The answer is to create a custom network indicator in Microsoft Defender for Endpoint with the action set to 'Alert and block'. This is correct because custom threat indicators in MDE allow you to block malicious URLs and IPs at the device level, and the action applies globally to all MDE-enrolled devices without needing additional network appliances. For the SC-200 exam, this scenario tests your understanding of how MDE’s indicator of compromise (IoC) capabilities work for network protection, often appearing as a distractor where candidates mistakenly choose firewall rules or policy-based blocks. A common trap is assuming Windows Defender Firewall is the fastest solution, but custom indicators are immediate and centralized. Memory tip: think of custom indicators as a “global blocklist” that lives inside MDE, not on a separate firewall—remember “Indicator = Instant, Firewall = Fuss.”
SC-200 Respond to security incidents Practice Question
This SC-200 practice question tests your understanding of respond to security incidents. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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 company uses Microsoft Defender for Endpoint (MDE) on all Windows 10 devices. You are investigating a machine that is suspected of being part of a botnet. The machine is communicating with a known C2 server at IP 203.0.113.55. You have confirmed that the IP is malicious. You need to block all outbound traffic from the machine to that IP immediately, and also ensure that no other devices in the organization can communicate with that IP. The solution must be implemented without deploying additional network appliances. What should you do?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "immediately / without restart"
Why it matters: Time or reboot constraint — the correct answer must take effect right away without requiring a reboot or reload.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Create a custom network indicator in Microsoft Defender for Endpoint with action 'Alert and block'
Option B is correct because custom network indicators in MDE can block IPs at the device level, and the action applies to all MDE-enrolled devices. Option A is wrong because MDE network protection does not support custom IP blocking via policy. Option C is wrong because Windows Defender Firewall rules would need to be deployed via GPO or Intune, which is slower and more complex. Option D is wrong because the MDE portal does not have a global IP blocklist feature.
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.
✗
Create a network protection policy in Microsoft Intune to block the IP
Why it's wrong here
Network protection in Intune does not support custom IP blocklists.
✓
Create a custom network indicator in Microsoft Defender for Endpoint with action 'Alert and block'
Why this is correct
Custom network indicators allow blocking IPs across all MDE devices.
Clue confirmation
The clue word "immediately / without restart" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Use the Microsoft Defender for Endpoint portal to block the IP globally
Why it's wrong here
The portal does not have a global IP block feature; it requires creating indicators.
✗
Create a firewall rule in Windows Defender Firewall to block outbound traffic to the IP, and deploy via Group Policy
Why it's wrong here
This is slower and requires Group Policy, not immediate.
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 healthcare organisation deploys an application with a public-facing web tier and a private database tier. The database subnet has no public IP and only accepts connections from the web tier's security group. Questions like this test whether you can design cloud network isolation using VNets/VPCs, subnets, and security group rules.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-200 question in full detail.
Identify which SC-200 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.
Respond to security incidents — This question tests Respond to security incidents — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create a custom network indicator in Microsoft Defender for Endpoint with action 'Alert and block' — Option B is correct because custom network indicators in MDE can block IPs at the device level, and the action applies to all MDE-enrolled devices. Option A is wrong because MDE network protection does not support custom IP blocking via policy. Option C is wrong because Windows Defender Firewall rules would need to be deployed via GPO or Intune, which is slower and more complex. Option D is wrong because the MDE portal does not have a global IP blocklist feature.
What should I do if I get this SC-200 question wrong?
Identify which SC-200 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.
Are there clue words in this question I should notice?
Yes — watch for: "immediately / without restart". Time or reboot constraint — the correct answer must take effect right away without requiring a reboot or reload.
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 have detected a suspicious PowerShell command running on several workstations. The command appears to be downloading a payload from a known malicious URL. What is the most effective immediate response using Microsoft Defender for Endpoint?
medium
✓ A.Add the URL to the custom threat indicator list in Microsoft Defender for Endpoint.
B.Quarantine the affected workstations.
C.Enable attack surface reduction rule to block PowerShell scripts.
D.Initiate a Live Response session to investigate each workstation.
Why A: The most effective immediate response is to block the malicious URL via custom threat indicators, which will prevent the download on all devices. Live Response is for investigation, not blocking. Quarantine disrupts users. ASR rules are pre-configured and may not cover this specific URL.
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This SC-200 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 SC-200 exam.
Question Discussion
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