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You need Two Factor Authentication (2FA) on Microsoft Office 365 (and anywhere else that supports it) to improve the security of your account and prevent someone who has stolen your password from compromising it. 

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Step-by-step guide

You will be told once two factor authentication has been enforced for your account. As soon as this has happened:

  • Log into https://portal.office.com with your email and password.
  • After the first login screen, you will be told More information required. Click Next.

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  • You will be prompted to setup two factor authentication. Click Set it up now

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You now need to setup the additional security verification method. You can have more than one method and you can choose between:

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  • Once you have set up your additional security verification(s) click Next
  • As the final step of the process, you will be given an app specific password, which can be used to login to applications or devices that don't support 2FA.

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  • Copy and Save the password somewhere temporarily. One application that needs this app password is Microsoft Outlook, so shutdown and restart Outlook. You will be asked for your password. Instead of your normal password, use the app password you have saved. 
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From now on when you login with your Microsoft Office 365 account, for example when you log into https://portal.outlook.com, you will be required to use the second factor you have set up.

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If you need to create more app passwords, follow Setup an App Password for Microsoft Office 365

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