MFA Security Issues

Is MFA Required for New Microsoft 365 Business Accounts?

Steve KSteve K Oct 26, 2026 869 views

Question details

The user wants to understand if multifactor authentication is mandatory for newly created Microsoft 365 business tenants and whether a paid license is required to protect accounts with MFA.

Is Multifactor Authentication Required for New Microsoft 365 Business Accounts?
Product
Microsoft 365 Business
Device & OS
not provided
Scenario
Setting up or administrating a new Microsoft 365 business tenant and configuring user security.
Observed behavior
Determining the default MFA enforcement status and licensing prerequisites for newly created business accounts, administrators, and guest users.
Before you start

Ensure you have Global Administrator privileges to your Microsoft 365 tenant, as you will need elevated permissions to view or modify your organization's security defaults and MFA enforcement settings.

Solution 1Recommended

Understand Microsoft 365 Security Defaults

Microsoft enforces basic MFA protection automatically for new tenants via Security Defaults, which covers all users regardless of their licensing status.

Microsoft does not universally force mandatory two-factor authentication for every custom configuration. However, to provide immediate baseline security, 'Security Defaults' are enabled automatically for all tenants created on or after October 22, 2019.

This feature protects the organization by requiring MFA for all users during sign-in, without the need for complex conditional access policies.

1
Verify Tenant Creation Date

Determine when your Microsoft 365 tenant was created. If your organization's environment was provisioned on or after October 22, 2019, security defaults (and thus MFA) are turned on automatically.

2
Review Unlicensed Account Protection

Confirm your user list. You do not need to assign a paid Microsoft 365 license to guest users, external collaborators, or specific administrator accounts to protect them. Security Defaults will prompt unlicensed users to register for MFA automatically.

No Additional Licensing Required: You do not need an Azure AD Premium or advanced Microsoft 365 license to use the baseline MFA provided by the Security Defaults feature.
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Frequently Asked Questions

Do I need an Azure AD Premium license to use MFA in Microsoft 365?

No, baseline multifactor authentication is available for free to all Microsoft 365 users through the Security Defaults feature. You do not need to purchase an Azure AD Premium license unless you require advanced Conditional Access policies.

Can I disable Security Defaults and MFA for my Microsoft 365 tenant?

Yes, Global Administrators can disable Security Defaults from the Microsoft Entra admin center properties page. However, Microsoft highly recommends keeping it enabled unless you are replacing it with stricter Conditional Access policies.

Are guest users required to use MFA in Microsoft 365?

Yes, if Security Defaults are enabled on your tenant, all users, including guest accounts and external collaborators, will be prompted to register for and use multifactor authentication when accessing your organization's resources.