Optimizing Microsoft Defender for Identity for Advanced Identity and Access Management

Understanding Microsoft Defender for Identity

Microsoft Defender for Identity, formerly known as Azure Advanced Threat Protection (Azure ATP), is a cloud-based security solution that leverages on-premises Active Directory signals to identify, detect, and investigate advanced threats, compromised identities, and malicious insider actions. As a crucial component of the Microsoft Defender XDR (Extended Detection and Response) platform, Defender for Identity provides a unified view of security across your organization’s identities, data, devices, apps, and infrastructure.

By integrating Defender for Identity into the Microsoft Defender portal, security administrators can now perform their security tasks in a centralized location, simplifying workflows and benefiting from the integrated functionality of other Microsoft Defender XDR services. This seamless integration allows Defender for Identity to contribute identity-focused information into the incidents and alerts presented in the Microsoft Defender portal, providing essential context and correlating alerts from various products within the Microsoft Defender XDR ecosystem.

Deploying Microsoft Defender for Identity

Deploying Microsoft Defender for Identity requires a few key prerequisites, which include:

1. Licensing: Defender for Identity can be deployed with a Microsoft 365 F5, E3, or E5 license, or an Office 365 F3 license with Enterprise Mobility + Security E3.
2. Microsoft Entra ID (Azure AD) Tenant: You’ll need a Microsoft Entra ID (Azure AD) tenant with at least one Security administrator to create your Defender for Identity workspace.
3. Directory Service Account: It’s recommended to use at least one Directory Service account with read access to all objects in the monitored domains.
4. Network Connectivity: The Defender for Identity sensor must be able to communicate with the Defender for Identity cloud service, either through the internet or a dedicated network connection.

The Defender for Identity sensor can be installed on various Windows Server operating systems, including Windows Server 2016, 2019, and 2022. It’s important to note that Windows Server 2012 and 2012 R2 have reached their end of extended support, and Microsoft recommends upgrading these servers as soon as possible.

Optimizing Defender for Identity for Advanced Identity and Access Management

To unlock the full potential of Microsoft Defender for Identity in your organization’s identity and access management (IAM) strategy, consider the following optimization steps:

1. Configure Sensitive Accounts and Groups Monitoring

Defender for Identity allows you to monitor lateral movement, modifications, and high-privilege activities for specific accounts and groups that you designate as “sensitive.” By configuring the monitoring of these critical identities, you can quickly detect and respond to potential compromise or malicious activities.

To set up sensitive account and group monitoring:

1. In the Microsoft Defender portal, navigate to the “Identities” section.
2. Under the “Sensitive” tab, add the user accounts and security groups you want to closely monitor.
3. Enable the “Notify me of changes to these sensitive accounts and groups” option to receive alerts for any suspicious activities.

2. Leverage Honeytoken Accounts for Enhanced Detection

Honeytoken accounts are dormant, fake user accounts that serve as traps for malicious actors. Any authentication associated with these honeytoken accounts triggers an alert, allowing you to quickly identify and investigate potential threats.

To set up honeytoken accounts:

1. In the Microsoft Defender portal, navigate to the “Identities” section.
2. Under the “Honeytokens” tab, create one or more honeytoken accounts.
3. Configure the honeytoken accounts to mimic real user accounts, making them appear legitimate to potential attackers.

3. Optimize Audit Policies for Advanced Detection

Defender for Identity relies on specific Windows Event log entries to enhance its detection capabilities and provide additional information on user actions, such as NTLM logons, security group modifications, and more. By optimizing your audit policies, you can ensure that Defender for Identity has the necessary event log data to perform advanced threat detection.

Consider configuring the following audit policies using a Group Policy Object (GPO):

• Account Logon: Audit Credential Validation
• Account Management: Audit Computer Account Management, Distribution Group Management, Security Group Management, and User Account Management
• System: Audit Security System Extension

Additionally, enable the following network security settings:

• “Network security: Restrict NTLM: Outgoing NTLM traffic to remote servers”
• “Network security: Restrict NTLM: Audit NTLM authentication in this domain”
• “Network security: Restrict NTLM: Audit Incoming NTLM Traffic”

4. Configure SAM-R Access for Lateral Movement Detection

To enable Defender for Identity to accurately build lateral movement paths and detect potential threats, you’ll need to configure the service to perform SAM-R (Security Account Manager Remote) enumeration. This process involves editing the SAM policy to grant the necessary permissions.

Follow these steps to configure SAM-R access:

1. In the Microsoft Defender portal, navigate to the “Identities” section.
2. Under the “Configuration” tab, locate the “SAM-R” section.
3. Follow the instructions provided to edit the SAM policy and grant the required permissions to the Defender for Identity service.

5. Leverage Defender for Identity Integrations

Defender for Identity seamlessly integrates with other Microsoft security solutions, such as Microsoft Cloud App Security (MCAS), to provide a more comprehensive view of your organization’s security posture. By leveraging these integrations, you can enhance your identity and access management capabilities:

• MCAS Integration: View Defender for Identity alerts and incidents directly within the MCAS portal, enabling a unified security management experience.
• Microsoft Entra ID (Azure AD) Integration: Protect your hybrid identities and identity infrastructure from credential theft and other cyberthreats by integrating Defender for Identity with Microsoft Entra ID (Azure AD).

By implementing these optimization steps, you can leverage the full power of Microsoft Defender for Identity to enhance your organization’s identity and access management, improve security monitoring and detection, and better protect against advanced threats targeting your users and critical resources.

Troubleshooting Common Defender for Identity Issues

While Defender for Identity is designed to be a reliable and seamless security solution, you may encounter occasional deployment or operational challenges. Here are some common issues and their solutions:

1. Sensor Service Startup Issues:

2. Solution: Reboot the sensor server to start the Defender for Identity sensor service.

3. Communication Errors:

4. Error Messages: “System.Net.Http.HttpRequestException: An error occurred while sending the request.” or “System.Net.WebException: Unable to connect to the remote server” or “System.Net.Sockets.SocketException: A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond…”

5. Solution: Ensure that communication is not blocked for localhost on TCP port 444.

6. NIC Teaming Issues:

7. Problem: Defender for Identity sensor requires the Npcap driver with WinPcap mode when using NIC Teaming.

8. Solution: Uninstall the sensor, install the Npcap version 0.9984 installer from the official website, deselect the loopback support, and select the WinPcap mode. Then, reinstall the Defender for Identity sensor package.

9. Multi-Processor Group Mode Issues:

10. Problem: Azure Defender for Identity (AATP) sensor is not supported on Windows Server 2008 R2 and 2012 in Multi Processor Group mode.

11. Suggested Workarounds:

    • If hyper-threading is enabled, turn it off to reduce the number of logical cores and avoid the Multi Processor Group mode.
    • If your machine has less than 64 logical cores and is running on an HP host, you may be able to change the NUMA Group Size Optimization BIOS setting from the default of Clustered to Flat.

12. KDS Root Key Issues:

13. Error: “Key does not exist”
14. Solution: You will need to create a KDS Root key if it doesn’t already exist.

By addressing these common issues, you can ensure a smooth deployment and ongoing operation of Microsoft Defender for Identity, empowering your organization’s identity and access management capabilities.

Conclusion

Microsoft Defender for Identity is a powerful cloud-based security solution that leverages on-premises Active Directory signals to enhance your organization’s identity and access management strategies. By optimizing Defender for Identity through the steps outlined in this article, you can unlock advanced threat detection, improve security monitoring, and better protect your critical identities and resources.

Remember, the IT Fix blog is dedicated to providing practical tips and in-depth insights on technology, computer repair, and IT solutions. Stay tuned for more informative articles that can help you stay ahead of the curve in the ever-evolving world of IT.