AWS Knowledge

Understand AWS Identity and Access Management (IAM)

Piyush Kalra

Jan 27, 2025

    Table of contents will appear here.
    Table of contents will appear here.
    Table of contents will appear here.

AWS Identity and Access Management is of utmost importance when we talk about securing our cloud. It is fundamental to determine how users of an AWS account can use the resources available. Similarly, even if you are just an AWS user and are not into cloud security, knowing IAM basics properly can improve your cloud's security and increase your work efficiency.

This guide aims to help you accomplish this, and we demystify IAM in its core principles. It also provides thorough instructions on how to avoid the most common improper use mistakes. Consequently, once you are done reading this article, you can efficiently employ IAM when managing the security of your AWS environment, ensure that you do not make typical errors, and reduce AWS security weaknesses, which can achieve a 90% cut.

What is AWS IAM?

AWS Identity and Access Management is one of the many tools that AWS provides, and it enables the management of users, resources and permissions over other AWS services. Its specific purpose is to allow you to define who can do what on certain AWS resources, providing greater user control.

Key Features of AWS IAM:

  • User Access Control: Easily create and manage users, groups, and roles.

  • Granular Permissions: Define fine-tuned access policies for enhanced security.

  • Temporary Security Credentials: Use temporary credentials for secure and flexible access.

  • Multi-Factor Authentication (MFA): Enhance security with additional verifications.

  • Managed Policies: Use AWS’s predefined policies or create custom ones tailored to your needs.

Using IAM services to secure your AWS cloud infrastructure is inevitable. If you have launched EC2 instances, have S3 buckets, or maintain a handful of AWS accounts, you will use IAM to control all access to these resources and functionalities.

Purpose of AWS IAM

One of the main features of IAM is that it allows companies to establish Role-based access control and Attribute-based access control; employees, systems and even applications are granted permission to access the resources they strictly need.

Why AWS IAM is Vital for Cloud Security

Different Businesses have different requirements as far as the security of their cloud environment is concerned. One of these Requirements which needs to be strongly adhered to is preventing unintentional access to cloud resources, which can cause harm to the cloud services. This is where IAM comes in, as it helps Restrict access to credential-based systems.

Real-World Importance of IAM

A breach that occurs due to unintentional mistakes made in setting IAM can lead to:

Key Benefits of AWS IAM for Security:

  1. Securely Manage Resources: Create rules that can ensure the protection of important assets such as application servers or databases.

  2. Enable the Principle of Least Privilege (PoLP): Provide only the permissions that application users or applications need to complete their required tasks.

  3. Monitor and Audit Activity: Spot activities through CloudTrail and other services to check IAM actions and screen for intruder access.

  4. Compliance & Governance: IAM is an effective management of access control in compliance with requirements such as GDPR & HIPAA.

Key Concepts in AWS IAM

To make the best use of AWS IAM, it is important to understand the components that make it up.

1. IAM Users

An IAM user is an identity assigned to a person or an application willing to use an AWS account. Users have long-term credentials (passwords and access keys) and are usually people such as developers or administrators.

What access to give:

  • Least Privilege Principle: Only the privileges and permissions needed to achieve the intended goals should be provided to the user. The principle states that a developer might be a restrained user when using such specific services as EC2 or Lambda and should not be able to use role activities or tasks such as billing control.

For Example, If a developer requires application deployment and management on EC2, a managed policy means it would be proper to assign them AmazonEC2FullAccess. However, IAMFullAccess should not be assigned unless there is a good reason. Policies are always role-based.

2. IAM Roles

IAM roles are different from users in that users can own the role permanently while the role in IAM is defined as being assumed temporarily. Roles also give a service or application the ability to access a particular part of the service based on the defined trust policies.

For example, imagine you have an application running on an EC2 instance that needs access to files living in an S3 bucket. Instead of embedding access keys (which is insecure), it is possible to create an IAM role that has permission to access the S3 bucket. After this, this role is assigned to the EC2 instance instead. Hence, whenever an EC2 instance needs to interact with S3, it can automatically assume the role of gaining temporary access and, hence no longer keeps the permanent credentials for it.

3. IAM Policies

Policies are defined permissions in JSON format, and Policies can be Managed (Made by AWS) or Inline (Custom).

Example of a basic policy:

 {
   "Version": "2012-10-17",
   "Statement": [
     {
       "Effect": "Allow",
       "Action": "s3:GetObject",
       "Resource": "arn:aws:s3:::example_bucket/*"
     }
   ]
 }

Policies can be assigned to users, groups or roles to provide appropriate access.

4. IAM Groups

IAM Groups work to decrease the hassle of managing permissions by combining users into a unit. Instead of giving permission to every individual user, it is possible to add said permission to a group, and all users in that group receive said permission.

For Example, Instead of going through the tedious process of managing access for individual developers, there is the option to simply form a group called Developers, which is assigned a policy granting access to the needed EC2 and S3 resources. Once such a group is created, all that is needed is to add the developers to the group, and they will have their required permission settings automatically configured.

5. Access Control Models

There are two types of access control models:

  • Role-Based Access Control (RBAC): Permissions are allocated based on a user’s job roles.

  • Attribute-Based Access Control (ABAC): Permissions are allocated based on user attributes (e.g., department, job roles).

6. Multi-Factor Authentication (MFA)

Multi-factor authentication is a significant addition to user accounts as it is a secondary safeguard. Users are required to go through a multi-step verification process when attempting to log into their account: the most typical method is that the user is asked for something they know, for example, a password, along with a secondary factor such as a code for a mobile app or a device. With MFA enabled, there is no chance of unauthorized access, as stealing a code alone would not do much, and there are additional verification steps. This type of high-level authentication is very simple to apply, further securing the AWS environment.

Best Practices for Using AWS IAM

1. Implement Least Privilege Access

Users and services should only be allowed permissions that are needed for the timely completion of a particular task. These permissions should be reviewed regularly:

  • Always start with the least set of permissions and gradually build on them as necessary.

  • Periodically evaluate the permissions set to cut off those no longer needed.

2. Enable MFA

Ensure that selected key accounts, such as root users and administrators, are protected via multi-factor authentication. AWS offers virtual device MFA applications such as Google Authenticator.

3. Use IAM Roles Instead of User Access Keys

Roles enable temporary credentials that can be utilized for certain activities, such as application deployment, which present a decreased risk of abuse.

4. Organize Permissions with Groups

Instead of setting every user up by hand, make user groups (e.g., Developers, Administrators) and define common user policies for them.

5. Rotate and Manage IAM Access Keys

Never rotate them whenever there is a risk of exposing or misusing them. Maintain utilization of AWS Secrets Manager for key utilization and management.

6. Regularly Review IAM Reports

With the help of these tools, AWS provides, without problem, monitoring the boundaries of permissions and detecting over-permissive roles or policies that may exist or that may be assigned to people using the IAM Access Analyzer.

How to Get Started with AWS IAM

  1. Open AWS Management Console > Navigate to IAM > Click on Roles.


  1. Select Create Role > Choose a trusted entity (e.g., AWS service like EC2).


  1. Attach policies defining the role’s permissions.

  2. Name the role (e.g., “EC2-S3Reader”) and finalize.

Writing a Custom Policy:

  1. Go to Policies > Create Policy.


  1. Use the JSON editor or Visual editor to specify permissions (e.g., read-only access to S3 buckets).


  1. Click on Next to save and attach to roles, users, or groups.

If you’re wondering how to do that, you have AWS CLI, AWS SDK toolkits, or the AWS Management Console, which makes it easy to assemble the AWS Management Console access control components: roles, policies, and sessions.

Conclusion

AWS IAM is necessary to protect your infrastructure in the cloud appropriately by the right people concerning specific required resources. Following best practices such as limiting access, regularly auditing user permissions, and setting multi-factor authentication for accounts will also help you establish a strong AWS security posture as your company’s requirements expand. Controlled access management is timely and reduces risks such as unauthorised use of protected data and information theft. Block unauthorized access and facilitate the management of users through AWS IAM while ensuring the stability of your cloud security.

Join Pump for Free

If you found this post interesting, consider checking out Pump, which can save you up to 60% off AWS for early-stage startups, and it’s completely free (yes, that's right!). Pump has tailor-made solutions to take you in control of your AWS and GCP spend in an effective way. So, are you ready to take charge of cloud expenses and maximize the most from your investment in AWS? Learn more here.

Similar Blog Posts

1390 Market Street, San Francisco, CA 94102

Made with

in San Francisco, CA

© All rights reserved. Pump Billing, Inc.

1390 Market Street, San Francisco, CA 94102

Made with

in San Francisco, CA

© All rights reserved. Pump Billing, Inc.

1390 Market Street, San Francisco, CA 94102

Made with

in San Francisco, CA

© All rights reserved. Pump Billing, Inc.