Achieve ACSC Essential Eight MFA Maturity Level 1 with Microsoft Entra

MFA Maturity Level 1 ACSC definition

  • Multifactor authentication is used to authenticate users to their organization’s online services that process, store, or communicate their organization’s sensitive data.
  • Multifactor authentication is used to authenticate users to third-party online services that process, store, or communicate their organization’s sensitive data.
  • Multifactor authentication (where available) is used to authenticate users to third-party online services that process, store, or communicate their organization’s non-sensitive data.
  • Multifactor authentication uses either: something users have and something users know, or something users have that is unlocked by something users know or are.

Out of scope

The following ACSC requirements for maturity level 1 are related to customer identities and are out of scope for this guide on Microsoft Entra for workforce identities.

  • Multifactor authentication is used to authenticate users to third-party online customer services that process, store, or communicate their organization’s sensitive customer data.
  • Multifactor authentication is used to authenticate customers to online customer services that process, store, or communicate sensitive customer data.

MFA Maturity Level 1 overview

Visual illustration of the maturity level 1 ACSC requirements

  • Users include all users that have access to an organization’s data. These users can be employees, contractors, and guests from partner organizations.
  • Users should be prompted for MFA regardless of the location they sign in from.
  • Conditional access policies that implement MFA shouldn't have exclusions based on the location of the user. (for example, excluding MFA for users signing in from the corporate local area network).

Permitted authenticator types

Any ISM permitted multi-factor authenticator can be used to achieve maturity level 1.

Microsoft Entra authentication method Authenticator type
Recommended methods
Yes. Multi-factor Software Certificate (PIN Protected)
Yes. Windows Hello for Business with software Trusted Platform Module (TPM)
Multi-factor crypto software
Yes. Hardware protected certificate (smartcard/security key/TPM)
Yes. Passkeys (device-bound)
-> Yes. FIDO 2 security keys
-> Yes. Windows Hello for Business with hardware TPM
-> Yes. Passkey in Microsoft Authenticator (device-bound)
Multi-factor crypto hardware
Yes. Microsoft Authenticator app (Passwordless) Multi-factor out-of-band
Additional methods
Password
AND
- Microsoft Authenticator app (Push Notification)
- OR
- Phone (SMS)
Memorized secret
AND
Single-factor out-of-band
Password
AND
- OATH hardware tokens (preview)
- OR
- Microsoft Authenticator app (OTP)
- OR
- OATH software tokens
Memorized secret
AND
Single-factor OTP
Password
AND
- Single-factor software certificate
- OR
- Microsoft Entra joined with software TPM
- OR
- Microsoft Entra hybrid joined with software TPM
- OR
- Compliant mobile device
Memorized secret
AND
Single-factor crypto software
Password
AND
- Microsoft Entra joined with hardware TPM
- OR
- Microsoft Entra hybrid joined with hardware TPM
Memorized secret
AND
Single-factor crypto hardware

Microsoft Entra authentication methods not permitted by Maturity Level 1

  • SMS Sign in
  • Email OTP

Integrate organization and third party apps with Microsoft Entra ID

To integrate organization apps your developers build, with Microsoft Entra ID, see.

To integrate third party apps with Microsoft Entra ID, see.

Next steps