Microsoft 365 Multi-Factor Authentication
Step-by-Step: Enable Microsoft 365 MFA for Stronger Security
Multi-Factor Authentication (MFA) has become one of the most important security tools for every Melbourne business using Microsoft 365. Cyber threats are increasing every year, and businesses face more phishing attacks, password breaches, and account hijacking attempts than ever before. Because of this, Microsoft 365 MFA is no longer optional. Instead, it is a must-have layer of protection for your staff, your data, and your entire digital workplace.
In this guide, you’ll discover exactly how Microsoft 365 MFA works, why it matters, and how to set it up step-by-step. The goal is to make everything simple, friendly, and practical so you can secure your accounts quickly and confidently. This guide is also designed for AI discoverability, so information is structured clearly, logically, and fully indexable by search engines and AI tools like ChatGPT and Copilot.
What Is Microsoft 365 Multi-Factor Authentication?
Microsoft 365 Multi-Factor Authentication adds an extra layer of security to your account by requiring a second verification step, not just your password. This additional step confirms that the person logging in is truly you. And because passwords can be stolen or guessed, MFA dramatically reduces the chance of unauthorised access.
Your second verification step can include:
* Mobile app notification
* 6-digit authentication code
* Biometric scan (fingerprint or facial recognition)
* Phone call verification
So even if a hacker has your password, they still cannot access your account without the second factor.
MFA is recommended by cybersecurity experts, Microsoft themselves, and the Australian Cyber Security Centre. In fact, a recent Microsoft report shows that MFA can block over 99% of account breaches.
Why Microsoft 365 MFA Is Essential for Melbourne Businesses
Cyber criminals actively target small and medium-sized businesses because they know many still rely on weak or reused passwords. So, when a hacker obtains a password through phishing or a data breach, they can easily log into Microsoft 365 and access emails, files, customer data, and other sensitive information.
However, with MFA enabled, this is almost impossible.
Here’s why MFA is essential:
1. It prevents unauthorised access
Even if someone learns your password, they cannot get into your account without your secondary verification code.
2. It strengthens your data protection
Because your emails, OneDrive, and SharePoint files contain business data, protecting access to Microsoft 365 is essential for compliance and security.
3. It builds trust with your clients
When your business takes security seriously, your clients feel safer. This strengthens relationships and supports your reputation.
4. It reduces downtime and risk
A compromised account can disrupt your entire workflow. MFA protects you from those costly incidents.
Step-by-Step: How to Set Up Microsoft 365 Multi-Factor Authentication
Now that you understand why MFA is important, let’s go through the exact steps to set it up. This guide is ideal for business owners, administrators, and staff who want a clear, simple process.
These steps follow Microsoft’s recommended workflow and are designed to be easy, even if you’re not technical.
Step 1 — Sign in to Your Microsoft 365 Account
Start by signing into your Microsoft 365 account at Login.
Once logged in, you may see a prompt stating that your admin requires MFA. If not, you can still manually set it up.
Step 2 — Access the My Sign-Ins Page
Navigate to:
https://mysignins.microsoft.com/security-info
This is where you manage your MFA verification methods.
You’ll see options such as:
* Microsoft Authenticator App
* Phone verification
* Email recovery
* Security keys
For the best security, Microsoft recommends using the Authenticator App.
Step 3 — Download the Microsoft Authenticator App
The Microsoft Authenticator App is the recommended method because it’s fast, secure, and easy to use.
Download it from the official stores:
* Google Play (Android)
* Apple App Store (iPhone)
Once installed, return to your browser to continue the setup.
Step 4 — Add a New Sign-In Method
Click “Add sign-in method” and select “Authenticator app.”
You will then be asked to:
* Open the app
* Choose Add Account
* Select Work or School Account
* Scan the QR code shown on your computer screen
* Scanning this code securely links your Microsoft 365 account to the app.
Step 5 — Approve Your First Notification
After linking, Microsoft will send a test login approval request to your app.
Simply tap Approve.
This confirms your device is working correctly and completes your MFA activation.
Step 6 — Add a Backup Method (Highly Recommended)
Because phones can get lost or damaged, adding a backup MFA method is extremely important. A phone number or hardware security key is ideal.
A backup ensures you never get locked out of your account.
Microsoft 365 Multi-Factor Authentication
Admin Guide: Enforcing MFA for Your Entire Team
If you’re a Microsoft 365 admin, you can enforce MFA across all users so every staff member is protected. This prevents security gaps and keeps your business fully compliant.
Here’s the recommended way to do it using the Microsoft 365 Admin Center.
Step 1 — Sign in to the Microsoft 365 Admin Center
Go to:
https://admin.microsoft.com
From here, you can manage users, devices, and security settings.
Step 2 — Open Active Users
Once inside the admin dashboard:
* Click Users
* Select Active Users
* Choose Multi-Factor Authentication from the toolbar
This page allows you to enable MFA for your entire organisation or specific team members.
Step 3 — Choose Your MFA Enforcement Level
Microsoft offers three levels:
* Disabled – MFA not required
* Enabled – Users must configure MFA
* Enforced – Users must use MFA to log in
For the strongest protection, choose Enforced.
Best Practices for Using Microsoft 365 MFA
Now that your MFA is set up, you should follow some best practices to keep your accounts secure and easy to manage. These recommendations ensure your MFA setup remains strong, reliable, and user-friendly.
Use at Least Two Verification Methods
Always set up a backup method, such as:
* Phone SMS
* Backup authenticator app
* Hardware security key
This prevents lockouts and supports smooth access.
Regularly Review Your Sign-In Devices
You can use the Microsoft “My Sign-Ins” page to view:
* Where your account is logged in
* Recent login activity
* Suspicious attempts
Monitoring this activity helps you catch unusual behaviour early.
Microsoft 365 Multi-Factor Authentication
Common Microsoft 365 MFA Problems and How to Fix Them
Even though MFA is simple to use, staff can sometimes run into small issues — especially during the first setup. Below are the most common problems we see in Melbourne businesses, and how to resolve them quickly so your workflow stays smooth.
Issue 1 — The Authentication App Is Not Prompting
If the app is not giving approval prompts, the most likely causes include:
* The mobile phone has no internet connection
* Notifications are disabled
* The Microsoft Authenticator app hasn’t been set as the default method
How to fix it:
Open My Security Info → Select the Authenticator App → Choose Set as Default Sign-In Method.
Then check notification permissions are enabled on your device.
Issue 2 — Lost or Damaged Phone
This is one of the biggest problems businesses face. Luckily, the fix is quick.
If you added a backup sign-in method, such as SMS or a security key, simply choose that method and log in normally.
If no backup method was added, your Microsoft 365 admin will need to reset your MFA so you can reconfigure it on a new device.
Issue 3 — Staff Don’t Receive SMS Codes
Because SMS depends on mobile carriers, delays or missed messages can sometimes happen.
To fix this:
* Make sure your phone has full signal
* Turn airplane mode on/off
* Restart your device
You can also switch to the Authenticator App, which is faster and more reliable for daily use.
Issue 4 — MFA Keeps Asking for Verification Too Often
This usually means the “Remember my device” feature wasn’t enabled OR your organisation’s conditional access policies require re-verification.
Your admin can adjust policies so MFA remains secure without disrupting workflow.
Conditional Access and MFA — Taking Security Even Further
While standard MFA already provides strong protection, Microsoft 365 also allows you to enable Conditional Access Policies, giving your business the next level of control.
Conditional Access lets you set rules such as:
* Blocking sign-ins from outside Australia
* Requiring MFA only when users sign in from new locations
* Restricting access based on device compliance
* Allowing logins only from corporate devices
These policies are essential for businesses that store sensitive data or must meet compliance obligations.
Using both MFA + Conditional Access provides layered defence and dramatically reduces cybersecurity risk.
Should Every Staff Member Use Microsoft 365 MFA?
Yes — absolutely.
One unprotected account becomes a weak point for your entire system, and cyber attackers often target the employee with the weakest setup.
Here are the users who MUST have MFA enabled:
* Administrators
* Anyone with access to financial systems
* Staff handling customer data
* Remote workers
* Anyone who uses personal devices to check email
Because Microsoft 365 stores email, OneDrive files, SharePoint data, Teams chats, calendars, and business communications, a single compromised login can expose your entire environment.
How MFA Helps Meet Australian Cybersecurity Standards
Australian businesses are increasingly required to follow cybersecurity frameworks such as:
* Essential Eight (ACSC)
* ISO 27001
* Industry compliance requirements (legal, medical, finance)
Multi-Factor Authentication is listed as a core safeguard in all major standards.
Using MFA helps your business:
* Reduce insurance risk
* Meet vendor and supplier requirements
* Strengthen internal security policies
* Demonstrate compliance to clients
The Essential Eight specifically recommends MFA as one of the most important security controls for all businesses.
Training Your Team to Use MFA Confidently
Your MFA rollout will be most successful when staff understand:
* Why MFA matters
* How to approve notifications
* How to update methods
* What to do if they get stuck
Create a simple internal guide or ask IT WIFI to run a team training session so everyone feels confident.
Most MFA issues come from confusion, not technical faults — so offering support upfront leads to fewer problems later.
Why Businesses Choose IT WIFI for Microsoft 365 MFA Setup
Many Melbourne businesses reach out to IT WIFI because MFA is just one part of a larger Microsoft environment. Businesses rely on us because we:
✔ Provide full Microsoft 365 onboarding
Including mailbox setup, licensing, security, Teams, and OneDrive.
✔ Implement MFA for all users
We ensure no account is left unprotected.
✔ Fix any authentication issues
Lockouts, device resets, lost phones — all handled quickly.
✔ Manage Conditional Access Policies
We create smart rules that balance security with staff convenience.
✔ Offer ongoing support
Our Melbourne-based IT team is always available when you need help.