When it comes to protecting your business email, relying on passwords alone is no longer enough. Passwords can be guessed, stolen, or compromised through phishing attacks. Two-factor authentication (2FA) adds an extra layer of security by requiring users to provide a second form of verification—such as a code from a mobile app or a text message—before accessing their email accounts. This makes it significantly harder for unauthorised users to gain access, even if they have the password.
Why email security matters for Australian SMBs
Email is often the primary communication tool for small and mid-sized businesses in Australia, handling sensitive client information, invoices, contracts, and internal communications. A breach can lead to downtime, loss of critical data, damage to your reputation, and even regulatory scrutiny under privacy laws. For example, if a cybercriminal accesses your Microsoft 365 email, they could impersonate your staff to request payments or steal confidential information, causing financial loss and eroding customer trust.
A practical example
Consider a 50-person Australian consulting firm using Microsoft 365. One employee falls victim to a phishing email and unknowingly shares their password. Without 2FA enabled, the attacker accesses the email account, sends fake invoices to clients, and extracts sensitive project details. The firm faces weeks of disruption, client complaints, and costly remediation. An IT partner would recommend enabling 2FA across all accounts, conduct staff training on recognising phishing attempts, and set up alerts for suspicious login activity to prevent this scenario.
Checklist: What you can do now
- Ask your IT provider: Is two-factor authentication enabled by default for all Microsoft 365 users? What methods of 2FA do you support (e.g., authenticator apps, SMS codes)?
- Review your policies: Do you enforce strong password policies alongside 2FA? Are passwords regularly updated and unique?
- Check your Microsoft 365 security settings: Confirm multi-factor authentication is active for all users, especially those with administrative access.
- Train your staff: Provide regular phishing awareness sessions to reduce the risk of password compromise.
- Monitor access logs: Look for unusual login attempts or locations and set up alerts for suspicious activity.
- Backup email data: Ensure you have reliable backups in case of data loss or ransomware attacks.
While passwords remain a basic security measure, two-factor authentication provides a critical extra barrier that greatly reduces the risk of email compromise. For Australian small and mid-sized businesses, implementing 2FA within Microsoft 365 is a practical step to protect your operations, maintain customer trust, and meet security expectations.
Speak with a trusted managed IT service provider or IT advisor who understands the specific risks and compliance requirements for Australian businesses. They can help you implement effective email security measures tailored to your organisation without unnecessary complexity.