
Security defaults vs Conditional Access in Microsoft 365
Both switch on multifactor authentication and block old sign-in protocols. The difference is control: security defaults is one switch with no exceptions, Conditional Access is a rule engine you have to design and maintain.
Reviewed by the ITRS security team · Last updated
What security defaults turns on
Security defaults is a single setting in Microsoft Entra ID (the identity service behind Microsoft 365). Microsoft's documentation describes it as a preconfigured baseline for organizations that want better security but don't know where to start, and for tenants on the free tier of Entra ID licensing. Tenants created on or after October 22, 2019 may already have it on.
According to Microsoft Learn, enabling it does the following, with no options to tune:
- Requires every user to register for multifactor authentication (MFA). Microsoft removed the old 14-day registration grace period in 2024.
- Requires MFA every time someone in a listed administrator role signs in.
- Prompts ordinary users for MFA when Microsoft judges it necessary, based on location, device, role and task.
- Blocks legacy authentication protocols, which can't do MFA and are a common route for password spray.
- Requires MFA for Azure management tools (Azure portal, Azure PowerShell, Azure CLI).
- Blocks device code flow sign-ins, which attackers abuse in phishing.
What Conditional Access adds
Conditional Access is Entra ID's policy engine. Each policy says: for these users, signing in to these apps, under these conditions, require (or block) these things. Conditions include location, device platform, client app type, and, with the right licence, sign-in and user risk. Controls include MFA, an authentication strength such as phishing-resistant MFA, a compliant or hybrid-joined device, or a hard block.
That granularity is what most growing organizations end up needing. With Conditional Access you can exclude a scanner's service account from one policy without weakening all the others, require phishing-resistant sign-in only for administrators, block countries you never work from, or insist that company data is only reached from managed laptops. Security defaults can't do any of this. It's either on or off.
Licensing differences
Entra ID P1 is included in several Microsoft 365 business and enterprise plans, so check what your current subscription includes before assuming you need to buy anything. Microsoft also states that the two can't be combined: creating Conditional Access policies prevents you from enabling security defaults, and to move to Conditional Access you must turn security defaults off.
| Item | Security defaults | Conditional Access |
|---|---|---|
Licence needed | None (works on Entra ID Free) | At least Microsoft Entra ID P1 |
Customization | None: on or off | Fully customizable policies |
Risk-based policies | Not available | Need Entra ID P2 (ID Protection) |
Exceptions for service accounts or devices | Not possible | Per-policy include/exclude |
Choosing for your organization
Microsoft's own guidance is that if you hold Entra ID P1 or P2 licences, security defaults is probably not right for you. In practice we use a simple test:
- Stay on security defaults if you have no P1 licences, a small team, no shared devices or old scanners that send email, and nobody needs an exception. It's far better than nothing, and it's free.
- Move to Conditional Access if you already pay for P1 (often through Microsoft 365 Business Premium or an E3/E5 plan), if any device or app needs an exception, if you want to require managed devices, or if you need stronger sign-in methods for administrators.
- Move to Conditional Access if a cyber insurance questionnaire, client audit or regulator asks you to show which controls apply to whom. A written policy set is much easier to evidence than a single toggle.
Switching without lockouts
Create two emergency access accounts first
Microsoft recommends two cloud-only accounts on the .onmicrosoft.com domain with the Global Administrator role, protected with a phishing-resistant method such as a FIDO2 security key, and excluded from policies that block or restrict sign-in.
Build replacement policies in report-only mode
Microsoft offers managed policies and templates that mirror security defaults: MFA for admins, MFA for all users, MFA for Azure management, and a legacy authentication block. Templates are created in report-only mode by default.
Read the report-only results
In the Entra sign-in logs, open individual sign-ins and check the Report-only tab to see what each policy would have done. Look for service accounts, printers and line-of-business apps that would be blocked.
Disable security defaults and turn policies on in the same change window
Per Microsoft Learn, security defaults is managed under Entra ID > Overview > Properties > Manage security defaults. Switch it off and move the replacement policies from Report-only to On straight away, not days later.
Revoke old sessions where needed
Microsoft notes that revoking existing tokens forces previously signed-in users to authenticate again and register for MFA.
Checklist
Sources: Microsoft Learn, 'Security defaults in Microsoft Entra ID' and 'Plan a Conditional Access deployment'. Menu names change; confirm the current path in the admin centre before you click.
- Confirm which Entra ID licence tier every user actually has.
- Two emergency access accounts created, tested, excluded from blocking policies and monitored.
- Every user registered for MFA before enforcement.
- Legacy authentication sign-ins identified and fixed (see our guide to blocking legacy authentication).
- Replacement policies tested in report-only mode for at least a week; Microsoft's deployment plan recommends a week per phase.
- Exclusions written down with an owner and a review date.
- Security defaults off only when equivalent policies are ready to go on.
Related reading.
- PracticeManaged IT SupportHelpdesk and break/fix, networking, security systems, devices, Microsoft 365, cloud and backup.
- GuideA baseline set of Conditional Access policiesMost small and mid-sized Microsoft 365 tenants need only a handful of well-tested Conditional Access policies.
- GuideBlocking legacy authentication in Microsoft 365Legacy authentication sends a username and password and nothing else, so MFA never gets a say.
- ServiceMicrosoft 365 Managed Services for Canadian BusinessesMicrosoft 365 needs active management after setup or migration.
- ArticleMicrosoft 365 Security Best Practices for 2026Eight settings that close the gaps we find most often in small-business Microsoft 365 tenants, each with where to find it and which licence it needs.
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