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Cybersecurity Glossary

What is PAM (Privileged Access Management)?

Privileged Access Management (PAM) is a specialized identity discipline focused on accounts with elevated permissions — IT admins, domain admins, service accounts, and any credential that can change the environment. PAM controls how these accounts are issued, stored, monitored, and rotated.

Blocks 99% of password attacks
Required by most cyber insurance
Core to SOC 2, HIPAA, PCI
How It Works

How PAM works

Three-step view of how it operates in practice.

1

Discover

Inventory every privileged account — admin logins, domain accounts, service accounts, local admin passwords.

2

Vault

Store credentials in a secure vault. Admins don’t know passwords directly; they check out access through the vault.

3

Monitor & rotate

Every privileged session is logged or recorded. Passwords rotate automatically on a schedule or after each use.

PAM Variants

What PAM protects

A clear breakdown of the common variants.

Scope

Interactive admin accounts

IT staff and vendors who log into servers, firewalls, and cloud portals.

Most common

Service accounts

Time-based one-time codes from an app like Microsoft Authenticator or Google Authenticator. Offline-capable and phishing-resistant against many attacks.

Convenient

Local admin passwords

The user approves a sign-in with a tap on their phone. Easy to use but vulnerable to MFA fatigue attacks — always pair with number matching.

Strongest

Third-party access

FIDO2 keys like YubiKey, or device-bound passkeys. Phishing-resistant by design — the key will not authenticate against a fake domain.

Why It Matters

Why PAM matters for SMBs

Privileged Access Management (PAM) is a specialized identity discipline focused on accounts with elevated permissions — IT admins, domain admins, service…

74%
of breaches involve the abuse of privileged credentials
Source: Verizon DBIR, 2024
Pitfalls

Common PAM mistakes

  • Shared admin accountsShared logins break accountability. Every admin needs a named account with its own credentials.
  • Admin passwords in spreadsheetsAdmins, finance, and anyone with access to money or sensitive data should use an app or hardware key — never SMS alone.
  • Identical local admin passwordsIf every laptop shares the same local admin password, one compromised machine exposes every machine.
  • Standing privilegeAdmins don’t need permanent god-mode. Just-in-time elevation grants access only when needed.
Common Questions

PAM frequently asked questions

Yes — often more than enterprises, because SMB admin accounts tend to have broad permissions, fewer compensating controls, and less monitoring. PAM tools right-sized for SMB (like Entra ID Privileged Identity Management or lighter-weight vaults) fit SMB budgets.
A password manager is for everyday passwords. PAM is specifically for privileged credentials — admin accounts, service accounts, root/sudo access — with auditing, session recording, and just-in-time elevation.
A basic vault for interactive admin accounts and rotated local admin passwords can be in place in 60 days. Full coverage of service accounts and just-in-time elevation is a multi-quarter program.
Increasingly, yes. Most insurance applications now ask about privileged account controls, MFA on admins, and session monitoring. Having PAM in place lowers premiums and often unblocks coverage.
Have a documented recovery process before it happens. Typically an administrator verifies the user's identity through an out-of-band channel, temporarily disables MFA, and re-enrolls the user with a new device. Backup codes or a secondary security key reduce downtime.
Related Services

LogicalNet services related to MFA

Identity & Access Protection Primary

MFA enforcement, conditional access, least privilege, and identity monitoring.

Email Security

Phishing defense, account-takeover monitoring, and secure email gateways.
Related Terms

Related glossary terms

IAM

Policies that adapt to device, location, and risk signals.

Zero Trust

A security model that verifies every request as if it came from an open network.

Least Privilege

Give users only the access they need — nothing more.

MFA

FIDO2 keys and passkeys that cannot be proxied or replayed.
Identity & Access

Privileged access hiding in spreadsheets?

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