MFA & Verification Issues

How to Configure SMS Two-Step Verification in Microsoft Entra ID

Steve K Oct 20, 2026 868 views

Question details

Administrators need to configure SMS-based two-step verification for their organization's Microsoft 365 users.

How to Configure SMS Two-Step Verification in Microsoft Entra ID

Product: Microsoft Entra ID
Device & OS: not provided
Scenario: Enforcing SMS-based two-factor authentication for organizational user sign-ins.
Observed behavior: Users should sign in with their password and immediately receive and enter an SMS verification code to gain access securely.

Before you start

Ensure you have Administrator access to the Microsoft Entra admin center and verify whether your organization relies on Security Defaults or custom Conditional Access policies.

Solution 1Recommended

Enable the SMS Authentication Method Policy

Activate the SMS sign-in method for targeted users or groups in your organization through the Entra admin center.

By default, SMS might not be enabled as an authentication method in your tenant. You must explicitly configure the authentication method policy to allow users to authenticate via text messages.

Access the Admin Center

Open the Microsoft Entra admin center and sign in with your administrator credentials.

Navigate to Authentication Policies

Go to Protection in the side menu, select Authentication methods, and then click on Policies.

Enable SMS

Select SMS from the list of available authentication methods. Toggle the Enable setting to Yes.

Target Users

Under the Include tab, choose All users or select specific groups that require SMS verification.

Save Changes

Click Save at the bottom of the screen to apply the new authentication policy.

Enable the SMS Authentication Method Policy

Phone Registration Requirement: Users must register a valid mobile phone number in their security settings before they can receive SMS verification codes.

Solution 2

Manage Security Defaults (If Using Custom Policies)

Adjust Security Defaults if you are implementing custom Conditional Access policies alongside SMS authentication.

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Frequently Asked Questions

Can users choose to stay signed in after entering their SMS verification code?

Yes, depending on your tenant's configuration, users may see options such as 'Stay signed in' or 'Do not ask again for 90 days' during the sign-in process. These options store a persistent refresh token on the device.

Do users need to set up anything before SMS verification works?

Yes, users must register their mobile phone numbers in their account's security info settings before the system can send them SMS verification codes during sign-in.

Is Microsoft Entra ID verification the same as Microsoft 365 Family verification?

No. Microsoft 365 Family uses personal Microsoft account security settings. Microsoft Entra ID, on the other hand, controls organizational policies, Conditional Access, and centralized authentication methods for enterprise users.

Login & Account Issues