Microsoft Entra ID Password Protection in Hybrid Environments

Overcoming the Limitations

With new data breaches occurring everyday and password reuse still common among users, strong password security is more critical than ever. Many organizations turn to Microsoft Entra ID (formerly Azure Active Directory) for password protection, but does it truly offer the level of security needed in today’s hybrid environments?

Managing password security in hybrid IT environments, where cloud services like Microsoft 365 are used alongside on-premises Active Directory, adds layers of complexity. Microsoft Entra ID Password Protection, while a step forward, fails to address the full range of password vulnerabilities. Its reliance on static password lists and inconsistent policy enforcement across environments leaves significant gaps, placing organizations at unnecessary risk. As businesses increasingly operate across both cloud and local systems, the limitations of Entra ID become more evident, raising the question of whether it can continually defend against exposed passwords in new data breaches.

The Added Complexity of Hybrid Deployments of Microsoft Entra ID Password Protection

In hybrid environments, where organizations use both cloud-based services like Microsoft 365 and on-premises Active Directory Domain Services, managing password security becomes even more complex. Additionally, depending on how users authenticate—whether through on-premises domain controllers (DCs) or cloud-based policies—different password policies may apply. This variability adds another layer of complexity with specific challenges and limitations of Microsoft Entra ID in hybrid setups:

1. Password Policies 
   • Cloud-only Setup: In a fully cloud setup, password policies—such as complexity and lockout thresholds—are managed entirely within Microsoft Entra ID. These policies are applied uniformly across all users in the Entra ID tenant, but they offer less granular control compared to on-premises Active Directory Group Policy Objects (GPOs). While password expiration is no longer enforced by default in cloud-only environments (as per Microsoft’s recommendation), features like Azure AD Password Protection help block commonly used and compromised passwords based on a limited and static list.
   • Hybrid Setup: In a hybrid environment, password policies for synchronized users are primarily managed through on-premises Active Directory using GPOs. Users authenticated through on-premises domain controllers will follow these locally defined policies. Cloud-only accounts, however, follow Entra ID password policies. In this scenario, it is possible to supplement on-premises password policies with additional protections through Entra ID, such as Azure AD Password Protection, which blocks weak or compromised passwords based on a limited, static list across both environments.
     • One limitation of Entra ID in hybrid setups is that password policies for synchronized users apply globally across the entire organization, with no native ability to apply different policies to subsets of users directly through Entra ID. While on-premises AD can offer more granular control using GPOs, this lack of flexibility in Entra ID can be a drawback for organizations needing specific policies for different groups, such as administrative users, and may complicate compliance with standards that require stricter policies for certain roles.
2. Password Writeback
   • Cloud-only Setup: Password management, including self-service password reset, is handled entirely within the cloud, allowing users to reset passwords without interacting with local infrastructure.
   • Hybrid Setup: In a hybrid environment, enabling password writeback means that when a user resets their password in the cloud, it must be written back to the on-premises AD. This introduces additional dependencies and potential latency because the operation must interact with the on-premises AD infrastructure. Additionally, password writeback requires specific licensing (Entra ID Premium P1 or P2), adding to the complexity and cost.
3. Management Complexity
   • Cloud-only Setup: A fully cloud-based Entra ID offers simpler management, with everything controlled from a single pane of glass in the Azure portal. User account changes, password policies, and identity protection are straightforward and integrated within the cloud.
   • Hybrid Setup: Managing identities in a hybrid setup is more complex. It requires synchronization between on-premises and cloud environments using tools like Azure AD Connect. This synchronization process must be carefully monitored, as any changes in the on-premises environment need to be synchronized to the cloud, which may introduce delays and potential points of failure.
4. Identity Synchronization and User Management
   • Cloud-only Setup: In a fully cloud-based environment, user management is centralized within Entra ID. Users are created, modified, and deprovisioned entirely in the cloud, with changes taking effect immediately.
   • Hybrid Setup: In a hybrid environment, user identities are primarily managed on-premises, and changes must be synchronized to Entra ID. This can create delays between when a user is created or modified in AD and when those changes are reflected in Entra ID. Additionally, improper configuration can lead to synchronization issues, causing further complications in user management.
5. Licensing Requirements
   • Cloud-only Setup: Depending on your needs, you might only require Entra ID licenses for cloud functionality, such as Entra ID Premium P1 or P2 for advanced security features.
   • Hybrid Setup: A hybrid setup necessitates additional on-premises infrastructure to manage synchronization and password writeback (e.g., Azure AD Connect, domain controllers). Specific licensing, like Entra ID Premium P1 or P2, is also required for advanced features such as password writeback, self-service password reset, and Conditional Access. This adds complexity and cost to the hybrid environment.

Enhancing Hybrid Security with Enzoic

Enzoic for Active Directory integrates seamlessly into hybrid environments, offering continuous protection across both cloud and on-premises systems. By working in tandem with Microsoft Entra ID, Enzoic provides a comprehensive password protection strategy that addresses the shortcomings of Microsoft’s solution.

• Continuous Protection: Enzoic continuously monitors all passwords, whether in the cloud or on-premises, against the latest breach data. This ensures that compromised credentials are detected and remediated in real time.
• Comprehensive Breach Data: Enzoic’s extensive breach data coverage ensures that passwords compromised in third-party breaches are included in its protection, unlike Microsoft Entra ID’s more limited scope.
• Automated Alerts and Remediation: In hybrid environments, Enzoic automatically alerts users when their credentials are found in breaches and requires immediate password changes, thereby minimizing the risk of account takeovers.
• Ease of Integration: Enzoic integrates smoothly with existing infrastructure, including Active Directory and Microsoft Entra ID, allowing organizations to enhance their security without disrupting existing workflows.

Closing the Gaps in Microsoft Entra ID Password Protection Hybrid Password Security

In hybrid environments, where organizations juggle both cloud and on-premises systems, Microsoft Entra ID Password Protection has significant limitations—static password lists, fragmented policy enforcement, and a lack of real-time updates. While Microsoft Entra ID Password Protection offers some basic protections, its shortcomings—such as static password protection and complex management—leave organizations exposed to new data breaches. Without continuous monitoring or real-time updates, new vulnerabilities can go unchecked, making the security posture weaker over time. Enzoic steps in where Entra ID falls short, providing continuous, real-time password protection across both cloud and on-premises environments. By addressing the critical gaps in Entra ID’s approach, Enzoic ensures a stronger and more dynamic password security strategy, helping organizations protect themselves from the risks that Microsoft’s limited solution cannot fully mitigate.

AUTHOR

Josh Parsons

Josh is the Product Manager at Enzoic, where he leads the development and execution of strategies to bring innovative threat intelligence solutions to market. Outside of work, he can be found at the nearest bookstore or exploring the city’s local coffee scene.