How to enable MFA for entra external tenant

Pranav 20 Reputation points
2025-06-05T03:40:17.61+00:00

How to enable the Phone One-Time Passcode (OTP) feature in my Microsoft Entra External ID (CIAM) tenant so that I can collect phone numbers and enforce MFA via SMS.

Microsoft Entra External ID
Microsoft Entra External ID
A modern identity solution for securing access to customer, citizen and partner-facing apps and services. It is the converged platform of Azure AD External Identities B2B and B2C. Replaces Azure Active Directory External Identities.
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  1. Sanoop M 4,050 Reputation points Microsoft External Staff Moderator
    2025-06-05T04:41:12.52+00:00

    Hello @Pranav,

    Email one-time passcode:

    After the user signs in with their email and password, they are prompted for a passcode that is sent to their email. To allow the use of email one-time passcodes for MFA, set your local account authentication method to Email with password. If you choose Email with one-time passcode, customers who use this method for primary sign-in won't be able to use it for MFA secondary verification.

    When email one-time passcode is enabled for MFA, the user signs in with their primary sign-in method and is notified that a code will be sent to the user's email address. The user chooses to send the code, retrieves the passcode from their email inbox, and enters it in the sign-in window. The user must complete this verification process within 10 minutes.

    Please note that you can enable the Phone One-Time Passcode (OTP) feature in your Microsoft Entra External ID (CIAM) tenant by following the below mentioned steps.

    Prerequisites:

    • A Microsoft Entra external tenant.
    • A sign-up and sign-in user flow.
    • An app that's registered in your external tenant and added to the sign-up and sign-in user flow.
    • An account with at least the Security Administrator role to configure Conditional Access policies and MFA.
    • SMS is an add-on feature and requires a linked subscription. If your subscription expires or is canceled, end users will no longer be able to authenticate using SMS, which could block them from signing in depending on your MFA policy.

    Enable email one-time passcode as an MFA method

    Enable the email one-time passcode authentication method in your external tenant for all users.

    1. Sign in to the Microsoft Entra admin center as at least a Security Administrator.
    2. Browse to Entra ID > Authentication methods.
    3. In the Method list, select Email OTP. Screenshot of the email one-time passcode option.
    4. Under Enable and Target, turn the Enable toggle on.
    5. Under Include, next to Target, select All users. Screenshot of enabling email one-time passcode.
    6. Select Save.

    Reference document for detailed guide which will be helpful:

    Add multifactor authentication (MFA) to a customer app - Microsoft Entra External ID | Microsoft Learn

    I hope the above information provided is helpful. Please feel free to reach out to us if you have any further questions.

    If the answer is helpful, please click "Accept Answer" and kindly upvote it. If you have extra questions about this answer, please click "Comment"

    1 person found this answer helpful.

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