Review the update and plan any required actions before rollout.
Primary Audience
Why this score?
AT A GLANCE
END USERS
IT ADMINS
ROLLOUT TIMELINE
11 August 2026
📢 Official Microsoft Message Center Announcement
(Updated) Microsoft Entra ID: Retirement of SMS first-factor sign-in for Entra ID Free tenants
Message ID: MC1448374
Updated August 10, 2026: We have updated the timeline. We apologize for any inconvenience.
[What and why]
Microsoft will retire SMS first-factor sign-in for Microsoft Entra ID Free tenants on August 11, 2026, due to increased fraudulent activity targeting this authentication method.
SMS first-factor sign-in allows users to sign in using only a registered phone number and a one-time passcode (OTP) sent by SMS, without entering a username or password. Because this sign-in method relies solely on a registered phone number and SMS-delivered passcode, it is more susceptible to abuse and account compromise than phishing-resistant authentication methods.
This change applies only to SMS first-factor sign-in. SMS used as a multifactor authentication (MFA) method is not affected. Users can continue receiving SMS verification codes as an additional authentication factor after completing their primary sign-in.
[Rollout schedule]
- Beginning August 11, 2026, SMS first-factor sign-in will no longer be supported for Microsoft Entra ID Free tenants.
[Impact on your organization]
Who is affected
- Microsoft Entra ID Free tenants with SMS first-factor sign-in enabled
- Users who rely exclusively on SMS first-factor sign-in
Platforms and services
- Microsoft Entra ID
- SMS first-factor passwordless sign-in (SignInNoPassword)
What will happen
- Users in Microsoft Entra ID Free tenants will no longer be able to use SMS as a first-factor sign-in method.
- Attempts to sign in using only a registered phone number and SMS one-time passcode will be blocked.
- Users who have another registered authentication method can continue signing in using that method.
- SMS as a multifactor authentication method is not affected.
- All other registered authentication methods remain available.
- Users who rely exclusively on SMS first-factor sign-in must register and use another authentication method before the retirement date.
[Action required and recommendations]
If your organization has users relying on SMS first-factor sign-in, we recommend that you:
- Identify users currently using SMS first-factor sign-in.
- Ensure affected users register an alternative authentication method before August 11, 2026.
- Communicate this change to affected users to help prevent sign-in disruptions.
- Migrate users to passkeys or other phishing-resistant authentication methods where possible.
- Review authentication method policies and remove dependencies on SMS first-factor sign-in.
Learn more
[Compliance considerations]
| Question | Answer |
| Does this change modify how users access Microsoft 365 resources or services? | Yes. Users in affected Microsoft Entra ID Free tenants will no longer be able to sign in using SMS as their first-factor authentication method and must use another registered sign-in method. |
| Does this change require admin action to maintain user access? | Yes. Administrators should identify users who rely on SMS first-factor sign-in and ensure those users register an alternative authentication method before the retirement date to avoid sign-in disruptions. |
| Does this change affect authentication or access management policies? | Yes. Organizations that currently depend on SMS first-factor sign-in may need to review and update their authentication policies to remove dependencies on this retired authentication method. |
Source: Microsoft Message Center • Analysed by MWPro
