How to Manage Microsoft 365 Security Risks in a Privacy-Conscious World

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Microsoft 365 is widely used in enterprises, but its data privacy risks must be managed carefully—especially for compliance with GDPR and other regulations. Below are key steps to secure Microsoft 365 deployments.

You Should Know: Hardening Microsoft 365 for Data Protection

1. Disable Unnecessary Telemetry & Data Collection

Microsoft collects extensive telemetry. Reduce exposure with PowerShell:

 Disable Windows telemetry (requires admin) 
Set-ItemProperty -Path "HKLM:\SOFTWARE\Policies\Microsoft\Windows\DataCollection" -Name "AllowTelemetry" -Value 0

For Office 365 telemetry:

 Disable Office diagnostic data 
Set-ItemProperty -Path "HKLM:\SOFTWARE\Policies\Microsoft\office\16.0\osm" -Name "EnableLogging" -Value 0

2. Enforce Multi-Factor Authentication (MFA)

 Enable MFA via Microsoft Graph API (requires admin consent) 
Connect-MgGraph -Scopes "Policy.ReadWrite.ConditionalAccess" 
New-MgIdentityConditionalAccessPolicy -DisplayName "Require MFA for All Users" -State "enabled" -Conditions @{Applications = @{IncludeApplications = "All"}} -GrantControls @{BuiltInControls = "mfa"}
  1. Restrict External Sharing in SharePoint & OneDrive
    Set default sharing to internal-only 
Set-SPOTenant -SharingCapability "ExistingExternalUserSharingOnly" 
Set-SPOTenant -OneDriveStorageQuota 5120  Enforce 5GB limit

  2. Encrypt Emails with Microsoft Purview (formerly AIP)

    Apply encryption to sensitive emails 
Set-IRMConfiguration -AzureRMSLicensingEnabled $true 
New-TransportRule -Name "Encrypt External Emails" -SentToScope "NotInOrganization" -ApplyRightsProtectionTemplate "Encrypt"

  3. Monitor Suspicious Activity with Defender for Office 365

    // KQL query for unusual logins 
SecurityAlert 
| where ProviderName == "MCAS" 
| where AlertName contains "Impossible travel" 
| project TimeGenerated, AccountName, IPAddress

6. Use Linux-Based Alternatives for Privacy-Critical Work

For organizations avoiding Microsoft:

  • Email: ProtonMail / Tutanota (E2E encrypted)
  • Cloud Storage: Nextcloud (self-hosted)
  • Office Suite: OnlyOffice / LibreOffice

What Undercode Say

Microsoft 365 is a trade-off between usability and privacy. While it’s not “perfect,” risks can be mitigated with:
– Technical controls (MFA, encryption, logging)
– Policy enforcement (data retention, access reviews)
– User training (phishing awareness)

For high-risk environments, consider hybrid setups (e.g., on-prem Exchange + Azure AD) or open-source alternatives.

Prediction

As regulatory scrutiny increases, Microsoft will face more pressure to:

1. Decouple US data centers for EU customers.

2. Open-source core components for auditability.

3. Expand zero-trust features in Defender XDR.

Expected Output:

A hardened Microsoft 365 environment with reduced metadata exposure, enforced encryption, and activity monitoring.

Relevant URLs:

IT/Security Reporter URL:

Reported By: Bronislava Panchenko – Hackers Feeds
Extra Hub: Undercode MoN
Basic Verification: Pass ✅

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