Why Azure Security Is Failing So Many UK SMEs
London-based SMEs increasingly depend on Microsoft 365 and Azure for identity, productivity, hosting, and authentication. However, most of the compromises we investigate come down to the same 12–15 recurring misconfigurations.
These mistakes aren’t caused by hackers outsmarting advanced security tools — they’re caused by default settings, rushed deployments, misunderstood roles, weak Conditional Access, and missing logging. In this article we show the **real issues we find weekly in London SMEs**.
Most Common Azure & Microsoft 365 Misconfigurations in UK SMEs
1. Global Admin Accounts Used for Daily Work
This is the number-one identity weakness in London companies. We regularly find users — including IT support and MSPs — logging in as **Global Admin** for routine tasks.
Risks include:
- one compromised password = full tenant takeover
- attackers creating backdoor apps, roles & tokens
- undetected privilege escalation
Recommendation: create separate “break-glass” admin accounts, enforce MFA, and require PIM for elevation.
2. Conditional Access Policies Missing or Too Permissive
Many SMEs believe they are secure because they have MFA enabled. In reality, without Conditional Access:
- legacy protocols still bypass MFA
- login attempts from outside the UK remain allowed
- personal devices access corporate data without checks
Recommendation: enforce geo restrictions, require compliant devices and block legacy auth.
3. Legacy Authentication Still Enabled
Even in 2026, we still see IMAP/POP/SMTP AUTH enabled in London tenants — a favourite method for attackers to brute-force or replay passwords.
Recommendation: fully block legacy authentication across the tenant.
4. External Sharing Misconfigured in SharePoint/OneDrive
UK SMEs frequently allow **anyone with the link** to access documents, including financial data, contracts, HR files and internal documents.
Recommendation: require authenticated external access and restrict sharing to approved domains.
5. Defender for Endpoint Installed But Unconfigured
Many companies think Defender is “on”, but telemetry collection is disabled or minimal. This leaves the SOC blind during lateral movement and privilege escalation.
6. Service Principals With Excessive Privileges
Automation tools and integrations often have long-forgotten permissions such as Directory.ReadWrite.All, making them ideal persistence points for attackers.
Recommendation: audit app registrations monthly and restrict permissions to the minimum needed.
7. Missing Logging in Azure, Entra ID and M365
7/10 SMEs we audit have little to no logging enabled, meaning most intrusions go undetected.
- no sign-in risk logs
- no audit logs
- no mailbox audit logs
- no Defender alert forwarding
Recommendation: enable full audit logs, Cloud App Security, and forward to a central SIEM.
8. Unprotected Email Forwarding
Attackers love forwarding rules — especially in law firms and financial services around London.
Recommendation: block automatic forwarding to external domains unless explicitly allowed.
London-Specific Attack Patterns We See Weekly
Because London is the UK’s business hub, attackers frequently target:
- legal & financial workflows
- property and conveyancing emails
- logistics and import/export firms
- FinTech companies and SaaS platforms
These industries rely heavily on Microsoft 365 and Azure, making identity-based attacks extremely effective.
How UK SMEs Can Fix These Problems
1. Start With an Azure Security Audit
A structured cloud audit identifies misconfigurations, risky roles, missing MFA gaps and cloud-based attack paths.
2. Harden Conditional Access
- require MFA everywhere
- block risky countries
- enforce compliant devices for privileged roles
3. Enable Full Logging & Monitoring
This is essential for ransomware early detection.
4. Apply the Principle of Least Privilege
Especially for service principals and admin accounts.
5. Review External Access Monthly
London law firms and consultancies suffer most from data exposure via public links.
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