Quick Answer
The answer is FIDO2 security keys. This is the correct choice because FIDO2 uses public-key cryptography tied to a specific web origin, making it inherently phishing-resistant—unlike time-based one-time passwords or push notifications, which can be intercepted in man-in-the-middle attacks. On the AZ-500 exam, this question tests your ability to distinguish between MFA methods that satisfy strict security requirements versus those that merely add a second factor. A common trap is selecting Microsoft Authenticator or certificate-based authentication, but only FIDO2 provides hardware-bound, origin-specific authentication that prevents credential replay across different sites. Remember the memory tip: “FIDO2 fights phishing with origin binding”—if the requirement explicitly says “phishing-resistant,” look for the option that cryptographically ties the credential to the legitimate site, not just a second factor.
This AZ-500 practice question tests your understanding of secure identity and access. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
You are designing a Microsoft Entra ID tenant for a multinational organization. The security team requires that all administrative users must use phishing-resistant MFA. Administrators are located in different regions and may use different devices. Which MFA method should you enforce?
FIDO2 security keys
FIDO2 security keys provide phishing-resistant authentication.
SMS-based verification
Why wrong: SMS is not phishing-resistant.
Phone call verification
Why wrong: Phone calls are not phishing-resistant.
Microsoft Authenticator with OTP
Why wrong: OTP is phishing-susceptible.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
FIDO2 security keys
FIDO2 security keys are the only option that provides phishing-resistant MFA, as they use public-key cryptography and are bound to a specific web origin, preventing credential theft via man-in-the-middle attacks. This satisfies the security team's requirement for all administrative users, regardless of region or device, because FIDO2 keys are hardware-based and interoperable across platforms.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
FIDO2 security keys
Why this is correct
FIDO2 security keys provide phishing-resistant authentication.
Related concept
Read the scenario before looking for a memorised answer.
SMS-based verification
Why it's wrong here
SMS is not phishing-resistant.
Phone call verification
Why it's wrong here
Phone calls are not phishing-resistant.
Microsoft Authenticator with OTP
Why it's wrong here
OTP is phishing-susceptible.
Common exam traps
The trap here is that candidates often confuse 'multi-factor authentication' with 'phishing-resistant MFA', and select Microsoft Authenticator with OTP because it is a common MFA method, but it does not protect against real-time phishing attacks where the OTP is captured and replayed.
Detailed technical explanation
FIDO2 security keys implement the WebAuthn standard, where the private key never leaves the device and authentication is tied to the relying party's origin (e.g., https://login.microsoftonline.com). This prevents credential reuse even if a user is tricked into visiting a malicious site, because the browser validates the origin before allowing the private key operation. In a real-world scenario, an admin using a FIDO2 key on a compromised network cannot have their credentials phished, as the key will only respond to the legitimate Entra ID endpoint.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
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Secure identity and access — study guide chapter
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FAQ
Secure identity and access — This question tests Secure identity and access — Read the scenario before looking for a memorised answer..
The correct answer is: FIDO2 security keys — FIDO2 security keys are the only option that provides phishing-resistant MFA, as they use public-key cryptography and are bound to a specific web origin, preventing credential theft via man-in-the-middle attacks. This satisfies the security team's requirement for all administrative users, regardless of region or device, because FIDO2 keys are hardware-based and interoperable across platforms.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 25, 2026
This AZ-500 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-500 exam.
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