Get Rid of Passwords: Microsoft 365 Passwordless Implementation Guide

Imagine never having to reset a forgotten Office 365 password again.

Picture this: Your employee is locked out right before the big meeting. We've all been there.

Here's the shocking reality.

Microsoft observes 579 password attacks every second. And compromised passwords cause 61% of breaches.

But there's bigger news.

Microsoft's 2025 update: new accounts are now passwordless-by-default. This isn't hype anymore. It's the industry standard.

So what does passwordless authentication mean in Microsoft 365?

Simple. Instead of typing passwords, you log in with fingerprints, phone apps, or hardware keys.

Think of it like unlocking your smartphone. But for work.

These methods are multi-factor by nature and phishing-resistant. Better security with less hassle.

This guide will show you step-by-step how to eliminate passwords in your Microsoft 365 environment. Better security, happier users, easier compliance.

Here's why passwordless isn't just trendy. It's necessary.

Security That Actually Works

Passwords are shared secrets that anyone can steal. But your fingerprint can't be phished, and your phone's secure chip can't be guessed.

This is what experts call phishing-resistant MFA. It's a core pillar of Zero Trust security.

Microsoft's data shows MFA blocks 99.2% of account compromises. That's nearly every single threat eliminated.

Password spray, credential stuffing, phishing emails? All neutralized.

Users Actually Love It

Remember that 32% first-time login success rate with passwords? With passwordless, it jumps to 98%.

Think about that productivity boost.

No more "forgot password" clicks. No typing complex passwords on mobile keyboards.

Just quick biometric scans or phone approvals. Microsoft saw their password reset tickets drop dramatically after going passwordless.

Your helpdesk will thank you.

The Money Saved

Every password reset costs helpdesk time. Every breach costs millions.

Passwordless authentication fixes both problems at once.

The Results:

• 99.2% fewer compromises
• 66% fewer login failures
• 579 daily attacks become irrelevant
• Massive helpdesk savings

Ready to see how it works?

Microsoft Entra ID supports multiple passwordless authentication methods. An effective deployment might combine a few of them.

Here's what you can choose from:

Your users' faces and fingerprints become their passwords.

This biometric sign-in ties directly to the device using TPM hardware. Perfect for office workers on Windows 10 and 11.

Security: High. PIN and biometric data stays local, backed by cryptographic keys.

User Experience: Excellent. Instant login with face or finger recognition.

Requirements: Modern Windows devices with TPM, camera or fingerprint reader, and Azure AD join.

Turn smartphones into authentication devices. Users get a notification and just tap "approve."

No password typing needed.

Security: High passwordless MFA level. Though users can fall for push notification tricks if not trained properly.

User Experience: Convenient. Most people carry phones anyway.

Requirements: iOS or Android smartphone with Authenticator app and internet access.

Physical hardware keys like YubiKey that plug into USB or use NFC.

These are truly phishing-resistant. The private key never leaves the device.

Security: Maximum. User action required, completely phishing-resistant.

User Experience: Fast once users learn it. Requires carrying a physical key.

Requirements: Purchase security keys, devices with USB/NFC, modern browser support.

Works across Windows, macOS, even Linux with major browsers.

Think of these as built-in FIDO2 credentials stored on devices. Like Apple's iCloud Keychain passkeys that Microsoft 365 now accepts.

Security: Very high and phishing-resistant.

User Experience: Seamless on personal devices. Just use your normal device unlock.

Requirements: Latest OS versions with evolving Azure AD support.

A time-limited, one-time passcode for getting users started.

This isn't for daily logins. It's for onboarding users into passwordless without ever giving them a permanent password.

Security: Temporary use only. Should be short-lived and delivered securely.

Use Case: New hires can use TAP to register their fingerprint, Authenticator, or security key.

Requirements: Entra ID Premium and secure delivery method.

You don't have to pick just one method.

Office staff might use Windows Hello. Remote contractors might use FIDO2 keys.

Microsoft allows all methods to be enabled simultaneously. You manage everything through Entra ID's authentication methods policy.

Ready to start deploying these?

Don't jump straight into configuration. Smart planning prevents painful rollbacks.

Here's your pre-implementation roadmap:

1. Inventory your users and devices first.

Who's using Windows 10+? Who's on Mac? Any shared tablets or kiosk devices?

Identify users without smartphones. They'll need FIDO2 security keys instead of phone sign-in.

2. Check your technical readiness.

Ensure most clients support modern authentication. Older Office versions might need upgrades.

Are you already using Entra ID MFA? Any Conditional Access policies in place?

List any apps still using legacy authentication. We'll address these later.

3. Review your licensing.

Basic passwordless features work with all Entra ID tiers. But Authentication Strength and Temporary Access Pass need Entra ID Premium P1 or P2.

1. Set measurable goals.

"100% of admins passwordless in 3 months" or "90% fewer password reset tickets next quarter."

Clear targets help track progress later.

2. Brief your stakeholders early.

Security teams, helpdesk, and executives need to understand the benefits. Use those 99.2% security improvement stats.

Cooperation during rollout makes everything smoother.

1. Start with a pilot group.

Pick your IT department or tech-savvy users first. Include both power users and average employees for balanced feedback.

2. Plan subsequent waves.

High-risk accounts like admins might go early for security. Frontline workers might come later based on device needs.

Build in flexibility to adjust based on pilot results.

Get ahead of user confusion.

Announce "passwordless is coming" to build awareness. Schedule training sessions.

Prepare internal how-to guides and links to Microsoft's end-user documentation.

Train your support staff on new methods before users need help.

Keep backup options during transition.

Don't disable all passwords immediately. Allow fallback methods during the pilot phase.

Ensure you can revert policies if something breaks. Everyone should have always at least one working authentication method.

Passwordless Rollout Checklist:

• Device and user inventory complete
• License requirements verified
• Pilot group selected
• Stakeholder briefings scheduled
• Support team training planned
• Backup authentication methods confirmed

Ready to start the technical setup?

Now that you've planned, let's get our hands dirty. The following steps walk through configuring Microsoft Entra ID for passwordless sign-in, enrolling users, and enforcing the new methods.

You must first turn on the features before users can register anything.

Navigate to Microsoft Entra Admin Center Settings

Open Microsoft Entra Admin Center (entra.microsoft.com).
Go to Entra ID > Authentication Methods > Policies

This is where you manage which passwordless methods are available to your organization.

1. Enable Microsoft Authenticator Phone Sign-in

• • Select Microsoft Authenticator from built-in methods.

• Toggle Enable to On.
• Set Target to a pilot group or all users (if break-glass accounts are in place).
• Ensure Authentication mode is set to 

2. Enable FIDO2 Security Keys

• • Select Passkey (FIDO2) from built-in methods.

• Toggle Enable to On.
• Set Target to All Users or any Pilot group (not all users yet).

• In the Configure tab:
  • Skip AAGUID restrictions unless limiting to specific key brands.
  • Ensure Allow self-service setup is enabled (users can register keys via MySignIns).

3. Enable Temporary Access Pass (TAP)

• • Select Temporary Access Pass from built-in methods.

• Toggle Enable to On.
• Set Target to a pilot group or all users (if break-glass accounts are in place).

• Configure the critical settings, click on Edit:
  • Set One-time use to Yes.
  • Set Lifetime to 1 hour max (recommended).

• Click Save to apply changes.

Microsoft recommends keeping TAP short-lived and single-use for security. Only admins can actually issue the codes anyway.

The default value and the range of allowed values are described in the following table.

• Click Save to apply changes.

Microsoft recommends keeping TAP short-lived and single-use for security. Only admins can actually issue the codes anyway.

The default value and the range of allowed values are described in the following table.

To issue a Temporary Access Pass (TAP) for both new and existing users, simply open their profile in Entra ID and manage it under Authentication methods.

• Go to the user's profile > Authentication methods
• Click on + Add Authentication method.
• Select Temporary Access Pass.

• Define a custom activation time or duration and select Add. Generate a TAP code for their first login (One time use).

• Once added, the details of the TAP are shown. Copy the code and deliver this securely to the user for one time use.

Result? The user completes "password change" using TAP and registers passwordless methods instead.

Admin issuing TAP:

Entra > Users > [Select User] > Authentication methods > "Add Temporary Access Pass"

Generate the code and deliver it securely via phone call or separate messaging channel.

Important: TAP codes are one-time and expire quickly. Coordinate timing with the user before generating.

Rights and Licensing

Step 1: License verification

• Confirm pilot users have Entra ID Premium P1 or P2
• TAP and Conditional Access require Premium licensing

Step 2: Admin role check

• Ensure you have Authentication Administrator or Global Admin role
• Required for managing user authentication methods

Step 3: Bulk automation setup (if needed)

• Set up Microsoft Graph API access for large deployments
• Prepare PowerShell scripts for bulk user creation
• Consider pre-registering FIDO2 keys if issuing them centrally

Your accounts are properly configured for passwordless enrollment.

1. Using Temporary Access Pass (First-Time Sign-in)

The system immediately prompts them to register a permanent authentication method since TAP is temporary.

Once users sign in with their Temporary Access Pass (TAP) for the first time, they can register their preferred passwordless authentication methods explained below:

2. Registering Microsoft Authenticator Phone Sign-in

User steps:

Step 1: Install Microsoft Authenticator app on smartphone.

Step 2: Go to aka.ms/setupsecurityinfo and sign in using:

• Temporary Access Pass (TAP) if you’re a new user.
• Existing password if you already have one.

Step 3: Choose "Add a sign-in method" > select "Authenticator App"

Step 4: Scan the QR code displayed on screen using the Microsoft Authenticator app.

Step 5: The app will now show your work account.

• After MFA setup, app offers "Enable phone sign-in"
• If prompted during MFA setup, approve and complete the process.
• If not prompted, tap account in app > find "Enable phone sign-in" option

Step 6: Test it

• Log out and sign back in
• Enter username, get notification instead of password prompt

Pro tip: Set up Authenticator on two devices for backup. Or combine with a FIDO2 key.

3. Registering Passkey in Microsoft Authenticator

1. 1. Ensure the Microsoft Authenticator app is installed and updated on your iPhone, iPad, or Android device.
   2. Visit https://aka.ms/setupsecurityinfo and sign in using your Temporary Access Pass.
   3. Click “Add a sign-in method” and choose Passkey or Authenticator App Passkey.
   4.  If you already added an account in Authenticator, tap your account, and then tap Create a passkey.

5. Follow the prompts to create a new passkey using your device’s biometric or PIN.

6. When prompted, scan the QR code shown on your computer screen using the Authenticator app on your mobile device.

7. Approve the registration using your device’s biometric (Face ID, fingerprint) or PIN.
8. The passkey will be securely stored in your Authenticator app.
9. Sign out and sign in again to test the passkey login using biometric or PIN instead of a password.

4. Registering FIDO2 Security Key

User steps:

Step 1: Go to  aka.ms/setupsecurityinfo, after signing in using TAP.

Step 2: Click "Add an Authentication method" > choose "Security Key"

Step 3: Pick your key type (USB or NFC).

Step 4: Follow prompts to:

• Insert or tap the key
• Create a PIN if the key doesn't have one
• Touch the key's button when prompted

Step 5: Name your key (e.g., "YubiKey 5 NFC") for reference

Step 6: Test login

• Sign out, sign in again
• Choose "Sign in with a security key" when prompted

Enterprise tip: Issue at least two keys per user. Backup keys prevent lockouts if one is lost.

Security Key + PIN = Two Factors

• Something you have: the physical key
• Something you know: the PIN
• This satisfies strong authentication requirements.

5. Registering Windows Hello for Business

On Azure AD–joined Windows 10/11 devices:

• Users are usually prompted automatically to set up Windows Hello after the admin enables the policy.
• If not prompted, they can manually configure it:
  1. Go to Settings > Accounts > Sign-in options
  2. Add a Windows Hello PIN
  3. (Optional) Add fingerprint or face recognition if the device supports it

Requirements:

• Device must be Azure AD joined
• TPM chip must be available and enabled

Ensure Backup Methods

Microsoft recommends at least two passwordless methods per user.

Why? If they lose their phone or security key, they need an alternate way to sign in.

Good combinations:

• Authenticator + FIDO2 key
• Windows Hello + Authenticator
•  FIDO2 key + PIN

User Onboarding Checklist:

• Download Microsoft Authenticator
• Add work account to Authenticator app
• Enable phone sign-in in the app
• Register security key at mysecurityinfo (if issued)
• Set up Windows Hello (on company devices)
• Test login with new methods
• Confirm backup method works

Registration is just the beginning. Now we make passwordless the actual requirement.

1. Use Conditional Access with Authentication Strength
2. Go to Microsoft Entra Admin Center.
3. Navigate to Entra ID → Conditional Access.
4. Click + New Policy.

4. Name the policy: Require Passwordless Sign In
5. Under Assignments, in the Include section select All Users.

6. Under Assignments → Cloud apps, select All cloud appsor key apps like Outlook, Teams

7. Under Access Controls → Grant, choose Require authentication strength.
8. Select Passwordless MFA from the dropdown.

9. Enable policy to ON.
10. Save the policy and monitor the Sign in Logs.

Start safely: Set policy to "Report-only" initially to see impact without blocking users.

Once confident, switch to "On" for the pilot group.

2. Block Legacy Authentication

Close the backdoor methods.

Legacy protocols like Basic Auth for Exchange let users bypass modern policies with just passwords.

Create another Conditional Access policy:

• Name: "Block Legacy Authentication"
• Users: All users (or pilot group)
• Client apps: Exchange ActiveSync, Other clients
• Access: Block

Check on-premises connections too.

Any systems that only accept passwords need upgrading or placement behind Azure AD App Proxy with MFA.

Attackers love finding legacy interfaces that ignore your shiny new policies.

3. Gradual Enforcement Strategy

Don't flip the switch overnight.

Start with report-only mode to understand user behavior. Monitor the Authentication Methods Usage report in Entra ID.

Recommended phases:

1. Enforce for admins first (high-risk accounts)
2. When 80-90% of pilot users have registered methods, enforce broadly
3. Eventually disable password authentication entirely

Track adoption: Use Entra ID’s Authentication Methods Usage report to see how users are actually signing in.

4. Device Configuration

For Windows Hello users:

Ensure group policy or Intune sets "Use Windows Hello for Business" to enabled.

Configure TPM requirements via policy to enforce strong Hello usage.

This prevents Windows from defaulting to domain passwords when Hello is available.

5. Communicate the Change

Give users fair warning.

"As of [date], password sign-in will be disabled. You must use Authenticator or your security key."

Provide final registration assistance before enforcement goes live.

Handle stragglers: Have a plan for users who haven't registered yet. Maybe extended TAP codes or helpdesk-assisted registration.

6. The Final Step

Consider disabling passwords completely.

For cloud-only accounts, Entra ID has a "Disable password" setting at the user level.

At minimum, stop forcing periodic password changes. They're unnecessary and counterproductive once everyone's passwordless.

Result: Users physically cannot use passwords in modern auth flows. You've truly achieved passwordless Microsoft 365.

Your pilot group is now fully passwordless.

Implementation isn't the finish line. Real success comes from ongoing monitoring and optimization.

Track who's actually using passwordless methods.

Entra ID

 > Reporting > Authentication Methods Activity shows per-user registration status. See who has FIDO2, Authenticator, or Windows Hello set up.

Use Sign-in logs to observe which methods users choose. Microsoft provides a Passwordless Deployment Workbook in Azure Monitor that visualizes adoption over time.

Set up the workbook:

• Azure Monitor > Workbooks > Browse gallery
• Search for "Passwordless deployment"
• Pin it to your dashboard

Track metrics like:

• Percentage of passwordless sign-ins vs password sign-ins
• Users who haven't registered any passwordless methods
• Most popular authentication methods

Target stragglers: Identify users still using passwords and reach out with assistance.

Survey your pilot users regularly.

Are the new sign-in methods working smoothly? Any confusion or edge cases?

Common feedback points:

• Difficulties adding the Authenticator app
• Issues on older devices or browsers
• Confusion about which method to use when

Use this feedback to refine training and support materials.

Update your helpdesk knowledge base.

Document procedures for common scenarios:

• User loses phone: Admin issues TAP to re-register on new device
• Security key stops working: User can register backup key or use alternate method
• Complete lockout: Emergency admin access procedure

Keep emergency procedures ready:

• Maintain break-glass admin accounts
• Have TAP generation process documented
• Know how to reset user authentication methods if needed

Monitor the audit logs.

Entra ID logs every credential registration and TAP issuance. Review these regularly for unusual activity.

Red flags to watch for:

• Bulk TAP generation (possible abuse)
• Registrations from unexpected locations
• Unusual device registrations

Compliance benefits: Passwordless authentication often exceeds regulatory MFA requirements. Document this for compliance audits.

Think beyond web sign-ins.

Extend passwordless to:

• VPN access using Entra ID certificates
• Wi-Fi authentication via NPS extension
• SSH to Linux servers (using certificates or third-party tools)

API automation: For large organizations, use the Authentication Methods API to bulk check registration status or automate user notifications.

Share metrics with leadership.

Track improvements like:

• X% reduction in account lockouts
• Y hours of productivity saved monthly
• Z% fewer helpdesk password reset tickets

These numbers prove ROI and support future security initiatives.

Stay current with improvements.

Update Authenticator apps regularly. New passkey features come via updates.

Monitor Microsoft's roadmap for additional passwordless capabilities.

Future-proof tip: Microsoft continues expanding passkey support. Your early adoption positions you for upcoming features.

• Adoption rate: Percentage of users with registered passwordless methods
• Usage rate: Percentage of sign-ins using passwordless vs passwords
• Support reduction: Decrease in password-related tickets
• Security improvement: Reduction in account compromises

Your passwordless deployment is now self-sustaining and continuously improving.

• Microsoft Solutions Partner
  As a recognized Microsoft Solutions Partner, we bring proven expertise in Entra ID, Modern Work, and Digital App Innovation. Our approach aligns with Microsoft’s 2025 passwordless-by-default roadmap, ensuring your organization is ahead of the curve.
• Certified Microsoft Professionals
  Our team of Microsoft Certified experts has hands-on experience with passwordless methods including Windows Hello for Business, FIDO2 keys, and Microsoft Authenticator. We’ve helped organizations across industries transition securely to phishing-resistant authentication.
• Proven Deployment Experience
  From piloting IT departments to rolling out across thousands of users, we’ve successfully reduced password reset tickets by 90% and strengthened account security against 579 attacks per second. Whether it’s hybrid, regulated, or cloud-only environments, our implementations deliver measurable results.
• End-to-End Support
  We guide you through every stage—assessment, planning, pilot rollout, user onboarding, enforcement, and continuous monitoring. Our structured approach ensures smooth adoption, regulatory compliance, and improved user satisfaction.

Ready to eliminate passwords and future-proof your Microsoft 365 environment?
Schedule a consultation today and let our experts design a passwordless authentication strategy tailored to your business.

You've successfully implemented passwordless authentication in Microsoft 365. Security is stronger and users are happier.

What You've Accomplished

• Eliminated password-based attacks
• Reduced helpdesk tickets by 90%
• Deployed phishing-resistant authentication
• Improved user login experience

Next Steps

Expand passwordless to VPNs and third-party applications. Monitor adoption rates and gather user feedback for continuous improvement.

Q: What if a user loses their phone or security key?

Use their backup method (FIDO2 key, Windows Hello, or second device). Admin can issue Temporary Access Pass for re-registration. Immediately revoke lost keys in Azure AD.

Q: Can we truly remove passwords entirely?

Yes for daily use. Policies can block password logins completely. Password fields still exist in Azure AD but become unused random values.

Q: How does this affect older applications?

Legacy apps get blocked when you disable basic authentication. Update apps, use break-glass accounts, or implement certificate-based auth for necessary legacy systems.

Q: Do passwordless methods work offline?

Windows Hello works offline for device login. FIDO2 keys work locally. But cloud apps always need internet, same as with passwords.

Q: How secure is my biometric data in Windows Hello?

Fingerprints never leave your device. Data stays encrypted in the TPM chip locally. Microsoft only receives cryptographic proof.

Q: What is passwordless sign-in on Microsoft?

Logging into Microsoft 365 without typing passwords. Use fingerprints, phone approval, or security keys instead.

Q: What's the difference between passwordless and MFA?

Passwordless replaces passwords entirely. Traditional MFA adds a second factor to passwords. Passwordless methods are inherently multi-factor.

Q: How to do passwordless sign-in?

Register methods at aka.ms/setupsecurityinfo. Set up Authenticator phone sign-in, FIDO2 keys, or Windows Hello. Follow our implementation guide above.

Q: How do I turn off passwordless sign-in Windows 10?

Settings > Accounts > Sign-in options > disable Windows Hello PIN/biometrics. Or use Group Policy to disable Windows Hello for Business.

Q: Why use passwordless login?

99.2% fewer account compromises. No password resets. Faster logins. Phishing protection. Better user experience.

Q: How do I remove authentication from my Microsoft account?

You can't remove all authentication. You can disable specific methods in Security settings, but you need at least one way to sign in.

Q: Is passwordless sign-in safer?

Yes. It's phishing-resistant and eliminates password attacks. Biometrics and hardware keys can't be stolen like passwords.

Q: How to stop Microsoft asking to sign in Windows 11?

This is usually for security. You can extend sign-in timeout in Settings > Accounts > Sign-in options, but some prompts are required.

Q: How to sign in to Windows without a password?

Set up Windows Hello PIN, fingerprint, or face recognition. Or use a security key. These replace password entry.

Q: What are disadvantages of passwordless authentication?

Device dependency (lose phone/key = temporary lockout). Initial setup complexity. Some legacy apps don't support it. Requires backup methods.

Q: Which Microsoft solution provides passwordless authentication?

Microsoft Entra ID (formerly Azure AD) with Windows Hello, Authenticator app, and FIDO2 security keys.

Q: Which technology is commonly used in passwordless?

FIDO2/WebAuthn standards, biometrics (fingerprint/face), hardware security keys, and platform authenticators like TPM chips.

Q: What does FIDO2 stand for?

Fast Identity Online version 2. It's the standard for phishing-resistant authentication using hardware keys.

Q: Which three methods support passwordless authentication?

Windows Hello for Business, Microsoft Authenticator phone sign-in, and FIDO2 security keys.

Q: Is passwordless considered MFA?

Yes. These methods combine something you have (device/key) with something you are (biometric) or know (PIN). It's inherently multi-factor.