CIAM versus IAM - Why can’t one software answer all your problems? Well IAM is aimed at employees while CIAM is for customers or clients - both have different problems.
According to Statistica, from March 2023 to February 2024 - the average cost for a company data breach was an astounding 9.36 Million USD. Both CIAM and IAM software can protect users from this - but here are the ways they differ in doing this.
What is CIAM (Customer Identity and Access Management)?
CIAM manages and secures the identities of customers and external users (namely app users or users on a platform for a service). It aims to create an easy and secure experience while gathering insights to enhance customer engagement. What makes CIAM different? Well, CIAM prioritizes user experience alongside security a lot more than other frameworks or tools.
Key Elements of a CIAM Software or Tool
- Scalable Authentication: Handling high volumes of user logins during peak times without performance issues.
- Social Login Options: Allowing users to log in with social media accounts like Facebook or Google.
- Consent Management: Tools to manage and honor user preferences and GDPR or CCPA compliance.
- Personalization: Using identity data to tailor user experiences and offers.
- Fraud Detection: Identifying and stopping fraudulent activities specific to customer-facing systems.
What is IAM (Identity and Access Management)?
IAM is a framework of tools and policies designed to manage the identities and permissions of users within a company. Its primary goal is to make sure that only authorized users can access specific systems and resources. IAM solutions can be essential for maintaining operational security and meeting compliance requirements in enterprise environments.
Key Elements of an IAM Software or Tool
- User Provisioning and De-provisioning: Automated processes for granting and revoking access as employees join, change roles, or leave the company.
- Role-Based Access Control (RBAC): Assigning permissions based on job functions to make sure that users only access what they need.
- Single Sign-On (SSO): A unified login experience across multiple systems to improve usability and security.
- Multi-Factor Authentication (MFA): Adding layers of security through methods like OTPs or biometrics.
Audit Trails: Logs to track who accessed what and when are crucial for compliance and forensic investigations.
CIAM vs. IAM: Key Differences Businesses Need to Know
1. The End User - Workforces Versus Customers and Clients
IAM primarily serves internal users like employees, contractors, and partners. CIAM, on the other hand, is designed for external users such as customers and clients. This fundamental difference influences the design and features of the platforms.
Additionally, IAM solutions emphasize operational efficiency and compliance within a controlled network, whereas CIAM solutions must scale to millions of users while balancing security and user experience. CIAM platforms often work with CRM and analytics tools, helping businesses personalize customer interactions.
- Scale: IAM solutions typically support a few thousand users, while CIAM scales to handle millions.
- Data Ownership: IAM manages employee or partner data within corporate boundaries, while CIAM deals with customer data governed by strict privacy regulations like GDPR.
- Usage Needs: CIAM frequently works with marketing and analytics tools, whereas IAM focuses on HR and IT systems like Active Directory.
- User Onboarding: IAM often relies on IT-administered account setups, while CIAM allows self-service registration and authentication for external users.
2. Security from Attacks Versus Fraud Detection
IAM software focuses on protecting internal systems from cyberattacks, ensuring that sensitive corporate data remains secure. CIAM solutions, however, emphasize fraud detection and prevention, as they deal with external users who might attempt fraudulent transactions. Additionally, CIAM systems often incorporate tools for monitoring suspicious user behavior in real time to prevent account takeovers and payment fraud.
Why doesn’t IAM do this? Mostly cause these types of sensitive information are rarely at risk of exposure in major companies as they have PAM.
- Focus Area: IAM prioritizes securing enterprise systems against unauthorized access, while CIAM protects customer transactions and interactions.
- Monitoring: CIAM employs AI-driven fraud detection, while IAM focuses on user role validation and privilege management.
- Tools: CIAM often integrates with tools like anti-fraud APIs, whereas IAM integrates with internal security incident and event management (SIEM) systems.
- Account Recovery: CIAM emphasizes secure and user-friendly recovery mechanisms for customers, while IAM uses IT-driven account restoration processes.
3. Data Sensitivity and Compliance of the End Users
IAM compliance deals with data, requiring compliance with standards like SOC 2 or ISO 27001. CIAM handles customer data, which often necessitates adherence to privacy regulations like GDPR and CCPA. CIAM solutions are also designed to handle cross-border data regulations, ensuring businesses can operate globally while respecting regional laws. Furthermore, CIAM platforms incorporate features like consent management and data anonymization to bolster compliance efforts.In the case of IAM tools, data breaches and unauthorized access to sensitive data are a bigger risk which is why frameworks of least privilege or Role-based access are generally followed strictly.
- Compliance Standards: IAM aligns with internal standards like SOC 2, while CIAM requires adherence to customer-focused regulations such as GDPR and CCPA.
- Consent Management: CIAM tools allow customers to control their data usage preferences, a feature not typically available in IAM systems.
- Data Retention Policies: CIAM platforms often include customizable retention policies to meet local data protection laws.
- Cross-border Functionality: Both IAM and CIAM help you comply with international privacy regulations for businesses operating globally.
4. Usage and Anonymization of Behavior Analytics
CIAM tools often collect and anonymize user behavior data to improve customer experiences. IAM tools rarely engage in behavior analytics, as their focus is on access control and security. CIAM’s use of analytics extends to creating tailored user journeys, detecting fraudulent behavior, and optimizing conversion rates. These analytics are anonymized to respect user privacy while still showing actionable insights.That said, IAM software still needs to pay attention to odd behavior, and unusual access requests, and even look at the devices the account is being accessed from. To safeguard from hackers or data theft, conditional access and adaptive MFA help combat this risk.
- Purpose: CIAM solutions use analytics to enhance customer engagement, while IAM focuses on operational access efficiency.
- Anonymization: CIAM tools anonymize data to protect privacy, whereas IAM solutions do not typically require anonymization due to its internal focus.
- Insights: CIAM analytics have insights for improving marketing campaigns and user interfaces, which is irrelevant for IAM solutions.
- Tools: CIAM platforms may work with business intelligence and analytics tools, unlike IAM systems.
5. Authentication Methods
IAM systems frequently use enterprise-grade methods like hardware tokens and Active Directory integrations. CIAM solutions lean toward customer-friendly options, including passwordless logins and social sign-ins. Additionally, CIAM platforms often use adaptive authentication to create a balance between security and usability for end-users.
That said based on the IAM tool, these days most software allows the use of SSO, social login, and passkeys. Passkeys are revolutionary in the sense they allow you to log in easily through biometric authentication or even by using Windows authentication.
- Enterprise-grade Security: IAM focuses on reliable methods like multi-factor authentication (MFA) using hardware tokens.
- User-friendliness: CIAM uses options like passwordless and biometric logins to enhance user experiences.
- Social Sign-ins: CIAM allows login via platforms like Google and Facebook for better customer access.
- Adaptive Authentication: CIAM adjusts authentication requirements based on risk levels, a feature uncommon in IAM solutions.
6. Consent and Preference Management
CIAM platforms have tools to manage user consent for data usage and marketing communications.IAM tools and platforms typically lack these features as they are irrelevant to internal user management. CIAM systems also track preference changes over time, ensuring compliance and improving user trust.That said, on a company level, IAM tools are typically very transparent about how this data is used. For the most part, some clauses and contracts detail how and by whom the data is accessible or possibly used. These cases are usually rare unless there is a need for a unique access protocol to be put in place.
- Data Consent: CIAM has tools for managing and updating customer data consent settings.
- Preference Tracking: CIAM systems log and adapt to changing user preferences for better personalization.
- Regulatory Compliance: CIAM helps make sure that businesses meet regulatory requirements for consent handling.
- User Experience: Consent tools in CIAM contribute to building trust and long-term customer relationships.
7. The Usage of Social Login Options
Social login is a hallmark feature of most CIAM solutions, allowing quick customer onboarding. IAM systems usually avoid social logins due to security risks and lack of applicability for workforce management. By integrating with platforms like Google, Facebook, or Apple, CIAM enhances convenience while maintaining secure account linking options.
That said, based on the company, using Google Workspace or Microsoft Teams to log in to your full tech stack is common. But to make sure this is secure, there is usually an MFA framework or password management solution to avoid access and passwords being leaked.
- Convenience: Social login reduces barriers to customer account creation in CIAM platforms.
- Security: CIAM platforms remove risks with secure account linking, while IAM solutions do not leverage these options.
- Applicability: Social logins align with customer needs but have limited relevance for workforce scenarios in IAM.
- Usage: CIAM works with popular platforms like Facebook and Google for easy authentication.
8. Customization and Branding
CIAM platforms allow extensive customization to match the company's branding. IAM tools and platforms focus more on function over form, as they are internal-facing tools. Despite this, many IAM providers and tools offer companies the option to customize the solution to their branding making it cohesive with the enterprise’s identity and indistinguishable from a workforce standpoint.
It’s more common for CIAM solutions to often include white-label solutions and APIs that allow businesses to design branded login experiences. This goes especially since most of these platforms are customer-facing and are handled by paid users.
- Brand Alignment: CIAM supports branded interfaces and login pages to maintain customer trust.
- Customization Tools: CIAM platforms offer APIs for tailored user experiences, unlike IAM.
- Focus: IAM solutions prioritize functional efficiency over aesthetic customization.
- End-user Engagement: Customization in CIAM enhances customer interaction and satisfaction.
9. The User Journey is Significantly Different
The user journey in IAM tools is often straightforward and utilitarian, focusing on functionality. In CIAM, the journey is designed to be intuitive and engaging, enhancing customer satisfaction. CIAM solutions focus heavily on onboarding flows, self-service options, and frictionless interactions to improve conversion rates and user retention.In IAM solutions or tools, the user experience needs to be easy to navigate and more than that practical for the company’s workflow. Although restricting access based on roles, departments and level of privilege is the norm, on the whole adding and removing users needs to be easy to deal with companies that are growing and with high employee turnover.
- Design Philosophy: IAM solutions emphasize simplicity for internal operations, while CIAM optimizes customer satisfaction.
- Onboarding: CIAM features onboarding processes, unlike IAM’s IT-driven account setup.
- Self-service Options: CIAM empowers users with tools to manage their accounts without IT assistance.
- Retention Focus: CIAM designs user flows to increase retention and reduce churn rates.
Understanding CIAM vs. IAM Through Real-World Scenarios
CIAM Vs. IAM in Healthcare
IAM software in healthcare focuses on securing access to sensitive medical data for employees, including doctors, nurses, and administrative staff. They help with compliance and regulations like HIPAA, safeguarding against unauthorized access to patient health records.
Patients using CIAM need simplified access through features like single sign-on (SSO) and multifactor authentication to balance security with usability.
CIAM Vs. IAM in Finance and Fintech
In finance, IAM tools make sure that employees securely access internal financial tools and data while maintaining strict compliance with regulations like PCI DSS. CIAM platforms cater to external users by providing secure customer logins and safeguarding transactions with advanced fraud detection systems. CIAM solutions employ machine learning to detect and stop fraudulent activities, protecting customer assets. IAM Solutions enforces strict controls to comply with financial standards such as SOX and GDPR.
CIAM Vs. IAM in Government Institutions
Government IAM systems control access to internal systems across various departments, ensuring only authorized personnel can manage classified information. CIAM systems help citizens access government services online, such as tax portals, license renewals, and benefit applications, with a focus on usability and accessibility.IAM solutions when used in public agencies manage classified and high-security data, requiring strict access controls and auditing mechanisms. On the other hand, CIAM in government institutions uses document verification and multifactor authentication to validate citizen identities during service registration.
CIAM Vs. IAM in SaaS Companies
IAM solutions in SaaS companies govern internal access to development, deployment, and administrative tools, prioritizing security and operational efficiency. CIAM platforms focus on external users, allowing secure customer access to SaaS products with easy onboarding and account management.IAM makes sure employees can securely access development environments and admin panels without unnecessary permissions. On the other hand, CIAM solutions support self-service account creation, working with SSO and third-party authentication options for flexibility.
CIAM Vs. IAM in Retail and eCommerce
IAM systems in retail focus on managing access to inventory management and point-of-sale systems for employees. CIAM prioritizes customer-facing features, providing personalized shopping experiences, secure payment options, and loyalty program management.IAM in retail businesses restricts access to sensitive inventory data by employees to prevent misuse and theft of merchandise.In retail, CIAM collects and stores user preferences securely, allowing personalized marketing and recommendations. It also Improves payment security through encryption
CIAM vs. IAM: Which One Meets Your Needs?
When deciding between CIAM and IAM, your choice should be guided by whether you're primarily focused on managing employee access or customer interactions with your digital services. IAM works best for companies that need to control internal access to company resources, systems, and data, with its emphasis on security protocols and compliance within a controlled environment.
CIAM solutions are the better choice when you need to handle large numbers of customer identities and want to create a smooth, user-friendly experience across multiple digital touchpoints while maintaining strong security.
IAM on the other hand, typically handles thousands of users with standardized access patterns, while CIAM must accommodate millions of users with diverse needs and technical abilities.
To make your decision, consider your primary users (employees vs customers), required scale (thousands vs millions), and whether your priority is strict security control or balancing security with user convenience and satisfaction.
Why Choose Infisign For Both Your IAM or CIAM?
Infisign has BOTH IAM and CIAM solutions built on a zero-trust framework with decentralized identities.
This means even a hacker gets past are watertight security - they only get a small piece of the puzzle needed to access your database - making it completely useless.
Moreover, our CIAM UniFed charges you on a tenant level and not per user - unlike most software which makes it a lot more affordable. Also, for both our IAM and CIAM we give you directory sync which makes single sign-on possible across your full tech stack.
Why not try out BOTH for free? Infisign gives anyone interested a 15-day free trial to see if it’s the right fit!
Frequently Asked Questions (FAQs)
What is the difference between IAM and CIAM?
IAM manages your employees' digital access and security within your company - it's about controlling which internal systems and resources each person can use based on their job role. CIAM solutions focus specifically on your customers and how they interact with your online services, making it simple for them to log in and use your websites or apps while protecting their personal information
What is CIAM used for?
CIAM helps customers log in easily (maybe through their Facebook account), manage their own profiles, and move smoothly between your different services without constant password prompts. Behind the scenes, it's also keeping track of what your customers prefer and how they behave, helping you serve them better while keeping their information safe and private.
What is the difference between workforce and CIAM?
Workforce systems handle a relatively small number of employees who need specific access based on their roles within the company, with strict security measures and standardized procedures. CIAM solutions deal with a much larger number of customers who have different levels of tech knowledge and who need different things from your business - it needs to be both extremely flexible and very easy to use. The main difference comes down to scale and simplicity: workforce systems can be more rigid because employees will learn to use them, while CIAM must be intuitive enough for any customer to use without training.
