Microsoft is encouraging you to abandon SMS passwords as AI complicates the prevention of phishing attacks.

      AI has simplified phishing, prompting Microsoft to discontinue SMS logins.

      Microsoft has issued a significant alert to IT administrators, urging them to cease the use of SMS and voice-based authentication due to the rise of AI-enabled phishing attacks.

      Why is Microsoft eliminating SMS authentication?

      In an email reported by Windows Latest, Microsoft highlighted that the advent of AI necessitates stronger, phishing-resistant authentication methods. Essentially, AI has greatly facilitated the ability of attackers, even those with limited skills, to exploit SMS and voice communication. SIM swapping has also become more straightforward with the help of AI, enabling malicious actors to transfer your number to a SIM card they control with relative ease.

      Windows Latest

      Microsoft indicates a steep increase in AI-driven assaults aimed at stealing passwords and multi-factor authentication (MFA) codes, with these attacks demonstrating a much higher success rate compared to earlier phishing attempts that predated AI. While AI is not directly hacking SIM cards, it is significantly simplifying the process of luring individuals into surrendering their credentials.

      When will this change take place?

      Microsoft has outlined a two-phase timeline for this transition. Beginning September 1, Entra users who utilize SMS or voice authentication will be prompted to configure a passkey during the sign-in process. Users who are not prepared for this change must transition away from SMS or voice authentication prior to the start of this rollout.

      Rachit Agarwal / Digital Trends

      Subsequently, on February 1, 2027, Microsoft will completely phase out SMS and voice authentication for Entra ID, making passkeys obligatory. There will be no options to opt out, impacting every single tenant without exception.

      What about personal accounts?

      Those using a personal Microsoft account for services like Outlook, Xbox, or Windows 11 are also affected. Microsoft has already begun to discontinue SMS authentication and account recovery for personal accounts, though no specific deadline has yet been set for regular users.

      It’s advisable not to wait for Microsoft to enforce this change on you. Consider setting up a passkey now or switching to Microsoft Authenticator if that suits you better. Relying solely on passwords is increasingly inadequate, especially with AI making phishing risks more pronounced.

      Rachit is an experienced tech journalist with over ten years of experience in the consumer technology sector.

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