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Design for authentication and authorization

Design for Identity Protection

This article explains how to design for identity protection using Azure Identity Protection. With this service, you can achieve three primary objectives:

  1. Detect identity-based risks.
  2. Remediate detected risks by enforcing predefined policies.
  3. Export risk detection data to third-party tools, such as SIEM, for additional investigation.

Below, we break down the workflow and key concepts that underscore Azure Identity Protection.


How Identity Protection Works

When a user attempts to sign in to Azure AD, the system performs a real-time risk calculation based on several factors, including:

  • Location
  • IP address
  • Multi-Factor Authentication (MFA) usage
  • Browser and device details
  • Device status

These factors, which were previously only available in sign-in logs, now contribute to a dynamic risk score. This real-time risk score is then combined with historical risk data from earlier sign-in attempts. The cumulative risk level is compared against thresholds defined in your identity risk policies. Depending on where the risk falls relative to these thresholds, one of two outcomes occurs:

  • If the risk level is below the threshold, the user is allowed to sign in.
  • If the risk level meets or exceeds the threshold, additional security measures (such as MFA challenges or a prompt for a password change) are enforced through conditional access policies before the sign-in is completed.

There are two primary policy types in Azure Identity Protection:

  • User Risk Policy: Evaluates the likelihood that an account is compromised by detecting factors such as exposed credentials, often sourced from dark web data breaches, and leveraging Azure AD threat intelligence.
  • Sign-In Risk Policy: Analyzes sign-in-specific properties like IP address, location, and travel patterns (e.g., detecting atypical travel where a user signs in from two distant geographic locations within a short timeframe).

Below is an example diagram that summarizes these concepts:

The image is a flowchart illustrating the process of Azure Identity Protection, detailing steps for detecting and remediating identity-based risks. It includes user sign-in attempts, risk calculations, and policy criteria for login permissions.

Examples of Risky Sign-In Behaviors

  • Anonymous IP Address: A user typically signing in from Singapore suddenly uses a VPN or Tor browser, leading the system to flag the new IP address as anonymous.
  • Atypical Travel: A sign-in attempt from Singapore followed by nearly simultaneous sign-in from Japan will trigger a warning.
  • Malware-Linked IP Address: If the IP address is associated with known malware or botnet activity.
  • Password Spray Attacks: When multiple sign-in attempts are made using common or compromised passwords.

When such risks are detected, the appropriate identity and sign-in risk policies are applied. If the overall risk exceeds the set threshold, a conditional access policy (e.g., enforcing MFA) is activated; otherwise, the user is allowed to access the system.


Best Practices for Identity Protection

Before implementing Identity Protection, follow these best practices:

  1. License Acquisition:

    Note

    Azure Identity Protection is a premium service that requires a P2 license.

  2. Policy Setup and Review:

    • Configure user risk and sign-in risk policies.
    • Regularly review policy outcomes to investigate potential false positives.

    The image outlines best practices for identity protection, including acquiring licenses, setting up policies, enabling self-remediation, implementing user risk policies, excluding certain users, and integrating with other systems.

  3. Self-Remediation Options:
    Configure sign-in risk policies to trigger self-remediation actions (e.g., enforcing MFA or prompting for a password change) for medium-risk events. For user risk policies where blocking is necessary, apply a higher threshold; allow self-remediation for medium-risk events.

  4. Exclude Critical Accounts:

    Warning

    Exclude emergency or break-glass accounts from identity protection policies. Ensure these accounts have strong, securely stored passwords so they remain accessible if primary global administrator accounts face issues.

  5. Integration with Other Systems:
    Integrate Identity Protection with Conditional Access, Azure Sentinel, Splunk, and other tools to enhance risk analysis and response.


Setting Up Identity Protection in the Azure Portal

When you access the Azure portal and navigate to Identity Protection, the dashboard provides an overview of risk events, which includes:

  • Risky users and risky sign-ins.
  • Trends detailing successful sign-ins with varying risk levels.
  • Options to configure user risk and sign-in risk policies directly.

The image shows the Microsoft Azure Identity Protection Overview dashboard, displaying information about user risk levels, risky sign-ins, and identity secure scores. It includes sections for tutorials, risk policies, and reports on risky users and sign-ins.

For example, you can set a policy such as "if risk is medium or above, require a password change." Similarly, within Conditional Access, you can configure conditions to enforce MFA for high user risk levels or manage sign-in risks effectively. Here, the user risk policy assesses the likelihood of account compromise, while the sign-in risk policy evaluates the details of the individual sign-in attempts.


Azure Identity Protection is an essential tool for mitigating identity-based risks. Additionally, incorporating regular access reviews into your identity governance strategy further strengthens your security posture.

For more comprehensive insights on cloud security strategies, refer to related resources:

By following best practices and configuring the appropriate policies and integrations, organizations can create a robust defense against identity-based threats while ensuring secure and seamless access for users.

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