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Received — 28 October 2026 ⏭ Microsoft Security Blog

Agents are your newest insiders. Security must move at their speed. 

19 October 2026 at 15:00

Agents are rapidly becoming part of how work gets done. They can support a range of activities from writing code and researching products to analyzing revenue, processing expenses, and acting across the systems that run the business. To be most useful, they often need access to company data, applications, tools, and other agents. That access is what makes agents more capable. With that capability can come insider risk.

This does not mean agents are inherently malicious. It means they are capable tools that can be granted access to important systems by users. They can make mistakes, be manipulated, or be compromised. Their models can produce variable outputs, their context can change, and their plans can evolve as they work. An agent that operates as intended when a task begins may respond differently as context or inputs change. Depending on how they are designed and deployed, agents can operate continuously, at machine speed and scale.

Satya Nadella, Chairman and Chief Executive Officer of Microsoft, recently described the trust architecture this new era requires: we must separate the supply of intelligence from the authority over it. We should not ask a model to be its own security authority. The controls that determine what it can access, what actions it can take, and whether it should continue operating must sit outside the model, where the model cannot bypass or tamper with them.

“The most trustworthy agentic system will not be the one with the model we trust most. It will be the one designed that enables us to trust the model least.”

Satya Nadella

Project Perception—Securing your agentic insider

We introduced Project Perception and the Microsoft cyber stack to help organizations defend with agents. Today, we are extending Perception to secure the agentic insider. Guardian Agents help security teams operate continuously, at machine speed and scale, while sensors, context, and actuators across the cyber stack help understand changing agent risk and continuously adapt protection in response. Project Perception and Microsoft Agent 365 share signals, context, and a unified registry giving IT and security teams a consistent view of agents and risk, with the controls each needs.

Illustration showing AI agents protected through layered identity, permissions, data, endpoint, network, cloud, and runtime controls to continuously assess and contain risk.

This builds on a simple security principle: surround non-deterministic intelligence with deterministic controls, independent evidence, and containment boundaries. Assume an agent can fail or be compromised. Observe it continuously. Minimize and tailor its authority before it acts. And continuously adjust that authority as risk changes.

This requires protection across identity, permissions, data, endpoints, network, cloud, and runtime. The system has four continuous responsibilities:

  • Know which agents exist, who owns them, why they exist, and what they are doing.
  • Contain what each agent can access and do before it acts.
  • Protect the data, tools, runtime, resources, and systems in the agent’s path.
  • Adapt protection continuously as behavior, context, and risk change.

These are not four products or sequential phases. They operate together. Evidence changes risk. Risk changes policy. Policy changes what the agent is allowed to do. Consider an expense-approval agent. It may need to read expense submissions, check policy, and approve routine reimbursements, but it should not inherit every permission of the employee who sponsors it. Its identity, runtime, access paths, and task-scoped authority should be explicit from the start. If it later encounters a prompt injection or attempts an action outside that task, the system should respond proportionately: preserve safe reads while blocking writes, narrow the resources it can reach, require provable human approval for a consequential step, or isolate and stop the agent when the risk warrants it. This is what continuous containment looks like in practice.

Know every agent and give it an accountable identity

You cannot secure what you cannot see. Agents can be created through Microsoft platforms, integrated through partner platforms and software development kits (SDKs), or introduced locally without a central deployment process. Microsoft Security uses native integrations, connectors, and sensors across the cyber stack to discover more of the agent estate.

We are expanding discovery to 35 additional types of local agents, bringing the total to 60 supported local agents, including Claude Code, OpenAI Codex, and GitHub Copilot. Organizations can bring these agents into a unified registry, regardless of how they were discovered, to understand ownership, activity, and risk.

Discovery tells you that an agent exists. Identity gives security and governance systems a durable anchor for controlling it.

Every agent should have a first-class identity distinct from the person using or sponsoring it. We are extending Microsoft Entra Agent ID with identity types for additional agent patterns, including local and previously unknown agents discovered through security sensors. This means an agent can become a policy target even when it was not originally integrated with Microsoft Security. Agent identity anchors attribution, ownership, lifecycle, risk, permissions, authorization, and policy, so the enterprise can distinguish what a person did from what an agent did on that person’s behalf.

Contain what the agent can do before it acts

Being able to find and identify an agent is necessary, but it is just the start. We need to understand the potential impact the agent can have in the enterprise environment. The next step is to bound the agent across its runtime, its paths to tools and resources, and the authority it can exercise.

Contain the runtime

The model and harness should execute inside a controlled environment rather than inherit fully-privileged access to the device. Sandboxes such as Microsoft Execution Container (MXC) provide policy-controlled access to resources the agent needs to complete its task. They also create an enforcement boundary where security controls and observability can operate outside the agent’s reach. If the agent or harness is compromised, it should not be able to disable the controls watching it.

Control the action space

An agent should not be free to call any tool, API, Model Context Protocol (MCP) server, resource, or other agent it can find. Local and network and data controls must mediate those paths, observe the calls, and enforce enterprise policy. Controlling the destination alone is not enough. Security must also understand the content flowing into and out of the agent, including its sensitivity, provenance, and whether untrusted data may be influencing the agent’s behavior.

Start with no permissions, or least privilege

We have spent decades applying Zero Trust and least privilege to people. Agents make those principles even more important. An agent should not automatically inherit all the standing access of its user. It should begin with no authority and receive only what it needs for the approved task, for only as long as the task requires.

To enable this, we are introducing Dynamic Permissions. Organization-wide policy sets the outer boundary, including preventing an agent from obtaining authority its user does not have. Permissions can then be scoped to the task, made time-bound, and contracted or removed as the task changes or completes. Higher-impact actions can require verified human approval.

The employee retains the employee’s access. The agent receives its own identity, permissions and its own authority scoped to its current task and for the duration of the task only.

Adapt protection as agent risk changes

Least privilege reduces exposure, but it does not eliminate risk. An expense-approval agent may begin a task with the right access and then encounter a prompt injection in an external document. Its configuration has not changed, but its behavior and risk have.

For human users, a delay between detection and response may be manageable. For an agent operating at machine speed, it can be the difference between containment and impact. The security system must be able to understand what changed and act before a person can manually investigate every signal.

That is why we are introducing Dynamic Agent Risk and Dynamic Conditional Access for agents.

Dynamic Agent Risk

Dynamic Agent Risk combines signals from identity, data, endpoints, cloud, network, runtime, and the agent’s own activity. It considers how securely the agent is configured, what resources it can reach, the potential impact if something goes wrong, and whether its actions are drifting from the user’s or organization’s intent.

The result is not a one-time score assigned at onboarding. It is a continuously updated understanding of the agent’s current risk and whether its current authority still matches that risk. The question is not simply whether the agent should run or stop. It is what the agent should be allowed to read, change, invoke, or approve at that moment.

Diagram titled “Dynamic Agent Risk” showing signals from Microsoft Sentinel, Entra, Intune, Purview, Global Secure Access, and Defender feeding into context analysis, which produces a dynamic risk score for real-time detection of intent and task drift.

Dynamic Conditional Access

Dynamic Conditional Access extends Microsoft Entra Conditional Access for agents so a change in risk can drive coordinated action across multiple enforcement points. The response is graduated, not binary. Policy can reduce permissions, preserve reads while blocking writes, narrow the data and resources the agent can reach, restrict network paths, shorten or revoke time-bound access, or require provable human approval before a consequential action proceeds. At the highest levels of risk, it can isolate the runtime or stop execution entirely.

Return to the expense agent. It begins with narrowly scoped permission to review and approve expenses within policy. When it encounters untrusted content and attempts an unrelated action, new evidence raises its Dynamic Agent Risk. Policy responds proportionately: it can preserve read access while removing the ability to approve or write, block access to sensitive resources, and require cryptographically provable human approval for a high-impact step. If the risk continues to rise, the system can isolate the runtime or stop execution. The employee remains productive. The agent is constrained without treating every risk change as a kill-switch event.

Secure agentic systems at scale with Guardian Agents

As organizations deploy thousands or hundreds of thousands of agents, manually triaging every alert and coordinating every response will not scale. Securing agents must itself become agentic, while remaining inside boundaries people set.

That is why we are introducing new Playbooks and a team of Guardian Agents in Project Perception. People define policy, approval boundaries, and delegation rules. Playbooks define the desired security outcome and coordinate protective actions. Guardian Agents carry out the work at machine speed, adapting as agent activity, risk, security context, and organizational policy change.

Guardian Agents can help teams understand why risk changed, investigate the relevant evidence, recommend or apply containment, and use what they learn to harden policy. This is not about outsourcing judgment. People retain control over objectives and consequential decisions. The system carries the continuous work that does not scale through manual operations.

Agents will only be adopted at scale if they can be trusted at scale. At Microsoft, we are already operating in a world of hundreds of thousands of agents. As Customer Zero, we have learned that securing agents requires continuous visibility into agent activity, proactive protection of access and data, and adaptive protection that keeps pace with evolving threats. Those lessons directly inform the innovations we are delivering to help every organization adopt agents with confidence.”

—Terrell Cox, Corporate Vice President (CVP) and Deputy Chief Information Security Officer (CISO), Customer Security, Microsoft

Extending containment to the model

As model transparency increases, it creates a new source of security evidence. Chain-of-thought and other model-level signals can help identify intent drift, understand whether untrusted information is influencing reasoning, and detect when an agent’s planned actions are diverging from the task it was given.

We are bringing this deeper evidence into Dynamic Agent Risk, together with signals from across the cyber stack. This builds on Satya Nadella’s principle: increase transparency into the model while keeping security decisions and enforcement independent of it.

Greater model transparency gives security systems deeper evidence to detect suspicious behavior and inform Dynamic Agent Risk. But the core security principle does not change: the model cannot be its own security boundary. Independent systems must observe every layer, including the model itself, and ultimately determine and enforce what the system is allowed to do.

These are not separate pillars. They make the same containment architecture stronger: better evidence, stronger assurance, more accurate risk, and more effective protection.

Confidence to move faster

Organizations are adopting agents to serve customers better, solve problems faster, and give people more time for the work that matters most. The goal is not to make every model perfectly predictable before it can be useful. The goal is to build systems that remain secure even when the model is not.

That requires a clear division of responsibility. Models supply intelligence. People and organizations retain authority. Independent controls establish identity, limit privilege, protect data, preserve evidence, and contain unsafe action. Security continuously reassesses risk and adapts protection as the agent works.

You should not have to choose
between innovation and safety.

That is what we are working toward: an agentic world where organizations can put intelligence to work with confidence because security can observe it, govern it, and contain it at the same speed.

Learn more here and join us at Microsoft Ignite.

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.

The post Agents are your newest insiders. Security must move at their speed.  appeared first on Microsoft Security Blog.

Received — 11 May 2026 ⏭ Microsoft Security Blog

World Passkey Day: Advancing passwordless authentication

World Passkey Day is a chance to reflect on progress toward a shared goal: reducing our reliance on passwords and other phishable authentication methods by accelerating passkey adoption. As cyberattacks become more automated and AI-powered, each account is only as secure as its weakest credential. Real progress requires more than adding stronger sign-in options—it requires removing phishable credentials and strengthening common attack paths like recovery flows. In partnership with the FIDO Alliance, Microsoft is committed to advancing passkey adoption through ongoing standards work, active participation in working groups, and other contributions to a passwordless future.

Passwords remain a major source of risk; they’re difficult to manage and easy to steal. Along with weaker forms of multifactor authentication, they’re also highly vulnerable to phishing: AI-powered campaigns drive click-through rates as high as 54%.1 In response, Microsoft is expanding passkey adoption across our ecosystem. We’re reducing reliance on legacy authentication and strengthening account recovery so it won’t become a backdoor for cyberattackers.

“Instead of vulnerable secrets or potentially identifiable personal information, a passkey uses a private key stored safely on the user’s device. It only works on the website or app for which the user created it, and only if that same user unlocks it with their biometrics or PIN. This means passkey users can’t be tricked into signing in to a malicious lookalike website, and a passkey is unusable unless the user is present and consenting. These are some qualities that make passkeys a ‘phishing-resistant’ form of authentication.”

From Microsoft Digital Defense Report.

Passkey adoption continues to grow industry wide

Passkey adoption is accelerating: FIDO Alliance estimates 5 billion passkeys already in use worldwide.2 Across Microsoft’s consumer services, including OneDrive, Xbox, and Copilot, hundreds of millions of users sign in with passkeys every day.

There are many reasons to choose passkeys as the standard authentication method over passwords. Sign-in success rates are significantly higher than with passwords, and exposure to credential-based attacks is significantly lower.3 Organizations and individual users alike prefer the simpler, more secure sign-in experience passkeys offer.4

Inside Microsoft, we’ve eliminated weaker authentication methods and rolled out phishing-resistant authentication, covering 99.6% of users and devices in our environment.5 It’s made signing in a lot simpler: no codes to enter, no extra prompts to manage, just a straightforward experience for everyone.

Product updates across sign-in and recovery

Across Microsoft, we’ve been steadily building passkey support into every layer of the identity experience from consumer accounts to enterprise access with Microsoft Entra, and from device-based authentication like Windows Hello to Microsoft’s password manager. This work ensures people can create and use passkeys wherever they sign in, with a consistent, phishing-resistant experience across devices, apps, and environments.

To make passkeys more accessible, we’re expanding where and how people can use them:

  • Synced passkeys and passkey profiles in Microsoft Entra ID make it easier to scale passwordless sign-in across diverse environments. We’re expanding flexibility in cloud passkey management, including support for larger and more complex policies, and transitioning tenants to a unified passkey profile model.
  • Entra passkeys on Windows make it simple for users to create and use device-bound passkeys directly on personal or unmanaged Windows devices using Windows Hello, and will be generally available in late May 2026.
  • Passkeys for Microsoft Entra External ID will be generally available late May 2026, so your customer-facing applications can offer a more seamless, consumer-grade sign-in experience.
  • Passkey-preferred authentication in Microsoft Entra ID (preview) detects registered methods and prompts the strongest one first. If a passkey is registered, that’s what the user sees—immediately. 
  • On the consumer side, with Microsoft Password Manager, users can now save and sync passkeys across devices signed in with their Microsoft account, with support for iOS and Android rolling out soon through Microsoft Edge. 

Account recovery also plays a critical role in maintaining the integrity of identity systems. Historically, it’s been vulnerable to cyberattackers who try to hijack the recovery process, for example by impersonating legitimate users and requesting new credentials.

Microsoft Entra ID account recovery, generally available today, strengthens security for recovery flows by enabling users to regain access to their accounts through a robust identity verification process. Users can regain access after losing all authentication methods by using government-issued ID and biometric face checks. At general availability, we are expanding our identity verification ecosystem with two new partners—1Kosmos and CLEAR1—joining our existing partners Au10tix, IDEMIA, and TrueCredential. 

Removing phishable credentials from user accounts

Strengthening authentication is important, but reducing risk means eliminating phishable credentials entirely. Microsoft is continuing to phase out legacy methods and move users toward phishing-resistant authentication. Starting in January 2027, security questions will be removed as a password reset option in Microsoft Entra ID due to their susceptibility to guessing and social engineering.

The rationale is straightforward: improving strong methods while removing weak ones shrinks the attack surface. This is increasingly urgent as AI agents act on behalf of users. If an identity is compromised, cyberattackers can leverage those agents to access systems, execute workflows, and operate within existing permissions. Organizations need to address this risk quickly.

A more secure and usable future

Last year, Microsoft joined dozens of organizations in taking the Passkey Pledge, a commitment to accelerating the adoption of phishing-resistant authentication and to moving beyond passwords. Since then, we’ve seen meaningful progress, from hundreds of millions of better-protected consumer accounts to large-scale deployments across organizations like our own.

What once felt like a long-term shift is finally gaining real momentum: authentication is becoming simpler, safer, and passwordless.

For a more in-depth perspective on how cyberattackers try to bypass authentication through fallback methods and recovery flows—and how to address those gaps—read our companion post.

Getting started

Organizations that want to strengthen their identity security posture can enable passkeys for their users and extend policy protections across both sign-in and recovery scenarios.

Get started with a phishing-resistant passwordless authentication deployment in Microsoft Entra ID.

Individuals can create and use passkeys for their personal accounts for better security and convenience.

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.


1Microsoft Digital Defense Report 2025.

2FIDO Alliance reports mainstream global usage on World Passkey Day. FIDO Alliance, 2026.

3Synced passkeys and high assurance account recovery, Microsoft Entra blog. December 16, 2025.

4FIDO Alliance Champions Widespread Passkey Adoption and a Passwordless Future on World Passkey Day 2025, FIDO News Center. May 1, 2025.

5Microsoft Security and Future Initiative (SFI) Progress Report—November 2025.

The post World Passkey Day: Advancing passwordless authentication appeared first on Microsoft Security Blog.

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