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Security

6 Microsoft 365 Security Gaps at Small Businesses

June 2026 · 4 min read

Microsoft 365 runs most small businesses we talk to in the Kansas City metro. It is reliable, familiar, and capable. What surprises owners is how little of its security is on by default. A tenant gets set up once, people get to work, and the settings are never revisited.

When businesses complete a free IT Health Score, the same handful of gaps show up again and again. Here are the six, and why each one matters.

1. MFA that is enabled but not enforced

Multi-factor authentication is the single most effective control against stolen passwords, yet we routinely find it switched on for some accounts and quietly bypassed for others. The fix is enforcement for everyone, with no legacy exceptions.

2. Too many global admins

Global admin is the keys to the kingdom. Most small tenants have more of them than anyone realizes, often including a former IT provider or an old service account. Least-privilege access shrinks the blast radius if any one account is compromised.

3. Hidden email forwarding rules

Auto-forwarding and inbox rules that silently copy mail to an outside address are a classic sign of a compromised account and a common path for wire fraud. They are easy to miss and easy to monitor once you know to look.

4. Wide-open external sharing

SharePoint and OneDrive will happily share files outside your organization, sometimes through anonymous links that never expire. A quick review usually turns up documents that should never have left the building.

5. No real backup of Microsoft 365 data

Microsoft keeps your service running. It does not back up your data the way most people assume. If a mailbox or a folder is deleted or encrypted, you want an independent, recoverable backup. Most tenants do not have one.

6. Legacy authentication still turned on

Old sign-in protocols skip MFA entirely. They are still enabled in a surprising number of tenants, and they are exactly what attackers reach for first. Turning them off is usually painless and closes a wide-open door.

What to do next

None of these are exotic. They are the unglamorous settings that get skipped when a business is busy running. If you want to know where your technology stands, start with a free IT Health Score, or see how we handle Microsoft 365 day to day with managed Microsoft 365 support.