The working reference for designing, deploying and operating phishing-resistant, passwordless sign-in across an Entra ID workforce tenant: methods, policy, Conditional Access, rollout, recovery and troubleshooting.
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Passwordless authentication replaces the password as the primary credential with something the user has (a device-bound or synced private key) unlocked by something they are or know locally (biometric or PIN). The secret never leaves the authenticator and is never typed into a web page, so there is nothing for an attacker to phish or replay.
These two terms are often confused:
Passwordless: no password is entered at sign-in. Microsoft Authenticator phone sign-in is passwordless, but a user can still be tricked into approving a sign-in on an attacker’s proxy page.
Phishing-resistant: the credential is cryptographically bound to the legitimate origin (login.microsoftonline.com), so an adversary-in-the-middle page cannot obtain a usable assertion. Passkeys (FIDO2), Windows Hello for Business, Platform SSO on macOS and certificate-based authentication qualify.
The target state is phishing-resistant passwordless: every user has at least two phishing-resistant credentials, Conditional Access requires them by authentication strength, and the password is no longer used in daily sign-in.
1 Sep 2026
Passkeys became the default authentication method in Entra ID; SMS/voice users are auto-enabled and nudged.
1 Feb 2027
Microsoft-provided SMS and voice MFA retire for most users. No opt-out.
10
Passkey profiles allowed per tenant (up from 3), each targeting its own groups.
≥ 2
Phishing-resistant credentials per user as the design standard: a primary and a recovery/roaming credential.
Context
Microsoft now designs Entra on the assumption that users sign in without passwords. System-preferred authentication now applies to first-factor sign-in, so users with a passkey or certificate registered no longer see a password prompt at all. Tenants without a plan will get these changes on Microsoft’s schedule.
Dates are for the worldwide/GCC cloud unless noted. The next upcoming milestone is highlighted automatically based on today’s date.
Mar 2026
Passkey profiles and synced passkeys GA
Group-targeted FIDO2 configuration with a passkeyType of device-bound, synced or both. Existing FIDO2 settings migrate into a “Default passkey profile” (worldwide migration May to June 2026; GCC High/DoD October 2026).
May 2026
Profile limits raised; account recovery GA
Up to 10 passkey profiles per tenant with a dedicated 20 KB policy allocation. Entra ID account recovery (government ID + biometric verification via partners) became generally available.
Late May 2026
Entra passkeys on Windows and External ID passkeys GA
Device-bound passkeys in the Windows Hello container for unmanaged, personal and shared PCs. Passkeys for Entra External ID (customer) tenants also reached GA.
30 Jun 2026
System-preferred authentication for first factor
Strongest registered method is offered first at primary sign-in. Order: TAP, passkey, CBA, Authenticator, external MFA, TOTP, telephony, QR code, password.
1 Sep 2026
Passkeys by default
Users enabled for SMS/voice are auto-enabled for passkeys (all types allowed) and nudged by a registration campaign with unlimited snoozes. Opt-out of auto-enablement via Graph is available until 1 Feb 2027.
30 Oct 2026
Customer-managed telecom providers
Organizations that must keep SMS/voice can contract a carrier through the Microsoft Security Store and bear the cost directly. Entra passkeys on Windows reach GCC High/DoD during October.
Jan 2027
Security questions removed from SSPR
Security questions are phased out as a self-service password reset method.
1 Feb 2027
Microsoft SMS/voice retired for users
Applies to all users except Global Administrators and external users. Users whose only MFA method is SMS/voice get a blocking prompt to register a passkey.
1 Jul 2027
Microsoft SMS/voice retired for Global Admins & external users
After this date only customer-managed telecom can deliver SMS/voice codes.
Action
If a tenant still has users whose only MFA method is SMS or voice, those users will be forced through passkey registration at their next sign-in after 1 Feb 2027. Run Microsoft’s SMS/voice usage analyzer now and schedule the migration yourself.
Entra supports several passwordless credentials. They differ in where the key lives, whether they can sign in to the device itself, whether the authenticator can prove its make and model (attestation), and what they cost to issue. Filter the table to the properties you need.
Method
Phishing-resistant
Key storage
Device sign-in
Attestation
Unmanaged devices
Best fit
Windows Hello for BusinessCloud Kerberos Trust / key / cert trust
Yes
TPM on the PC
Yes
TPM-backed
No
Managed Windows, primary sign-in
Platform SSO (macOS)Secure Enclave key
Yes
Secure Enclave
Yes
No
No
Managed Macs
Entra passkey on WindowsGA May 2026
Yes
Windows Hello container
No
No
Yes
Personal, shared or unjoined PCs
FIDO2 security keyUSB / NFC / BLE
Yes
Hardware key
YesEntra / hybrid joined
Yes
Yes
Admins, shared devices, high assurance
Passkey in Microsoft Authenticator
Yes
Phone secure hardware
No
Yes
Yes
Roaming credential, BYOD, backup
Synced passkeyiCloud Keychain, Google Password Manager, third-party managers
The default for managed Windows. A TPM-protected key pair per user per device, unlocked by face, fingerprint or PIN. Issues the Primary Refresh Token at Windows sign-in, so browser and app SSO follow.
Hybrid
Cloud Kerberos Trust (no PKI)
Cloud-only
No trust model needed
Limits
One device; needs a roaming credential too
Entra passkey on Windows
Phishing-resistantNo attestation
Stores a device-bound Entra passkey in the Windows Hello container on PCs that aren’t joined or registered. Used for web and app sign-in; not for signing in to Windows itself.
Register
Per account, per device
Block it
Add Windows Hello AAGUIDs to a profile block list
FIDO2 security keys
Phishing-resistantAttested
Portable hardware authenticators. The strongest option for privileged roles and shared workstations. Use attestation plus an AAGUID allow list to restrict to approved models, and buy FIPS-validated keys where policy demands.
Cost
Hardware + logistics
Plan for
Two keys per admin; loss process
Passkey in Authenticator
Phishing-resistantAttested
Device-bound passkey held in Microsoft Authenticator (iOS/Android). Signs in on the phone directly, or on another device via QR + Bluetooth proximity (hybrid transport). A good second credential for Windows Hello users.
Needs
Bluetooth for cross-device
Registers via
My Security Info or campaign
Synced passkeys
Phishing-resistantNot device-bound
Passkeys stored and synced by a platform or third-party credential manager. Easy to use and recover, but you are relying on the security of the provider account. Cannot be attested, so enforcing attestation in a profile excludes them.
Assurance
Suits NIST AAL2 use; use device-bound for AAL3
Certificate-based authentication
Phishing-resistantPKI
Native Entra CBA with X.509 certificates on smart cards (PIV/CAC) or devices. Configure the binding as multifactor for it to count as phishing-resistant. Removes the need for AD FS in many federal environments.
Needs
CA trust + CRL publication in Entra
Security keys to evaluate
FIDO2 with PIN, suitable for attestation
YubiKey 5 SeriesUSB-A, USB-C, NFC and Lightning options. Broad Entra and Windows sign-in support.
Some links in this box are affiliate links; the site may earn a commission if you buy through them. Check each model’s AAGUID, attestation and certification status against your passkey profile before buying.
At registration the authenticator generates a key pair scoped to the relying party ID. Entra stores only the public key and, when available, the authenticator’s AAGUID and attestation. At sign-in Entra sends a challenge; the browser passes it to the authenticator only if the page origin matches the relying party. This origin check is what stops phishing proxies.
A phishing page on a look-alike domain fails at step 3: the browser refuses to use a credential whose relying party doesn’t match the page origin, so no assertion exists to steal.
Windows Hello for Business: Cloud Kerberos Trust
For hybrid-joined and Entra-joined devices that still need on-premises Kerberos (file shares, legacy apps), Cloud Kerberos Trust is the recommended model. It needs no PKI and no certificate deployment to clients. Entra ID issues a partial Kerberos TGT from a read-only-DC-style AzureADKerberos object in AD; a writable domain controller exchanges it for a full TGT.
Members of highly privileged AD groups (Domain Admins and similar) are denied by the AzureADKerberos object’s password replication policy and won’t get an on-prem TGT this way. Keep privileged on-prem administration on separate accounts and workstations.
Everything below lives under Entra admin center › Protection › Authentication methods unless noted. Manage methods only in the converged Authentication methods policy; the legacy MFA and SSPR method settings are retired.
Passkey profiles
A passkey profile is a named set of FIDO2 rules assigned to groups. Build profiles by persona rather than one tenant-wide rule.
Setting
Options
Guidance
Passkey type
Device-bound · Synced · Both
Device-bound only for privileged roles; both for general workforce.
Enforce attestation
On · Off
On restricts to device-bound authenticators that can prove their model. Synced passkeys and Entra passkeys on Windows cannot attest.
Key restrictions
Allow list · Block list (AAGUIDs)
Allow-list approved security key models and Authenticator for admins. Use a block list to exclude specific providers.
Target
Groups
Up to 10 profiles per tenant. Assign break-glass accounts to the privileged profile.
Suggested profile set
Profile
Target
Type
Attestation
Keys
PK-Privileged
Tier-0/1 admin accounts, break-glass
Device-bound
On
Allow: approved FIDO2 models
PK-Workforce
All employees
Both
Off
Open, or block-list unapproved providers
PK-Frontline
Shared-device workers
Device-bound
On
Allow: issued security keys
PK-External
Contractors in tenant
Both
Off
Open
Well-known AAGUIDs
Verify against the current Microsoft documentation and vendor metadata before building an allow list.
A time-limited passcode that satisfies strong authentication so a user can register passwordless credentials without ever knowing a password. Enable it for all users who will onboard passwordless, prefer one-time use, and keep lifetimes short (hours, not days).
Set the campaign to target passkey-enabled users and prompt for a passkey (Microsoft Authenticator is the alternative target). The 1 Sep 2026 change enabled a Microsoft-managed campaign with unlimited snoozes for SMS/voice users; set your own snooze limit once communications have gone out.
Opting out of automatic passkey enablement
Only if you need time to stand up a customer-managed telecom provider. The opt-out is valid until 1 Feb 2027 and does not move the retirement dates.
Windows Hello for Business with Cloud Kerberos Trust
Create the Entra Kerberos server object in each domain that has users signing in with WHfB.
Deploy WHfB with Intune (Settings catalog › Windows Hello for Business): Use Windows Hello For Business = true, Use Cloud Trust For On Prem Auth = Enabled, TPM required.
Confirm clients are Windows 10 21H2+ or Windows 11 with current cumulative updates.
Rotate the AzureADKerberos key periodically (Set-AzureADKerberosServer -RotateServerKey) as you would krbtgt, and include the object in your AD tiering model: it is Tier 0.
Registered passkeys only improve security once Conditional Access requires them. Use authentication strengths as the grant control rather than “Require MFA”.
Create a custom strength when you need to require a specific authenticator, for example “passkey with AAGUID in the approved security key list” for Tier-0 roles.
Baseline policy set
ID
Policy
Assignment
Grant
CA-PWL-01
Admins require phishing-resistant MFA
All directory roles · all resources
Custom strength: attested device-bound passkey
CA-PWL-02
Protect security info registration
All users · user action: register security information
Compliant device or TAP-inclusive strength
CA-PWL-03
Workforce phishing-resistant (pilot, then all)
Pilot group, then all users · all resources
Phishing-resistant MFA
CA-PWL-04
Sensitive apps require device-bound credential
Tier-1 apps (finance, HR, source control)
Custom strength excluding synced passkeys
CA-PWL-05
Block legacy authentication
All users · legacy clients
Block
Break-glass
Keep two cloud-only emergency access accounts excluded from the CA-PWL policies, each with its own FIDO2 security keys stored in separate secure locations. Alert on every sign-in to them.
Most user friction happens on day one and when a device is lost. Design both processes before the pilot.
Day one
Identity is proofed by HR/manager process or Entra account recovery identity verification.
Helpdesk or the joiner workflow issues a one-time TAP (short lifetime) through a secure channel.
User signs in to Windows setup (Autopilot) or My Security Info with the TAP.
User registers Windows Hello for Business, then a passkey in Authenticator as the roaming credential.
The password, if one exists for directory sync, is never disclosed to the user.
Lost or replaced device
Scenario
Self-service path
Assisted path
New laptop, phone still available
Sign in with Authenticator passkey via QR/Bluetooth, provision WHfB
Not needed
Phone lost, laptop available
Sign in with WHfB, register new Authenticator passkey, delete old one
Not needed
All credentials lost
Entra account recovery: government ID + selfie liveness check via verification partner, then register new credentials
Helpdesk verifies identity and issues TAP
Security key lost (admin)
Use second registered key
Revoke lost key; issue replacement via PAM-controlled process
Helpdesk
The helpdesk issuing a TAP becomes the new phishing target. Require verified identity (video call with ID, manager approval or Verified ID presentation) before any TAP is issued, and log every issuance.
Entra ID does not let you delete a user’s password outright, and hybrid identities still carry an AD password. In practice, you take the password out of daily use and stop disclosing it to users.
Hide it on Windows. Intune setting Enable Passwordless Experience (Windows 11, Entra-joined) removes the password option from Windows sign-in and in-session prompts.
Stop requiring it. System-preferred authentication skips the password prompt when a passkey or certificate is registered; phishing-resistant CA policies make it insufficient anyway.
Make it unknown. Set long random passwords at provisioning, don’t disclose them, and rotate on a schedule for users who are fully passwordless.
Shrink SSPR. Remove security questions (Microsoft removes them in Jan 2027) and SMS; recovery moves to passkeys, TAP and account recovery.
Watch residual use. Report sign-ins still using password as the first factor, by app, and treat each as a remediation item.
Legacy
Apps that only speak LDAP bind, NTLM or basic auth will keep passwords alive. Front them with Entra application proxy / private access with pre-authentication, or modernize them to SAML/OIDC.
SigninLogs
| where TimeGenerated > ago(30d) and ResultType == 0
| mv-expand d = parse_json(AuthenticationDetails)
| where tobool(d.succeeded) == true
| summarize SignIns = dcount(CorrelationId) by Method = tostring(d.authenticationMethod)
| order by SignIns desc
Passkey registration blocked: “authenticator not allowed”
Attestation enforced or AAGUID not in allow list for the user’s profile
Confirm profile membership and AAGUID; synced passkeys can’t satisfy attestation
Authenticator passkey QR flow hangs on PC
Bluetooth off or blocked on the PC
Enable Bluetooth; hybrid transport needs proximity
WHfB works but on-prem file shares prompt
No on-prem TGT from Cloud Kerberos Trust
Run dsregcmd /status and check OnPremTgt : YES; klist cloud_debug; confirm AzureADKerberos object and DC patching
Domain Admin can’t get on-prem SSO with WHfB
Privileged groups denied by AzureADKerberos replication policy
By design; use a separate admin account and PAW
User still asked for password
No phishing-resistant method registered, or app forces password (legacy/federated)
Check authentication methods on the user; review sign-in log authentication details
CA blocks user “does not meet authentication strength”
Registered method not included in the required strength
Sign-in log › Conditional Access tab shows the strength evaluated; register an included method
Entra passkey on Windows not offered
Windows Hello AAGUIDs on a block list, or attestation enforced in the user’s passkey profile
Review the user’s profile; Entra passkeys on Windows can’t satisfy attestation
cmd · WHfB diagnostics
REM Look for AzureAdPrt : YES, CloudTgt : YES, OnPremTgt : YES
dsregcmd /status
REM Cloud Kerberos Trust state
klist cloud_debug
REM Reset WHfB for the signed-in user, then re-provision
certutil -deletehellocontainer
Are synced passkeys secure enough for the enterprise?
They are phishing-resistant, so they stop credential phishing, the most common attack against sign-in. The residual risk moves to the security of the user’s Apple, Google or password-manager account. Allow them for general workforce access and require device-bound credentials for privileged roles and your most sensitive apps via custom authentication strengths.
Do we still need Windows Hello for Business if we have passkeys?
Yes, on managed Windows. WHfB signs the user in to Windows and issues the Primary Refresh Token, giving SSO to everything after. Entra passkeys on Windows are for unmanaged and shared PCs and cannot sign in to the device.
What happens to users who ignore the passkey nudge?
Until their SMS/voice retirement date, they can keep snoozing (unless you set a limit). After 1 Feb 2027 (1 Jul 2027 for Global Admins and external users), a user whose only method is Microsoft-provided SMS/voice must register a passkey to finish signing in.
Can we keep SMS for a regulated population?
Yes, via a customer-managed telecom provider from the Microsoft Security Store (from 30 Oct 2026). You contract and pay the carrier. Treat it as a time-limited exception with a documented end date.
How do guests and B2B users fit in?
Guests authenticate in their home tenant. Configure cross-tenant access settings to trust MFA (and device compliance) from partner tenants you trust, and require an authentication strength for guests on sensitive resources.
Which methods meet NIST AAL3 or federal phishing-resistant mandates?
Device-bound, hardware-backed authenticators: PIV/CAC via CBA, FIDO2 security keys (FIPS-validated where required) and platform authenticators such as WHfB. Synced passkeys are generally positioned at AAL2. Confirm against your agency or regulator’s current guidance.