The Breakthrough of The Identity Researcher

Dream’s New Capabilities Defend Against AD Tiering Violations

Overview

Dream presents the new Researcher, an LLM-powered agent developed to uncover tiering violations and hidden privilege escalation paths within Active Directory (AD) environments.

The Agent analyzes both the intended structure of AD tiering and the effective permissions assigned to each object. By doing so, it identifies cases where lower-tier Active Directory Objects can inadvertently gain access to higher-tier assets, such as Tier 0 systems or domain controllers.

Protecting Active Directory, especially Tier 0, is a fundamental part of enterprise security. Yet, across numerous assessments, misconfigurations were consistently found, thus allowing lower-tier objects to access higher-tier resources. These issues often create unintended privilege escalation paths that lead to full-domain compromise.

The Tiering Concept

Tiering is an Active Directory hardening strategy that separates administrative control into isolation tiers to stop credential reuse and lateral movement from compromising your crown jewels.

  • Tier 0: Identity crown jewels. Any object whose compromise can lead to complete domain control. Examples include:
    • Domain Admins.
    • Enterprise Admins.
    • Domain controllers.
    • Domain Controller backup servers.
    • Custom groups that can add members to Domain Admins (or otherwise grant Tier 0 rights).
  • Tier 1: Enterprise servers and applications. Includes administrators and systems that manage server workloads and business applications. Compromise of Tier 1 assets does not typically result in an immediate full-domain takeover, but it grants significant control over critical services, data, and operational continuity. Examples include:
    • Database servers (e.g., SQL, Oracle, PostgreSQL).
    • File servers and enterprise storage nodes.
    • Line-of-business application servers (e.g., ERP, CRM, custom web apps).
    • Middleware and integration servers (e.g., IIS, Apache, Tomcat, BizTalk).
  • Tier 2: Workstations & Endpoints. Regular user devices and standard employee accounts across the organization.

NOTE: These systems qualify as Tier 1 only if they do not store or manage Tier 0 objects (like Domain Admin or privileged service accounts). If they do, they should be elevated to Tier 0.

The Tiering Importance

By isolating the identities and systems that govern your domain from all other components, you prevent common breaches, such as compromised users, infected workstations, or misconfigured servers, from escalating into a comprehensive domain compromise (Tier 0). Robust tier boundaries facilitate incident response, diminish credential reuse and lateral movement, and render privileged access reviews significantly more manageable.

Tiering also offers detailed control over user permissions and administrative roles. It enables precise delineation of who is authorized to perform specific actions and in which locations, thereby enhancing the consistency and manageability of Active Directory management.

The Tiering Challenges

The Identity layer represents one of the most complex, critical, and often misunderstood cybersecurity challenges for organizations today. It is highly complex to comprehend and analyze, and it is also the riskiest area within an organization because it involves verifying who truly has access permissions, assessing whether these permissions could pose a threat to the organization, and identifying potential exploitation by attackers.

Microsoft’s Active Directory tiering model was created to impose order on this complexity by dividing identities into distinct “tiers” based on criticality and risk.

  • Tier 0: Domain controllers, schema admins, and other crown-jewel
  • Tier 1: Enterprise servers and applications.
  • Tier 2: Workstations and everyday user accounts.

The idea is elegant: isolate high-privilege accounts from lower tiers to prevent lateral movement and privilege escalation. Yet implementing and maintaining this separation is extremely difficult. In large governmental environments, such as national networks, ministries, and interagency infrastructures, it is especially challenging due to the tens of thousands of users, service accounts, and organizational units that often collide.

Context matters. Understanding context is critical when evaluating permissions. Some powerful access rights are intentional, while others are accidental or remnants of outdated projects. To perform effective tiering and enforce separation of duties, it’s essential to understand the intended role and purpose of each entity.

Across critical infrastructures, Microsoft consultants and national CERTs alike continue to grapple with the same challenge: understanding the actual permissions each identity has versus the permissions intended by policy.
Because permissions propagate across users, groups, GPOs, and local settings, the result is a complex web that no one fully sees from end to end. In a tier violation situation, this becomes especially dangerous because a less secure user, who is more vulnerable to compromise, can gain permissions that allow them to take control of and modify high-value domain objects quickly. This enables the attacker to escalate privileges fast and threatens the integrity of the entire domain.

The reason is simple: permissions in the real world are contextual, inherited, and ever-changing.
Knowing what you intended for an identity to do (its assigned tier) is one thing; knowing what it can actually do (its effective tier) is another.

The Breakthrough of Dream’s Identity Researcher

Current methods for identifying Tier 0 breach points rely heavily on expert labor. Understanding an enterprise’s current de facto Tier 0 entities and maintaining continuously updated documentation of the enterprise’s permission to harden this least privileged approach requires an expert consultant or an internal subject matter expert. Even then, negligible changes that often breach the tier model need the relevant context of the granted entity, the full implications of the permissions, and the permissions context of the target entity.

The new Identity Researcher Agent was designed to close this gap between theory and reality.

Utilizing an expert AI agent with updatable knowledge of best practices, as each new LLM is released and used by the agent, it has access to a comprehensive knowledge base of various application types and their complex permissions within the AD tree. This enables a significant advancement in hardening the AD permission model. The agent instantly understands the context of each AD entity and determines the minimal privileges required to perform its tasks safely. It maintains full organizational context and continuously evaluates and establishes a strong posture standard autonomously across Dream’s customer base.

It performs a deep, contextual analysis of relationships and permissions across domain objects such as users, groups, service accounts, GPOs, and local permissions to understand how privilege truly flows in your environment.

Dream’s Identity Researcher is a major game-changer for these exact challenges as it analyzes relationships and permissions between domain objects to identify entities that effectively possess misconfigured Tier 0 privileges.

The Identity Researcher Agent empowers security teams to:

  • Uncover new classes of identity and permission issues, including violations of tiering boundaries, privilege inheritance, and misapplied access policies.
  • Automatically detect and report Tier 0 misconfigurations by highlighting accounts and entities that possess critical domain-level control unintentionally.
  • Identify and prioritize remediation paths to restore intended separation and governance by analyzing effective permissions to reveal who truly holds power over Tier 0 assets. As the Identity Researcher analyzing the AD posture, it leverages AI to process many users, groups, service accounts, computers, OUs, and their permissions by mapping privilege-escalation and lateral-movement chains from lower tiers into Tier 0.
  • Evaluate and ensure whether individual users should retain their designated roles, permissions, and that their intended access level is accurately reflected. For example, if an account linked to the IT Admins unit is classified as a Tier 2 user, it suggests a mismatch between the user’s actual role and assigned responsibilities. By thoroughly understanding each user’s identity and their organizational role, the agent is capable of identifying and mitigating potential security risks associated with escalation to Tier 0.
  • Understand the specifications for third-party integrations with Active Directory. Many solutions, such as Azure, Cisco, Okta, and others, integrate with AD to offer management and authentication features. Each vendor specifies the needed service accounts and permissions. The agent checks these requirements against the current environment permissions to find any misconfigurations that might cause tier violations.
  • The agent possesses awareness of contextual factors and operates with two primary objectives. These capabilities enable security operations, IT administrators, and national CERTs to transform identity management from guesswork into a measurable, verifiable posture.

Common Tier Breaches Use Cases

Microsoft Exchange Use Case

When installing Microsoft Exchange, new Active Directory (AD) users and groups are automatically created. For example, Exchange Windows Permissions, Organization Management, and Exchange Trusted Subsystem. These groups are designed to simplify administration for Exchange managers, enabling them to create mailboxes, manage AD users with specific mail attributes, and perform other related tasks.

However, because Exchange and Active Directory are tightly integrated, granting Exchange groups the necessary permissions to manage Exchange often results in these groups inheriting high privileges within Active Directory. In many cases, this creates a privilege escalation path to the Tier 0 level.

  • Until the release of Microsoft Exchange 2016, the Exchange Trusted Subsystem group had WriteDACL permissions on the main domain object. This effectively allowed any member of the group to grant themselves DCSync permissions, enabling a complete domain takeover.
  • In many environments, Exchange management groups also have password reset permissions over highly privileged Tier 0 accounts. In almost every environment, Dream analyzed and observed a privilege escalation path from Exchange-related groups to Tier 0 accounts – ultimately leading to complete domain compromise.
  • The underlying issue is that a default Exchange installation often creates critical privilege paths from newly created Exchange objects to domain-level compromise. While these permissions are intended to empower Exchange administrators to manage user mailboxes efficiently, they inadvertently establish routes to Tier 0.

The Identity Researcher classifies Exchange and its associated objects as classic Tier 1 assets, which, in many environments, represent some of the most common and high-risk paths leading to Tier 0.

Figure 1: An example of a common tier breach from default exchange groups to the main domain object

AD Connect Use Case

An AD Connect server, recently renamed Microsoft Entra Connect, is a tool that syncs an organization’s on-premises Active Directory (AD) with Azure Active Directory (Azure AD). Password Hash Synchronization (PHS) and Pass-through Authentication (PTA) are common ways to use the AD Connect server. Periodically, the Connect server’s sync account (often an on-premises MSOL_* account) updates password hashes from on-prem AD to Azure AD when Password Hash Synchronization is enabled, allowing the same password in both systems. With Pass-through Authentication, no hashes are synced-sign-ins are validated in real time by an on-prem agent against AD.

Since the AD Connect server operates as a local service responsible for synchronizing password hashes or facilitating on-premises validation of sign-ins against AD, it is regarded as a highly sensitive asset. Depending on the synchronization configuration, an attacker might be able to either extract the password of the MSOL_* service account or intercept any password processed by the synchronization service, thereby potentially gaining access to domain credentials. Over recent years, various techniques have been demonstrated to attack the AD Connect server locally, resulting in the acquisition of valuable credentials.

The Identity Researcher classifies the AD Connect server as a Tier 0 asset, often uncovering critical, overlooked privilege paths from Tier 1 and Tier 2 objects that lead directly to it and, consequently, to domain compromise.

Figure 2: An example of a common tier breach from a lower tier to an AD Connect server.

Custom Tiering Privilege Escalation Use Case

Although not as technical as the previous examples, a prevalent issue the Identity Researcher frequently encounters is the misallocation of permissions from lower-tier objects to higher-tier assets. Many organizations, particularly those managing large and complex Active Directory environments, employ custom naming conventions to categorize users and groups. For instance, all Tier 0 objects might be designated with a naming pattern such as Tier0_<Username>.

However, the common observation is that when analyzing the effective permissions of each object within Active Directory, rather than focusing on their designated role or tier (e.g., Tier 1). It is frequently possible to uncover unexpected privilege pathways that lead to Tier 0 assets.

Figure 3: An example of tier breach from a lower-tier custom group to the Tier 0 group.

The Identity Researcher harnesses the capability of Large Language Models (LLMs) to comprehend contextual information, thereby facilitating the clear identification of the intended role of each Active Directory object in contrast to its actual effective permissions.

Conclusion

Active Directory tiering violations rarely arise from a single misconfiguration; instead, they arise from complex interactions among permissions, roles, and integrations. The Identity Researcher utilizes large language model reasoning and contextual analysis to interpret this complexity at scale, consistently revealing concealed escalation pathways.

Utilizing the Identity Researcher Findings

The longstanding recommendation of “tiered identity isolation” from Microsoft and other security authorities becomes practically applicable. Organizations can now confirm that their theoretical tiering models genuinely correspond with their operational environments.

For governmental and critical-infrastructure customers, this opens a new kind of strategic initiative:

  • Conduct a nationwide or sector-wide tiering review, verifying implementation across multiple agencies or entities.
  • Gather and upload identity configuration datasets into Dream for automated, consistent evaluation.
  • Establish a baseline of hygiene tiering to track progress over time.

The Identity Researcher Agent makes it possible, for the first time, to understand at scale how privilege segregation is truly implemented, and where it breaks down.

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