Is your Microsoft 365 environment secure out of the box? The short answer to that is no, it is definitely not.
Setting up a new office software suite is a bit like buying a high-end treadmill. You get it out of the box, plug it in, and marvel at the sleek screen and the "Quick Start" button. You assume that because it is a premium product, it is already optimized for your specific health goals. Then, six months later, you realize you have been running at a 0% incline while the machine was capable of simulated mountain climbs.
Microsoft 365 is the same way. Even thought it's one of the most advanced, robust, and cost effective business productivity solutions on the market, out of the box it is very basic in it's configuration. Designed for convenience to make it easier to get up and running, but it leaves a lot of security gaps you're in charge of fixing. Most business owners hit the "Quick Start" button and assume the security is already backed in. The truth is, it's not.
If your entire business is running on Microsoft 365, those security gaps can cost you BIG if you don't configure them properly.
Microsoft 365 is arguably the most powerful business productivity solution ever created. It is the engine that drives communication, document storage, and collaboration for millions of organizations. From the real-time co-authoring in Word to the seamless integration of Teams and SharePoint, it allows a 10-person firm to operate with the efficiency of a global enterprise.
However, there is a common misconception that because Microsoft is a tech giant, your specific instance of their software is automatically "locked down" or secure. When you subscribe to Microsoft 365, you are essentially renting space. Microsoft is responsible for the foundation, the roof, and the plumbing. But you are responsible for who has a key, whether the windows are left open, and who is allowed in the vault. This is why Microsoft 365 Managed Services are no longer a luxury for enterprises. Businesses who are making M365 management part of their technology strategy are seeing increases in their efficiency, better protection for employees and data with tighter security controls, and a much easier time managing access to company files.
Threat actors do not always need to "break in" through the digital back door. Frequently, they simply walk through the front door because the default configuration practically invited them in. When you set up a new tenant, many features designed for maximum security are turned off by default to ensure a "smooth" user experience. Not to mention that if you don't have the correct licensing, some features you won't have the access to configure. Afterall, M365 is an enterprise suite.
Consider these two real-world scenarios that threaten businesses every day:
Scenario 1: The Forwarding Rule Fiasco
A mid-sized manufacturing firm was operating with default M365 settings. A threat actor gained access to an employee's credentials through a simple phishing email. The employee thought it was a legitimate email, clicked on the link, and provided their credentials along with the basic MFA code that was sent to the employees phone. This middle-man attack happens everyday.
Because Geofencing wasn't configured through Conditional Access Polices, the threat actor logged in easily with the employees credentials from outside the United States. They now controlled the employees account, and they didn't even know it. Instead of stealing data immediately, they set up a "silent" mail forwarding rule. Every email containing the word "Invoice" or "Payment" was automatically blind-copied to the threat actor's external inbox. They waited three weeks, watched the billing cycle, and then sent a "corrected" invoice to a major client with new wiring instructions. The business lost $45,000 before they even realized their account was compromised.
Scenario 2: The Guest Access Oversight
An association was using SharePoint to collaborate on sensitive member data. By default, external sharing settings were wide open to allow for easy collaboration with people outside the tenant environment. An employee accidentally shared a folder with an external "Guest" link that did not require a login. That link was eventually indexed or found by a threat actor scanning for open directories.
The association’s entire member database was downloaded and sold on the dark web. The legal fees, notification costs, and reputational damage far exceeded their annual IT budget. Because the business did not have Cybersecurity Insurance, there was no recourse and no resources to help clean it up.
In both cases, the software worked exactly as it was configured. The problem was that it wasn't configured for a hostile digital environment. This is where a professional Managed IT Provider, like Cloud Matrix IT, can help. We don't just "give you an account." We harden the environment, close the loopholes, and monitor for the subtle red flags that indicate a threat actor is poking around.
BONUS: Get your FREE Microsoft 365 133+ Point Risk Assessment that'll give you a clear roadmap of where the security and configuration gap are in your tenant. See below
5 Best Practices for Microsoft 365 Security and Productivity
If you have Microsoft 365 or are managing a tenant and want to begin auditing your current environment, here are five essential configurations that should be implemented immediately:
1. Enforce MFA via Conditional Access Policies While basic Multi-Factor Authentication (MFA) is better than nothing, setting it up through Conditional Access policies is the professional way to secure a business. Think of standard MFA as a basic lock. Conditional Access is like a smart security system that checks who is at the door, where they are coming from, what time it is, and whether they are carrying a company ID. It allows us to create rules that say, "If this employee is in the office on their work laptop, let them in easily. If they are in another country on a personal phone, block the access." It’s a much stronger shield because it analyzes the context of every login attempt.
2. Disable Legacy Authentication Protocols Old-school communication protocols are the favorite tools of threat actors because they often bypass modern security checks like MFA. Think of these as the rusted basement windows of your digital house that don't quite lock right. While your front door is reinforced, these legacy "back doors" often stay open for old printers or outdated mail apps. We disable these entirely and transition your team to modern authentication. This ensures every single login attempt is forced through your security perimeter without exception, leaving no room for "silent" entries.
3. Implement "Least Privilege" Access In many businesses, too many people have "Global Admin" rights simply because it was easier to set up that way during the initial launch. This is a massive risk. If an account with full administrative power is compromised, the threat actor can delete your entire cloud environment or lock you out of your own data forever. We follow the "Least Privilege" rule: users only get the specific keys they need to do their job. By limiting administrative power to a few highly secured accounts, we significantly reduce the "blast radius" if a single password is ever stolen.
4. Configure Advanced Anti-Phishing and Safe Attachments Standard email filters catch the obvious scams, but sophisticated threat actors use targeted phishing that looks identical to a real vendor email. We implement advanced "Sandboxing" technology to combat this. When an attachment arrives, the system opens it in a safe, isolated digital room to see if it tries to do anything malicious before it ever reaches your inbox. This proactive layer stops "zero-day" threats that haven't been identified yet, ensuring your team isn't the one to accidentally trigger a ransomware event by opening a "shipping invoice."
BONUS: For an enhanced and better experience, we couple M365 settings with our enterprise email security & filtering solution. Taking email protection to the ultimate security level. Standard in our IT PROTECT platform.
5. Enable and Monitor Unified Audit Logging You cannot manage what you cannot see. By default, Microsoft 365 doesn't always keep a detailed history of every file accessed or every login location unless you tell it to. We enable Unified Audit Logging to create a permanent "paper trail" of all activity within your tenant. This isn't just about catching mistakes; it's about total visibility and preventing an incident. If something feels "off" in your system, our team can look back at the logs to see exactly who did what and when. It’s the difference between guessing what happened and having a clear forensic map.
Microsoft 365 is an incredible tool, but it is not "set it and forget it" software. As threat actors become more sophisticated, your configuration must keep pace. Relying on default settings is a gamble that puts your bottom line, your reputation, and your employees' productivity at risk.
Partnering with an expert ensures that your technology is an asset rather than a liability. We take the complexity out of the "cloud" and give you a "Technology Easy Button."
If you want to know what your current risk assessment is for M365, give us a call by clicking on our number at the top of any page, or fill out the form below. Let's make sure your M365 environment is working as hard for your security as it is for your productivity.
Cloud Matrix IT™ is a managed IT and technology consulting firm who specializes in providing proactive IT management for small and medium-sized businesses. IT PROTECT is a comprehensive IT Support and Cybersecurity platform that helps your business save time, reduce costs, and stay protected with our fully managed 24/7/365 SOC+ cybersecurity platform led by cybersecurity professionals. Yes, even weekends and holidays.