What Is Microsoft Defender for Identity and How Does It Work
Microsoft Defender for Identity helps keep your company safe. It watches and checks what users do in Active Directory. You can use it to find attacks that use stolen identities. It also finds mistakes in settings and strange actions. It works in both cloud and local setups. You do not need to put agents on user computers. It uses sensors on domain controllers to get information.
Key Takeaways
Microsoft Defender for Identity keeps your company safe. It watches what users do in Active Directory. It finds stolen identities and attacks early.
It uses sensors on domain controllers to collect data. You do not need software on user devices. This makes it simple to set up and control.
The tool uses smart learning and checks how people act. It finds strange actions and sends alerts right away. This helps you act fast.
It works in hybrid and on-premise setups. It links with other Microsoft security tools. You get a full view of your network safety.
You get clear tips to fix weak spots. It responds to threats by itself. It gives strong protection against attacks on identities.
Purpose and Features
Identity Security
Your company needs strong protection for its identities. Microsoft Defender for Identity helps you find and stop attacks on users and systems. It looks for threats like credential theft and lateral movement. It also checks for defense evasion. You get alerts if someone tries to use stolen passwords. You also get alerts if attackers move between computers. The solution uses artificial intelligence and machine learning. It studies how users act. It learns what is normal. Then it finds actions that seem strange or risky.
Tip: You can trust Microsoft Defender for Identity to spot attacks early. It looks for suspicious actions. It blocks accounts that show signs of being hacked.
Here is a table that lists the main identity security threats that Microsoft Defender for Identity finds and stops:
Microsoft Defender for Identity also finds weak spots in Azure Active Directory. It works with other Microsoft security tools to keep you safe from credential theft and attacker movement. The solution uses built-in and custom hunting queries. These help you find stolen credentials and spot patterns that show lateral movement. You can see alerts for each step of an attack. This helps you know when to take action.
Key Capabilities
Microsoft Defender for Identity has many features that make it special. Here are some of the top things it can do:
Finds serious on-premise attacks like Kerberoasting, DCShadow, and Golden Ticket use.
Works with on-premise setups using sensors on Active Directory Domain Services servers. These sensors watch network traffic and local domain events.
Connects with the Microsoft XDR ecosystem, like Microsoft 365 Defender and Cloud App Security. This lets you see attacker actions such as domain dominance and lateral movement.
Is best for hybrid or on-premise Windows domain setups. Azure AD Identity Protection only works for cloud environments.
Has three main parts: a cloud portal, on-premise sensors, and a cloud service backend linked to the Microsoft Intelligent Security Graph API.
Gives security checks in Cloud App Security. You can find risks like unused accounts, old protocols, weak ciphers, and unsafe Kerberos delegation.
Shows attacker attempts in on-premise setups. Azure AD Identity Protection cannot give this much detail.
Microsoft Defender for Identity uses deep neural networks and machine learning. These tools look at millions of signals in real time. You get advanced threat detection that finds patterns people might miss. The solution can guess possible breaches and adjust to new threats by itself. Automated response tools let you stop threats fast and save time. Behavioral analytics watch user and system actions to find insider threats and set security baselines.
Note: Security reports say Microsoft Defender for Identity works well against credential theft and lateral movement attacks. It found and blocked all tested LSASS credential dumping methods with default settings. You get strong protection right away, and new features keep making your security better.
You can use Microsoft Defender for Identity to make your security stronger. It helps you find and fix identity risks before attackers use them. The solution gives you clear alerts, quick responses, and deep insights into your setup.
Architecture Overview
Sensors and Data Flow
You do not need to put agents on user computers. Microsoft Defender for Identity uses sensors on domain controllers. These sensors watch network traffic and security events. You can see what happens in Active Directory.
The sensors work by themselves. They use special tools to look at live network packets like Kerberos, NTLM, LDAP, and SMB. The sensors also read Windows event logs. These logs show logon events and changes to user accounts. You can see how users act on your network and find risky actions.
Here is a table that lists the main parts of the sensor system:
Sensors need to know which domain controllers they watch. You must pick network adapters that see the right traffic. At least one domain controller should be a global catalog. This helps sensors find objects across domains. You can check if sensors work by making DNS queries. Look for alerts in the Defender portal.
Sensors use CPU and memory on domain controllers. You should plan for enough resources. The chart below shows how much CPU and RAM sensors need as network traffic goes up:
Tip: Always make sure the sensor service is running. Check logs if you see problems. Make sure domain controllers have enough CPU and memory.
Cloud Service
Sensors send encrypted data to the cloud service. The cloud service runs in Azure data centers. You can choose where your data stays, like the Azure Government Cloud. This helps you follow privacy and legal rules. The cloud service keeps your data safe with strong encryption.
The cloud service gets telemetry from sensors. It looks at network traffic, event logs, and Active Directory data. You get alerts about suspicious actions like credential theft or lateral movement. The service keeps your data for 180 days. After your license ends, Microsoft erases your data to protect your privacy.
You get security checks all the time. The cloud service finds weak spots and helps you fix them before attackers use them. You see alerts and get advice on what to do. The service works with other Microsoft Defender tools to give you a full view of your security.
Here are some ways the cloud service helps you:
Checks your identity security and finds weak spots.
Makes your network safer by finding risky settings.
Spots suspicious actions like reconnaissance and domain dominance.
Helps you investigate fast with clear incident details.
Automates responses to compromised identities.
Works with Microsoft Defender XDR and Zero Trust frameworks.
Note: You can pick the data center location to keep your data under your country's laws. The cloud service supports special setups like the Azure Government Cloud for extra privacy and compliance.
Threat Detection
Behavioral Analytics
Behavioral analytics help you spot threats by watching how users and systems act. The system learns what normal behavior looks like in your network. It builds a baseline over time. When someone does something unusual, the system marks it as suspicious. For example, if a user logs in from a new location or tries to access sensitive files they never touched before, you get a warning.
You should know that behavioral analytics have some limits:
The system needs time to learn what is normal. During this period, it might miss some threats.
Sometimes, special events like month-end tasks can look strange to the system. This can cause false alarms or missed alerts.
The focus stays on outside attacks. The system does not always stop attacks right away or prevent data loss.
Other security tools may find threats faster or more accurately.
You get the best results when you use behavioral analytics with other security tools, such as Data Loss Prevention or adaptive redaction.
A layered security approach works better than using one tool alone.
Behavioral analytics give you a way to see patterns and spot risks early. You can use this information to act before threats cause harm.
Real-Time Alerts
Real-time alerts tell you about threats as soon as the system finds them. You see warnings for actions like credential theft, lateral movement, or strange logins. The alerts show you what happened, who did it, and when it took place. You can quickly check the details and decide what to do next.
The system groups alerts by type and risk level. You can focus on the most serious problems first. Each alert gives you steps to investigate and respond. This helps you stop attacks before they spread.
🛡️ Tip: Always review alerts as soon as you get them. Fast action can keep your network safe.
Real-time alerts help you stay ahead of attackers. You get the information you need to protect your users and data.
Microsoft Defender Integration
Security Ecosystem
You get one place for security with Microsoft Defender for Identity and other Microsoft Defender tools. The system is part of the Microsoft 365 Defender portal. You can see signals for identity and endpoints together. You do not need extra steps to link Defender for Identity with Defender for Endpoint. This setup helps you watch threats on devices, emails, cloud apps, and user identities.
You get shared signals and automatic actions. Defender for Identity works with Defender for Office 365, Defender for Cloud Apps, and Microsoft Sentinel. You can look for threats, spot lateral movement, and act on incidents faster. The system uses smart analytics to find risks and help defense. You also get tips in Microsoft Entra to make your identity security better.
🛡️ Tip: You can link Defender for Identity with other security tools. This lets you see threats from many places and act fast. Connecting with Microsoft Sentinel lets you join alerts and incidents from different systems. You get a full view of your security.
Deployment Steps
You must follow steps to set up Microsoft Defender for Identity in a hybrid Active Directory. First, make sure you have a Microsoft 365 or Microsoft Entra tenant and the right access. Your domain controllers need supported Windows Server versions, like Windows Server 2019 or newer. They should have at least 2 CPU cores and 6 GB RAM. Set power to High Performance.
Make a Directory Service Account with read rights for your domains. Check your license covers Defender for Identity. Sensors must connect safely to the Internet, often through a proxy. Turn on advanced audit policies on domain controllers and Entra Connect servers. Put the newest Defender for Identity sensor on each domain controller and Entra Connect server.
You can also add sensors for Active Directory Certificate Services to watch more. Set up your Defender for Identity workspace in the Microsoft 365 Defender portal to handle alerts. Follow good rules, like changing passwords often and removing extra permissions, to keep things safe.
You get strong safety for your company with this tool. It helps you find threats, manage who gets in, and follow rules. Here are some main good things:
You should put sensors on all servers that can use them and check admin rights often. For more help, look at the guides and documents on Microsoft Learn.
FAQ
What is Microsoft Defender for Identity used for?
You use Microsoft Defender for Identity to keep Active Directory safe. It helps you find attacks. It shows risky actions. It helps you fix weak spots in your identity setup.
What data does Microsoft Defender for Identity collect?
The system collects network traffic and security events. It also collects user activity from domain controllers. It does not collect personal files or emails. You choose where your data is stored.
What makes Microsoft Defender for Identity different from other tools?
You do not need to put agents on user devices. Sensors work on domain controllers. You get alerts right away. You see deep details for both on-premises and hybrid setups.
What should you do if you get an alert?
Look at the alert details in the Microsoft 365 Defender portal. Follow the steps to check what happened. Block or limit risky accounts. You can also read security tips in the portal.