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Authentication Methods and MFA

Source: Azure Master Class v3 - Part 2 - Identity by John Savill
Timestamps: 01:04:00 - 01:36:00


Authentication vs Authorization

📺 Video Reference: 01:04:07

These are very different things that often get confused:

ConceptQuestionExample
Authentication (AuthN)Who are you?Password, biometric, certificate
Authorization (AuthZ)What can you do?Roles, permissions, scopes

Authentication Proof Types

TypeExamplesSecurity Level
Something you knowPassword, PIN, gesture
Something you havePhone, token, smart card⭐⭐
Something you areFingerprint, face, retina⭐⭐⭐

Hybrid Authentication Options

📺 Video Reference: 01:05:54

When you have on-premises Active Directory synchronized to Entra, you have several authentication options:

Option 1: Password Hash Synchronization (PHS)

📺 Video Reference: 01:06:58

Recommended approach for most organizations.

StepDescription
1Take password hash from AD
2Hash the hash with per-user salt
3Run 1000+ hashing iterations
4Store in Entra (cannot be reversed)

Benefits:

  • ✅ Pure cloud authentication—no on-prem dependency
  • ✅ Enables leaked credential detection (dark web scanning)
  • ✅ Works as failback if other methods fail
  • ✅ Fastest, simplest authentication

Always Enable PHS

Even if using another method, enable PHS for:

  • Leaked credential detection
  • Break-glass failback authentication
  • Disaster recovery scenarios

Option 2: Pass-Through Authentication (PTA)

📺 Video Reference: 01:09:42

Authentication is validated against on-premises AD in real-time.

Use cases:

  • Zero-delay account blocking requirement
  • On-prem password policies (time windows, complexity)
  • Regulatory requirements for on-prem validation

Considerations:

  • ⚠️ Requires connectivity to on-prem
  • ⚠️ More complex than PHS
  • ⚠️ Dependent on agent availability

Option 3: Federation (ADFS)

📺 Video Reference: 01:11:35

Complete redirect to external identity provider for authentication.

Use cases:

  • Advanced authentication requirements not in Entra
  • Third-party MFA solutions
  • Legacy regulatory requirements

Why it's declining:

  • ❌ Infrastructure overhead (ADFS servers)
  • ❌ Certificate management
  • ❌ Public-facing components to protect
  • ❌ Entra now has most features natively

Avoid Federation If Possible

Most organizations are moving away from federation. Entra's conditional access and MFA capabilities have made it largely unnecessary.

Comparison Table

FeaturePHSPTAFederation
Auth happens atEntraOn-prem DCExternal IDP
On-prem dependency
ComplexityLowMediumHigh
InfrastructureNonePTA agentsADFS servers
Leaked credential detection
Recommendation⭐⭐⭐⭐⭐

Multi-Factor Authentication (MFA)

📺 Video Reference: 01:36:59

The Problem with Passwords Alone

Passwords on their own are bad. They make us sad. 😢

Even with protections like:

  • Smart lockout (protects from lockout attacks)
  • Banned password list
  • Custom banned passwords
  • On-prem password protection agent

...passwords alone are insufficient.

MFA = Two or More Factors

FactorExamples
Something you knowPassword, PIN
Something you havePhone, token, smart card
Something you areFingerprint, face, iris

MFA = Using two or more of these categories.

MFA Blocks 99.2% of Attacks

Basic MFA is incredibly effective against common attacks.


Authentication Strength Spectrum

📺 Video Reference: 01:42:31

From weakest to strongest:

Level 1: Password Only 😢

  • No MFA
  • Highly vulnerable
  • Don't do this

Level 2: Password + SMS/Phone Call 🤔

  • Better than password alone
  • Vulnerabilities:
    • SIM cloning attacks
    • SIM swapping
    • Targeted attacks

Level 3: Password + Authenticator App 😊

  • TOTP (Time-based One-Time Password)
  • Push notifications with number matching
  • Shows app name and location

Authenticator App Features:

FeatureDescription
Number matchingUser must type the displayed number
App nameShows which application is requesting
LocationShows geographic location of request
Token brokerSingle sign-on across apps on device

Level 4: Passwordless 🎉

📺 Video Reference: 01:45:03

No password required! Authentication via:

MethodHow It Works
Windows Hello for BusinessTPM + PIN/biometric
Microsoft AuthenticatorPhone possession + biometric/PIN
FIDO2 Security KeysPhysical key + PIN/biometric
Certificate-based authSmart card + PIN

Why Is Passwordless Still MFA?

  • Hello for Business: "Something you have" (TPM) + "Something you know/are" (PIN/biometric)
  • Passkey: "Something you have" (device) + "Something you know/are" (unlock)

Level 5: Phishing Resistant 🚀

The gold standard. Cannot be tricked by attackers.

MethodPhishing Resistant?Why
SMS/PhoneCan be socially engineered
TOTP codeCan be intercepted
Authenticator pushMFA fatigue, social engineering
Windows HelloBound to device TPM
FIDO2/PasskeysRequires physical proximity
Certificate authBound to physical smart card

Authenticator App Vulnerability

Even with number matching, an attacker can call you:

"Hi, I'm from IT. We detected unusual activity. I'm sending a test—please type 73."

You've just authenticated the attacker. Passkeys prevent this because they require physical proximity.


Entra Authentication Strengths

📺 Video Reference: 01:50:00

Entra provides built-in authentication strength definitions:

StrengthIncluded Methods
MFAAll MFA methods
Passwordless MFAHello, Passkeys, Cert, Authenticator
Phishing-resistant MFAHello, Passkeys, Cert (NOT Authenticator)

You can create custom authentication strengths combining specific methods.

Using Authentication Strength in Conditional Access


Mandatory MFA Rollout (2024+)

📺 Video Reference: 01:51:51

Microsoft is rolling out mandatory MFA across all services:

PhaseServices
Phase 1Azure Portal, Entra Admin Center
Phase 2PowerShell, CLI, IaC tools
Phase 3All administrative access

Automation Breaking Change

If you used user accounts for automations (bad practice), you're now stuck. Automations cannot perform MFA.

Solution: Migrate to service principals or managed identities immediately.


Securing MFA Registration

📺 Video Reference: 01:53:00

The Chicken and Egg Problem

To register for strong authentication, I must authenticate first—but I'm using weak authentication to set up strong authentication! 🤔

Solution 1: Temporary Access Pass (TAP)

📺 Video Reference: 01:54:16

A time-limited, one-time use code for initial authentication.

PropertyConfiguration
Maximum lifetime1-24 hours
One-time useOptional
Character length8+ characters

Workflow:

  1. Admin creates TAP for new user
  2. Share TAP via secure channel (phone call, in-person)
  3. User authenticates with TAP
  4. User sets up passwordless authentication
  5. TAP expires/consumed

Passwordless Onboarding

For organizations going fully passwordless:

  1. Set random password (user never knows it)
  2. Create TAP
  3. User onboards directly to passkey
  4. User never uses a password

Solution 2: Conditional Access for Registration

Create a policy targeting user actionsRegister security information:

ConditionRequirement
ActionRegister security information
LocationCorporate network only
DeviceCompliant device required

This ensures initial MFA setup only happens from trusted locations/devices.


Password Protection

📺 Video Reference: 01:39:36

Even for passwords, Entra provides protection:

Smart Lockout

  • Protects genuine users from being locked out by attackers
  • Distinguishes between legitimate user and attacker
  • Escalating lockout periods

Banned Password List

  • Microsoft global banned list
  • Custom banned passwords for your org
  • Applies to derived variations (p@ssw0rd → password)

On-Premises Agent

Install agent on DCs to enforce banned passwords for on-prem AD too.


Self-Service Password Reset (SSPR)

Registered users can reset their own passwords at:

https://aka.ms/sspr

Requires prior registration of authentication methods.


Quick Reference

Authentication Method Comparison

MethodSecurityUser ExperiencePhishing Resistant
Password onlyEasy
Password + SMS⭐⭐Easy
Password + Authenticator⭐⭐⭐Good
Passwordless (Authenticator)⭐⭐⭐⭐Great
Windows Hello⭐⭐⭐⭐⭐Great
FIDO2/Passkeys⭐⭐⭐⭐⭐Great

Recommendation Priority

  1. Best: Phishing-resistant (Hello, Passkeys, Certificate)
  2. Good: Passwordless Authenticator
  3. Acceptable: Password + Authenticator
  4. Avoid: Password + SMS
  5. Never: Password only

Further Reading

Released under the MIT License.