N2CON TECHNOLOGY

Microsoft 365 Security Basics

Microsoft 365 is the operating system of modern business, but its default settings prioritize convenience over security. Here are the non-negotiable baselines.

Note: This is general information and not legal advice.

Last reviewed: January 2026

Executive Summary

  • Identity is the perimeter: 99.9% of account compromise incidents are blocked by MFA.
  • Defaults are not enough: Out-of-the-box settings leave legacy protocols open to password spray attacks.
  • Separate Admin Accounts: Never browse the web or read email with a Global Admin account.

1 Identity & Access

  • Enforce Multi-Factor Authentication (MFA)

    For ALL users. No exceptions. Prefer Authenticator App or FIDO2 keys over SMS.

  • Block Legacy Authentication

    Disable IMAP, POP, and SMTP auth protocols that bypass MFA.

  • Conditional Access Policies

    Block sign-ins from high-risk countries. Require compliant devices for admin access.

2 Email Hygiene

  • Preset Security Policies

    Enable "Standard" or "Strict" preset security policies in Defender for Office 365.

  • External Tagging

    Turn on the "External" tag for emails coming from outside the org to prevent impersonation.

  • SPF / DKIM / DMARC

    Configure these DNS records to prevent others from spoofing your domain.

3 Admin Protection

  • Dedicated Admin Accounts

    Admins should not use their daily email account for Global Admin tasks. Use separate cloud-only accounts.

  • Break Glass Account

    Create one emergency access account excluded from Conditional Access, with a complex password stored offline.

Common Questions

Is Microsoft Defender enough?

For most SMBs and Mid-Market orgs, yes—IF configured correctly. Defender for Endpoint P2 or Business is a top-tier EDR solution.

What license do I need for these features?

Most security features (Conditional Access, Intune, Defender) are available in Microsoft 365 E3 and E5. E3/E5 provides enterprise-grade controls and better alignment with compliance frameworks.

Need a Security Audit?

We can check your M365 tenant against these best practices and fix the gaps.

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