Identity is the new attack surface. Microsoft’s Digital Defense Report found that identity-based attacks surged 32 percent in the first half of 2025, with more than 97 percent involving password attacks.
Why PAM is a must-have
For MSPs, the risk is amplified because technicians often have privileged access across dozens or even hundreds of customer environments. A single compromised account can become a gateway to multiple organizations, creating widespread operational and reputational damage.
That’s why PAM is no longer a “nice-to-have” security tool. It’s a critical layer of the modern MSP security stack, helping providers control privileged access, enforce least privilege, reduce insider risk, and protect the trust their customers place in them.
Where PAM fits
MSPs have already invested heavily in technologies such as:
- Endpoint protection and EDR/XDR
- Email security
- Backup and disaster recovery
- Security awareness training
- MFA and identity protection
While these solutions address many attack vectors, they do not fully control who has privileged access, when they can use it, and what they can do with it.
PAM fills this gap by helping MSPs:
- Enforce least-privilege access
- Eliminate shared admin accounts
- Control elevated permissions
- Create accountability for technician activity
- Document access for audits and compliance reviews
Without PAM, even organizations with strong security controls may be exposed through a compromised administrator account.
Add business benefits, not just security benefits
As MSPs grow, managing administrator access manually becomes difficult. PAM enables standardized access policies across clients, technicians, and locations. By adding PAM to the security stack, MSPs can:
- Strengthen client trust: Clients increasingly want to know who has access to their systems and how that access is controlled. PAM provides transparency and accountability.
- Support compliance requirements: Whether supporting cyber insurance applications, customer audits, or compliance frameworks, PAM helps MSPs demonstrate strong identity controls.
- Reduce insider risk: Not every security incident originates from an external attacker. PAM helps MSPs monitor privileged activity and reduce the risk of misuse or excessive permissions.
- Faster onboarding and offboarding: Provision and remove access consistently, reducing administrative burden and security gaps.
This approach helps MSPs improve security while maintaining the speed and efficiency their teams need to support customers.
Cybercriminals continue to target identities because privileged accounts provide direct access to critical systems and data. For MSPs, that risk is multiplied across every customer they support.
PAM is no longer a “nice-to-have” security tool. It is a foundational component of a modern MSP security stack, helping providers reduce risk, strengthen compliance, improve operational efficiency, and build greater trust with customers.
As MSPs continue to mature their security offerings, privileged access management will play an increasingly important role in protecting both their business and the clients who rely on them.
Photo: Andrey_Popov / Shutterstock
This post originally appeared on Smarter MSP.