To secure Microsoft 365 sign-ins, require multifactor authentication (MFA) for users and administrators, block legacy authentication, and test access policies before enforcing them. For a fixed baseline without an Entra premium license, use Microsoft Entra security defaults. For more control over who must authenticate and under what conditions, use Conditional Access with at least Entra ID P1. The key safety rule is to replace security defaults protections before switching them off—and keep tested emergency-access accounts outside policies that could lock them out.
Choose security defaults or Conditional Access
Check the tenant’s current subscription and Entra entitlement before choosing. Microsoft’s licensing guidance says Microsoft 365 Business Premium and E3 include Entra ID P1, while E5 includes P2; bundles can change, so verify the current subscription rather than relying on a product name alone. P2 adds risk-based Conditional Access capabilities.
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| Decision | Security defaults | Conditional Access |
|---|---|---|
| License | No Entra premium license required for the defaults baseline. | At least Entra ID P1 is required, according to Microsoft Learn. |
| Controls | Fixed baseline; enable or disable it as a whole. | Custom policies can target users, resources, and conditions. |
| Best fit | Organizations that need baseline protections without granular exceptions. | Organizations with P1 or P2 that need scoped or contextual controls. |
| Rollout consideration | Prepare users for MFA registration and sign-in prompts. | Recreate defaults coverage when switching, then validate policies in report-only mode. |
| Key limitation | Limited customization and constrained method behavior. | Mis-scoped or overlapping policies can produce unexpected access; coverage and exclusions need review. |
Security defaults require MFA registration, require MFA for administrators, prompt users for MFA when necessary, block legacy authentication and device-code flow, and protect privileged activities. Conditional Access is not simply a more powerful switch: it gives you flexibility, but also makes correct policy scope and exclusions your responsibility. See Microsoft’s security defaults documentation and Conditional Access policy templates.
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Prepare the tenant before changing sign-in controls
Inventory how people and services authenticate before enabling a baseline or replacing one. A policy change can disrupt older clients, unattended scripts, and special accounts even when ordinary user sign-ins work.
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- Confirm whether security defaults or Conditional Access is currently active.
- Identify legacy authentication clients, devices, scripts, and other service dependencies; plan their migration rather than weakening the baseline without an explicit risk decision.
- Check whether users and administrators can register the methods your intended policies will require.
- Establish at least two cloud-only emergency-access accounts and decide which policies must exclude them.
- Tell users what registration steps and sign-in prompts to expect.
Enable security defaults when a fixed baseline fits
Security defaults are the straightforward choice when the tenant does not need granular policy exceptions and does not have the required Entra premium license for Conditional Access. Microsoft says the baseline requires users to register for MFA and uses Microsoft Authenticator notifications; users can also use OATH time-based one-time password codes. Registration is through the notification option. Do not disable available methods while relying on security defaults, because doing so can lock the tenant out. Microsoft’s Microsoft 365 MFA setup guidance warns not to turn defaults off unless you are switching to Conditional Access with Entra ID P1 or P2.
Move to Conditional Access without leaving a protection gap
Security defaults and Conditional Access cannot be active together. Turning defaults off first and postponing replacement policies leaves protections missing. Plan and configure the replacement baseline as part of the same change.
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- Review Microsoft’s baseline templates. The templates include policies for MFA for all users, MFA for administrators, blocking legacy authentication, and MFA for Azure management. Use Microsoft’s Conditional Access policy templates as a starting point, not a substitute for checking tenant-specific scope.
- Turn off security defaults as you switch. Defaults and Conditional Access cannot run together, so prepare the replacement policies and exclusions before making the transition.
- Recreate the protections. Create the policies that replace the defaults coverage, then add any other policies your organization needs. Review exclusions and special cases rather than assuming the templates fit unchanged.
- Validate, then enforce. Keep new policies in report-only mode while reviewing sign-in results and policy impact. Resolve registration or compatibility problems before switching enforcement on. Microsoft’s templates start in report-only mode, and Microsoft advises testing and monitoring each policy before enabling it.
Scope the all-user MFA policy deliberately
For the broad MFA baseline, Microsoft’s policy guidance recommends including all users and all resources, with no app exclusions, and requiring MFA. Exclude emergency-access accounts from restrictive policies that could block recovery. Depending on the tenant, consider whether directory synchronization accounts or guests need special handling, and document the reason for each exception.
A policy that grants access after MFA only to a selected group does not, by itself, deny access to users outside that group. If users outside the intended scope must not sign in, create and validate a separate deny policy rather than treating an MFA grant policy as a block. Review Microsoft’s all-users MFA policy guidance when building the baseline.
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Require stronger MFA for administrators
Microsoft recommends phishing-resistant MFA for administrator roles. Before enforcing that requirement, make sure the administrators covered by the policy have already registered a supported method; Microsoft warns that enforcing it before registration can risk tenant lockout. FIDO2 passkeys are one supported path. Choose the authentication strength and built-in roles that match the tenant’s configuration, using Microsoft’s administrator phishing-resistant MFA guidance.
Authentication strength determines which method combinations satisfy a Conditional Access policy. Microsoft lists built-in strengths for multifactor authentication, passwordless MFA, and phishing-resistant MFA. Its cited policy guidance says external authentication methods are currently incompatible with authentication strengths; in that situation, use the ordinary “Require multifactor authentication” grant control and check the documentation again before implementation, because support can change.
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Protect and test emergency access
Maintain at least two cloud-only emergency accounts, protected with strong independent authentication such as FIDO2 passkeys or certificate-based authentication. Exclude them from enforced policies that could require an unavailable device or otherwise prevent sign-in. Monitor their use and test them regularly: Microsoft gives quarterly testing as an example and summarizes validation at least every 90 days. See Microsoft’s emergency-access account guidance.
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User-scoped Conditional Access does not automatically protect service principals. Microsoft recommends workload-identity Conditional Access for service principals and replacing script or code credentials with managed identities where possible. Separately, blocking legacy authentication can break older clients or devices, so identify and migrate those dependencies instead of quietly weakening the baseline.
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Per-user MFA is a last option in Microsoft’s guidance when security defaults or Conditional Access cannot be used. It is not the preferred substitute for a tenant-wide baseline built with either of those approaches. For Microsoft’s MFA licensing details, see Microsoft Entra multifactor authentication versions and consumption plans.
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