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December 5, 2025 · Cybersecurity

Microsoft 365 Security Baseline Every U.S. Business Should Have

Twelve practical settings that close the most exploited attack paths against U.S. small and mid-market organizations.

Most breaches we investigate start with an email and a credential. The good news is that Microsoft 365 ships with enough built-in controls to make those attacks dramatically harder, if they are turned on.

The baseline

  1. Phishing-resistant MFA for all administrators.
  2. Conditional access blocking legacy authentication.
  3. Defender for Office anti-phishing policies tuned to your domain.
  4. Safe Links and Safe Attachments enabled organization-wide.
  5. External email banner.
  6. Sender Policy Framework, DKIM, and DMARC published and enforced.
  7. Sensitivity labels on confidential content.
  8. Audit log retention extended.
  9. Risk-based sign-in policies via Entra ID Protection.
  10. Privileged Identity Management for elevated roles.
  11. Quarterly access reviews on shared mailboxes and group memberships.
  12. Restricted self-service Teams creation with a governance template.

None of this requires an upgrade beyond Business Premium or E3+E5 add-ons in most cases. The hard part is the operating discipline to keep the baseline current.


About the author. This article was written by the consulting team at Algorithm, Inc, a U.S.-based software development and digital transformation firm headquartered in Dublin, Ohio. To discuss how these ideas apply to your environment, contact us.

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