June 7, 2024

Identity Empowerment: Contractor Identity Mastery for Modern Enterprises

Today, organizations rely on contractors more than ever for their increasingly diverse needs. Contractors bring specialized skills, flexibility, and productivity to the table. However, with this growing relationship comes the critical challenge: managing contractor identities. And, organizations must choose to succeed at this. Let's explore why is contractor identity management important.

Today, organizations rely on contractors more than ever for their increasingly diverse needs. Contractors bring specialized skills, flexibility, and productivity to the table. However, with this growing relationship comes the critical challenge: managing contractor identities. And, organizations must choose to succeed at this. Let's explore why is contractor identity management important.

  1. Security Risks: In 2013, attackers used the contractor's credentials to infiltrate Target’s systems and steal data. Hackers gained access to Target’s network via Fazio Mechanical Services, an HVAC contractor. Impact? Over 40 million credit and debit card accounts were compromised, and the personal information of up to 70 million individuals was exposed. Resulting in an $18.5mil multistate settlement and heavy reputational damage for Target.
    Contractors often have access to sensitive systems and data. Lack of proper identity management can result in unauthorized attacks, data breaches, and complex cyberattacks. Effective identity management ensures that only authorized individuals have access to necessary resources, reducing the potential for malicious activities.

  2. Operational Efficiency: Efficiently managing contractor permissions ensures contractors can start work quickly and their access is revoked promptly once their contract ends. This not only enhances productivity but also minimizes the risk of access misuse.

  3. Regulatory Compliance: Last year Nike faced tax fines up to $530mn because they had misclassified thousands of temporary office workers. In another incident, Swift Transportation, an American trucking firm, was required to compensate over $100 million. This hefty payout was the consequence of these workers being incorrectly classified. Many industries are governed by strict regulations regarding data protection and access controls. Properly managing contractor identities helps organizations maintain compliance with regulations such as GDPR, HIPAA, and others. Non-compliance can result in hefty fines and legal repercussions.

Few more incidents

  1. Marriott International (2014): A massive data breach affected over 500 million guests. Investigators traced the attack back to a compromised login used by a third-party service provider managing guest reservations.

  2. Capital One (2019): A former Amazon Web Services (AWS) engineer gained access to Capital One's cloud storage. The attacker exploited a misconfigured security setting that gave them unauthorized access to data on millions of customers. While not a direct contractor incident, it highlights the importance of secure access controls for all third-party vendors.

Let’s understand the blind spots in the existing contractor identity management systems: 

  1. Lack of Visibility: Many organizations don't have a clear picture of who their contractors are, what systems they're accessing, and when they're doing it. Imagine trying to secure your home without knowing who has the keys or when they're coming and going. Without a centralized system to track and manage this information, it's almost impossible to enforce security effectively. Implementing an Identity and Access Management (IAM) system can provide this much-needed visibility, helping you keep tabs on who’s accessing what, and when.

  2. Inefficient Onboarding and Offboarding: Bringing contractors on board or offboarding them using manual processes is chaotic and error-prone. This can lead to contractors having too much access or, even worse, retaining access after they’ve left. Automating these processes ensures that contractors get the right level of access quickly and lose it as soon as they leave, much like check-in and check-out.

  3. Over-reliance on IT Teams: Relying only on IT teams to handle contractor identities can create bottlenecks and lead to mistakes. It's similar to having just one gatekeeper for a busy concert – delays and oversights are bound to happen. Instead, collaborating across departments ensures that identity management is thorough and consistently applied, spreading the responsibility and reducing errors.
  1. Insufficient Role-Based Access Control (RBAC): Not every contractor needs access to everything. Imagine giving every employee in a company a master key that opens every door – it’s unnecessary and risky. Without proper role-based access control, contractors might end up with more access than they need, which can be a security nightmare. Clearly defining roles and granting access based on those roles is like giving out keys that only open the doors someone needs to do their job.
  1. Neglecting Non-Human Identities: In today’s automated world, contractors often use software bots and other non-human tools that need access to your systems. Managing these non-human identities is just as crucial as managing human ones to prevent unauthorized access and potential security breaches.

Managing contractor identities isn’t just a nice-to-have anymore; it’s essential for keeping your organization secure and running smoothly. By spotting and fixing common blind spots, you can protect your systems and data, making sure contractors help your business without adding extra risks. Plus, effective identity management boosts efficiency and keeps you compliant with regulations, paving the way for long-term success.

One great tool to help with this is Unosecur's "Just in Time" feature. This feature uses auto-expiring policies to ensure that contractors only have access when they need it and lose access automatically when they don’t. It's a smart way to address many of the issues we've discussed, keeping your organization both secure and efficient.

Protect what matters most

Secure human and non-human identities (NHIs) at scale powered by AI. Don't wait for a security breach to happen. Get a free assessment today and secure your business.