By Shawn Moorhead, Vice President, Market & Business Development, Lastwall

As we reflect on 2024 and plan for the new year, it's always a useful exercise to anticipate forward-facing threats that could evolve into very real and significant cybersecurity vulnerabilities. We do this not to keep ourselves up at night worrying about the state of our critical IT systems and infrastructure-though admittedly, our team isn't getting great sleep these days. Instead, the goal is to prepare for vulnerabilities arising at the same pace as cutting-edge technology develops, which is now faster than at any point in history. Coming from expertise within the realm of identity security and management, there's one statistic that really cuts into REM sleep: Over 86% of data breaches involve stolen credentials. Identity currently presents the largest attack surface for malicious actors, and we can expect this trend to continue into 2025 and beyond. 

Below are three transformative trends that will mark critical evolution points within the identity space for 2025:

1. The Rise of Decentralized Identity Systems

The traditional centralized approach to identity management is undergoing a radical transformation. In 2025, we'll see Decentralized Identity Systems (DID), sometimes referred to as Self-Sovereign Identity (SSI), emerge as a dominant force. Decentralized identity systems empower users to maintain complete control over their own digital identity in ways most people may not be prepared for. This means that users will have complete control over personal data and identity information, eliminating scattered personal data across third-party databases. Users will decide exactly what information to share and with whom, and maintain the ability to revoke access to specific information at any time. This shift is being driven by growing privacy concerns, demand for user-controlled data, and the associated maturation of technologies in the realms of public key infrastructure, blockchain, and advanced cryptography.

Organizations will also increasingly adopt SSI solutions that allow users to store their credentials in secure repositories, such as a digital wallet, sharing only required information with service providers in order to maintain privacy. The impact of this trend will be particularly significant in heavily regulated and critical infrastructure industries such as finance, energy, water, healthcare, etc. For instance, banks will be able to verify customer identities without storing sensitive personal information, reducing both compliance burdens and security risks. Healthcare providers will leverage decentralized identity systems to ensure secure patient data access while maintaining HIPAA compliance.

However, the transition to decentralized identity systems won't be without challenges. Users will need new digital identity management education and support for the adoption of new behaviors. Organizations will need to invest in new infrastructure and adapt their existing security frameworks to accommodate this paradigm shift. The key to success will lie in finding the right balance between decentralization and practical implementation while ensuring a seamless user experience. As we know all too well, if it's not easy to use and understand, users will generally avoid use and gravitate toward shadow IT practices, sacrificing security for convenience.

2. AI-Powered Adaptive Authentication Becomes Mainstream

As cyber threats become more sophisticated, static authentication methods are proving increasingly inadequate. In 2025, we can expect the adoption of AI-powered adaptive authentication systems that continuously analyze user behavior patterns to determine access rights and security levels in real-time. These intelligent systems will go beyond traditional multi-factor authentication (MFA) by incorporating hundreds of data points, including typing patterns, device characteristics, location data, and network information. The AI algorithms will create dynamic risk scores for each access attempt, automatically adjusting security requirements based on the perceived risk level. Many identity platforms have been using these types of behavioral and contextual data points in their authentication mechanisms for the past few years, but advancements in AI and machine learning are supercharging their efficacy and deployability. 

The integration of machine learning will also enable these systems to detect and respond to potential security threats more effectively. By analyzing patterns across millions of authentication attempts, AI systems will identify suspicious activities that might indicate credential theft or account compromise before they result in security breaches. Organizations implementing these advanced authentication systems will need to carefully balance security requirements with privacy concerns. Transparent policies regarding data collection and usage will be crucial for maintaining user trust while leveraging the full potential of AI-powered authentication.

3. Zero Trust Architecture Evolves with Identity-First Security

While Zero Trust has been a buzzword for several years, 2025 will see its evolution into a more sophisticated, identity-first security model. Organizations will move beyond the simple "never trust, always verify" mantra to implement comprehensive identity-aware security frameworks that integrate seamlessly with existing infrastructure. The new identity-first approach to Zero Trust will focus on establishing and maintaining trust through continuous identity verification rather than relying on network perimeters. This shift is particularly crucial as organizations continue to support remote work and cloud-based applications.

Identity-first security will emphasize:

• Continuous authentication and authorization at every access point
• Fine-grained access controls based on user context and behavior
• Real-time monitoring and adjustment of access privileges
• Integration of identity security across all enterprise applications and services

A significant development will be the emergence of Identity-as-Code practices, where identity and access policies are managed through version-controlled configuration files, enabling better automation and consistency in security implementations. This approach will allow organizations to maintain robust security controls while scaling their operations efficiently.

Organizations will also leverage advanced analytics and machine learning to create detailed identity risk profiles, enabling more nuanced access decisions based on multiple factors. This evolution will help reduce false positives while maintaining strict security standards, leading to improved operational efficiency and user satisfaction.

Looking Ahead

As we move into 2025, these trends will likely reshape our current approach to identity security and management. The critical detail to get right is ensuring the proper balance of security, privacy, and user experience. Success will lie in thoughtful implementation strategies that consider both technical capabilities and human factors. The future of identity security is not just about user authentication-it's about creating the foundation for a comprehensive security framework that can adapt to evolving threats while providing seamless access to authorized, legitimate users. As we navigate these changes, the role of identity security and access management will only grow in importance. Organizations that invest in understanding trends and implementing new technologies will be better positioned to face the security challenges of tomorrow while maintaining the agility needed to thrive in an increasingly digital world.

##

ABOUT THE AUTHOR

Shawn Moorhead leads Lastwall's sales, business development, marketing, and customer success teams. Shawn's background and experience revolves around the startup ecosystem in working with over 100 Seed to Series C-stage startups to facilitate customer discovery processes, raise fundraising rounds, define product-market fit, kickstart and scale business development and sales efforts, design strategic partnerships, and create geographic expansion strategies.

Prior to joining Lastwall, Shawn founded a consulting group that partnered with startups as outsourced resources to lead growth initiatives and advise founders and C-Suite executives. He has also directly launched a startup with financial backing from, and in partnership with, one of the largest publicly traded companies in Hawaii. During his time at Elemental Excelerator (a technology incubator and funding program), Shawn designed and built the Global Partner Program where his efforts resulted in the deployment of proof of concept projects, enterprise sales, and other partnership engagements between startups in the Elemental portfolio and corporate partners made up of international critical infrastructure groups. He collaborated with electric utilities, multinational companies, angel investors, and venture capital providers to devise innovation programs and scout relevant solutions from the startup community for potential investment and core business utilization. Additionally, Shawn raised, managed, and deployed a sidecar investment fund alongside the Elemental program that participated in venture rounds for over 15 startups. Shawn's career began in Washington D.C. where he served as the Executive Director at the Foundation on Economic Trends (nonprofit) and the TIR Consulting Group LLC (for profit), with a focus on policy development and innovation implementation in government, defense, and critical infrastructure sectors.