Experts Warn Hackers Could Exploit Microsoft’s Entra Passkey Rollout

Microsoft is making passkeys the default authentication method in Entra ID starting September 1, 2026, as the company continues moving customers away from passwords, SMS codes, and other weaker authentication options.

Microsoft has already outlined the Entra ID passkey change and has also warned customers about the upcoming SMS authentication retirement.

Passkeys provide stronger protection against traditional phishing because attackers cannot simply steal or reuse a password. The credentials remain tied to a user’s device. However, attackers have already explored techniques capable of targeting passkey implementations, including attacks that can steal Google passkeys.

Attackers could exploit user confusion

The biggest immediate risk may come from users who do not yet understand how passkeys work.

Many employees remain more familiar with passwords, SMS codes, and one-time passwords. As Neowin reports, that unfamiliarity could give attackers another social engineering opportunity.

CoreView Chief Product and Technology Officer Andrea Sivieri warned that criminals could impersonate Microsoft support staff and offer fake help with passkey enrollment or account configuration.

An employee who expects authentication changes could find a convincing support message more believable, particularly if the attacker claims the account requires urgent action.

Organizations need to prepare before September

Microsoft has already started notifying organizations about the Entra ID changes, but some companies may not update their authentication policies before September 1.

That could leave IT teams dealing with configuration problems only after employees start losing access or contacting support.

Organizations should review their existing authentication setup before the rollout begins. IT administrators should also identify accounts that still rely on SMS or voice authentication.

Creating a record of the current configuration can help administrators quickly identify which settings changed during the transition.

Passkeys could increase helpdesk requests

Passkeys should strengthen Entra ID security by reducing reliance on passwords and other authentication methods that attackers can more easily intercept or steal.

However, the transition could temporarily increase helpdesk requests as employees learn the new sign-in process.

Clear instructions will therefore matter as much as the technical rollout. Organizations that explain the change before September may reduce both support problems and opportunities for attackers to exploit confusion.

Microsoft is also expanding Entra in other areas, with new SSO controls and workflow features recently added to the platform.