiple users to access payment systems using the same credentials can lead to audit failures.
• Non-Segmented Networks: Failing to segment cardholder data environments from the rest of the network increases exposure to threats.

6. National Institute of Standards and Technology (NIST)

NIST guidelines offer a framework for managing cybersecurity risks. They are widely used by federal agencies and businesses. IAM solutions help meet NIST standards by ensuring secure access and monitoring.

Established in 1901 by the U.S. Congress, NIST develops technology and standards to strengthen national security and innovation. Its Cybersecurity Framework, introduced in 2014, is a cornerstone for managing risk, particularly in critical infrastructure sectors

What Causes NIST Non-Compliance?

• Over-reliance on Legacy Systems: Older systems may not support modern IAM capabilities, hindering NIST compliance.
• Failure to Monitor Access: Inadequate logging and monitoring can make it hard to detect unauthorized activity, violating NIST guidelines.

7. Federal Information Security Management Act (FISMA)

FISMA focuses on securing government information systems. Agencies must implement strong IAM practices. These include identity verification and access tracking. Compliance ensures the safety of federal data and operations.

Enacted in 2002 as part of the E-Government Act by the U.S. Congress, FISMA was driven by the need for consistent federal IT security policies. Oversight is provided by the Office of Management and Budget (OMB) and NIST, making it a cornerstone of federal cybersecurity efforts. 

What Causes FISMA Non-Compliance?

• Vendor Non-Compliance: Agencies relying on third-party services must ensure vendors meet FISMA requirements to avoid indirect breaches.
• Insufficient Identity Verification: Weak authentication methods can lead to unauthorized access to government systems.
• Incomplete Security Plans: Agencies that fail to document system security plans may face penalties during audits.

How IAM Solutions Simplify Compliance

Complete and Reliable Access Control

IAM solutions help control who can access data and systems. They make sure that only authorized users have the permissions they need. This reduces risks and makes compliance easier.

Real-Time Monitoring and Logs

Real-time monitoring tracks access and detects unusual behavior. Logs provide a record of who accessed what and when. These features make audits faster and more accurate.

Attribute (ABAC) and Role-Based Access Management (RBAC)

ABAC and RBAC allow precise control over access. ABAC uses user attributes like location, while RBAC assigns roles. Both methods ensure that access is appropriate and compliant.

Adaptive MFA Authentication

Adaptive multi-factor authentication (MFA) adds extra layers of security. It adjusts based on user behavior or risk levels. This protects against unauthorized access and supports IAM compliance.

Automatic and Periodic Audits

Automated audits check for IAM compliance regularly. They identify issues early and keep records updated. This saves time and reduces the risk of violations.

Best Practices for Ensuring IAM Compliance

• Regular Access Reviews: Review access rights regularly to ensure they match current roles. Remove unnecessary permissions to reduce risks. This helps maintain IAM compliance and prevents access creep.
• Principle of Least Privilege: Give users only the access they need to do their job. Limiting permissions reduces the chance of misuse. This is a key strategy for maintaining security and compliance.
• Strong Protocols Like MFA or 2FA: Use protocols like multi-factor authentication (MFA) or two-factor authentication (2FA). These methods add layers of protection. They make it harder for attackers to gain unauthorized access.
• Keeping Updated With Regulatory Changes: Laws and regulations change over time. Stay informed about updates to avoid non-compliance. Regular training and monitoring help teams stay prepared.
• Automating User Lifecycle Management: Automation ensures users have the right access at every stage of their lifecycle. It updates permissions when roles change and removes access when users leave. This improves security and compliance.
• Make Sure Your Team is Educated on Best Security Practices: Train employees on security basics and compliance rules. An informed team is better at recognizing and preventing risks. Education is a simple but effective way to support compliance.

How Infisign Helps Achieve IAM Compliance

Scalable Access Policies and Compliance

Infisign offers scalable solutions for access management. These tools grow with your business and simplify compliance. They ensure access policies are consistent and effective.

That said, it’s particularly beneficial for enterprises dealing with multi-cloud environments, as it integrates seamlessly across platforms. By centralizing access policies, Infisign reduces the complexity of managing compliance audits while maintaining operational agility.

PAM, RBAC, and ABAC Frameworks

Infisign supports PAM, RBAC, and ABAC. These frameworks provide flexible and secure access controls. They help meet compliance requirements across industries.

Beyond compliance, these frameworks enable granular control over user privileges, which is critical for mitigating insider threats. Moreover, the ability to transition between frameworks allows enterprises to adapt access policies as their business needs evolve.

Zero Trust Authentication

Zero trust means verifying every access request. Infisign’s tools enforce this principle. This ensures only trusted users can access sensitive data.

This approach not only protects against credential-based attacks but also reduces the risk of lateral movement in the event of a breach. Furthermore, Infisign integrates with endpoint security tools to provide real-time risk assessments for each access request.

Conditional Access

Infisign allows conditional access based on specific factors. For example, access can depend on location or device type. This adds an extra layer of security and compliance.

It also minimizes disruption for legitimate users by enabling adaptive authentication. As threats grow more sophisticated, conditional access ensures your access policies remain robust without compromising usability.

User Lifecycle Management

Infisign automates user lifecycle management. It updates permissions automatically as roles change. This reduces errors and saves time.

Additionally, this automation ensures compliance with data protection regulations by deprovisioning users immediately upon role termination. For CIOs, it means fewer manual interventions and greater alignment with governance protocols.

AI Access Assist

Infisign’s AI tools simplify access management. They detect unusual patterns and suggest improvements. This makes compliance smarter and more efficient.

For enterprises, this means a more dynamic approach to access management that evolves alongside emerging security threats.

Avoid Regulatory Fines With Better Identity and Access Management (IAM) Compliance

So, by understanding regulations and adopting IAM solutions like Infisign can simplify the process. In doing so, following best practices, helps businesses stay secure and build trust.

Infisign comes with a wide range of capabilities and is built on zero-trust framework that helps avoid data breaches at all costs. With its adaptive MFA, audit trails and PAM, Infisign makes avoiding regulatory fines a lot more straight forward.Want to know more? Why not reach out to our team of IAM compliance experts for a demo!