Microsoft 365 security basics every small business should switch on

Most small-business break-ins I clean up start with one stolen password. These settings make a stolen password nearly useless.

2 min read · Updated 26 October 2026

An email envelope, a security shield with a padlock and a phone showing a sign-in code

1. Multi-factor authentication for everyone

MFA (a prompt in the Microsoft Authenticator app, or a passkey) blocks the vast majority of account takeovers. On smaller plans, Microsoft's security defaults switch it on for everyone in one go. On Business Premium you get finer control with Conditional Access.

2. Separate admin accounts

Don't use the account you read email with to run the whole organisation. Give admin rights to a separate admin account that's used only for admin work, and keep a second emergency admin account, securely stored, so you can't be locked out.

3. Check for sneaky forwarding rules

When attackers get into a mailbox, they often add a rule that forwards or hides certain emails — invoices, payment requests — so they can redirect payments without you noticing. Check Outlook → Settings → Mail → Rules and Forwarding on every mailbox now and again, and block automatic forwarding to outside addresses unless you really need it.

Payment fraud If a supplier emails to say their bank details have changed, phone them on a number you already have before paying. This one habit stops a very expensive kind of fraud.

4. Turn off old sign-in methods

Older email protocols (“legacy authentication”) can't do MFA, so attackers love them. Security defaults block them; if you've turned security defaults off, make sure they're blocked another way.

5. Keep it tidy

  • When someone leaves, block their sign-in the same day and convert their mailbox to a shared one if you need it.
  • Give people only the access they need.
  • Run the free Microsoft Secure Score now and then — it lists what's left to improve.