What Is ITDR? A Guide to Identity Threat Detection and Response

What is ITDR?

As cyber threats evolve, attackers are no longer breaching your firewall—they’re logging in. Whether through stolen credentials, OAuth abuse, or lateral movement, identity has become the new front line of cybersecurity.

That’s where Identity Threat Detection and Response (ITDR) comes in.

ITDR focuses on detecting and responding to identity-based threats—including compromised users, service accounts, and misused credentials—before attackers can exploit them. In today’s SaaS- and cloud-first environments, this layer of defense is no longer optional.

At Waldo Security, we help security teams uncover unknown accounts and shadow identities across SaaS and cloud environments—laying the groundwork for effective ITDR.

Why ITDR Is Critical in 2025

Workforces are remote. Apps are in the cloud. Third-party vendors and integrations are everywhere. That means identity is now your perimeter—and attackers know it.

Consider just a few of the most common identity-based threats:

• Credential theft from phishing or malware

• OAuth token abuse through third-party apps

• Privilege escalation after initial access

• Lateral movement through compromised service accounts

These techniques often bypass traditional controls like antivirus, EDR, or even MFA. That’s why organizations are shifting to ITDR—to detect identity abuse in real time and respond before damage is done.

ITDR vs. IAM: What's the Difference?

While Identity and Access Management (IAM) platforms help authenticate and authorize users, they’re not built to detect threats. ITDR fills that gap by layering real-time monitoring, threat intelligence, and automated response on top of IAM systems.

Function	IAM	ITDR
Authenticates users	✔	—
Manages permissions	✔	—
Detects anomalies	—	✔
Responds to identity threats	—	✔
Analyzes behavior	—	✔

Put simply: IAM manages identity. ITDR defends it.

Core Components of ITDR

An effective ITDR solution includes:

1. Threat Detection

Identifies suspicious activity, such as logins from unusual locations, privilege misuse, or token overuse. This includes machine identities—not just human users.

2. Risk-Based Access Controls

Adjusts access dynamically based on behavior. For example, a login from an unusual location may trigger step-up authentication or restrict access temporarily.

3. Automated Response & Remediation

Stops attacks in real time by:

• Forcing password resets

• Killing sessions

• Blocking access to sensitive systems

4. Forensic Investigation & Threat Hunting

Helps security teams understand how identity threats unfold—and how to prevent them in the future.

Implementing ITDR in Your Security Stack

ITDR isn’t a replacement for your existing tools—it’s a force multiplier. It integrates with:

• IAM platforms (e.g., Okta, Azure AD)

• SIEM tools (e.g., Splunk, Sentinel)

• XDR solutions for deeper incident response

To get started, focus on four steps:

1. Gain Visibility

   Identify all human and non-human identities—and understand what they have access to.→ How to Detect Shadow SaaS and Manage Risk

   
   

2. Establish Behavioral Baselines

   Define normal activity so anomalies stand out.

   
   

3. Automate Responses

   Use playbooks to respond instantly when a threat is detected.

   
   

4. Continuously Improve

   Refine detection rules and incorporate new threat intel regularly.

The Future of ITDR

As identity becomes the most targeted attack surface, ITDR is evolving rapidly. AI and machine learning are already improving anomaly detection and enabling faster, more accurate decisions.

Expect ITDR platforms to expand their focus beyond just users to include:

• Service accounts

• API keys

• OAuth grants

• Third-party integrations

Conclusion: ITDR Isn’t Just a Nice-to-Have—It’s a Necessity

Cyberattacks are increasingly identity-driven. That means your defenses must be identity-aware. ITDR enables organizations to detect and respond to threats that slip past traditional security tools.

Whether you’re focused on zero trust, preparing for SOC 2 or ISO 27001, or just trying to reduce your attack surface—ITDR belongs in your strategy.

Waldo Security helps you start where most attackers do: discovering unmanaged identities, suspicious access patterns, and unknown OAuth connections—so you can stop threats before they spread.