What is Credential Management?

Passwords, certificates, and keys are part of the authentication measures organizations use to identify and validate user access. Such credentials are known gateways to valuable and highly sensitive information, making them a top target for online malicious actors. A recent Verizon report found that 61 percent of all breaches involve credentials, making the proper management and protection of these assets vital.

However, adequate credential management is easier said than done. With organizations housing hundreds of current and expired credentials for every user and device, updating passwords, usernames, and keys throughout their life cycles is impossible to perform through manual labor alone. However, with a credential management system (CMS) in place, tools for automation and centralization provide the visibility and coverage organizations need to render their credentials completely inaccessible to unauthorized users.

This article is a deep dive into how a credential management system works, the features to look for when implementing a CMS solution, and how enterprises can further fortify confidential data by migrating to a credentialless environment.

Credential Management 101: What It Is, How It Works, and Key Risks

What is Credential Management?

Credential management is the ability to adequately organize and secure credentials responsible for identity authentication and access authorization by monitoring and mitigating vulnerabilities throughout their life cycle. This is the process of creating, storing, managing, and revoking the digital credentials that are foundational to authenticating and authorizing users, devices, and applications.

For proper coverage, administrators must consider the relationships between users, their preferred devices, and the entities they connect to. Moreover, credential management requires that administrators work in tandem with encryption components set by public key infrastructures (PKIs) by detailing the policies and parameters that govern identity-based privileged access and authentication.

Managing credentials involves far more than just compiling a list of working usernames and passwords for all users and their respective accounts. Since credential types may vary depending on the platform being accessed and the degree of privilege a user has, it’s important that you understand the nature of credentials in their various forms so that you can better shield them against vulnerabilities.

Types of Credentials

Credentials are user-generated or computer-generated bits of information that help identify, validate, and define users and their access privileges as they connect to a network, application, or web-based platform. There are four primary types of credentials used today.

Passwords are string combinations of letters, numbers, and characters that must meet complexity requirements to be effective and are typically paired with usernames for login purposes. Weak or reused passwords are vulnerable to brute force and credential stuffing attacks. Practicing strong password hygiene—avoiding reuse and using a password manager—is essential.

Certificates are electronic documents composed of a public key and a digital signature signed by a certification authority to verify the identity of a user logged onto a specific device. They are essential in Public Key Infrastructure (PKI) systems and widely used for secure communication protocols like HTTPS. Proper lifecycle management prevents expired or compromised certificates from exposing systems to unauthorized access.

Tokens are encrypted strings of characters that authorize a user’s access privileges throughout an active session. They are distributed to users after a successful login attempt and enable secure session-based authentication without relying on passwords alone. Tokens usually come in software (authentication apps) or hardware (USB devices) forms. Their dynamic nature, frequently expiring after a session or set period, makes them highly effective against replay attacks.

Keys are a pair of encrypted, computer-generated complementary strings, usually 2,048 bits long, consisting of randomized numbers, letters, and characters. They are used in various applications, primarily for identity authentication, securing APIs, and encrypting sensitive data. Poorly handled keys can lead to unauthorized access or data interception, so proper management is crucial.

Common Threats to Credential Security

Credentials can provide direct access to an organization’s sensitive and personal data, making them valuable tools for hackers hoping to infiltrate unauthorized areas under the guise of an authorized user. From leveraging human error to bypassing login page lockouts, cybercriminals have developed cunning and deceptive ways—such as credential harvesting, stuffing, and abuse—to carry out their attacks undetected.

With credential harvesting, malicious actors embrace various techniques to create a running list of active username and password pairs, including man-in-the-middle attacks, traditional brute force methods, and DNS spoofing. For example, hackers may embed fake links into legitimate online PDF documents, send virus-ridden emails posing as trusted employees and company affiliates, or even deploy a malicious network that looks like a reliable WiFi source. The goal is to gather enough username-password combinations to successfully perform a credential-stuffing operation.

In credential stuffing attacks, attackers conduct a large-scale password spraying attempt. Hackers input stolen credentials into as many accounts as possible, knowing that users tend to reuse passwords and usernames across various applications. Some even use bots capable of dynamically changing IP addresses to evade detection, bypass lockout policies, and execute unlimited login attempts unnoticed, making it difficult for organizations to detect anomalous behavior before it’s too late.

Once an adversary has made their way into a user’s account, credential abuse ensues: financial information is stolen, personal data is compromised, confidential company insights are exposed, and the reputability of the enterprise is tarnished. A single compromised credential can be a gateway for attackers to infiltrate enterprise systems, emphasizing the need for advanced management strategies.

What is a Credential Management Systems (CMS)

A Credential Management System (CMS) provides centralized storage and organization of credentials, allowing administrators to manage them securely from a single location. This eliminates risks from scattered or improperly stored credentials, such as passwords saved in unprotected files. A CMS also automates credential lifecycle tasks—including issuance, renewal, rotation, and revocation—reducing manual effort and minimizing human error.

When searching for the best comprehensive CMS solution, it’s important to consider how well it integrates into your existing operational framework, adapts to personalized configurations, and prepares your enterprise for future threats. Look for characteristics and features such as:

• Granular Handling: Management tools can generate, distribute, organize, and revoke credentials down to the individual user/device level with real-time accuracy.

• Automation: Automated features simplify the organization-wide management process while keeping your business compliant. This also helps with continuous auditing and session recording.

• Machine Maintenance: This keeps machine-to-machine interactions running smoothly and safely, with regular encryption and protocol checks for latency prevention.

• Zero Trust Compatibility: Zero Trust embraces a “never trust; always verify” approach by implementing just-in-time access, ephemeral certificates, and multi-factor authentication (MFA).

• Threat Mitigation: This feature identifies and flags security risks and policy violations for a stronger, impenetrable credential inventory.

• IAM Integration: Modern CMS platforms integrate seamlessly with Identity and Access Management (IAM) frameworks, ensuring credential policies align with role-based access controls and compliance standards.

• Credential-Free Security: Migrating to a credentialless environment involves transitioning credential-reliant ecosystems into future-proof environments so credentials are no longer at risk of compromise. 

Once your organization perfects its credential management system, your admins will better understand all the active credentials being used and those needing to be retired. However, to defend against future threats, it is best to phase credentials out completely. With the right tool, this can be achieved at a pace that suits you.

Benefits of Implementing a Credential Management System

The benefits of implementing a CMS extend far beyond convenience—it enhances security by automating credential rotation and enforcing strict policies, reducing risks from weak or reused passwords. It also ensures regulatory compliance by maintaining detailed audit trails and enforcing policies that align with industry frameworks like the General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), or the Payment Card Industry Data Security Standard (PCI-DSS).

A CMS improves operational efficiency by automating credential issuance and revocation, freeing IT teams to focus on higher-priority tasks. It provides real-time insights into credential usage, helping organizations quickly detect suspicious activity and vulnerabilities. Additionally, it scales to manage large credential volumes across internal teams, remote workers, and third-party contractors.

Besides extending visibility into an organization’s vulnerabilities and lingering threats, a CMS offers increased productivity. For example, a CMS can continuously run through entire corporate credential directories for full management coverage, while following enterprise-specific security policies and settings—greatly reducing administrative workloads. Users can also feel more confident, knowing that a security net is ready to catch credential leaks and unauthorized access, even in cases of human error.

Furthermore, a CMS can reduce IT costs by eliminating the need for sophisticated security equipment and extensive infrastructural support systems that often require additional manpower.

Best Practices for Credential Management

For Users: Building Secure Habits

Building secure credential habits is essential to protecting online accounts and personal data. While technology enhances security, user actions remain the first line of defense. Practicing sound IT hygiene helps minimize risks and maintain control over credentials.

Strong, unique passwords are a fundamental security measure. Avoid using simple or reused passwords, as they increase the risk of compromise across multiple accounts. Defaulting to browser-generated credentials helps defend against brute force attacks, ensuring stronger protection.

Multi-factor authentication (MFA) adds an extra layer of security by requiring a second verification method, such as a one-time code or biometric scan. Additionally, keeping credentials private—refraining from sharing them with colleagues or internal users—reduces accidental exposure or misuse. If access to shared resources is necessary, use access delegation instead of direct credential sharing.

To further safeguard credentials, regularly update passwords, especially after security alerts or breaches. Notifying administrators of access privileges that exceed assigned roles ensures compliance with security policies. Working strictly on assigned, security-managed devices and leveraging a credential management system (CMS) help maintain a controlled and secure authentication environment.

For Organizations: Leveraging Technology and Zero Trust Principles

To protect sensitive data and operational integrity, organizations must take a proactive approach to credential management. Implementing advanced technologies and a Zero Trust framework significantly reduces the risks of unauthorized access and credential misuse. Such procedures fall under the responsibility of administrative leaders who oversee their organization's operational and IT security.

A Zero Trust security model is critical, requiring continuous verification of all access requests, regardless of their origin. This approach eliminates inherent trust assumptions, ensuring that users, devices, and connections are authenticated before access is granted. Role-based access controls (RBAC) further strengthen security by restricting permissions to only what is necessary, reducing the risk of privilege abuse and compromised accounts.

For high-level credentials, privileged access management (PAM) solutions secure, monitor, and control privileged accounts, reducing the risks of standing privileges. These solutions also enforce just-in-time access policies, granting elevated rights only when needed and for a limited duration. Auditing, tracking, and logging credential use help identify unusual activity or unauthorized attempts, allowing organizations to address threats before they escalate.

To further enhance security, organizations should deploy strict password policies to prevent weak credentials and leverage multi-step authentication such as biometrics or security tokens. Integrating credential management systems with identity and access management (IAM) tools centralizes authentication, improves user experience, and strengthens access control. Automating credential lifecycle processes ensures security at scale, minimizing human error and ensuring compliance with security best practices.

The Future of Credential Management is Credentialless

The best way to protect your data is to eliminate credentials that adversaries could exploit, but this doesn’t mean doing away with identity-based authentication measures altogether. Ephemeral certificates and cryptographic algorithms are central in a passwordless and keyless landscape, relying on automation and efficiency rather than user-heavy management. This significantly minimizes security risks associated with password sharing, neglected IT practices, and insufficient security training.

Shifting to a credentialless future also means reduced credential management costs, elimination of password vaults and credentials rotation, faster and safer device-initiated login processes, cleaner data inventories and directories, better security compliance and alignment, and easier threat detection and recognition.

The transition to a passwordless ecosystem offers clear benefits:

• Improved efficiency and security: Faster authentication processes and fewer user errors streamline workflows.

• Cost savings: Organizations save resources by reducing password-related tasks, including resets and vault maintenance.

• Compliance advantages: Stricter access controls and enhanced auditing capabilities help meet regulatory requirements.

• Enhanced user experience: Eliminating passwords increases productivity and simplifies access without compromising security.

These advancements strengthen the overall security posture of systems while addressing a growing demand for seamless user experiences in both corporate and personal settings.

Say Goodbye to Credentials with PrivX™ by SSH Communications Security

Effective credential management is the foundation of a secure digital ecosystem, protecting sensitive assets from threats like credential harvesting, stuffing, and abuse. A Credential Management System (CMS) streamlines authentication processes, centralizes storage, and reduces administrative overhead, making security management more efficient.

With PrivX™ Hybrid PAM, you can trust that your data is under lock and key without the need for extensive intervention and engagement. Our Zero Trust Access Management relies on just-in-time, Zero Trust principles to restrict unauthorized logins and access, regularly audit user activity, and flag unusual behavior. The solution also supports traditional authentication measures while providing the tools and resources necessary to transition smoothly to a hybrid environment.

Ready to rethink credential security? Book a demo to explore PrivX today.

FAQ

What is credential management?

Credential management involves the creation, storage, and revocation of digital credentials like passwords, keys, and tokens. It ensures secure authentication and access control to protect sensitive data and prevent unauthorized access to systems and applications.

Why is credential management important?

Credential management prevents data breaches, secures critical systems, and ensures compliance with regulations. By automating processes and integrating with broader security frameworks, it reduces human error and streamlines access management in dynamic environments.

What are common types of credentials?

Credentials include passwords (user authentication), certificates (identity verification), tokens (temporary session access), and cryptographic keys (data encryption and decryption). Each serves specific purposes in securing access and communication in digital systems.

How do credential management systems (CMS) work?

CMS platforms centralize credential storage, automate lifecycle management, and monitor credential use in real-time. They enforce strict policies, integrate with IAM systems, and enable advanced security practices like just-in-time access and multi-factor authentication.

What is the future of credential management?

The future lies in credential-less systems that use ephemeral certificates, biometrics, and cryptographic algorithms to eliminate static credentials. These technologies enhance security, simplify management, and support seamless access control in hybrid and multi-cloud environments.