Microsoft 365

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.

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