Multi-factor authentication (MFA) is a method of authentication that requires the use of more than one verification method and adds a second layer of security to user sign-ins and transactions. It works by requiring any two or more of the following verification methods:

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  • A randomly generated pass code

  • A phone call

  • A smart card (virtual or physical)

  • A biometric device

Multi-factor authentication in Office 365

Office 365 uses multi-factor authentication to help provide the extra security and is managed from the Office 365 admin center. Office 365 offers the following subset of Azure multi-factor authentication capabilities as a part of the subscription:

  • The ability to enable and enforce multi-factor authentication for end users

  • The use of a mobile app (online and one-time password [OTP]) as a second authentication factor

  • The use of a phone call as a second authentication factor

  • The use of a Short Message Service (SMS) message as a second authentication factor

  • Application passwords for non browser clients (for example, the Microsoft Lync 2013 communications software)

  • Default Microsoft greetings during authentication phone calls

For the full list of added features, see the comparison of Azure Multi-Factor Authentication version. You can always get the full functionality by purchasing the Azure Multi-Factor Authentication service.

You get a different subset of capabilities depending on whether you have a cloud-only deployment for Office 365 or a hybrid set up with single sign-on and Active Directory Federation Services (AD FS).

Where do you manage your Office 365 tenant? MFA second factor options
Cloud only  Azure Active Directory MFA (text or phone call) 
Hybrid setup, managed on-premises  If you manage user identity on-premises, you have the following choices: 
Physical or virtual smart card (AD FS) 
Azure MFA (module for AD FS) 
Azure AD MFA 

The following figure shows how the updated Office 2013 device apps (on Windows) enable users to sign in with MFA. TheOffice 2013 device apps support multi-factor authentication through the use of the Active Directory Authentication Library (ADAL). Azure AD hosts a webpage where users can sign in. The identity provider can be Azure AD or a federated identity provider like AD FS. The authentication for federated users follows these steps:

  1. Azure AD redirects the user to the sign-in web page hosted by the identity provider of record for the Office 365 tenant. The identity provider is determined by the domain specified in the user's sign in name.

  2. The user signs in on the sign in web page on his or her device.

  3. The identity provider returns a token to Azure AD when the user is successfully signed in.

  4. Azure AD returns a JSON Web Token (JWT) to the Office device app, and the device app is authenticated by using a JWT with Office 365.

This is detailed in the following figure:

Modern authentication for Office 2013 device apps.

Software requirements

To enable MFA for Office 2013 client apps, you must have the following software installed (the version listed below, or a later version) based on whether you have a Click-to-run based installations or an MSI-based installations.

To determine whether your Office installation is Click-to-run or MSI-base:

  1. Start Outlook 2013.

  2. On the ** File ** menu, choose Office Account.

  3. For Outlook 2013 Click-to-Run installations, an Update Options item is displayed. For MSI-based installations, the Update Options item is not displayed.

    Graphic that shows how to tell if Office 2013 install is click-to-run or MSI-based

Click-to-run based installations

For Click-to-run based installations, you must have the following software installed, at file version listed below or a later file version. If your file version is not equal to or greater than the file version listed, update it using the steps below.

File name Install path on your computer File version
MSO.DLL  C:\Program Files\Microsoft Office 15\root\vfs\ProgramFilesCommonx86\Microsoft Shared\OFFICE15\MSO.DLL  15.0.4753.1001
CSI.DLL  CSI.DLL C:\Program Files\Microsoft Office 15\root\office15\csi.dll  15.0.4753.1000
Groove.EXE  C:\Program Files\Microsoft Office 15\root\office15\GROOVE.exe 15.0.4763.1000
Outlook.exe C:\Program Files\Microsoft Office 15\root\office15\OUTLOOK.exe  15.0.4753.1002
ADAL.DLL  C:\Program Files\Microsoft Office 15\root\vfs\ProgramFilesCommonx86\Microsoft Shared\OFFICE15\ADAL.DLL  1.0.2016.624 
Iexplore.exe C:\Program Files\Internet Explorer  varies 

MSI-based installations

For MSI-based installations, you must have the following software installed, at file version listed below or a later file version. If your file version is not equal to or greater than the file version listed, update it using the link in the Update KB Article column.

File name Install path on your computer Where to get the update Version
MSO.DLL  C:\Program Files\Common Files\Microsoft Shared\OFFICE15\MSO.DLL  KB3085480  15.0.4753.1001
CSI.DLL  C:\Program Files\Common Files\Microsoft Shared\OFFICE15\Csi.dll  KB3085504  15.0.4753.1000
Groove.exe  C:\Program Files\Microsoft Office\Office15\GROOVE.EXE  KB3085509  15.0.4763.1000
Outlook.exe C:\Program Files\Microsoft Office\Office15\OUTLOOK.EXE  KB3085495  15.0.4753.1002
ADAL.DLL  C:\Program Files\Common Files\Microsoft Shared\OFFICE15\ADAL.DLL  KB3055000  1.0.2016.624 
Iexplore.exe C:\Program Files\Internet Explorer  MS14-052  Not applicable

Enable MFA

To enable MFA, you have to complete the following:

  1. Enable clients for modern authentication:
  1. Set up multi-factor authentication for Office 365

  2. Tell individual users how to sign in by MFA: Sign in to Office 365 with 2-step verification.

 Important

If you have enabled your users for Azure AD MFA and they have any devices running Office 2013 that are not enabled for Modern Authentication, they will need to use AppPasswords on those devices. More information on AppPasswords and when/where/how they should be used can be found here: App Passwords with Azure Multi_Factor Authentication.


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