Microsoft is trying to eliminate passwords
Microsoft has already started moving toward a password-less environment—last year, the company made passkeys the default on new accounts at setup. Now, it is phasing out SMS codes for 2FA and account recovery in favor of passkeys, authenticator apps, and verified backup email addresses.
Passkeys use your device's built-in authentication, such as a face scan, fingerprint scan, or PIN. They can also be synced across devices via password management services. Once you've established your passkey, you can authenticate logins anywhere using one of those methods on your trusted device. Passkeys can't be phished or stolen, and they only work on the legitimate domain they're made for (so they won't prompt you to authenticate if you're trying to log into a spoofed site). They also require that your trusted device be physically close to the device you're logging in on, so they can't be used to access your accounts remotely.
While there doesn't appear to be a set date for cutting off SMS authentication, Microsoft users should expect to make this transition to an alternative method soon.
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