Identity threat detection is about spotting and stopping attacks that target user accounts rather than the perimeter. Instead of only watching firewalls and antivirus, IT teams focus on unusual sign-ins, suspicious use of permissions and signs that someone is abusing a real account. For SMEs, that shift matters because many modern attacks start with stolen or misused credentials, not fancy malware.
For a small or mid-sized business, this is good news as well as a warning. You do not need a giant security budget to improve your position. You do need to treat identities as the new perimeter, use identity threat detection tools where they fit, and make sure your Microsoft 365, VPN and line-of-business apps are not running on blind trust. If you want a stronger baseline first, Unite can also help you tighten the fundamentals through Cyber Essentials certification support.
What identity threat detection actually is
Identity threat detection and response, often shortened to ITDR, adds a security layer on top of your existing identity and access management. Where traditional IAM focuses on who can log in and what they can reach, ITDR watches how those identities behave and flags activity that looks risky.
For an SME that usually means three things in practice:
- Monitoring sign-ins for patterns that do not make sense, such as impossible travel, unusual locations or brand-new devices.
- Watching how privileged accounts are used, especially admin and finance roles.
- Linking identity signals with your other security tools, so you can respond quickly when something looks wrong.
You may already have some ITDR-style capability in tools such as Microsoft Entra ID Protection, security add-ons for Microsoft 365 or your SIEM. The shift is less about buying yet another product and more about treating identity data as a primary signal rather than an afterthought. If you are unsure what you already have switched on, Unite can help you review your Microsoft tenancy and security setup via their Microsoft 365 services.
Why identities are now your real perimeter
Most security conversations used to revolve around keeping people ‘outside the network’. Firewalls, VPNs and antivirus still matter, but they assume you can tell inside from outside. With cloud services, remote work and personal devices, that boundary has blurred. Many vendors now describe identity as the new perimeter because attackers increasingly aim to sign in as a real user instead of breaking down the door.
Industry breach reports back this up. Verizon’s 2024 Data Breach Investigations Report found that the human element, including stolen credentials and phishing, played a part in roughly two-thirds of breaches they analysed. A single compromised Microsoft 365 account can give an attacker access to email, files, Teams chats and sometimes finance systems in one go. If you want a practical view of the risks inside Microsoft 365 specifically, Unite’s piece on protecting Microsoft 365 identities and environments is a useful companion read.
For a growing SME that relies on cloud platforms, that has a few clear implications:
- Passwords, MFA and sign-in policies are now front-line security controls, not ‘IT admin settings’.
- Admin accounts and service accounts carry far more risk than their small number suggests.
- You need a way to spot and investigate odd behaviour around identities before it turns into a serious incident.
That is where identity threat detection fits. If you are still in the stage of getting MFA applied consistently, Unite’s explainer on why MFA matters for business security can help you frame the change internally.
How identity threat detection works day to day
Identity threat detection does not replace your existing security tools. Instead, it pulls together identity-related signals and helps you focus on the events that matter. Typical capabilities include:
1. Risk-based sign-in monitoring
ITDR tools score sign-ins based on factors such as location, device health, user history and known attack techniques. High-risk attempts can be blocked, forced through extra checks or flagged for review.
For example, if an account that usually logs in from Tyneside on a managed laptop suddenly appears from a new device in another country, that should create a visible alert. You do not have to inspect every login manually, the system brings you the outliers.
2. Privileged identity monitoring
Administrator accounts, finance systems and line-of-business apps with wide access are prime targets. Identity threat detection watches for:
- New admin roles being granted unexpectedly
- Changes to MFA or security settings on key accounts
- Bulk actions such as large mailbox rule changes or permission grants
The aim is not to block your IT team from doing their job. It is to make sure high-impact changes leave a clear trail and trigger checks when they look unusual.
3. Lateral movement and misuse of access
Once attackers have a foothold, they often try to move sideways by reusing tokens, abusing service accounts or granting themselves persistent access. ITDR helps you see patterns such as:
- One account authenticating to many resources it never used before
- Service accounts being used from odd locations or devices
- Repeated attempts to access sensitive apps without success
This identity-centred view pairs well with endpoint protection and network monitoring. Together they tell a fuller story of what is happening.
Do SMEs really need identity threat detection?
It is reasonable for a business owner or FD to ask whether identity threat detection is ‘overkill’ for a 50- or 150-user organisation. The honest answer depends on how you work rather than your headcount. Identity threat detection is worth serious consideration if:
- You rely heavily on cloud platforms such as Microsoft 365, Teams and cloud accounting.
- Staff work from multiple locations or devices and you do not control every laptop and phone.
- You handle sensitive data, financial, personal or commercially valuable, that would be attractive to an attacker.
- You are working towards Cyber Essentials, cyber insurance or other assurance for customers.
In those contexts, a basic username-and-password model with occasional MFA is no longer enough. Attackers use automated tools to test breached credentials, send convincing phishing emails and probe legacy sign-in methods that bypass your stronger controls.
The goal is not to chase every new security trend. It is to recognise that identities, not just devices, are now central to how your staff reach systems and data. Watching that layer closely is a practical, modern way to reduce risk.
Getting started with identity threat detection in a small business
You do not need to jump straight to a full ITDR platform to benefit from identity-centred security. For many SMEs, sensible first steps look like this:
1. Strengthen your identity basics
Before you think about detection, make sure the foundations are in place:
- Enforce multi-factor authentication on all accounts where possible.
- Close off legacy sign-in methods such as basic authentication that bypass MFA.
- Use conditional access rules so sensitive apps are only reachable from compliant devices and appropriate locations.
These basics support any later move into ITDR and already block many opportunistic attacks.
2. Turn on and tune built-in identity protections
If you use Microsoft 365 or Azure, you may already have access to risk-based sign-in and identity protection features through Microsoft Entra ID and related tools. Work with your IT partner to:
- Review what identity risk signals you are already licensed for.
- Enable core alerts for risky sign-ins and risky users.
- Agree how those alerts are triaged, investigated and closed.
The aim is a short, meaningful list of alerts that someone genuinely owns, not a flood of noise.
3. Decide who is responsible for watching identities
Identity threat detection does not help if nobody looks at the results. Clarify:
- Who receives alerts about risky sign-ins or suspicious changes.
- What counts as a routine event versus something that should be escalated.
- How incidents are documented and fed into your wider cyber security and business continuity plans.
For many North East SMEs, this responsibility sits best with a managed IT or cyber security partner that can monitor signals and bring deeper expertise when something looks serious. This is typically covered within an ongoing support model, such as Managed IT Services.
Where ITDR sits alongside your existing cyber security
Identity threat detection is one part of a wider cyber security picture, not a silver bullet. For a typical SME, a balanced approach still includes:
- Basic hygiene such as patching, endpoint protection and secure backups.
- User awareness training and phishing simulations so staff recognise social engineering.
- Clear joiner, mover and leaver processes so accounts are created, changed and removed promptly.
- Frameworks such as Cyber Essentials to provide structure and external assurance.
Think of ITDR as the layer that helps you spot when those controls are being probed or bypassed through your identities. For a business that already has the basics in place, it is a natural next step rather than a luxury.
Unite’s teams already work with identity signals through Microsoft 365, endpoint tooling and wider monitoring. Bringing those signals together, and making identities a first-class security concern, is how you move from ‘we have MFA’ to ‘we can see when someone is trying to work around it’.
Next steps
Identity threat detection is not only for global enterprises. For SMEs that rely on cloud services, remote work and flexible access, it is a practical way to reduce the risk that a single compromised account derails operations.
By strengthening your identity basics, switching on the protections you already own and deciding who watches those signals, you can start benefiting from this shift without turning your business into a security lab. If you want help reviewing your current Microsoft 365 setup, tightening access controls, and aligning your security approach with Cyber Essentials, speak to the Unite team.
Start here: Contact Unite.