in your security chain. By hardening your systems, you adopt a proactive defense strategy, closing security gaps before they can be exploited and demonstrating due diligence to auditors. 7 Steps to Improve Microsoft 365 Security Securing your Microsoft 365 environment is an ongoing process, not a one-time task. Here are seven steps community banks must take to achieve an advanced security posture: 1. Minimize the Attack Surface The first principle of hardening is to eliminate anything non-essential. Every service, application and user account adds to your attack surface. • Determine Required Services: Start by documenting the exact purpose of each system and application. What are the minimum software, hardware and services needed to fulfill that purpose? • Install Only What’s Necessary: During setup, install only the minimum components required. If a server doesn’t need web services, don’t install them. This follows the principle of “secure by design.” • Remove Unused Software: Regularly audit your systems to identify and remove any software or services that are no longer in use. 2. Enforce Secure Identity and Access Controls Controlling who can access your data — and what they can do with it — is fundamental to security. Microsoft 365 offers powerful tools to manage access, but they must be configured correctly. • Enable Multi-Factor Authentication (MFA): This is non-negotiable. Enforce MFA for all users, especially administrators. A compromised password should never be enough for an attacker to gain access. • Use Conditional Access Policies: Configure policies to block or challenge logins from risky locations, unmanaged devices or outdated browsers. For example, you can block all access attempts from outside your approved countries of operation. • Implement Role-Based Access Control (RBAC): Adhere to the principle of least privilege. Assign permissions based on user roles, granting only the minimum access necessary for employees to perform their jobs. Don’t give every user global admin rights. 3. Apply System Updates Continuously Outdated software is a common entry point for attackers. A diligent patching process is critical for Microsoft 365 hardening. • Install Patches Promptly: Ensure all necessary security patches and updates are installed as soon as they become available. • Use Up-to-Date Versions: Always run the most secure and current versions of all applications and operating systems. This reduces the number of known vulnerabilities in your environment. 4. Configure Robust Logging and Monitoring You cannot defend against what you cannot see. Comprehensive logging provides the visibility needed to detect and respond to threats. • Enable Logging: Turn on detailed logging for all critical activities within Microsoft 365, including sign-ins, administrative changes and data access. • Monitor and Alert: Use tools like Microsoft Sentinel or other Security Information and Event Management (SIEM) solutions to centralize logs, monitor for suspicious activity and generate real-time alerts for potential security incidents. 5. Secure Your Data and Communications Protecting sensitive financial data is the ultimate goal. Encryption and data loss prevention are your primary tools for this task. • Enable Encryption: Ensure data is encrypted both “at rest” (when stored on servers) and “in transit” (when moving across networks). • Use Data Loss Prevention (DLP): Configure DLP policies to identify, monitor and automatically protect sensitive information. You can create rules to block the sharing of data categories like credit card numbers or Social Security numbers outside the organization. • Configure Microsoft Defender for Office 365: Enable “Safe Links” to scan URLs for malicious content and “Safe Attachments” to check email attachments for malware in a sandboxed environment before delivery. By hardening your systems, you adopt a proactive defense strategy, closing security gaps before they can be exploited and demonstrating due diligence to auditors. 14 In Touch
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