How to Secure Microsoft 365 for Your Business
Securing Microsoft 365 requires enabling multi-factor authentication (MFA) for all users, configuring Conditional Access policies, enabling security defaults or Business Premium security features, setting up email protection (Safe Links, Safe Attachments), and training employees to recognize phishing. Most breaches happen because these basics aren't configured.
Written by Alex Dayan, Founder of King of IT | Toronto Managed IT Services
1The Security Basics (Do These First)
1. Enable Multi-Factor Authentication (MFA)
MFA is the single most effective security measure. It blocks 99.9% of account compromise attacks.
How to enable: - Go to admin.microsoft.com → Users → Active users - Select Multi-factor authentication - Enable for all users (or use Security Defaults)
2. Enable Security Defaults (Free)
If you have Business Basic or Standard, enable Security Defaults:
Azure Portal → Azure Active Directory → Properties
Manage Security defaults → Enable
This automatically enforces: - MFA for all users - MFA for admins - Blocking legacy authentication - Protecting privileged actions
3. Block Legacy Authentication
Older email protocols (POP, IMAP, SMTP) bypass MFA. Block them:
Conditional Access → New policy → Block legacy authentication
Or enable Security Defaults (does this automatically)
2Business Premium Security Features
If you have Microsoft 365 Business Premium ($22/user/month), you get advanced security tools. Here's how to use them:
Microsoft Defender for Business
Endpoint protection that replaces your antivirus:
Go to security.microsoft.com
Endpoints → Device inventory
Onboard all company devices
Configure attack surface reduction rules
Safe Links (Email)
Scans URLs in emails in real-time:
Security portal → Policies → Threat policies
Safe Links → Create policy for all users
Enable "Track user clicks" and "Do not allow users to click through"
Safe Attachments (Email)
Detonates attachments in a sandbox before delivery:
Threat policies → Safe Attachments
Enable for all users
Choose "Dynamic Delivery" (delivers email immediately, scans attachment)
Anti-Phishing
Protects against impersonation attacks:
Threat policies → Anti-phishing
Enable impersonation protection for executives
Enable mailbox intelligence
3Conditional Access Policies
Conditional Access (requires Azure AD Premium P1, included in Business Premium) lets you control who can access what, from where:
Recommended Policies:
1. Require MFA for all users
Users: All users (exclude break-glass admin account)
Cloud apps: All cloud apps
Grant: Require MFA
2. Block access from risky locations
Users: All users
Conditions: Locations → Exclude trusted locations
Grant: Block (for high-risk countries you don't do business with)
3. Require compliant devices for sensitive apps
Users: All users
Cloud apps: SharePoint, Exchange
Grant: Require device to be marked as compliant
4. Block risky sign-ins automatically
Users: All users
Conditions: Sign-in risk → Medium and above
Grant: Block or require MFA + password change
5. Require app protection for mobile
Users: All users
Cloud apps: Office 365
Conditions: Device platforms → iOS, Android
Grant: Require app protection policy
4Data Protection & Compliance
Data Loss Prevention (DLP)
Prevent sensitive data from leaving your organization:
Compliance portal → Data loss prevention
Create policies for credit cards, SINs, health info
Apply to Exchange, SharePoint, OneDrive, Teams
Sensitivity Labels
Classify and protect documents:
Compliance portal → Information protection
Create labels: Public, Internal, Confidential, Highly Confidential
Configure encryption and access restrictions
Train users to apply labels
Retention Policies
Keep data for compliance, delete when no longer needed:
Compliance portal → Data lifecycle management
Set retention periods by content type
Configure for email, SharePoint, Teams
Audit Logging
Track what's happening in your environment:
Compliance portal → Audit
Ensure unified audit logging is enabled
Set up alerts for suspicious activities
5Employee Training & Ongoing Security
Security Awareness Training
Your employees are your biggest vulnerability AND your first line of defense:
Use Attack Simulation Training (included in Business Premium)
Run monthly phishing simulations
Provide training on identifying suspicious emails
Create a culture where reporting is encouraged, not punished
Ongoing Security Hygiene
Review sign-in logs weekly for anomalies
Check Secure Score monthly and improve
Review external sharing settings quarterly
Audit admin accounts quarterly
Test backup restoration annually
Microsoft Secure Score
Track your security posture:
security.microsoft.com → Secure Score
Aim for 80%+ (most SMBs start at 30-40%)
Work through recommended actions
Compare against similar organizations
King of IT Tip: Most Microsoft 365 breaches we see happen because: 1. MFA wasn't enabled 2. A user clicked a phishing link 3. Legacy authentication was allowed 4. Admin accounts weren't protected
Fix these four things and you've addressed 90% of your risk.