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Quick Guide: Set Up Microsoft Authenticator for Your Business (2025)

We’ve all been there…creating a password that feels like a puzzle, only to forget it moments later! But for businesses, weak passwords aren’t just frustrating, they’re risky. Your company faces cybersecurity threats every single day. Hackers are fast, sophisticated, and constantly inventing new ways to breach your systems. Despite this, recent data shows almost half of all cyberattacks specifically target small businesses, often exploiting simple security gaps.

So, passwords alone won’t protect your business anymore. By adding multi-factor authentication (MFA), like a notification to your phone or a one-time code, you create an extra layer of security that blocks over 90% of account compromise attempts.

Microsoft Authenticator is one of the most reliable tools for implementing MFA. But, are you worried that setting it up for your team will be complicated? Don’t be. The process is straightforward, quick, and delivers immediate security benefits. In this guide, we’ll walk you through each step of setting up Microsoft Authenticator for your business, from installation to advanced configuration, so you can protect your business with confidence!

Why Microsoft Authenticator Matters for Business Security

Cybersecurity threats continue to evolve at an unprecedented pace in 2025, making stronger protection measures essential for businesses of all sizes. That’s why Microsoft Authenticator has become a critical tool for safeguarding your company’s digital assets, and why your business needs it now.

The Rise of Cyber Threats in 2025

Cyberattacks are more frequent, sophisticated, and targeted than ever before. Cyber criminals are constantly developing advanced techniques to breach security systems, with credential theft emerging as one of the leading causes of data breaches.

In the first three months of 2024, a over 1.8 million user accounts were compromised. 👉 Check out our blog on some of the biggest data breaches in Australia here. 

But, today’s attacks don’t always exploit technical vulnerabilities first. A majority of targeted cyberattacks start with something as simple as an email address. And, with more businesses moving systems to cloud environments, a single compromised account can give attackers access to sensitive emails, confidential files in SharePoint, Teams, and other critical business data.

Why Passwords Alone Are No Longer Enough

Passwords, even complex ones, create significant security risks for businesses:

  • Weak passwords are easily guessed or cracked by automated tools.
  • Complex passwords are hard to remember, often leading users to write them down insecurely.
  • Password reuse across multiple systems creates vulnerability chains.
  • Data breaches expose credentials that can be used across platforms.

Even long or complicated passwords can be compromised during identity attacks. Advanced cracking techniques, including specialised hardware capable of billions of guesses per second, make traditional password security increasingly ineffective.

How Microsoft Multi-Factor Authentication Helps

Microsoft research shows that multi-factor authentication (MFA) blocks more than 99% of account compromise attempts and the Microsoft Authenticator app implements MFA using multiple verification factors during sign-in:

  • Something you know – your password
  • Something you have – a trusted device, like your smartphone
  • Something you are – biometric verification such as a fingerprint or facial recognition

Microsoft Authenticator sends notifications to your device, allowing you to approve legitimate sign-ins while instantly denying suspicious ones. The app can also generate verification codes even without internet connectivity, providing consistent protection regardless of network conditions.

Implementing Microsoft Authenticator not only strengthens your IT security posture but also helps your business comply with industry standards and regulations such as GDPR and Cyber Essentials, particularly when handling sensitive data.

How to Set Up Microsoft Authenticator for Your Business

Setting up Microsoft Authenticator for your team is simpler than it sounds. In just four straightforward steps, you can roll out multi-factor authentication (MFA) across your entire organisation and significantly boost your security. Here’s your practical guide:

Step 1: Download the Microsoft Authenticator App

Before anything else, your team members need the app on their mobile devices:

  • iOS devices: Download from the Apple App Store
  • Android devices: Download from the Google Play Store

Note: Microsoft Authenticator works exclusively on smartphones, not PCs or Macs, for security reasons. Make sure all employees have their mobile devices ready before you start the setup process.

Step 2: Add Your Business Account

Once installed, employees can link their work accounts:

  1. Open the Microsoft Authenticator app on the mobile device
  2. Tap the plus (+) icon in the top-right corner
  3. Select Work or school account
  4. Allow the app to access the camera for QR code scanning when prompted

This connects the app directly to your Microsoft 365 business environment, enabling MFA for secure sign-ins.

Step 3: Scan the QR Code or Enter the Setup Key

Now it’s time to link the account in Microsoft 365:

  1. Sign in at portal.office.com
  2. When prompted for additional security verification, select Set it up now
  3. Choose Mobile app from the dropdown menu
  4. Select Receive notifications for verifications and click Set up
  5. A QR code will appear on the screen. Scan it with the Authenticator app

Can’t scan the QR code? No problem. Select “I can’t scan the QR code” and manually enter the provided code instead.

Step 4: Approve a Test Sign-In to Complete Setup

Finally, verify that everything is working:

  1. After scanning, the computer displays a confirmation message
  2. A test notification is sent to the Authenticator app
  3. Approve the notification on the mobile device
  4. Once confirmed, a setup completion message appears on the computer screen

Congratulations! Your account is now secured with Microsoft multi-factor authentication. From here on, employees will receive a notification on their mobile devices whenever they sign in; they simply approve legitimate logins and deny any suspicious attempts, keeping your business data safe.

Man working on computer in the home office

Advanced Setup and Admin Configuration

Once your team has Microsoft Authenticator installed, the next step is configuring advanced security settings to protect your entire organisation. These enterprise-level controls help ensure that your business is secure, compliant, and resilient against evolving cyber threats.

Enable MFA from the Microsoft 365 Admin Centre

To enforce multi-factor authentication across your organisation:

  1. Access the Microsoft Entra admin center
  2. Navigate to Identity > Overview > Properties > Security defaults to review your current configuration

đź’ˇTip: Organisations have security defaults enabled automatically.

You can also configure MFA for specific users by going to Users > Active users > Manage multi-factor authentication, giving you granular control over which employees require additional verification.

Set Up Conditional Access Policies

Conditional Access acts as Microsoft’s Zero Trust policy engine, applying security rules based on specific signals. Think of these policies as “if-then” statements—for example:

  • If a user accesses Microsoft 365, then they must complete MFA

Common conditional access policies include:

  • Requiring MFA for administrative roles
  • Blocking legacy authentication methods
  • Enforcing the use of organisation-managed devices

Manage these policies via Entra ID > Conditional Access in the Microsoft Entra admin center.

Configure User Settings and Permissions

Authentication methods can be tailored to each employee’s role and responsibilities. As an Authentication Administrator, you can:

  • Require users to reset passwords
  • Force re-registration for MFA
  • Revoke active sessions if needed

To manage individual user settings:

  1. Go to Entra ID > Users
  2. Select a user
  3. Click Authentication methods

This allows you to align security requirements with access needs, minimising risk without creating unnecessary friction.

Add Backup Methods for Recovery

Backup authentication methods prevent disruption if employees lose their primary device. For iOS users, ensure that iCloud backup is enabled, including:

  • iCloud Drive
  • iCloud Keychain
  • iCloud Backup

đź’ˇWe recommend requiring all employees to register at least two authentication methods. This ensures continuous access even if one method becomes unavailable, keeping your business running smoothly.

woman scanning a QR code after learning about QR code scams

Troubleshooting and Best Practices

Even with a smooth setup, occasional issues can arise when using Microsoft Authenticator. Here’s how to troubleshoot common problems and ensure your team gets the most out of multi-factor authentication (MFA).

Fixing QR Code Scanning Issues

Problems with QR code scanning usually stem from image quality or alignment. Start with these simple checks:

  • Hold your device steady and ensure the QR code fills most of the scanner frame.
  • Confirm you’re using the correct QR code from your Microsoft account.

If scanning still fails, try these solutions:

  • Uninstall the app, restart your device, and reinstall Microsoft Authenticator
  • Remove the authenticator from your security info page and try again
  • Enter the authentication key manually as an alternative

Most scanning issues are resolved with a fresh app installation or manual entry.

What to Do If Push Notifications Fail

Push notification failures are often related to connectivity or permission settings. Try these steps:

  • Check your internet connection, switching between Wi-Fi and mobile data if needed
  • Verify that notifications are enabled in both the app settings and your device’s system settings

If issues persist, use the one-time passcode (OTP) as a reliable backup. The 6-8 digit code displayed in the Microsoft Authenticator app works even without internet access.

Handling Lost or Stolen Devices

If an employee loses their device, immediate action is crucial:

  1. Sign in using an alternate verification method
  2. Remove the lost device from the account
  3. Contact your IT administrator to clear settings and restore access

To avoid disruptions, Microsoft recommends registering multiple authentication methods in advance. This ensures continuous access even if a primary device becomes unavailable.

Training Employees on MFA Usage

Proper training is key to successful MFA adoption. Microsoft provides communication templates that can be customised for your organisation.

Focus training on:

  • Backup methods: ensuring employees know alternative ways to verify their identity
  • Recovery procedures: guiding staff on what to do if a device is lost or access is blocked

When employees understand these processes, they experience fewer interruptions and feel confident using Microsoft Authenticator to protect company data.

Key Takeaways

Small and medium businesses are increasingly targeted, making multi-factor authentication not optional, but essential for protecting your company’s data and operations. From immediate security improvements and flexible configurations to reliable backup methods and compliance support, MFA with Microsoft Authenticator ensures your company stays safe against modern cyber threats.

At CRT Network Solutions, we offer ongoing monitoring, maintenance, and expert managed security support to safeguard your business around the clock. Contact us today for a free cybersecurity audit and take the first step toward securing your workforce and your future!

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