For Microsoft Entra External ID customer (CIAM) tenants, only two second-factor methods are currently supported:
- Email one-time passcode (Email OTP)
- SMS-based authentication
These are the only MFA methods available for customers in external tenants. Time-based one-time password (TOTP) apps such as Microsoft Authenticator in OTP mode or other generic TOTP authenticators are not listed as supported second-factor methods for CIAM users.
To enable and enforce what is available today:
- Configure which MFA methods are allowed
- In the Microsoft Entra admin center, go to Entra ID → Authentication methods.
- Enable Email OTP and/or SMS as second-factor methods as described in the documentation.
- For Email OTP as MFA, the local account authentication method must be Email with password; if Email with one-time passcode is used as the primary method, Email OTP cannot be used as the second factor.
- Enforce MFA for customer sign-up/sign-in
- Create a Conditional Access policy in the external tenant that targets the customer-facing app and requires MFA on sign-up/sign-in:
- Go to Conditional Access → New policy.
- Target the relevant users/groups and cloud apps.
- Under Grant, select Grant access and Require multifactor authentication.
For stronger, phishing-resistant methods (like FIDO2, Windows Hello for Business, or certificate-based authentication), these are supported in Microsoft Entra ID generally, but the CIAM external-tenant documentation only exposes Email OTP and SMS as second factors for customer identities at this time. Push-based Microsoft Authenticator or generic TOTP for CIAM customers is not documented as an available option.
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