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Phishing, token theft and CAE: what passkeys alone can’t solve in Microsoft 365

30 July 2025

Threats

MFA alone doesn’t stop token theft, and Conditional Access alone doesn’t stop session hijacking.

Almost every identity security conversation runs into the same confusion about Microsoft 365 Conditional Access and the different layers of identity protection available.

People often assume that enabling MFA is enough, or that passkeys automatically protect against token theft. Others believe device compliance covers session hijacking, or that Conditional Access policies alone can enforce Zero Trust. The reality is more nuanced.

The problem isn’t a lack of features: Microsoft has released powerful capabilities over the last couple of years. It’s that each control is designed to solve a very specific problem, and they don’t fully replace one another. Deploy them without understanding what they actually do (and don’t do), and you end up with false confidence and exposed gaps.

This article breaks it all down:

The goal isn’t to turn on everything. The goal is to build a protection model that matches how your users work, where your risks are, and what you can realistically maintain.

The four controls you should know

Microsoft provides four advanced identity and session controls that target different parts of the attack chain:

These controls work best when combined, but each has its own strengths, gaps and deployment considerations.

1Passkeys (phishing-resistant MFA)

Eliminate passwords by using a private key stored on the device (for example a TPM or a security key).

2Compliant Devices

Blocks access from untrusted or non-compliant devices using MDM (for example Intune).

3Token Protection

Prevents stolen tokens from being used on other devices by cryptographically binding them to the device.

4CAE Strict Location Enforcement

Continuously validates IP and location, and revokes sessions on unexpected changes.

How they work together

No single control covers everything. Each addresses a different part of the identity stack:

ControlPhishingBad devicesToken replayLocation/IP hijack
PasskeysYesNoNoNo
Compliant DeviceNoYesNoNo
Token ProtectionNoNoYesNo
CAE StrictNoNoYesYes

Deployment trade-offs

ControlSecurity valueUser impactDeployment effort
PasskeysHighMediumMedium
Compliant DeviceHighMediumHigh
Token ProtectionMediumLowLow
CAE StrictMediumLowHigh

Each control brings value. The key is to combine them in a way that matches your users, infrastructure and attack surface.

The short version

These four controls, Passkeys, Compliant Devices, Token Protection and CAE Strict, aren’t redundant. They solve different problems at different layers of identity protection:

If you rely on MFA alone, or use Conditional Access without understanding the role of each layer, there’s a good chance you’re leaving real gaps, especially around token replay, unmanaged devices and session hijacking.

What actually matters is clarity

You don’t need to roll everything out at once. But you do need a plan built on the right foundations, not assumptions.

How Griffin31 helps

Griffin31 maps all four controls. It shows exactly which ones are already working in your tenant, where the gaps are, and what the right next step is, based on your actual usage, role types and environment.

Want to know which of the four controls already work in your tenant, and where the gaps are? Griffin31 checks your tenant continuously and shows you what to fix first.

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