Federated Identity Management: Simplifying Access Across Systems

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Are you aware that 61% of data breaches involve stolen or weak credentials? Especially for organizations that handle hundreds of SaaS applications, weak identity management is a huge risk. Employees juggle multiple logins daily across email, HR portals, and security tools, leading to password fatigue, shadow IT, and compliance gaps. 

What if I told you that you could use one identity to access all of them effortlessly?

This is where Federated Identity Management (FIM) becomes relevant. FIM enables a user to authenticate once and access various systems in a number of organizations without dealing with multiple passwords. It adds security, eases the user experience, and allows IT to function more efficiently.

Then what is Federated Identity Management, and how does it actually function? Let's discover it in depth.

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TL;DR 

• Federated Identity Management enables users to access multiple systems with one set of credentials, improving security and user experience.
• FIM relies on Identity Providers (IdPs) to authenticate users for Service Providers (SPs), eliminating the need for separate logins across platforms.
• Enhances security, boosts productivity, reduces costs, lowers administrative workload, and simplifies data management.
• Protocols like SAML, OAuth, OpenID Connect, and WS-Federation enable secure authentication and authorization across different systems.
• Businesses use FIM to prevent breaches, simplify access control, and improve efficiency, making it essential in today’s digital landscape.

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1. What is Federated Identity Management? 

Federated Identity Management (FIM) lets people use one identity to get into many apps and platforms. Users don't have to sign in to each service on its own. They just need to prove who they are once to reach different linked systems across organizations.

Take Google accounts as an example. People can sign in to other apps, YouTube, and Gmail with the same login info. In the same way, workers from a partner company can open a shared portal without needing another account. This boosts security and makes things run smoother.

FIM tackles a big security problem, using the same passwords over and over. This way of linking identities is key for today's businesses. This is even more true since Verizon's Data Breach Report shows that 61% of data breaches involve stolen login details.

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2. A Step-by-Step Process of How Federated Identity Management Works 

Federated Identity Management (FIM) is an identity system based on trust between service providers (SPs) and identity providers (IdPs). It lets users to access different applications quite conveniently without having to recall multiple usernames and passwords for each.

This approach improves security, convenience, and interoperability across different platforms. 

Let me take you through the process step by step now.

Step 1: User Login Attempt

The process begins when a user attempts to log in to a service provider's platform that employs Federated Identity Management.

For instance, if an employee wishes to access his or her company's project management software, he or she will provide the login credentials on the workspace portal. Rather than logging them in immediately, the service provider forwards the request to the identity provider.

This makes sure the user does not need to remember various login credentials for every service while centralizing identity verification at the IdP.

Step 2: Requesting Federated Authentication

As soon as the service provider (SP) sees that there is an attempt to log in by a user, it sends a request to the selected identity provider (IdP) to check and validate the user’s identity. 

There are two objectives for this: 

1. Identity Verification: The SP does not verify the user's identity itself. Instead, it relies on the IdP to verify who the user is.

2. Data Protection: The SP does not store passwords or confidential data, which reduces the possibility of data breaches. The IdP handles the authentication securely.

This approach allows companies to secure access to various applications without having to handle authentication details directly.

Step 3: Verifying Identity and Granting Access  

When the Identity Provider (IdP) receives a login request, it starts a thorough process to confirm the user's identity.

Verifying Identity  

The IdP can use various techniques to check someone's identity, including:

• Traditional Credentials – This involves checking the username and password the user enters.
• Biometric Authentication – This uses fingerprints, face recognition, or eye patterns to boost security.
• Multi-Factor Authentication (MFA) – This adds extra security layers, such as sending a one-time passcode (OTP) to the user's phone or email.

Authorization Check 

Once the IdP confirms identity, it examines the user's permissions to determine if they can access the desired service.

• Role-Based Access Control (RBAC): If a company has specific security roles, the system checks the user's role (like Admin or Employee) to determine their access level.
• Service-Specific Needs: Some applications might ask for additional permissions. The IdP checks if the user meets these requirements before granting access.

If the identity check and permission tests are passed, the IdP confirms the user’s identity and permissions to the service provider. 

Step 4: Secure Authorization Protocols

To secure the transmission of authentication data between the Identity Provider (IdP) and Service Provider (SP), Federated Identity Management uses well-established security protocols:

OAuth 2.0 (For Secure Authorization)

This enables users to permit third-party apps to utilize their information without sharing their passwords.

For example, when a user logs in to Spotify with their Google account, OAuth is utilized. Google generates a secure access token instead of sharing the user's login credentials.

OpenID Connect (OIDC) (For Authentication)

OIDC is an identity layer built on OAuth 2.0, designed specifically for secure user authentication.

For instance, any user logging into Slack with their Gmail credentials is authenticated through OpenID Connect. 

SAML (Security Assertion Markup Language) 

SAML makes single sign-on (SSO) between various services possible by facilitating the sharing of identity data between an SP and an IdP.

For example, a university that employs SAML allows students to sign in to learning platforms, email, and cloud storage using one login.

These protocols ensure that authentication requests are encrypted, safe, and protected from cyber threats.

Step 5: User Access Granted  

After the user has been successfully verified and authorized, the service provider allows them to access the system based on the identity check from the Identity Provider (IdP).

• If the user is a manager, they will have access to advanced admin features when they log in.
• On the other hand, if the user is a regular employee, their access will be limited to basic functions.

This process creates a secure and customized experience for users while stopping unauthorized individuals from reaching sensitive information.

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3. Key Components of Federated Identity Management

Alright, now that you’ve understood what FIM is and how it works, let’s dive in and discuss the different components it has. These components make sure that users are able to log in easily and get their hands on the right data, all while maintaining security. 

There are 5 crucial components, and all of them serve different purposes. 

A. Authentication

This is the first step in securing digital identities. Authentication ensures that the person trying to access any system is who they claim to be. But the truth is, passwords are outdated now. That’s why modern systems need more security than this. 

• Biometric Authentication: Biometric is nothing but a feature that uses physical traits like facial ID or fingerprint to authenticate the identity of a person. 
• Multi-Factor Authentication (MFA): This is an additional layer of protection for login. It requires users to verify their identity with a one-time passcode or au

Twitter’s 2020 hack is the most relevant example of a weak authentication system. High-profile accounts like Elon Musk and Barack Obama were hacked. 

B. Authorization

After the users prove their identity, authorization ensures what they can access. To make this simple, an office building can get you past the lobby with authentication, but the authorization will dictate the floor that you can access. 

• Role-Based Access Control (RBAC): This is a method that ensures people are getting access based on their role in the organization. This prevents unauthorized access to certain information. 
• Attribute-Based Access Control (ABAC): This access control is a security system that grants access to or denies the user to certain resources based on their characteristics. For example, doctors have full records of their patients, but the receptionist can only access appointment schedules. 

C. Access Control

Even after authentication and authorization are intact, organizations require strict access control to prevent data leaks. This is important so that users don't unintentionally or intentionally get hold of sensitive information. 

• Mandatory Access Control (MAC): This is a security system where the system decides who can access files or data, and no user is allowed to alter this access. 
• Discretionary Access Control (DAC): With this access control, the owner of a file or information decides who can access it and to what extent. Like Google Drive, you can choose who can view or edit it. 

D. Identity Providers (IdPs) 

Now, IdPs are basically the gatekeepers of authentication, they verify identity on behalf of multiple service providers. Rather than managing separate logins for every application, users can authenticate once through an IdP and get access across different platforms. 

Identity Providers are important for Single sign-on, MFA, and to secure access management in every sector. 

Two great examples are- 

• Microsoft Azure AD:  Employees of Starbucks use it to securely log into HR and scheduling systems. 
• Facebook Login: Facebook follows a process called Social Login, which allows users to log in with their Facebook credentials on different websites and apps.

If there is poor IdP, a situation like Okta’s 2022 hack can take place. In this attack, cybercriminals targeted a third-party support provider and gained access to sensitive information.

E. Service Providers (SPs)

These are applications that rely on IdPs to verify and give access to users. Service Providers don’t handle authentication by themselves, they need an IdP to do so. Let's take Slack, for example, When logging in with your Google account, Google acts as the IdP to verify your identity before giving access. 

This process lets SPs, simply authentication, increase security, reduce password management, and overall create a good user experience. 

Examples like- 

• Zoom: Most universities use Zoom with their IdP to let students and faculty log in easily.
• Spotify: When you are using Spotify, instead of creating a new profile, you can simply use your Google or Facebook account to log in. 

So, now we have covered all 5 components of Federated Identity Management. All these components ensure that the user can secure and seamless experience. It is essential to use FIM to improve security and avoid unnecessary data breaches. 

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4. Benefits of Using Federated Identity Management

Till now, we have successfully discussed what FIM is, a broken-down process of its functionality, and its essential components. But, in order to make sure you understand its potential and how it is not just another term but a necessity, here is a put-together list of benefits it offers. 

A. Strengthened Security 

Bringing all authentication into one managed system cuts down the number of possible access points for cyber threats. This centralized method keeps sensitive user information in secure, on-site locations, greatly lowering the chances of unauthorized access or data leaks.

Additionally, FIM boosts security by applying uniform access controls and authentication standards across various systems, reducing the risks linked to using different and possibly less secure authentication methods.

B. Productivity Amplified 

FIM increases organizational productivity by providing users with easy access to numerous systems with a single set of login credentials. It also reduces interruptions and login challenges, which enables users to move between platforms with ease.

For both users and support staff, the reduction in time spent on password resets and authentication problems immediately boosts productivity and efficiency. With fewer authentication barriers, teams can focus more on their main responsibilities, leading to improved overall performance and effectiveness.

C. Cost Reduction 

Companies can cut costs by using Federated Identity Management. By eliminating the necessity for multiple authentication systems and their associated infrastructure, companies can significantly reduce expenses related to setup, maintenance, and operations.  

Centralizing authentication processes with FIM minimizes the resources required to manage different user identities across various platforms. This streamlined approach lowers the demand for high IT equipment and support. 

D. Lower Administrative Costs

FIM makes it easier to handle user identities, which significantly reduces the workload for administrators. Instead of juggling multiple accounts and passwords, admins can manage authentication through a single, centralized system, making the process much simpler.

This easier approach cuts down on the complications of managing user accounts, allowing administrative teams to focus on more important tasks beyond identity management. With less administrative pressure, teams can save time and prioritise important tasks. 

E. Data Management Made Easy 

Federated Identity Management makes handling user data easier by combining data management and access across different platforms. This approach not only simplifies how users access information but with that also boosts data security by reducing duplicates and potential risks.

Managing identities across various systems or organizations can be tricky and complicated if done manually. This is where FIM comes in handy and offers benefits like efficiency, security, and compliance.

5. Common Protocols and Standards in Federated Identity Management

Federated Identity Management will not work properly if it does not meet standard protocols that allow different systems to communicate in a secure manner. Just like you can’t travel to a different country without a passport that they don’t recognize. 

Exactly like that, FIM relies on different protocols that are universally recognized to enable authentication and authorization across platforms. 

A. SAML (Security Assertion Markup Language) 

SAML is simply an XML-based standard used for authentication. It lets users log into different services with just one single set of credentials. It is vastly used across multiple organizations and even government agencies to enable Single Sign-On (SSO). 

It also helps in eliminating the need for storing passwords across multiple platforms, which reduces security risks. Since it’s XML-based, it needs more processing power compared to newer authentication methods such as OAuth. 

a. Its Rundown 

When you try to sign in to Slack, you get sent to your company's identity provider. This provider checks your login information and sends a SAML token back to Slack to confirm who you are. This way, you don’t have to remember lots of passwords, and it keeps your account safe.

B. OAuth 2.0 & OpenID Connect

 OAuth 2.0 and OpenID Connect (OIDC) are the preferred methods for authentication in cloud services, web apps, and mobile applications. OAuth focuses on securely authorizing APIs, while OpenID Connect adds an extra layer for verifying identities.

These standards improve security by eliminating the need for multiple passwords. However, if OAuth tokens are not set up correctly, they can be at risk of being misused, which could allow unauthorized access.

a. Its Rundown

When you select "Continue with Facebook" on Spotify, Facebook (the identity provider) authenticates you. When authenticated, Facebook returns an access token to Spotify so that it can use your particular user information (such as your name and email) without ever revealing your Facebook password.

C. WS-Federation:

WS- Federation is one of the identity federation protocols that let users get authenticated across networks in different organizations. This helps users to log in just once and access multiple services without the need to re-authenticate. 

It is essential as it provides a structured way to enable Federated Authentication, which then makes it easy for organizations to manage identity security in and across multiple applications and networks. 

a. Its Rundown

When someone tries to use a service that needs them to log in, WS-Federation sends them to their identity provider. The identity provider checks their login information and gives them a security token that has their authentication and permission details. 

This token is then returned to the service provider, allowing the user to access the service without needing to log in again.

Think of Federated Identity Management as a bridge that allows users to access multiple platforms without the hassle of logging in repeatedly. 

However, for this bridge to work well, it needs strong support; this is where authentication protocols like SAML, OAuth, OpenID Connect, and WS-Federation play an important role.

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6. Bottom Line

It is no joke that managing identities across multiple platforms is no easy task. This is where Federated Identity Management comes into action, it creates a single identity that works across different systems and simplifies access while enhancing security.

Nowadays, businesses rely on standards like SAML, OAuth, and OpenID Connect, along with multi-factor authentication, to safely verify users across various platforms. To successfully implement FIM, it's important to select the appropriate identity provider and ensure compliance is maintained.

Having a well-planned FIM strategy is essential for safe and efficient operations in the progressive digital frontier. This is where CloudEagle.ai steps in. It helps companies automate user provisioning, simplify access control, and increase security.

Ready to bring Identity management to the next level? Let CloudEagle.ai do the heavy lifting for you! Schedule a demo with us today. 

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7. Frequently Asked Questions 

1. What is Federated Identity Management?
Federated Identity Management (FIM) allows users to access multiple systems with one set of credentials, enabling seamless authentication across different organizations or domains.

2. What are the benefits of FIM?
FIM enhances security, increases productivity, reduces cost, and improves data management by enabling seamless authentication across multiple platforms without needing separate logins.

3. How does SSO work?
Single Sign-On (SSO) allows users to log in once and access multiple applications without re-entering credentials, using authentication protocols like SAML, OAuth, or OpenID Connect.

4. What is the difference between SAML and OAuth?
SAML is for authentication and enables SSO, while OAuth is an authorization framework that allows secure API access without exposing user credentials.

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