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Identity Protection Configuration Guide

This document provides detailed configuration guidance for Microsoft Entra ID Protection to detect and respond to identity-based risks.

Overview

Microsoft Entra ID Protection uses machine learning and Microsoft's threat intelligence to: - Detect suspicious activities and vulnerabilities - Calculate user and sign-in risk levels - Automate response to detected risks - Provide investigation tools and reporting


Prerequisites

Licensing Requirements

Feature License Required
Risk detections Microsoft Entra ID P1
Risk-based Conditional Access Microsoft Entra ID P2
Full Identity Protection features Microsoft Entra ID P2
Risky workload identities Workload Identities Premium

Required Roles

Task Required Role
View reports Security Reader, Global Reader
Configure policies Conditional Access Administrator
Remediate risks Security Operator, Security Administrator
Confirm/dismiss risks Security Administrator

Risk Detection Types

User Risk Detections

User risk represents the likelihood that a user account has been compromised. These detections evaluate the user's overall security state.

Detection Description Detection Timing
Leaked credentials Credentials found in breached databases Offline
Password spray Multiple accounts targeted with common passwords Offline/Real-time
Anomalous user activity Unusual patterns in user behavior Offline
Possible attempt to access Primary Refresh Token Suspicious PRT access patterns Offline
User reported suspicious activity User reports unauthorized MFA prompt Real-time

Sign-In Risk Detections

Sign-in risk represents the probability that a specific authentication request is not authorized by the identity owner.

Detection Description Detection Timing
Anonymous IP address Sign-in from anonymous proxy/VPN Real-time
Atypical travel Sign-in from atypical location Real-time/Offline
Malware linked IP address Sign-in from IP with known malware Offline
Unfamiliar sign-in properties Sign-in with unusual properties Real-time
Malicious IP address Sign-in from known malicious IP Real-time
Suspicious inbox manipulation rules Rules forwarding email externally Offline
Impossible travel Geographically impossible travel Real-time/Offline
New country Sign-in from new country for user Offline
Activity from anonymous IP Activity from TOR exit nodes Offline
Suspicious inbox forwarding Email forwarding to external address Offline
Anomalous Token Token with unusual characteristics Real-time
Token issuer anomaly Token from suspicious issuer Real-time
Mass access to sensitive files Unusual file access patterns Offline

Risk Levels

Level Meaning
High High confidence the account is compromised
Medium Some suspicious signals detected
Low Minor anomalies detected
None No risk detected

Risk Policy Configuration

User Risk Policy via Conditional Access

Create a Conditional Access policy for user risk remediation.

Policy: Require Password Change for High-Risk Users

Name: IDP-UserRisk-High-RequirePasswordChange
State: Report-only → On

Assignments:
  Users: All users
  Exclude: Break-glass accounts

Conditions:
  User risk: High

Grant:
  Require password change + Require MFA

Session:
  Sign-in frequency: Every time

Important Considerations: - Users must be registered for SSPR (Self-Service Password Reset) - Hybrid users require password writeback enabled - Passwordless users will have sessions revoked instead

Sign-In Risk Policy via Conditional Access

Policy: Require MFA for Medium/High Sign-In Risk

Name: IDP-SignInRisk-MediumHigh-RequireMFA
State: Report-only → On

Assignments:
  Users: All users
  Exclude: Break-glass accounts

Conditions:
  Sign-in risk: Medium, High

Grant:
  Require authentication strength: Multifactor authentication

Session:
  Sign-in frequency: Every time

Best Practice: Separate Policies

Do not combine user risk and sign-in risk in the same Conditional Access policy. Create separate policies for each risk type.


Named Locations Configuration

Properly configured named locations reduce false positives in risk detections.

Creating Trusted Locations

  1. Navigate to Entra ID > Protection > Conditional Access > Named locations
  2. Click + Countries location or + IP ranges location

Corporate Office Location:

Name: Corporate-Office-Primary
Type: IP ranges
Mark as trusted location: Yes
IP ranges:
  - 203.0.113.0/24
  - 198.51.100.0/24

Allowed Countries:

Name: Allowed-Countries
Type: Countries
Mark as trusted location: No
Countries:
  - United States
  - Canada
  - United Kingdom
  (Add based on your organization's locations)


Risk Investigation

Risky Users Report

Navigate to Entra ID > Protection > Identity Protection > Risky users

Information Available: - User name and risk level - Risk state (At risk, Confirmed compromised, Dismissed) - Last risk update - Risk detections associated with user

Investigation Actions: 1. Review risk detections 2. Check sign-in logs 3. Contact user if needed 4. Confirm or dismiss risk

Risky Sign-Ins Report

Navigate to Entra ID > Protection > Identity Protection > Risky sign-ins

Information Available: - Sign-in details (time, location, app, device) - Risk level and risk state - Detections triggered - Conditional Access policies applied

Risk Detections Report

Navigate to Entra ID > Protection > Identity Protection > Risk detections

Filtering Options: - Date range - Risk level - Risk state - Detection type - User


Remediation Workflows

Automatic Remediation

Configure risk-based Conditional Access policies to enable user self-remediation:

Risk Type Risk Level Remediation
Sign-in risk Medium MFA challenge
Sign-in risk High Block or MFA
User risk High Password change

Manual Remediation

For situations requiring admin intervention:

Dismiss Risk: - Use when investigation confirms false positive - Document reason for dismissal

Confirm Compromised: - Use when investigation confirms actual compromise - Triggers immediate remediation actions - Sets user risk to High

Reset Password: - Force password change for user - Consider also revoking sessions

Revoke Sessions: - Invalidate all active sessions - User must re-authenticate

Remediation Process for High-Risk User

Detection: User risk elevated to High
Investigation:
  1. Review risk detections
  2. Check recent sign-in locations
  3. Verify with user if possible
Determination: Compromised or False Positive?
If Compromised:
  1. Confirm compromise in portal
  2. Reset password
  3. Revoke all sessions
  4. Review for data exfiltration
  5. Check for persistence mechanisms
If False Positive:
  1. Document investigation findings
  2. Dismiss risk
  3. Consider tuning (trusted locations, etc.)

Microsoft Authenticator Configuration

Number Matching

Require users to enter a number displayed during sign-in to prevent MFA fatigue attacks.

  1. Navigate to Entra ID > Protection > Authentication methods > Policies
  2. Select Microsoft Authenticator
  3. Enable for target users
  4. Under Configure > Authentication mode, select Any or Push
  5. Under Microsoft Authenticator settings:
  6. Number matching: Enabled

Additional Context

Show users application name and geographic location during approval.

  1. In Microsoft Authenticator settings:
  2. Show application name: Enabled
  3. Show geographic location: Enabled

Report Suspicious Activity

Enable users to report unauthorized MFA prompts.

  1. Navigate to Entra ID > Protection > Authentication methods > Settings
  2. Enable Report suspicious activity
  3. Configure response:
  4. Mark user at risk: Yes
  5. Notify security team: Yes

When a user reports suspicious activity: - User risk is elevated to High - Alert sent to configured recipients - Appears in risk detections


Workload Identity Protection

For applications and service principals (requires Workload Identities Premium license).

Risky Workload Identities

Navigate to Entra ID > Protection > Identity Protection > Risky workload identities

Detection Types: - Suspicious sign-in activity - Anomalous service principal activity - Admin confirmed compromised

Conditional Access for Workload Identities

Name: IDP-WorkloadIdentity-BlockHighRisk
State: Report-only → On

Assignments:
  Workload identities: All service principals
  Exclude: Critical automation accounts

Conditions:
  Service principal risk: High

Grant:
  Block access

Integration with Microsoft Defender

Microsoft Defender for Cloud Apps Integration

  1. Navigate to Microsoft Defender for Cloud Apps portal
  2. Enable anomaly detection policies
  3. Configure integration with Identity Protection

Relevant Alerts: - Impossible travel activity - Activity from infrequent country - Multiple failed login attempts - Suspicious inbox manipulation rules

Microsoft Defender for Identity Integration

For hybrid environments with on-premises Active Directory:

  1. Deploy Microsoft Defender for Identity sensors
  2. Configure integration with Entra ID
  3. Correlate on-premises and cloud identity signals

Monitoring and Reporting

Identity Secure Score

Navigate to Entra ID > Protection > Identity Secure Score

Track improvement recommendations: - Require MFA for all users - Enable password hash sync - Do not expire passwords - Enable self-service password reset - Block legacy authentication

Weekly Review Checklist

  • [ ] Review high-risk users and take action
  • [ ] Review high-risk sign-ins
  • [ ] Check for new risk detections
  • [ ] Verify policies are working as expected
  • [ ] Review Identity Secure Score recommendations

Diagnostic Settings

Configure log export for long-term retention and SIEM integration:

  1. Navigate to Entra ID > Diagnostic settings
  2. Add diagnostic setting
  3. Select logs to export:
  4. RiskyUsers
  5. UserRiskEvents
  6. RiskyServicePrincipals
  7. ServicePrincipalRiskEvents
  8. Configure destination:
  9. Log Analytics workspace
  10. Storage account
  11. Event Hub

Troubleshooting

User Cannot Self-Remediate

  1. Verify user is registered for MFA
  2. Check SSPR is enabled and user is registered
  3. Verify password writeback (hybrid users)
  4. Check for conflicting Conditional Access policies

False Positives

  1. Configure trusted named locations
  2. Review VPN/proxy configurations
  3. Consider excluding specific users or groups
  4. Contact Microsoft support for persistent issues

Risks Not Being Detected

  1. Verify Microsoft Entra ID P2 license is assigned
  2. Check diagnostic settings are configured
  3. Ensure log collection is working
  4. Verify no policies are blocking detection signals