Identity Threat Detection and Response: Why You Need IT

Post Date: July 7, 2025

Why Your Organization Needs Identity Threat Detection and Response

Most security tools watch the doors and windows. Identity threat detection and response (ITDR) watches the people with keys.

Imagine having a security team and tools watching over your user accounts and login behavior 24/7, constantly on the lookout for and stopping cybersecurity attacks before they happen.

Sounds great, right?

It’s true that many small businesses, historically, have skipped this stage of security, investing in strong protection measures and backups. But identity-based detection and response is no longer expensive and only for big corporations.

ITDR is a cost-effective approach that aims to catch threats early, reducing the chances of widespread damage or account compromise, potentially avoiding the need for more disruptive actions like restoring backups.

Just like any security measure, no ITDR solution is 100% effective, but it works in conjunction with your other tools to limit the damage an attacker can do.

Understanding ITDR

As more business operations move to the cloud, attackers don’t need to breach a server or device to get in; compromising a single user account is often enough. That’s why identity has become one of the most targeted parts of any IT environment.

In fact, the 2024 Verizon Data Breach Investigations Report found that stolen credentials played a role in 31% of data breaches over the past decade, highlighting the critical need for identity protection measures.

ITDR is a framework built to detect and respond to suspicious account activity that includes failed login attempts, privilege escalation or behavior that doesn’t match a user’s normal patterns.

It differs from endpoint detection and response (EDR), which monitors devices like laptops and desktops. Instead, ITDR watches the identity layer — the who, when and where behind account usage — especially across cloud and software as a service platforms.

Both ITDR and EDR are important tools that are part of a modern managed detection and response strategy. The two are not mutually exclusive; they complement one another to offer comprehensive coverage.

“ITDR isn’t just a tool that prevents attempted attacks. It’s a mix of human and security measures that detect anomalies and respond to potential incidents.”

How ITDR Works

ITDR isn’t just a tool that prevents attempted attacks. It’s a mix of human and security measures that detect anomalies and respond to potential incidents.

Most ITDR solutions include three functions:

Identity monitoring: Monitor the identities (accounts) and their activity. The solution learns what typical user activity looks like so it can spot anomalies.
Threat detection: Not only detect true threats but weed out false alarms. Immediate threat detection can turn an attack into a minor blip.
Incident response: Most ITDR solutions respond to threats automatically, whether it’s locking down an account or removing an unwanted change, to limit how much damage an attacker can cause.

Real-world Examples of ITDR

We utilize an ITDR solution with our clients.

Client Example 1 (VPN login): One that pops up from time to time is if one of our clients attempts to log into their Microsoft 365 account using a personal VPN. In this case, our ITDR measures locked the account and alerted us to the suspicious behavior. The quick action prevented a potential breach before it could escalate. From there, we contacted the client to ensure it was them who was attempting to access the account.

Most of our clients are located geographically close to us, so any login that appears from outside the country or in locations far away from their headquarters is flagged as suspicious. On our end, we can’t see who is trying to access the account; we can only see that someone is trying to access the account.

Client Example 2 (phishing attack): Additionally, we had a client fall victim to a phishing attack during onboarding. The attacker tricked an employee into signing into a fake Microsoft 365 page. The attacker stole those credentials and set up an inbox rule to forward incoming emails to a newly created folder.

Within minutes of the rule creation, the ITDR solution flagged it as malicious, and our incident response team was able to quickly lock down the employee’s account. Anybody who had access was logged out, and we removed the malicious rule.