Zero Trust Principles for Managing Non-Employee Identities

January 23, 2025

Many organizations rely on non-employees—vendors, contractors, partners, and service providers—to support their daily operations. However, this reliance can cause challenges in managing and securing non-employee/third-party identities.  

Cybercriminals will often exploit non-employee access to compromise systems due to weak credentials, excessive permissions, or available devices. The Zero Trust model mitigates these vulnerabilities through an approach that applies strict access controls, multi-step validation, and real-time tracking of activities.

This blog explores how Zero Trust principles can help secure non-employee identity lifecycle management and reduce risks associated with external access.

What is Zero Trust, and why does it matter for non-employee identities?

Zero Trust is a security approach based on the principle of "never trust, always verify”. This approach views each access request as a possible danger, in contrast to conventional security models that assume internal systems and users are reliable. This calls for more identity verification, limited access rights, and ongoing supervision.  

By restricting access and regularly examining their operations, Zero Trust helps manage risks for non-employees/external users that frequently function outside the organization's control.  

The growing risk of non-employee breaches

The numbers speak for themselves when it comes to the risks:

  • In the past 12 months, 61% of organizations had a third-party data breach or security incident, which is 49% more than the year before [1].
  • In 2024, the average cost of a data breach worldwide was $4.88 million, a 10% increase over the year before [2].  
  • Vulnerabilities connected to non-employees/third parties are responsible for 29% of data breaches [3].  

Given these risks, adopting Zero Trust principles has become a key step for organizations.

Zero Trust principles for managing non-employee identities

1. Enforcing least-privilege access

With least-privilege access, non-employees/external users are granted only the minimal permissions required to perform their duties. This reduces the possibility of unintentional or deliberate misuse of access.

Why it matters:
Excessive access raises the risk of data breaches, particularly in the event that a non-employee account is compromised. Organizations can reduce the risk of harm by only granting the required permissions.

Steps to implement:

  • Conduct access reviews to determine what non-employees truly need access to.
  • Use role-based access control to assign permissions based on predefined roles.
  • Audit access regularly to ensure permissions align with current tasks and responsibilities.

2. Strengthening identity lifecycle management

Zero Trust goes beyond just access controls. It also focuses on managing the whole lifecycle of non-employee identities, from onboarding all the way to deprovisioning. Without clear processes, inactive accounts or unmanaged credentials can become vulnerabilities.

Why it matters:
Unmanaged or unused accounts are often left open after contracts end, providing attackers with easy access points. Maintaining security throughout these accounts' use is ensured by actively managing their lifecycle.  

Steps to implement:

  • Use identity lifecycle management tools to automate the provisioning and deprovisioning of non-employee/third-party accounts.  
  • Review identity data on a regular basis to make sure that stale accounts are removed.  
  • Integrate identity governance to keep an eye on identity usage and ensure internal policy adherence.

3. Network segmentation and isolation

By limiting access, non-employees can only engage with the resources they need to perform their duties. This restricts their mobility within the network and prevents them from accessing unrelated systems.  

Why it matters:
Segmentation keeps attackers from accessing other parts of the network and helps limit the possible harm in the event that a non-employee account is compromised.

Steps to implement:

  • Use microsegmentation to isolate sensitive systems from non-employee access.
  • Use software-defined perimeters (SDPs) or virtual private networks (VPNs) to establish secure connections.  
  • Limit access according to particular criteria, like IP addresses or location.

4. Real-time monitoring and logging

Monitoring non-employee activities is important in helping detect and respond to potential security incidents. Logging identity-related events provides insight into how credentials are being used and ensures lifecycle accountability.

Why it matters:
If it’s not monitored, suspicious activity can be missed and organizations may fail to meet regulatory compliance requirements.

Steps to implement:

  • Use security information and event management (SIEM) tools to centralize and analyze access logs.
  • Track identity activity across its lifecycle, including onboarding, usage patterns, and deactivation.
  • Conduct audits of access logs to make sure that they are aligned with internal and external requirements.

5. Strong data protection mechanisms

Protecting sensitive data is important in Zero Trust. Encryption, tokenization, and strict data governance all help in minimizing risks.

Why it matters:  

Non-employees/external users often access or interact with sensitive data, which is a main target for attackers. Securing this data reduces the potential of exposure.

Steps to implement:

  • Encrypt sensitive data both at rest and in transit.
  • Use data loss prevention tools to prevent unauthorized sharing or downloading.
  • Implement data classification policies to control access based on the sensitivity of the information.

6. Non-employee awareness and training

Ensuring that non-employees understand your security policies and practices is essential. A lack of awareness among vendors or contractors can undermine even the best Zero Trust measures.

Why it matters:  

Human error remains one of the top causes of breaches. Educating non-employees/third parties helps minimize this risk.

Steps to implement:

  • Provide clear guidelines and training on your organization’s security protocols.
  • Include security awareness as part of onboarding processes for non-employees.
  • Offer ongoing updates on security expectations, such as phishing prevention.

Beyond the basics

In addition to its foundational principles, there are other additional strategies based on the Zero Trust philosophy for securing non-employee identities.

1. Using identity governance tools

Identity governance tools simplify how organizations manage non-employee identities. These tools help ensure that non-employee accounts are properly created, managed, and terminated.

Key features:

  • Automate identity lifecycle events, such as account creation, role changes, and deprovisioning.
  • Provide reporting and dashboards for monitoring non-employee identity usage.
  • Ensure compliance with internal policies and external regulations through identity audits.

2. Implementing Zero Trust network access (ZTNA)

Rather than providing users with general network access, ZTNA gives them secure, application-specific access. This guarantees that only the resources that non-employees/external users require are visible to them.

Benefits of ZTNA:

  • Reduces the attack surface by making applications invisible to unauthorized users.
  • Restricts lateral network movement in the event that an account is compromised.
  • Gives non-employees safe, convenient access.

3. Automating threat detection and response

Automation helps organizations identify and address security risks faster. It reduces reliance on manual processes, making it easier to secure non-employee/third-party identities at scale.

Examples of automation:

  • Locking accounts after multiple failed login attempts.
  • Flagging unusual activity, such as logins from unapproved devices.
  • Using AI tools to analyze behavior patterns and predict potential risks.

Challenges in adopting Zero Trust

While Zero Trust offers a strong security framework, implementing it for non-employee identity management can present some challenges.

1. Complexity of implementation

Shifting to Zero Trust may require changes to infrastructure, policies, and workflows. Especially for organizations with legacy systems, this can be resource intensive.

How to address:
Begin by applying Zero Trust to high-risk non-employee accounts and scale up gradually.

2. Resistance from non-employees

Vendors and contractors may push back against stricter access controls, especially if they view them as overly restrictive or inconvenient.

How to address:
Educate non-employees about the importance of these controls and use user-friendly tools like SSO to simplify their experience.

3. Balancing security and productivity

Strict access controls can sometimes slow down non-employee work, creating friction between security and operational needs.

How to address:
Adopt adaptive access policies that adjust based on risk, ensuring security without unnecessary restrictions for trusted users.

How we can help

Implementing Zero Trust for non-employee identity management can be challenging, but with our consulting services, we can help you:

  • Do a thorough assessment of your current security environment and identify vulnerabilities.
  • Develop a customized Zero Trust strategy tailored to your organization’s needs and challenges.
  • Provide guidance on implementing policies, processes, and tools to secure non-employee access.
  • Deliver support, optimization, and training to ensure your Zero Trust framework adapts to changes in the industry.

Contact us at info@anomalix.com to learn how we can help.

References

  1. Prevalent, "2024 Third-Party Risk Management Study," Prevalent.net.
  1. IBM, "Cost of a Data Breach 2024," IBM.com.
  1. Security Magazine, "Third-Party Attack Vectors Responsible for 29% of Breaches," SecurityMagazine.com.
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Mohammed Elkhatib

Founder and CEO

Mohammed is an Identity Management and Access Governance thought leader with over 20 years of CyberSecurity and Business experience. Mohammed has worked with over 500 Identity Management and Access Governance clients in various capacities. Mohammed’s significant and numerous contributions at the most successful Identity and Access related startups have led to three successful exits in excess of $825MM.

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