Multi-Factor Authentication for Office 365, powered by Azure Multi-Factor Authentication, works exclusively with Microsoft Office 365 applications at no additional cost and is managed from the Office 365 portal.
1. Sign in to your account as you normally do, and go to navigate to the Office 365 admin center.
2. Select users and groups.
3. Next to Set Multi-Factor Authentication Requirements click Set Up.
Important: If you want to use only Multi-Factor Authentication for Office 365, do not create a Multi-Factor Authentication provider in the Azure Management Portal and link it to a directory. Doing so will take you from Multi-Factor Authentication for Office 365 to the paid version of Multi-Factor Authentication.
4. Find the user that you wish to enable for multi-factor authentication. You may need to change the view at the top. Ensure that the user’s status is disabled and place a check in the box next to their name.
5. This will bring up two options on the right (Enable & Manage User Settings). Click Enable. This will bring up a pop-up that will specify the next steps you need to take with your users. Click enable Multi-Factor Auth.
Note: Once you have enabled your users, it is recommended that you send your users an email that informs them how they can use their non-browser apps such as Outlook and Lync. You can use this email template as an example: https://msdn.microsoft.com/library/azure/dn394289.aspx#emailtemplate
6. Once you have enabled the account for multi-factor authentication, your Office 365 users can sign-in and complete the registration process.
For more information visit: https://technet.microsoft.com/en-us/library/dn383636.aspx and also https://technet.microsoft.com/en-us/library/dn383636.aspx#enablemfaoffice365
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