Understanding App Password in Office 365

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Multi-Factor Authentication (MFA) in Office 365 has several advantages. Once you enable MFA, it offers a much higher level of security because users can secure their credentials with a second level of authentication, such as:

  1. Call to phone
  2. Text message to phone
  3. Notification through mobile app
  4. Verification code from mobile app or hardware token

An important concept that is not usually clear to people who are new to Office 365 is the concept of App Password, short for application password.

However, the user can run into a problem when a non-browser application is used with O365, such as Outlook. To accommodate such scenarios, Microsoft offers app passwords that are used to essentially bypass the use of MFA for the non-browser applications. Keep in mind that the app password is tied to the user’s account in O365 portal so this password cannot be generated outside of O365 because it’s stored in Azure.

That’s all for now!

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