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Microsoft just announced that Multi-factor Authentication will be added to Office 365 Midsize Business, Enterprise, Academic, Nonprofit, and standalone plans: Exchange Online and SharePoint Online.
http://blogs.office.com/2014/02/10/multi-factor-authentication-for-office-365/
Benefits
- After successfully entering password, users are required to acknowledge a phone call, text message, or an app notification on their smartphone
- Only after this second authentication factor has been satisfied can a user sign in.
For applications like Office, that don’t current support MFA, the platform will support App Passwords can be generated to leverage the added security. MFA support in Office client is on the roadmap and is schedule for later 2014.
For a technical understanding Multi-factor Authentication for Office 365, please visit the following technet article.
Please visit the Office 365 Trust Center for more information on security in Office 365.