Microsoft Outlook 365 to Skip Multifactor authentication (MFA) for Requests from Federated Users on My Intranet

Microsoft Outlook 365 to Skip Multifactor authentication (MFA) for Requests from Federated Users on My Intranet

Released Date: 11/17/2025
Version: 8.5 & higher

We have an Elliott user who has issue sending Elliott email, which is based on SMTP, working with Microsoft 365 (also can be called as Outlook 365 or Exchange on-line.) The following is the information from this user's IT on how he solve the issue on Microsoft 365 side. Since the security issue is on Microsoft side, we did not verify the claims and procedure.  It is provided as a reference for your reference only.

Original Email Content

In the 365 admin center I changed this to the public IP address and Lisa’s email works now.

 

 

 

Please note that app passwords are only available when your organization is using per-user Multi-Factor Authentication (MFA). They are not supported when MFA is enforced through Conditional Access or Security Defaults.

 

To confirm and enable app passwords, please follow the steps below:

  1. Sign in to the Microsoft Entra admin center: https://entra.microsoft.com
  3. Check if the MFA method is set to Per-user MFA.
    • If you see a list of users showing “Enabled” or “Enforced,” your tenant is using per-user MFA.
    • If the page redirects you to Conditional Access, then per-user MFA is not in use, and app passwords will not be available.
  4. If per-user MFA is in use, click the Service Settings tab.
  5. Under App passwords, make sure “Allow users to create app passwords to sign in to non-browser apps” is checked.
  6. Click Save to apply the changes.

 

Once enabled, users can create an app password by visiting:
and selecting Add method → App password → Create a new app password.

 

Please let me know if you need further assistance.

 

Best Regards.

Chijioke Udeh | Office 365 Ambassador.

Working Hours: 09:30 AM - 05:30 PM EST (Day Light) I Monday - Friday

My Team Manager: Nithya Arun Email: v-arunnithya@microsoft.com
My Technical Advisor: Rahul Karayi | Email: rahulkarayi@microsoft.com

To have consistent support experience, we recommend that you REPLY ALL when responding to this email message.

 

I saw the skip. Then I never made that work.

 

This worked.

Once enabled, users can create an app password by visiting:
and selecting Add method → App password → Create a new app password.

 

  

 EMK