Are Microsoft Security Defaults Enough for Your Business?

Most Microsoft 365 organizations today already have a baseline level of security enabled.

In fact, Microsoft automatically enabled Security Defaults for many organizations because they protect against some of the most common identity attacks. Requiring multifactor authentication (MFA) and blocking older authentication methods alone dramatically reduce the risk of compromised accounts.

For many small businesses, that’s a great place to start.

But Security Defaults are exactly that: defaults. They’re designed to provide reasonable protection for every organization, not security that’s tailored to how your business operates.

The next step for many organizations is Conditional Access, which allows security policies to account for factors such as who is signing in, what device they’re using and where they’re connecting from.

As organizations grow, the question changes from “Are Security Defaults enabled?” to “What should we be doing beyond them?”

What Security Defaults Already Do Well

Security Defaults establish a strong security baseline by automatically:

– Requiring multifactor authentication (MFA)
– Blocking legacy authentication protocols
– Protecting privileged administrative accounts
– Enforcing other Microsoft-recommended identity protections

Those protections stop many of the most common password-based attacks businesses face today.

For organizations that previously had little or no identity security configured, Security Defaults represented a significant improvement.

Where Organizations Begin to Outgrow Security Defaults

Eventually, businesses start asking questions Microsoft can’t answer with a one-size-fits-all policy.

Who Should Be Allowed to Access Company Data?

Security Defaults treat every sign-in much the same.

As organizations mature, they often need more control over who can access company resources and under what circumstances.

For example:

– Only allow sign-ins from the United States.
– Require stronger authentication for administrators.
– Block unsupported or unapproved devices.
– Restrict how users register new MFA devices.
– Disable weaker authentication methods like SMS.

These are the types of situations where Conditional Access becomes useful.

These policies reduce risk while allowing security to reflect how the business actually operates.

How Do We Reduce Email Risk?

Email remains one of the most common ways attackers target businesses.

Beyond Security Defaults, organizations commonly add protections such as:

– Safe Links and Safe Attachments
– Anti-phishing and anti-malware policies
– SPF, DKIM and DMARC
– Blocking automatic email forwarding
– External sender warnings
– Outbound spam protection
– Automatic email encryption for sensitive information

These controls help prevent malicious email from reaching users while reducing the chance that sensitive information leaves the organization unintentionally.

They also become more important as phishing attacks increasingly target Microsoft 365 accounts.

How Do We Prevent Employees From Accidentally Creating Security Gaps?

Not every security incident starts with an attacker.

Sometimes a well-intentioned employee creates unnecessary risk without realizing it.

Organizations often choose to:

– Prevent users from approving third-party applications.
– Limit who can create SharePoint sites.
– Restrict PowerShell access to administrators.
– Block users from creating new Microsoft tenants.
– Configure guest access with least privilege.

These settings help keep the environment consistent and reduce opportunities for mistakes.

How Do We Investigate an Incident When Something Goes Wrong?

Good security isn’t only about preventing attacks.

It’s also about understanding what happened if something does get through.

Organizations commonly enable:

– Unified Audit Log
– Mailbox auditing
– OneDrive retention
– Regular reviews of Global Administrator accounts
– Microsoft Secure Score reviews

These capabilities make investigations faster and provide much better visibility into user activity and security events.

Having the right logging and visibility in place can also make it easier to respond when a Microsoft 365 account is compromised.

Security Is a Process, Not a Setting

Security Defaults are one of the best improvements Microsoft has made for small businesses. They provide an excellent foundation, and every organization should have either Security Defaults or a more advanced Conditional Access strategy protecting their Microsoft 365 environment.

Microsoft chose a set of security controls they believe almost every organization can safely use. But they can’t make decisions that depend on how your business operates.

Maybe your employees never travel internationally. Maybe you don’t allow personal devices. Maybe only a handful of people should ever access administrative tools. Microsoft can’t assume any of those things, so Security Defaults leave those decisions to you.

That’s where a more mature security strategy begins. Not by simply adding more security settings, but by identifying additional doors your business can safely close.

As more business systems move behind cloud-based logins, identity has become one of the most important areas to protect.

Every Business Can Close Different Doors

Microsoft Security Defaults are designed to protect almost every organization. The next step is deciding which additional security controls make sense for yours.

If you’d like help reviewing your Microsoft 365 security settings, we’re happy to walk through them with you and explain the options in plain language. Please email support@hungerford.tech or call (616) 949-4020.

Stay updated! Get tips and insights delivered to your inbox weekly by subscribing to our newsletter.

FAQs About Microsoft Security Defaults

Are Microsoft Security Defaults enough for a small business?

Microsoft Security Defaults provide a strong baseline for many small businesses by requiring multifactor authentication, blocking legacy authentication and applying other identity protections. However, businesses that need more control over locations, devices, authentication methods, administrators or access policies may need Conditional Access and additional Microsoft 365 security controls.

What is the difference between Security Defaults and Conditional Access?

Security Defaults apply Microsoft’s predefined security protections across an organization with limited customization. Conditional Access allows organizations to create policies based on factors such as the user, device, location, application and level of risk. This provides more control over when and how users can access company resources.

Should I turn off Microsoft Security Defaults?

You generally shouldn’t disable Security Defaults without having another security strategy ready to replace the protections they provide. Organizations moving beyond Security Defaults commonly use Conditional Access and other Microsoft 365 security controls to create policies that better reflect their users, devices and business requirements.

Does Microsoft Security Defaults protect against phishing?

Security Defaults can reduce the risk of account compromise by requiring MFA and blocking older authentication methods, but they do not stop every phishing attack. Businesses may need additional protections such as Safe Links, Safe Attachments, anti-phishing policies, stronger MFA methods, email authentication and identity threat detection and response.

How do I know if my Microsoft 365 security is configured correctly?

Start by reviewing Security Defaults or your Conditional Access policies, MFA methods, administrative accounts, email security settings and Microsoft Secure Score. The right configuration depends on how your employees work, what devices they use, where they sign in from and what information your organization needs to protect.