Digital identities are seemingly everywhere and increasing. Juniper Research predicts an increase in digital ID volumes by 50% between 2022 and 2026 — from 4.2 billion to 6.5 billion. Typically, a digital identity is associated with a password to help control access to IT resources, like SaaS apps. A 2024 NordPass study calculated that the average number of passwords per person is 168, with 87 of these used for business. In 2023, 90% of organizations were victims of at least one identity-related incident.

These figures highlight a major issue in identity security, where fragmented identities are causing identity sprawl.

Here, AccessOwl explores the causes behind identity sprawl and what can be done to mitigate the fragmentation of digital identity.

A brief definition of identity sprawl

Identity sprawl occurs when a single person ends up with multiple unmanaged digital identities across various systems, apps, and platforms. Each account represents a fragment of the user's overall access profile, often siloed in separate, unsynced directories. The result? Security blind spots, bloated access permissions, and operational headaches for IT and security teams.

What causes identity sprawl?

The explosion of SaaS adoption has made identity sprawl practically inevitable for companies that don’t enforce tight access controls. Every new app, tool, or digital service requires a login, and without centralized governance, that means a new identity. Multiply this across departments, devices, and roles, and you get thousands of fragmented identities floating around your tech stack.

The result is a vast portfolio of fragmented identities. A cycle of identity generation without a governance layer multiplies these fragmented and unsynchronized digital identities. But such fragmented identities are challenging to manage and can result in permission sprawl — users having unnecessary and uncontrolled access privileges, leading to a risk of data exposure. As individual users accumulate multiple digital identities, securing data and associated credentials grows more difficult, unless managed through a single identity provider (IdP) and Single Sign-On (SSO).

Another problem that exacerbates identity sprawl is the "SSO tax." This is an added expense that vendors often charge for premium single-sign-on (SSO) functionality. This added cost discourages companies from implementing SSO, resulting in the proliferation of passwords — which leads to difficulties in managing identity sprawl.

So identity sprawl leaves apps and other IT resources vulnerable to cyber-attacks, unauthorized access, and accidental data exposure.

Why is identity sprawl an issue?

Every unmanaged identity is a potential breach point.

As of Q1 2025, IBM reports that the average cost of a data breach has reached 4.65 million dollars, and compromised credentials remain the top attack vector. Fragmented identities, often using reused or weak passwords, dramatically increase your attack surface.

The risks of identity sprawl include:

• Unauthorized access: Orphaned accounts from ex-employees are prime entry points

• Compliance gaps: Lack of access oversight violates regulations like SOC 2, ISO 27001, and HIPAA

• Data leakage: Shadow IT apps store sensitive info with no visibility or control

• User fatigue: Employees juggling dozens of logins leads to password reuse and unsafe behaviors

Organizations also face complexity from joiners, movers, and leavers. Every role change or team shift introduces new access requirements. By the end of June 2025, the yearly quota of breached data records stood at a staggering 16 billion in data breach. Without centralized control, identity drift spirals quickly.

In a business context, multiple, fragmented, and uncontrolled identities can create fuzzy boundaries — where legitimate business apps and shadow IT applications coexist. Data created or shared across this vulnerable infrastructure is at risk. Compliance is impacted. A lack of visibility into which identities are used to access various IT resources leads to a lack of control and unmanageable access privileges.

Best practices to mitigate identity sprawl

Good news: identity sprawl is preventable with the right practices and tooling in place.

Centralized identity management

To stop sprawl at the source, you need a single source of truth for identity and access. That’s where Identity Governance and Administration (IGA) comes in.

Modern IGA platforms like AccessOwl connect core systems: your HRIS, IdP (like Google Workspace or Microsoft Entra), and SaaS apps into one centralized identity layer. This allows IT teams to:

• Automatically detect and link fragmented identities

• Enforce lifecycle management from onboarding to offboarding

• Orchestrate access rights across all cloud and on-prem systems

Identity sprawl and access reviews

Regular access reviews are essential for any organization that wants to prevent cyber-attacks and data breaches. Access reviews reveal precisely who has access to what, and under which conditions.

Regulations now expect organizations to perform regular and automated access certification checks. These reviews validate whether users still need access to specific apps or roles, based on changes in their employment or responsibilities.

With platforms like AccessOwl, access reviews are automated and schedules while being delivered via Slack or email for minimal workflow disruption. Reviews are fully documented with reviewer responses and change logs, as well as being auditor-ready with exportable reports.

Think of them as a quarterly cleanup for your identity perimeter.

What role does automated user provisioning play in combating identity sprawl?

Manual provisioning is error-prone, slow, and often the root cause of sprawl. Automated user provisioning and deprovisioning ensures every employee gets the right access based on their role, and nothing more. With AccessOwl, identities are:

• Synced directly from your HR system

• Provisioned instantly across apps with role-based rules

• Deprovisioned automatically when employees leave

This automation means no more rogue identities, missed offboardings, or guesswork in assigning permissions. It’s secure, scalable, and saves hours of admin work.

Shadow IT management

Still a major issue in 2025, shadow IT accounts for an estimated 62% of SaaS usage in mid-sized companies. Employees often install tools without IT knowledge, exposing sensitive data and breaking compliance rules. Using a centralized IGA solution like AccessOwl helps by:

• Scanning your environment for unsanctioned apps

• Flagging users with duplicate or unapproved identities

• Automatically revoking access during offboarding

With visibility across your tech stack, you can enforce policy without stifling productivity.

Does single-sign-on (SSO) prevent identity sprawl?

Yes, but only when implemented properly. SSO consolidates identity by allowing users to log in once and access multiple apps seamlessly. It reduces the number of passwords, simplifies audits, and improves user experience.

But many vendors charge extra for SSO integration, a barrier known as the “SSO tax.” In 2025, more companies are moving toward federated identity and passwordless authentication to further simplify identity without the added cost. Pair SSO with access reviews and automated provisioning to get the full benefit.

Identity sprawl and compliance risks

Every compliance framework, from SOC 2 to GDPR, requires proof that only the right people have access to sensitive systems and data. Identity sprawl breaks that chain of trust. With AccessOwl, organizations can:

With AccessOwl, organizations can:

• Enforce least-privilege access

• Automate reviews, provisioning, and offboarding

• Provide auditors with tamper-proof logs and access history

• Align identity practices with ISO 27001, HIPAA, and beyond

Stopping identity sprawl is about more than security, it’s about enabling safe, scalable growth.