Enabling App Passwords in Microsoft Entra

Microsoft Entra, also known as Azure Active Directory (Azure AD), is a comprehensive identity and access management solution that helps secure access to applications and resources. This article will guide you through the process of enabling app passwords for users in Microsoft Entra, including accessing and updating settings, updating policies for users, and creating app passwords.

Why App Passwords Are Disabled by Default

App passwords are disabled by default in Microsoft Entra to enhance security. Legacy authentication methods, such as app passwords, do not support modern authentication features like multifactor authentication (MFA). By keeping these disabled, Microsoft reduces the risk of unauthorized access. However, some legacy applications require app passwords for access.

Update Security Defaults In Microsoft Entra

To change security defaults in Microsoft Entra, follow these steps:

1. Go to the Microsoft Entra admin center.
2. Sign in with your global administrator account.
3. Click "Identity" and select "Overview" on the left-hand navigation panel
4. In the central window, select "Properties" 

5. Scroll to the bottom of the Properties page and locate "Manage Security Defaults" and a right-hand panel will appear.

6. Change the "Security Defaults" to "Disabled". 

7. Save all changes.

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Note: These changes can take some time to  take effect. 

Enabling App Passwords

Follow these steps to enable app passwords for users:

1. In the left navigation pane, click on Security and then Authentication methods.
2. Under the Policies tab, select App passwords.
3. Click Configure and then select Enable to turn on app passwords for users.
4. Click Save to apply the changes.

Updating Policies for Multifactor Authentication and App Passwords

To update policies for each user who needs multifactor authentication and app passwords, follow these steps:

1. In the Microsoft Entra admin center, go to Users and select the user you want to update.
2. Click on Authentication methods.
3. Ensure that multifactor authentication is enabled for the user. If not, click Enable.
4. Under App passwords, ensure the user can create app passwords.

Creating App Passwords

Once app passwords are enabled, users can create their own app passwords by following these steps:

1. Users should sign in to the Microsoft My Account portal.
2. In the left navigation pane, click on Security info.
3. Click on Add method and select App password from the list.
4. Follow the prompts to create and save a new app password.
5. Users should use this app password with Printer's Plan in the SMTP Settings page.