The correct answer is to switch from federated authentication to Pass-through Authentication (PTA) or Password Hash Sync (PHS). This is necessary because Microsoft Entra ID Protection evaluates risk based on real-time signals like IP addresses and device fingerprints, which are only available when authentication flows directly through Azure AD. In a federated setup with ADFS, the on-premises system handles authentication and sends Azure AD a pre-validated token, stripping away the raw sign-in data needed for risk detection. On the MS-102 exam, this question tests your understanding of how hybrid identity choices impact security features; a common trap is assuming federation is fully compatible with Identity Protection. Remember the key trade-off: federation offloads authentication but also offloads risk signals. A useful memory tip is “Federation hides the details, PTA/PHS reveals them”—if you want Entra ID Protection to see the full sign-in picture, the authentication path must go through Azure AD.
MS-102 Deploy and manage a Microsoft 365 tenant Practice Question
This MS-102 practice question tests your understanding of deploy and manage a microsoft 365 tenant. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 the Microsoft 365 administrator for a company with a hybrid identity configuration using Azure AD Connect. The company has a custom domain 'contoso.com' federated with Active Directory Federation Services (ADFS). All users are synced from on-premises Active Directory. The security team wants to implement Microsoft Entra ID Protection to detect risky sign-ins. However, they are concerned that federated authentication bypasses some risk detection capabilities. You need to ensure that Microsoft Entra ID Protection can evaluate risk for all sign-ins, including federated ones. What should you do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Switch from federated authentication to Pass-through Authentication (PTA) or Password Hash Sync (PHS).
Microsoft Entra ID Protection relies on signals such as IP addresses, device information, and sign-in patterns to calculate risk. In a federated setup with ADFS, the authentication happens on-premises, and Azure AD only receives a token—not the raw sign-in details needed for real-time risk evaluation. Switching to Pass-through Authentication (PTA) or Password Hash Sync (PHS) ensures that the authentication process flows through Azure AD directly, allowing Entra ID Protection to capture and analyze all sign-in events, including those from federated users.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Switch from federated authentication to Pass-through Authentication (PTA) or Password Hash Sync (PHS).
Why this is correct
With PTA or PHS, authentication happens in Azure AD, allowing risk evaluation by Identity Protection.
Related concept
Read the scenario before looking for a memorised answer.
✗
Configure the federated trust in Microsoft Entra ID to use the new claims.
Why it's wrong here
This does not change where authentication occurs.
✗
Configure ADFS to send the ipaddr and xms_ep claims to Azure AD.
Why it's wrong here
Additional claims do not enable risk detection; the authentication still happens on-premises.
✗
Enable Azure AD Application Proxy to publish ADFS internally.
Why it's wrong here
This does not change the authentication flow for risk detection.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think adding claims (Option C) or changing the trust configuration (Option B) can compensate for the architectural limitation, but only moving the authentication flow to Azure AD (Option A) gives Entra ID Protection the raw sign-in data it needs for real-time risk evaluation.
Detailed technical explanation
How to think about this question
Entra ID Protection uses machine learning models on sign-in logs that include fields like ClientIP, DeviceID, and RiskEventType. In federated scenarios, the sign-in event is generated by ADFS, not Azure AD, so the IP address recorded is often the ADFS server's internal IP rather than the user's public IP, leading to inaccurate risk scoring. PTA and PHS solve this by routing authentication through Azure AD's authentication pipeline, where the user's actual IP and browser fingerprint are captured directly in the sign-in logs.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this MS-102 question in full detail.
Deploy and manage a Microsoft 365 tenant — This question tests Deploy and manage a Microsoft 365 tenant — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Switch from federated authentication to Pass-through Authentication (PTA) or Password Hash Sync (PHS). — Microsoft Entra ID Protection relies on signals such as IP addresses, device information, and sign-in patterns to calculate risk. In a federated setup with ADFS, the authentication happens on-premises, and Azure AD only receives a token—not the raw sign-in details needed for real-time risk evaluation. Switching to Pass-through Authentication (PTA) or Password Hash Sync (PHS) ensures that the authentication process flows through Azure AD directly, allowing Entra ID Protection to capture and analyze all sign-in events, including those from federated users.
What should I do if I get this MS-102 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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