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SecurityNovember 2024 · 7 min read

Essential Microsoft 365 Security Settings Every Business Needs

Microsoft 365 comes with powerful security features, but many are disabled by default. Here are the critical settings every business should configure immediately.

1. Enable Multi-Factor Authentication (MFA)

This is non-negotiable. MFA blocks 99.9% of account compromise attacks.

How to Enable: 1. Go to Microsoft 365 Admin Center 2. Navigate to Users > Active Users 3. Select "Multi-factor authentication" 4. Enable for all users, starting with admins

Pro Tip: Use the Microsoft Authenticator app rather than SMS for better security and user experience.

2. Configure Security Defaults or Conditional Access

For smaller organizations, Security Defaults provide essential protection with minimal configuration:

  • -Requires MFA for all users
  • -Blocks legacy authentication
  • -Protects privileged accounts

Larger organizations should consider Conditional Access policies for more granular control.

3. Set Up Email Authentication (SPF, DKIM, DMARC)

Email spoofing is a major attack vector. These three protocols work together to prevent it:

SPF (Sender Policy Framework): Specifies which servers can send email for your domain.

DKIM (DomainKeys Identified Mail): Adds a digital signature to outgoing emails.

DMARC (Domain-based Message Authentication): Tells receiving servers what to do with emails that fail SPF/DKIM.

4. Enable Unified Audit Logging

You can't investigate what you don't log. Unified Audit Logging captures:

  • -User sign-ins and failures
  • -File access and sharing
  • -Admin activities
  • -Mailbox access

To Enable: 1. Go to Microsoft Purview Compliance Portal 2. Navigate to Audit 3. Start recording user and admin activity

5. Configure Safe Attachments and Safe Links

Part of Microsoft Defender for Office 365, these features protect against:

  • -Malicious email attachments
  • -Phishing links in emails and documents
  • -Zero-day threats

Even if you don't have Defender licenses, basic protection is included with Business Premium.

6. Set Up Alerts for Suspicious Activity

Create alerts for critical events:

  • -Multiple failed sign-in attempts
  • -Sign-ins from unusual locations
  • -Privilege escalation
  • -Mass file downloads

Navigate to: Security & Compliance Center > Alerts > Alert policies

7. Review and Restrict External Sharing

OneDrive and SharePoint external sharing is often too permissive by default:

  1. Go to SharePoint Admin Center
  2. Select Policies > Sharing
  3. Restrict to specific domains if possible
  4. Require sign-in for external access

Regular Security Review Checklist

Security isn't a one-time setup. Review these monthly:

  • -[ ] Check Secure Score and recommendations
  • -[ ] Review sign-in logs for anomalies
  • -[ ] Verify MFA adoption rate
  • -[ ] Check for stale guest accounts
  • -[ ] Review admin role assignments

Get Help With Your Security Configuration

Proper Microsoft 365 security configuration can feel overwhelming. Our team specializes in helping businesses secure their Microsoft environment. Contact us for a security assessment.

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