Scenario
You have been asked to create a proof of concept of features that enhance Azure Active Directory (Azure AD) authentication. Specifically, you want to evaluate:
– Azure AD multi-factor authentication
– Azure AD conditional access
– Azure AD Identity Protection
NOTE: For all the resources in this lab, we are using East US region.
Exercise 1: Deploy an Azure VM by using an Azure Resource Manager template
Task 1: Deploy an Azure VM by using an Azure Resource Manager template
1. Sign-in to the Azure portal https://portal.azure.com/.
2. In the Azure portal, in the Search resources, services, and docs text box at the top of the Azure portal page, type custom template and select Deploy a custom template under the list of Services.
NOTE: You can also select Template Deployment (deploy using custom templates) from the Marketplace list.
3. On the Custom deployment blade, click the Build your own template in the editor option.
4. On the Edit template blade, click Load file, locate the \Allfiles\Labs\04\az-500-04_azuredeploy.json file and click Open.
NOTE: Review the content of the template and note that it deploys an Azure VM hosting Windows Server 2019 Datacenter.
5. On the Edit template blade, click Save.
6. Back on the Custom deployment blade, click Edit parameters.
7. On the Edit parameters blade, click Load file, locate the \Allfiles\Labs\04\az-500-04_azuredeploy.parameters.json file and click Open.
NOTE: Review the content of the parameters file noting the adminUsername and adminPassword values.
8. On the Edit parameters blade, click Save.
9. On the Custom deployment blade, ensure that the following settings are configured (leave any others with their default values):
| Setting | Value |
| Subscription | the name of the Azure subscription you will be using in this lab |
| Resource group | click Create new and type the name AZ500LAB04 |
| Location | (US) East US |
| Vm Size | Standard_D2s_v3 |
| Vm Name | az500-04-vm1 |
| Admin Username | Student |
| Admin Password | Pa55w.rd1234 |
| Virtual Network Name | az500-04-vnet1 |
NOTE: To identify Azure regions where you can provision Azure VMs, refer to https://azure.microsoft.com/en-us/regions/offers/
10. Click Review + create, and then click Create.
NOTE: Do not wait for the deployment to complete but proceed to the next exercise. You will use the virtual machine included in this deployment in the last exercise of this lab.
RESULT: You have initiated a template deployment of an Azure VM az500-04-vm1 that you will use in the last exercise of this lab.
Exercise 2: Implement Azure MFA
Task 1: Create a new Azure AD tenant
1. In the Azure portal, in the Search resources, services, and docs text box at the top of the Azure portal page, type Azure Active Directory and press the Enter key.
2. On the blade displaying Overview of your current Azure AD tenant, click + Create a tenant.
3. On the Basics tab of the Create a tenant blade, ensure that the option Azure Active Directory is selected and click Next: Configuration >.
4. On the Configuration tab of the Create a tenant blade, specify the following settings:
| Setting | Value |
| Organization name | AdatumLab500-04 |
| Initial domain name | a unique name consisting of a combination of letters and digits |
| Country or region | United States |
NOTE: Record the initial domain name. You will need it later in this lab.
5. Click Review + Create and then click Create.
NOTE: Wait for the new tenant to be created. Use the Notification icon to monitor the deployment status.
Task 2: Activate Azure AD Premium P2 trial
1. In the Azure portal, in the toolbar, click the Directory + subscription icon, located to the right of the Cloud Shell icon.
2. In the Directory + subscription blade, click the newly created tenant, AdatumLab500-04.
NOTE: You may need to refresh the browser window if the AdatumLab500-04 entry does not appear in the Directory + subscription filter list.
3. On the AdatumLab500-04 blade, in the Manage section, click Licenses.
4. On the Licenses | Overview blade, in the Manage section, click All products and then click + Try / Buy.
5. On the Activate blade, in the Azure AD Premium P2 section, click Free Trial and then click Activate.
Task 3: Create Azure AD users and groups.
1. Navigate back to the AdatumLab500-04 Azure Active Directory blade and, in the Manage section, click Users.
2. On the Users | All users blade, click + New User.
3. On the New user blade, ensure that the Create user option is selected, and specify the following settings (leave all others with their default values) and click Create:
| Setting | Value |
| User name | aaduser1 |
| Name | aaduser1 |
| Password | ensure that the option Auto-generate password is selected and click Show Password |
| Groups | 0 groups selected |
| Roles | click User, then click Global administrator, and click Select |
| Usage Location | United States |
NOTE:
– Record the full user name. You can copy its value by clicking the Copy to clipboard button on the right hand side of the drop-down list displaying the domain name.
– Record the user’s password. You will need this later in this lab.
4. Back on the Users | All users blade, click + New User.
5. On the New user blade, ensure that the Create user option is selected, and specify the following settings (leave all others with their default values):
| Setting | Value |
| User name | aaduser2 |
| Name | aaduser2 |
| Password | ensure that the option Auto-generate password is selected and click Show Password |
| Groups | 0 groups selected |
| Roles | User |
| Usage Location | United States |
NOTE: Record the full user name and the password.
6. Back on the Users | All users blade, click + New User.
7. Click New User,complete the new user configuration settings, and then click Create.
| Setting | Value |
| User name | aaduser3 |
| Name | aaduser3 |
| Password | ensure that the option Auto-generate password is selected and click Show Password |
| Groups | 0 groups selected |
| Roles | User |
| Usage Location | United States |
NOTE: Record the full user name and the password.
8. On the New user blade, click Create.
NOTE: At this point, you should have three new users listed on the Users page.
Task 4: Assign Azure AD Premium P2 licenses to Azure AD users
1. On the Users | All users blade, click the entry representing your user account.
2. On the blade displaying the properties of your user account, click Edit.
3. In the Settings section, in the Usage location drop down list, select the United States entry and click Save.
4. Navigate back to the AdatumLab500-04 Azure Active Directory blade and, in the Manage section, click Licenses.
5. On the Licenses | Overview blade, click All products, select the Azure Active Directory Premium P2 checkbox, and click + Assign.
6. On the Assign licenses blade, click Users.
7. On the Users blade, select aaduser1, aaduser2, aaduser3, and your user account and click Select.
8. Back on the Assign licenses blade, click Assignment options, ensure that all options are enabled, and click OK.
9. Back on the Assign licenses blade, click Assign.
10. Sign out from the Azure portal and sign back in using the same account. This step is necessary in order for the license assignment to take effect.
NOTE: At this point, you assigned Azure Active Directory Premium P2 licenses to all user accounts you will be using in this lab. Be sure to sign out and then sign back in.
Task 5: Configure Azure MFA settings.
1. In the Azure portal, navigate back to the AdatumLab500-04 Azure Active Directory tenant blade.
NOTE: Make sure you are using the AdatumLab500-04 Azure AD tenant.
2. On the AdatumLab500-04 Azure Active Directory tenant blade, in the Manage section, click Security.
3. On the Security | Getting started blade, in the Manage section, click MFA.
4. On the Multi-Factor Authentication | Getting started blade, click the Additional cloud-based MFA settings link.
NOTE: This will open a new browser tab, displaying multi-factor authentication page.
5. On the multi-factor authentication page, click the service settings tab. Review verification options. Note that Text message to phone, Notification through mobile app, and Verification code from mobile app or hardware token are enabled. Click Save and then click close.
6. Switch to the users tab, click aaduser1 entry, click the Enable link, and, when prompted, click enable multi-factor auth.
7. Notice the Multi-Factor Auth status column for aaduser1 is now Enabled.
8. Click aaduser1 and notice that, at this point, you also have the Enforce option.
NOTE: Changing the user status from Enabled to Enforced impacts only legacy Azure AD integrated apps which do not support Azure MFA and, once the status changes to Enforced, require the use of app passwords.
9. With the aaduser1 entry selected, click Manage user settings and review the available options:
– Require selected users to provide contact methods again.
– Delete all existing app passwords generated by the selected users.
– Restore multi-factor authentication on all remembered devices.
10. Click Cancel and switch back to the browser tab displaying the Multi-Factor Authentication | Getting started blade in the Azure portal.
11. In the Settings section, click Fraud alert.
12. On the Multi-Factor Authentication | Fraud alert blade, configure the following settings:
| Setting | Value |
| Allow users to submit fraud alerts | On |
| Automatically block users who report fraud | On |
| Code to report fraud during initial greeting | 0 |
13. Click Save.
NOTE: At this point, you have enabled MFA for aaduser1 and setup fraud alert settings.
14. Navigate back to the AdatumLab500-04 Azure Active Directory tenant blade, in the Manage section, click Properties, next click the Manage Security defaults link at the bottom of the blade, on the Enable Security Defaults blade, click No. Select My Organization is using Conditonal Access as the reason and and then click Save.
NOTE: Ensure that you are signed-in to the AdatumLab500-04 Azure AD tenant. You can use the Directory + subscription filter to switch between Azure AD tenants. Ensure you are signed in as a user with the Global Administrator role in the Azure AD tenant.
Task 6: Validate MFA configuration
1. Open an InPrivate browser window.
2. Navigate to the Azure portal and sign in using the aaduser1 user account.
NOTE: To sign in you will need to provide a fully qualified name of the aaduser1 user account, including the Azure AD tenant DNS domain name, which you recorded earlier in this lab. This user name is in the format aaduser1@<your_tenant_name>.onmicrosoft.com, where <your_tenant_name> is the placeholder representing your unique Azure AD tenant name.
3. When prompted, in the More information required dialog box, click Next.
NOTE: The browser session will be redirected to the Additional security verification page.
4. On the Keep your account secure page, select the I want to set up a different method link, in the Which method would you like to use? drop-down list, select Phone, and select Confirm.
5. On the Keep your account secure page, select your country or region, type your mobile phone number in the Enter phone number area, ensure that the Text me a code option is selected, and click Next.
6. On the Keep your account secure page, type the code you received in the text message on your mobile phone, and click Next.
7. On the Keep your account secure page, ensure that the verification was successful and click Next.
8. On the Keep your account secure page, click Done.
9. When prompted, change your password. Make sure to record the new password.
10. Verify that you successfully signed in to the Azure portal.
11. Sign out as aaduser1 and close the InPrivate browser window.
RESULT: You have created a new AD tenant, configured AD users, configured MFA, and tested the MFA experience for a user.
Exercise 3: Implement Azure AD Conditional Access Policies
Task 1: Configure a conditional access policy.
1. In the Azure portal, navigate back to the AdatumLab500-04 Azure Active Directory tenant blade.
2. On the AdatumLab500-04 blade, in the Manage section, click Security.
3. On the Security | Getting started blade, in the Protect section, click Conditional Access.
4. On the Conditional Access | Policies blade, click + New policy.
5. On the New blade, configure the following settings:
– In the Name text box, type AZ500Policy1
– Click Users and groups, select the Users and Groups checkbox, on the Select blade, click aaduser2, and click Select.
– Click Cloud apps or actions, click Select apps, on the Select blade, click Microsoft Azure Management, and click Select.
NOTE: Review the warning that this policy impacts access to the Azure Portal.
– Click Conditions, click Sign-in risk, on the Sign-in risk blade, review the risk levels but do not make any changes and close the Sign-in risk blade.
– Click Device platforms, review the device platforms that can included and click Done.
– Click Locations and review the location options without making any changes.
– Click Grant in the Access controls section, on the Grant blade, select the Require multi-factor authentication checkbox and click Select
– Set the Enable policy to On.
6. On the New blade, click Create.
NOTE: At this point, you have a conditional access policy that requires MFA to sign in to the Azure portal.
Task 2: Test the conditional access policy.
1. On the Identity Protection | Overview blade, in the Protect section, click user risk policy
2. Configure the User risk remediation policy with the following settings:
– Click Users; on the Include tab of the Users blade, ensure that the All users option is selected.
– On the Users blade, switch to the Exclude tab, click Select excluded users, select your user account, and then click Select.
– Click User risk; on the User risk blade, select Low and above, and then click Done.
– Click Access; on the Access blade, ensure that the Allow access option and the Require password change checkbox are selected and click Done.
– Set Enforce policy to On and click Save.
Task 3: Configure sign-in risk policy
1. On the Identity Protection | User risk policy blade, in the Protect section, click Sign-in risk policy
2. Configure the Sign-in risk remediation policy with the following settings:
– Click Users; on the Include tab of the Users blade, ensure that the All users option is selected.
– Click Sign-in risk; on the Sign-in risk blade, select Medium and above, click Select, and then click Done.
– Click Access; on the Access blade, ensure that the Allow access option and the Require multi-factor authentication checkbox are selected and click Done.
– Set Enforce Policy to On and click Save.
Task 4: Simulate risk events against the Azure AD Identity Protection policies
1. In the Azure portal, set the Directory + subscription filter to the the Azure AD tenant associated with the Azure subscription into which you deployed the az500-04-vm1 Azure VM.
2. In the Azure portal, in the Search resources, services, and docs text box at the top of the Azure portal page, type Virtual machines and press the Enter key.
3. On the Virtual machines blade, click the az500-04-vm1 entry.
4. On the az500-04-vm1 blade, click Connect and, in the drop down menu, click RDP.
5. Click Download RDP File and use it to connect to the az500-04-vm1 Azure VM via Remote Desktop. When prompted to authenticate, provide the following credentials:
| Setting | Value |
| User name | Student |
| Password | Pa55w.rd1234 |
NOTE:
– Wait for the Remote Desktop session and Server Manager to load.
– The following steps are performed in the Remote Desktop session to the az500-04-vm1 Azure VM.
6. In Server Manager, click Local Server and then click IE Enhanced Security Configuration.
7. In the Internet Explorer Enhanced Security Configuration dialog box, set both options to Off and click OK.
8. Start Internet Explorer, click the cog wheel icon in the toolbar, in the drop-down menu, click Safety and then click InPrivate Browsing.
9. In the InPrivate Internet Explorer window, navigate to the ToR Browser Project at https://www.torproject.org/projects/torbrowser.html.en.
10. Download and install the Windows version of the ToR Browser with the default settings.
11. Once the installation completes, start the ToR Browser, use the Connect option on the initial page, and browse to the Application Access Panel at https://myapps.microsoft.com.
12. When prompted, attempt to sign in with the aaduser3 account.
NOTE: You will be presented with the message Your sign-in was blocked. This is expected, since this account is not configured with multi-factor authentication, which is required due to increased sign-in risk associated with the use of ToR Browser.
13. Use the Sign out and sign in with a different account option to sign in as aaduser1 account you created and configured for multi-factor authentication earlier in this lab.
NOTE: This time, you will be presented with the Suspicious activity detected message. Again, this is expected, since this account is configured with multi-factor authentiation. Considering the increased sign-in risk associated with the use of ToR Browser, you will have to use multi-factor authentication.
14. Use the Verify option and specify whether you want to verify your identity via text or a call.
15. Complete the verification and ensure that you successfully signed in to the Application Access Panel.
16. Close your RDP session.
NOTE: At this point, you attempted two different sign ins. Next, you will review the Azure Identity Protection reports.
Task 5: Review the Azure AD Identity Protection reports
1. Back in the Azure portal, use the Directory + subscription filter to switch to the AdatumLab500-04 Azure Active Directory tenant.
2. On the AdatumLab500-04 blade, in the Manage section, click Security.
3. On the Security | Getting started blade, in the Reports section, click Risky users.
4. Review the report and identify any entries referencing the aaduser3 user account.
5. On the Security | Getting started blade, in the Reports section, click Risky sign-ins.
6. Review the report and identify any entries corresponding to the sign-in with the aaduser3 user account.
7. Under Reports click Risk detections.
8. Review the report and identify any entries representing the sign-in from anonymous IP address generated by the ToR browser.
NOTE: It may take 10-15 minutes to risks to show up in reports.
RESULT: You have enabled Azure AD Identity Protection, configured user risk policy and sign-in risk policy, as well as validated Azure AD Identity Protection configuration by simulating risk events.
Clean up resources
We need to remove identity protection resources that you no longer use.
Use the following steps to disable the identity protection policies in the AdatumLab500-04 Azure AD tenant.
1. In the Azure portal, navigate back to the AdatumLab500-04 Azure Active Directory tenant blade.
2. On the AdatumLab500-04 blade, in the Manage section, click Security.
3. On the Security | Getting started blade, in the Protect section, click Identity Protection.
4. On the Identity Protection | Overview blade, click User risk policy.
5. On the Identity Protection | User risk policy blade, set Enforce policy to Off and then click Save.
6. On the Identity Protection | User risk policy blade, click Sign-in risk policy
7. On the Identity Protection | Sign-in risk policy blade, set Enforce policy to Off and then click Save.
Use the following steps to stop the Azure VM you provisioned earlier in the lab.
1. In the Azure portal, set the Directory + subscription filter to the the Azure AD tenant associated with the Azure subscription into which you deployed the az500-04-vm1 Azure VM.
2. In the Azure portal, in the Search resources, services, and docs text box at the top of the Azure portal page, type Virtual machines and press the Enter key.
3. On the Virtual machines blade, click the az500-04-vm1 entry.
4. On the az500-04-vm1 blade, click Stop and, when prompted to confirm, click OK
Do not remove any resources provisioned in this lab, since the PIM lab has a dependency on them.



































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