Identity and Access Management (IAM) is essential for securing today’s digital organizations. It controls who can access systems and data, both internally and externally. Despite its importance, IAM is often misunderstood, and common myths about it can expose businesses to serious security risks.
Here are eight common myths about IAM—and the truths that can help you avoid costly risks.
Myth #1: Frequent Password Rotations Improve Security
Many organizations mandate employees to change their passwords every few months. The belief is that this will stop attackers from guessing or stealing passwords.
However, studies[1] show that this approach does not help much. People often make small changes to their passwords, such as changing “Password1” to “Password2.” These small changes are easy to guess. Also, frequent changes lead people to write passwords down or reuse the same ones elsewhere.
The better approach is to use strong, long passwords. Only change passwords if there is a known security compromise. Organizations should also focus on better authentication strategies rather than rotating passwords often.
Myth #2: Role-Based Access Control Is the Safest Model
Role-based access Control (RBAC) was the gold standard for securing digital assets. It assigns access based on job roles. However, this method often gives people more access than they need because their job title or role changes.
This can create more risk and make it harder to track who has access to what. Newer models like Attribute-Based Access Control (ABAC) and Policy-Based Access Control (PBAC) allow for more detailed access decisions. These models consider aspects like the person’s task, the type of data, and/or organizational policies.
Myth #3: Multi-Factor Authentication (MFA) Cannot Be Bypassed
MFA is beneficial, but it is not perfect. Some attackers have found ways to get around it. For example, phishing scams can trick users into giving up their one-time codes. Some attackers repeatedly send approval requests until the user clicks “Yes” by mistake. Others hijack login sessions in more advanced attacks.
One well-known incident affected a large organization’s MFA system[2] using the ‘MFA fatigue’ attack. This shows that MFA should not be the only line of defense. It should be part of a broader security approach with multiple layers of protection.
Myth #4: One-Time Password via Text Are Safe and Inexpensive
Many organizations still send one-time passcodes (OTPs) through text messages. They believe this is simple and low-cost. But these messages can be intercepted. Hackers can take over phone numbers using tricks like SIM swapping or social engineering.
Also, sending many messages can become expensive over time. Safer options include authentication apps, physical tokens, or biometric authentication. These offer stronger protection and help avoid long-term messaging costs.
Myth #5: Identity & Access Management (IAM) only concerns IT teams
Many believe IAM is solely the responsibility of the IT department—but in reality, it impacts the entire organization. For example:
A sound IAM system involves everyone and ensures secure, seamless access for all users —employees, partners, and customers. When teams work together, security becomes stronger. It also helps the business run better and prevents unseen risks.
Myth #6: AI in IAM Is Just Hype
Some people think artificial intelligence (AI) is not used in IAM. However, AI is already helping many organizations. It can find unusual behavior, measure risk, and make IAM systems smarter and more efficient.
AI also makes it easier to manage who gets access to what. It reduces manual work and helps security teams act faster. It can prevent users from having too many permissions and even catch early signs of insider threats.
Myth #7: IAM Slows Down Employee Productivity
Some worry that IAM systems make it harder for people to do their jobs. They think extra login steps and approval processes waste time.
But modern IAM tools are designed to make work easier. Features like Single Sign-On (SSO), automatic account setup, and password recovery tools actually help users save time. Employees can get what they need faster. At the same time, security teams keep control. When used the right way, IAM supports both safety and productivity.
Myth #8: IAM Is Just for Securing Internal Systems
IAM is not just for employees. It also protects access for contractors, partners, customers, and even APIs. Each entity has a digital identity that must be managed safely. That’s why today’s IAM includes systems like Customer IAM (CIAM) and Extended Enterprise IAM. These tools help secure every kind of interaction inside and outside the business.
In today’s world, there are no clear borders between systems. Identity is now the new security gate, and IAM guards it.
A Smarter Way to Stay Secure
Old ideas about IAM can create false confidence—or open doors to attackers. It’s time to rethink how we manage identity and access. Strong IAM is not just about blocks and barriers. It’s about building trust, ensuring smooth access, and helping people work safely in a digital world. Done right, IAM is one of the best tools a business can have to stay safe and strong.