Microsoft is phasing out SMS authentication and account recovery for all personal Microsoft accounts, including those used with Xbox, citing it as a leading source of fraud. The change promotes more secure passwordless options like passkeys to counter phishing and SIM-swap attacks while simplifying access.

Microsoft believes that the future of authentication is passwordless, secure, and user-friendly.
SMS-based authentication is now a leading source of fraud, and by moving to passwordless accounts, passkeys, and verified email, we're helping you stay ahead of evolving threats while making account access simpler and more seamless.
Expert Take: Cloud admins should audit Microsoft account security settings now to migrate users to passkeys and Authenticator before SMS options disappear entirely.
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