In the modern business world, Microsoft 365 has become the backbone of communication, productivity, and collaboration. With its cloud-first approach and wide adoption across Australian businesses, it’s easy to assume that everything you store, send, or share through Microsoft 365 is fully secure.
But here’s the truth: just using Microsoft 365 doesn’t automatically mean your data is fully protected. In fact, many businesses are unknowingly exposed to cyber threats, data loss, and compliance issues due to overlooked security gaps.
Let’s unpack the realities of Microsoft 365 security and what you can do to better protect your business.
What Microsoft 365 Secures — and What It Doesn’t
Microsoft offers robust built-in security tools across its platform. These include:
Basic spam and malware protection for emails
Multi-factor authentication (MFA)
Data encryption at rest and in transit
Basic backup through versioning and retention policies
However, Microsoft follows the shared responsibility model, which means you — the user or organisation — are ultimately responsible for the protection and retention of your own data.
Key Microsoft 365 Security Gaps You Should Know
1. Limited Backup and Recovery
Microsoft 365 offers short-term data retention. If an employee accidentally deletes a file or maliciously wipes out a mailbox, recovery options are limited and often time-sensitive.
Solution: Implement a third-party backup solution designed for Microsoft 365 to ensure full data recoverability — even months or years later.
2. Phishing and Ransomware Attacks
Email remains the #1 attack vector for businesses. Cybercriminals often bypass basic spam filters using sophisticated phishing tactics, impersonation, and ransomware-laden attachments.
Solution: Invest in advanced email threat protection, including anti-phishing, link scanning, and real-time anomaly detection.
3. Inadequate User Access Control
Over-permissioned users can accidentally or maliciously leak sensitive data. Unmanaged file sharing and guest access also increase data exposure risks.
Solution: Apply the principle of least privilege, monitor access levels, and regularly audit permissions — especially in SharePoint and OneDrive.
4. Lack of Visibility and Monitoring
Without proper logging and alerting, it’s difficult to detect suspicious behaviour, such as brute-force login attempts, data downloads, or unusual file sharing.
Solution: Enable Microsoft Defender for Office 365 or integrate with a Security Information and Event Management (SIEM) system for real-time alerting.
5. Insider Threats
Internal users — intentionally or not — are responsible for a large portion of security breaches. Microsoft 365 offers limited controls to mitigate insider risks by default.
Solution: Implement Data Loss Prevention (DLP) policies, endpoint protection, and employee awareness training to reduce risks.
How Code Hyper One Can Help
At Code Hyper One, we provide tailored Microsoft 365 security solutions for small to medium Australian businesses. Whether you’re using Exchange Online, SharePoint, Teams, or OneDrive, our team ensures your data, identities, and operations are well protected.
Our services include:
✅ Microsoft 365 Backup & Recovery
✅ Advanced Email Security & Phishing Protection
✅ Identity Management with Conditional Access & MFA
✅ SharePoint & OneDrive Permission Audits
✅ Security Awareness Training
✅ Microsoft Secure Score Reviews
✅ Data Loss Prevention (DLP) & Information Governance
We also offer ongoing monitoring and support, ensuring your Microsoft 365 environment evolves with your business and stays protected against emerging threats.
Final Thoughts
Microsoft 365 is powerful — but only as secure as you configure it. Don’t wait for a breach to find out where your weak spots are. By proactively reviewing and improving your Microsoft 365 security posture, you can protect your organisation from costly downtime, data loss, and compliance headaches.
📞 Contact Code Hyper One today for a full Microsoft 365 security assessment and let’s make sure your business is truly protected.
