Ditch the password: Why a hardware security key is better for Microsoft 365

Passwords are a problem. They get forgotten, reused, phished, and stolen and for businesses relying on Microsoft 365, a compromised password can mean compromised email, files, and data. There's a better way.

A hardware security key or passkey (such as one from Yubikey) offers a simple, secure alternative to traditional passwords and it works seamlessly with Microsoft 365. It is a small physical device about the size of a USB stick that acts as your login key. A user signs in by inserting the passkey and confirms their identity with a PIN or biometric scan, such as fingerprint or face scan. No passwords to remember.

Why is it more secure?

Traditional passwords can be intercepted or guessed remotely. Hardware passkeys are phishing resistant because the key must be physically present to log in, so phishing attacks become virtually useless. Even if someone tricks you into visiting a fake login page, they still can't access your account without the device in your hand. It also means no more SMS verification codes, which can be hijacked through SIM-swapping attacks.

Is it easy to use?

Absolutely. Once set up with your Microsoft 365 account, signing in takes seconds. For businesses, that means less time spent resetting forgotten passwords and fewer calls to the IT help desk.

How is it managed?

Hardware passkeys are straightforward to manage through Microsoft Entra ID (formerly Azure Active Directory). Keys can be registered, monitored, and revoked from a central admin portal, giving Strident or your administrator full visibility and control over who has access and when.

Most businesses choose to register two keys per user, a primary and a spare, so there's always a backup to hand.

What if the key is lost or left at home?

This is a common concern and there are practical solutions. If a user forgets their key, IT administrators can grant temporary access through a time-limited pass set up in Microsoft Entra ID, allowing the user to log in safely while they retrieve it.

If a key is lost or stolen, it can be immediately revoked in the admin portal, locking out anyone who finds it. A replacement key can then be issued and enrolled quickly, keeping disruption to a minimum.

Improved security

A hardware security key (FIDO2 passkey) combines the strongest available security with genuine ease of use. For any business serious about protecting its Microsoft 365 environment, it's one of the simplest and smartest upgrades you can make.

To learn more about how we can add hardware security keys to your business, get in touch today.