The answer is FIDO2 security keys and the Microsoft Authenticator app. These two methods are natively supported in Microsoft Entra ID for passwordless sign-in because they leverage key-based authentication tied to a physical device, eliminating the need for a shared secret like a password. FIDO2 uses public-key cryptography stored on a hardware token, while the Authenticator app performs phone sign-in by requiring the user to approve a notification or match a number, both of which are fully integrated into Entra ID’s authentication stack. On the MS-102 exam, this question tests your understanding of which passwordless authentication methods are built into the platform without third-party dependencies—a common trap is confusing Windows Hello for Business (which requires a domain-joined device) with these truly native methods. Remember the mnemonic “FAM” for FIDO2, Authenticator app, and Microsoft—these are the only two native options, not third-party biometrics or SMS codes.
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. 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 365 and wants to implement a passwordless authentication strategy. Which TWO methods are supported natively in Microsoft Entra ID for passwordless sign-in?
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 (phone sign-in) is a native passwordless method in Microsoft Entra ID that uses key-based authentication tied to the user's device. It allows users to sign in by approving a notification or entering a number displayed on the screen, eliminating the need for a password. This method is fully integrated into Entra ID's authentication stack and supports both iOS and Android devices.
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.
✗
Smart cards (physical or virtual)
Why it's wrong here
Smart cards require AD FS or third-party integration; not natively passwordless in Entra ID.
✓
Microsoft Authenticator app (phone sign-in)
Why this is correct
Supported as a passwordless authentication method.
Related concept
Read the scenario before looking for a memorised answer.
✗
Temporary Access Pass
Why it's wrong here
This is a time-limited password, not a passwordless method.
✗
Certificate-based authentication
Why it's wrong here
While supported, it is not considered passwordless as it relies on certificates.
✓
FIDO2 security keys
Why this is correct
Supported as a passwordless authentication method.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse 'supported in Entra ID' with 'supported in the broader Microsoft ecosystem', leading them to select smart cards or certificate-based authentication, which require additional on-premises or hybrid components and are not native passwordless options in cloud-only Entra ID.
Detailed technical explanation
How to think about this question
FIDO2 security keys use the WebAuthn standard and public-key cryptography, where the private key never leaves the device, ensuring phishing resistance. Microsoft Authenticator phone sign-in leverages a similar key-based approach but stores the private key in the device's secure enclave (iOS) or Trusted Execution Environment (Android). Both methods satisfy the NIST SP 800-63B requirements for multi-factor authentication without passwords, and they can be enforced via Conditional Access policies targeting 'Require passwordless authentication'.
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: Microsoft Authenticator app (phone sign-in) — The Microsoft Authenticator app (phone sign-in) is a native passwordless method in Microsoft Entra ID that uses key-based authentication tied to the user's device. It allows users to sign in by approving a notification or entering a number displayed on the screen, eliminating the need for a password. This method is fully integrated into Entra ID's authentication stack and supports both iOS and Android devices.
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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