Quick Answer
The answer is the Microsoft Authenticator app and FIDO2 security keys. These two passwordless authentication methods for smartphone use are correct because Microsoft Entra ID supports both for eliminating passwords: the Authenticator app enables phone sign-in through push notifications or number matching on the smartphone, while FIDO2 keys leverage hardware-based public/private key cryptography, often connecting via USB or NFC to the device. On the MS-102 exam, this question tests your understanding of which Entra ID passwordless options are specifically tied to smartphone usage—a common trap is confusing Windows Hello for Business (which is device-bound, not smartphone-based) with these two methods. Remember that the Authenticator app is software-based on the phone itself, whereas FIDO2 keys are external hardware that can interact with the smartphone through NFC. A helpful memory tip: "App and Key—both password-free, both phone-friendly."
This MS-102 practice question tests your understanding of implement and manage microsoft entra 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.
Your organization uses Microsoft Entra ID. You need to implement a solution that allows users to sign in without a password using their smartphone. Which TWO authentication methods can be used?
Temporary Access Pass
Why wrong: Temporary Access Pass is for recovery, not passwordless.
Windows Hello for Business
Why wrong: Windows Hello requires a Windows device.
Text message (SMS) verification code
Why wrong: SMS is not passwordless; it's a second factor.
Microsoft Authenticator app (phone sign-in)
Authenticator app supports passwordless sign-in.
FIDO2 security keys
FIDO2 keys provide passwordless authentication.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Microsoft Authenticator app (phone sign-in)
The Microsoft Authenticator app supports phone sign-in, which allows users to authenticate by approving a notification or entering a number displayed on the screen, eliminating the need for a password. FIDO2 security keys enable passwordless authentication using hardware-based public/private key cryptography, meeting the requirement for smartphone-based sign-in when the key is connected via USB or NFC. Both methods are supported by Microsoft Entra ID for passwordless authentication.
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.
Temporary Access Pass
Why it's wrong here
Temporary Access Pass is for recovery, not passwordless.
Windows Hello for Business
Why it's wrong here
Windows Hello requires a Windows device.
Text message (SMS) verification code
Why it's wrong here
SMS is not passwordless; it's a second factor.
Microsoft Authenticator app (phone sign-in)
Why this is correct
Authenticator app supports passwordless sign-in.
Related concept
Read the scenario before looking for a memorised answer.
FIDO2 security keys
Why this is correct
FIDO2 keys provide passwordless authentication.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often confuse SMS verification codes (a multi-factor authentication method) with a primary passwordless authentication method, but SMS codes require a password first and are not passwordless.
Detailed technical explanation
Phone sign-in in Microsoft Authenticator uses FIDO2 WebAuthn standards under the hood, where the app generates a key pair and the private key is stored in the device's secure enclave. FIDO2 security keys implement the CTAP2 protocol over USB/NFC/BLE, and Microsoft Entra ID validates the public key against the user's credential ID during sign-in. Both methods rely on asymmetric cryptography to eliminate password transmission and storage risks.
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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Implement and manage Microsoft Entra identity and access — study guide chapter
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FAQ
Implement and manage Microsoft Entra identity and access — This question tests Implement and manage Microsoft Entra identity and access — Read the scenario before looking for a memorised answer..
The correct answer is: Microsoft Authenticator app (phone sign-in) — The Microsoft Authenticator app supports phone sign-in, which allows users to authenticate by approving a notification or entering a number displayed on the screen, eliminating the need for a password. FIDO2 security keys enable passwordless authentication using hardware-based public/private key cryptography, meeting the requirement for smartphone-based sign-in when the key is connected via USB or NFC. Both methods are supported by Microsoft Entra ID for passwordless authentication.
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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Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Your organization uses Microsoft Entra ID and wants to implement a passwordless authentication strategy. Which TWO authentication methods are considered passwordless by Microsoft? (Choose two.)
easyWhy A: Windows Hello for Business is a passwordless authentication method that uses biometric or PIN-based credentials tied to a user's device, leveraging asymmetric key pairs to authenticate against Microsoft Entra ID without transmitting a password. It satisfies Microsoft's definition of passwordless because the private key never leaves the device, and authentication is performed via a cryptographic challenge-response protocol.
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Last reviewed: Jun 24, 2026
This MS-102 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 MS-102 exam.
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