Entra ID Sign-In Logs: The Hidden Risk MSPs Need to Explain to Clients
The following lab demonstrates this risk in a real tenant with default Entra ID settings.
For engineers asking how this works technically.
Many organizations assume that clean Microsoft Entra ID sign-in logs indicate a secure identity environment.
This assumption introduces significant risk.
This article outlines why sign-in logs may appear normal despite underlying risks, and explains the business and MSP responsibilities associated with this gap.
The Dangerous Assumption Clients Make
Most clients believe:
“If there’s no suspicious sign-in alert, nothing bad happened.”
From a business perspective, this may seem reasonable.
From an identity security standpoint, it’s false. Microsoft Entra ID sign-in logs show when trust is granted, not how long or how widely that trust is later used.
This distinction is where risk often goes unnoticed.
Why “Successful Sign-In” Is Not the Same as “Secure Access”
Entra ID uses trust-based tokens rather than continuous re-verification.
Once a user successfully authenticates:
- Access tokens and refresh tokens can persist.
- MFA is not continuously re-challenged
- Sessions can move between locations without new sign-in prompts.
From the client’s perspective:
- Access continues normally
- Logs remain unchanged
- No alerts are generated.
From a risk perspective:
- A compromised session can remain valid.
- Lateral access goes unnoticed.
- Incident investigation timelines become unclear.
The Business Risk of Over-Trusted Sessions
When logs indicate MFA as “Satisfied,” most clients assume:
- MFA is actively protecting all actions
In reality:
- MFA was satisfied once
- The session may remain trusted for extended periods unless explicitly enforced.
This creates exposure in scenarios like:
- Stolen browser sessions
- Shared credentials
- Compromised endpoints
- Token replay attacks
These scenarios do not always generate clear sign-in alerts.
Why This Matters for MSPs
For MSPs, this is not only a technical issue; it also represents a liability and an expectation gap.
If a breach occurs and logs show:
- “Successful sign-ins”
- “MFA satisfied”
- “No risky sign-in alerts”
Clients will ask:
“Why didn’t anyone see this coming?”
And the honest answer is often:
“The logs didn’t show it clearly. This is not a position any MSP wants to justify following an incident.
Security Defaults Are Not Risk Controls
Security Defaults are designed to:
- Improve baseline authentication hygiene.
- Reduce obvious misconfigurations
- Protect tenants with no security expertise.
They are not designed to:
- Detect session abuse
- Provide deep visibility
- Shorten trust windows aggressively.
- Explain identity risk to executives.
Relying solely on Security Defaults creates a false sense of assurance, particularly in regulated or cyber-insured environments.
The Real Risk: Invisible Dwell Time
The greatest business risk is not unauthorized access, but undetected access.
When identity sessions persist silently:
- Attackers gain time
- Data exposure increases
- Incident response costs rise.
- Cyber insurance claims become harder to justify.
Because logs appear normal, investigations often begin late.
How MSPs Should Reframe the Conversation
The goal is not to assign blame to Entra ID.
It is about establishing appropriate expectations.
Smart MSPs explain to clients that:
- Identity security is not event-based.
- Logs are evidence, not conclusions.
- Visibility requires layered controls and context.
- Risk exists after authentication, not just during it.
This shift positions the MSP as a risk advisor rather than solely an IT provider.
Final Takeaway
If sign-in logs are the sole measure of security, the assessment is too limited.
MSPs that understand and can explain these identity visibility gaps:
- Build trust faster
- Reduce incident fallout
- Differentiate from commodity providers.
- Protect themselves contractually and reputationally.
Identity risk is not always immediately apparent.
This is why it must be communicated before an incident occurs.
Need help validating this in your tenant?
This risk exists in most Microsoft 365 tenants.
Author: Jaspreet Singh
Platform: MSPInsights.ca
Hands-on Evidence & Labs: f11.ca