The correct answer is to configure OAuth 2.0 in Azure API Management, use the validate-jwt policy to restrict access to specific Azure AD applications, and add rate-limit and ip-filter policies. This works because Azure API Management acts as a gateway that can validate OAuth 2.0 tokens at the inbound processing stage, and the validate-jwt policy allows you to check the token’s issuer, audience, and specific claims—such as the application ID—to ensure only authorized Azure AD apps can call your APIs. On the Microsoft Cybersecurity Architect exam, this scenario tests your understanding of how to combine authentication, authorization, and traffic control using built-in policies rather than external services. A common trap is choosing API keys or client certificates, but the question explicitly requires OAuth 2.0, making those options incorrect because they don’t meet the token-based authentication requirement. Memory tip: think “JWT, Rate, IP” as the three policy pillars for securing APIs with OAuth.
SC-100 Practice Question: Design security solutions for applications and data
This SC-100 practice question tests your understanding of design security solutions for applications and data. 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 designing an API management solution using Azure API Management. The security team requires that all API calls must be authenticated using OAuth 2.0 and that only specific Azure AD applications can access the APIs. Additionally, the solution must support rate limiting and IP filtering. What should you configure?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Configure OAuth 2.0 in Azure API Management, use validate-jwt policy to restrict to specific Azure AD apps, and add rate-limit and ip-filter policies
Option B is correct because Azure API Management can validate OAuth tokens, and you can restrict access to specific Azure AD applications using the 'validate-jwt' policy. Rate limiting and IP filtering are also built-in policies. Option A is wrong because it's not a complete solution. Option C is wrong because API keys are less secure. Option D is wrong because client certificates are not OAuth.
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.
✗
Set up client certificate authentication and map certificates to Azure AD apps
Why it's wrong here
Client certificates are not OAuth 2.0.
✗
Enable API key authentication and restrict access using subscription keys
Why it's wrong here
API keys are not OAuth 2.0.
✗
Use OAuth 2.0 with Azure AD and configure inbound policies to validate JWTs
Why it's wrong here
This is part of the solution but does not include rate limiting or IP filtering explicitly.
✓
Configure OAuth 2.0 in Azure API Management, use validate-jwt policy to restrict to specific Azure AD apps, and add rate-limit and ip-filter policies
Why this is correct
This combination meets all requirements.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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 SC-100 question in full detail.
Identify which SC-100 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Design security solutions for applications and data — This question tests Design security solutions for applications and data — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Configure OAuth 2.0 in Azure API Management, use validate-jwt policy to restrict to specific Azure AD apps, and add rate-limit and ip-filter policies — Option B is correct because Azure API Management can validate OAuth tokens, and you can restrict access to specific Azure AD applications using the 'validate-jwt' policy. Rate limiting and IP filtering are also built-in policies. Option A is wrong because it's not a complete solution. Option C is wrong because API keys are less secure. Option D is wrong because client certificates are not OAuth.
What should I do if I get this SC-100 question wrong?
Identify which SC-100 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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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. You are designing an API management solution using Azure API Management. Which TWO should you implement to protect the API from unauthorized access? (Choose TWO.)
easy
✓ A.Implement OAuth 2.0 authorization with Microsoft Entra ID.
B.Use client certificates for authentication.
C.Enable Cross-Origin Resource Sharing (CORS).
D.Restrict access by IP address only.
✓ E.Require subscription keys for all API calls.
Why A: A and D are correct. Subscription keys are a basic mechanism to authenticate callers. OAuth 2.0 is a standard authorization framework integrated with Azure API Management. Option B is wrong because client certificates are for mutual TLS, not a primary authentication method. Option C is wrong because IP filtering is for restricting IP ranges, not authentication. Option E is wrong because CORS is for cross-origin requests, not authentication.
Last reviewed: Jun 21, 2026
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