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# Microsoft is making passkeys the default for Entra ID, with SMS auth ending in 2027

**[Collections](https://daily.dev/sources/collections)** · 2 min read · 1 upvotes · 0 comments

## Summary

Microsoft is making passkeys the default authentication method in Entra ID starting September 1, 2026. Users on SMS or voice MFA will be auto-enrolled and prompted to register a passkey at their next sign-in. Microsoft-provided SMS and voice authentication will be fully retired on February 1, 2027, with no opt-out. The change is driven by AI-powered phishing attacks targeting phone-based MFA as a weak link. Organizations needing phone-based auth after the deadline must configure third-party telecom providers via the Microsoft Security Store. Enterprises are advised to audit current auth policies, begin FIDO2/passkey enrollment, and set up recovery procedures before the deadline.

## Content

Microsoft is switching passkeys to the default authentication method in Entra ID starting September 1, 2026. Users currently relying on SMS or voice authentication will be automatically enrolled and prompted to register a passkey during their next MFA event. Microsoft-provided SMS and voice authentication will be fully retired on February 1, 2027.

Organizations that still need phone-based authentication after that date will have to configure third-party telecom providers through the Microsoft Security Store. There's no opt-out once the deadline passes.

The push is largely a response to AI-powered phishing and credential theft. Groups like ShinyHunters have been running increasingly effective campaigns against Entra SSO accounts, and traditional MFA methods — SMS codes in particular — are vulnerable to interception and real-time phishing. Passkeys remove shared secrets from the authentication flow entirely, which makes those attacks significantly less effective.

## What enterprises should do before the deadlines

- Audit current authentication policies to identify users still on SMS or voice
- Enroll users in FIDO2/passkey-compatible methods before September
- Set up recovery procedures for users who lose access to their passkey device
- If SMS/voice is genuinely required, evaluate third-party telecom provider options now

The timeline gives organizations several months to prepare, but the auto-enrollment nudges starting in September mean users will start seeing prompts whether IT is ready or not. Getting ahead of that is worth the effort.

---

*This was also part of the July 10, 2026 Azure update, which included Azure Front Door edge actions (preview), Azure Databricks SQL Serverless expanding to UK West, Arc-enabled SQL migration to Azure VMs, MSSQL VS Code extension improvements, and advanced platform metrics in Azure Monitor.*

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- [Microsoft is scrapping SMS 2-factor authentication because it's "a leading source of fraud"](https://daily.dev/posts/microsoft-is-scrapping-sms-2-factor-authentication-because-it-s-a-leading-source-of-fraud--o0ddh501l) · XDA Developers · 7 upvotes · 10 comments

---

Tags: [#authentication](https://daily.dev/tags/authentication), [#passkeys](https://daily.dev/tags/passkeys)

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