Microsoft SC-401 Administering Information Security in Microsoft 365 Exam Dumps and Practice Test Questions Set7 Q121-140

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Question 121

What is the most effective way to implement DLP policies in Microsoft 365 to protect sensitive organizational data?

A Configure Microsoft Defender Antivirus
B Create and deploy DLP policies in Microsoft Purview
C Enable Conditional Access policies
D Configure Multi-Factor Authentication

Answer: B

Explanation:

Implementing Data Loss Prevention (DLP) policies in Microsoft 365 is a fundamental step for organizations aiming to protect sensitive information, including personal data, financial records, health information, trade secrets, and other intellectual property. DLP policies help prevent accidental or intentional exposure of this sensitive data both within and outside the organization. Microsoft Purview offers a centralized platform to create, deploy, and monitor DLP policies across multiple Microsoft 365 services, such as Exchange Online, SharePoint Online, OneDrive for Business, and Microsoft Teams.

Administrators can define sensitive information types, including credit card numbers, social security numbers, passport numbers, health records, or custom-defined sensitive data. Policies can then be customized to detect these types of content and enforce automated actions, including sending alerts, encrypting files, restricting sharing, or blocking content entirely. By doing so, organizations achieve a high level of control over their data while maintaining compliance with regulatory standards such as GDPR, HIPAA, ISO 27001, and other industry-specific regulations.

A is incorrect because Microsoft Defender Antivirus primarily focuses on endpoint threat protection, such as viruses, malware, ransomware, and spyware, but it does not provide mechanisms to identify, classify, or prevent the leakage of sensitive content. C Conditional Access policies focus on controlling access to resources based on user or device conditions but cannot enforce automated content inspection or policy actions for sensitive information. D Multi-Factor Authentication strengthens account authentication security but does not protect the actual content being shared or stored.

Using Microsoft Purview for DLP allows organizations to implement proactive data governance, ensuring that sensitive data is monitored and secured in real-time. Policies can be configured to operate silently in monitoring mode first, providing reports and insights to understand risk areas before enforcing strict actions. Organizations can also create exception rules for specific groups, locations, or types of content, allowing flexibility while maintaining security. Integrating DLP with Microsoft Purview also enables organizations to leverage activity monitoring, automated alerts, and reporting dashboards, giving administrators actionable insights into potential risks and policy violations.

Ultimately, deploying DLP policies through Microsoft Purview enhances data protection, reduces human error, improves compliance posture, and provides consistent protection across all collaboration platforms in Microsoft 365. By automating sensitive data monitoring and protection, organizations significantly reduce the likelihood of data breaches, accidental exposure, or misuse of confidential information, reinforcing a culture of security-conscious operations.

Question 122

How can you restrict users from downloading sensitive data when accessing Microsoft 365 from unmanaged devices?

A Azure AD Identity Protection
B Microsoft Purview DLP Policies
C Conditional Access App Protection Policies
D Microsoft Defender for Endpoint

Answer: C

Explanation:

Conditional Access App Protection Policies are designed to protect organizational data on unmanaged devices or BYOD scenarios, where traditional device management policies may not be feasible. These policies integrate with Microsoft Intune to enforce app-level restrictions that prevent sensitive content from being downloaded, copied, pasted, or saved outside of approved applications. This ensures that organizational data remains secure even when accessed from personal devices that are not fully managed or compliant.

A Azure AD Identity Protection is focused on detecting risky sign-ins and identity-based threats but does not provide granular control over application-level access or actions. B Microsoft Purview DLP Policies can prevent data leaks within Microsoft 365 services but do not extend enforcement to unmanaged apps on personal devices. D Microsoft Defender for Endpoint protects devices from malware and other threats but does not directly control data movement or application behavior.

By leveraging App Protection Policies, administrators can enforce restrictions on mobile apps such as Microsoft Word, Excel, PowerPoint, and Outlook, ensuring that sensitive content cannot be saved to local storage or shared with unauthorized apps. These policies are especially valuable in hybrid and remote work scenarios, where employees may access corporate data from personal devices or unsecured networks. Conditional Access App Protection Policies work alongside Conditional Access rules, allowing organizations to enforce multi-factor authentication, device compliance, and other risk-based requirements before granting access to sensitive applications.

Implementing these policies not only safeguards organizational data but also supports compliance with industry and government regulations. Automated enforcement ensures consistent protection, reduces the likelihood of accidental data leaks, and provides detailed reporting for auditing purposes. Organizations can also monitor app activity and track policy violations, giving administrators a clear understanding of how sensitive data is being used across devices. By combining App Protection Policies with DLP, encryption, and other Microsoft 365 security tools, organizations can achieve a comprehensive data protection strategy that balances security with user productivity.

Question 123

Which Microsoft 365 feature helps classify and label data to enforce encryption and retention policies automatically?

A Microsoft Teams Compliance Center
B Sensitivity Labels in Microsoft Purview
C Azure Information Protection Scanner
D Microsoft Endpoint Manager

Answer: B

Explanation:

Sensitivity Labels in Microsoft Purview are a key feature that allows organizations to classify, label, and protect sensitive data across Microsoft 365 services automatically. The primary purpose of sensitivity labels is to help organizations enforce data protection policies, ensuring that confidential and critical information is properly secured regardless of where it is stored or who accesses it. Labels can be applied manually by users, giving them control over classification, or automatically based on content analysis, such as detecting credit card numbers, personal identification information, health records, or proprietary business documents.

Once a label is applied, it can enforce encryption, restrict access to specific users or groups, prevent external sharing, and trigger retention policies. These capabilities make sensitivity labels crucial for regulatory compliance with GDPR, HIPAA, ISO standards, and other industry-specific regulations. By automating classification and protection, organizations reduce reliance on human judgment, minimize errors, and maintain consistent enforcement across all Microsoft 365 platforms, including SharePoint Online, OneDrive for Business, Exchange Online, and Microsoft Teams.

A Microsoft Teams Compliance Center primarily focuses on monitoring and reporting collaboration activity but does not provide automated classification or labeling capabilities. C Azure Information Protection Scanner can detect sensitive information within on-premises repositories, but it lacks the real-time, automatic labeling and enforcement capabilities available in Microsoft Purview. D Microsoft Endpoint Manager manages devices and applications but does not classify or label data for encryption and retention.

Sensitivity Labels also integrate with other Microsoft 365 security and compliance tools, providing administrators with a holistic approach to data governance. For example, labels can work with DLP policies to detect sensitive content in emails and documents and enforce protective measures such as encryption or access restrictions. They also allow centralized monitoring and reporting, enabling administrators to track labeled content, policy enforcement, and potential violations.

Organizations that implement sensitivity labels effectively can achieve a comprehensive data protection strategy that balances security and productivity. Employees can continue working collaboratively while the system automatically ensures that sensitive content is classified, secured, and retained according to organizational policies. This automated approach reduces the risk of data breaches, enhances compliance, and strengthens the overall security posture of the organization. Sensitivity Labels are a cornerstone feature in Microsoft 365 for modern data governance and regulatory compliance.

Question 124

Which Microsoft 365 feature provides actionable insights for detecting unusual sign-in activity or potential account compromise?

A Microsoft Defender for Identity
B Azure AD Identity Protection
C Microsoft Purview Audit Logs
D Microsoft 365 Security Score

Answer: B

Explanation:

Azure AD Identity Protection is a powerful Microsoft 365 feature designed to identify, monitor, and respond to identity-related risks. It uses advanced machine learning algorithms and heuristics to detect unusual sign-in activities, potential account compromise, and other suspicious behavior. Examples include impossible travel sign-ins, multiple failed login attempts, sign-ins from anonymous IP addresses, or activities from previously unseen locations. Identity Protection evaluates these signals to calculate a risk score for users and sign-in events, allowing administrators to prioritize response efforts effectively.

A Microsoft Defender for Identity is focused on monitoring on-premises Active Directory environments for lateral movement and identity attacks, but it does not provide the cloud-based insights or risk scoring that Identity Protection offers. C Microsoft Purview Audit Logs provide detailed records of activities across Microsoft 365, but administrators must manually analyze these logs to identify anomalies, making it less proactive. D Microsoft 365 Security Score evaluates overall security posture and gives recommendations but does not detect or respond to individual risky sign-ins in real-time.

Azure AD Identity Protection allows organizations to implement automated risk-based policies, such as requiring multi-factor authentication, blocking sign-ins, or forcing password resets for high-risk users. These automated responses help reduce the likelihood of account compromise, limit unauthorized access, and strengthen overall identity security. Administrators also receive comprehensive reports that provide visibility into trends, risky users, and the effectiveness of implemented policies.

By using Azure AD Identity Protection, organizations can achieve a proactive approach to identity security. The solution supports compliance with regulatory frameworks that require monitoring of access and detection of identity risks. It also integrates with Conditional Access to dynamically enforce access controls based on the risk level, ensuring that only trusted users on compliant devices can access sensitive resources. Identity Protection thus forms a central component of a zero-trust security strategy, reducing the likelihood of breaches and protecting sensitive corporate data from unauthorized access.

Question 125

How can you automatically encrypt emails containing sensitive information when sending externally in Microsoft 365?

A Transport Rules in Exchange Online
B Microsoft Defender Antivirus Policies
C Conditional Access App Protection Policies
D Azure AD Access Reviews

Answer: A

Explanation:

Transport Rules, also known as mail flow rules, in Exchange Online allow administrators to automatically detect and encrypt emails that contain sensitive content before they are sent externally. Organizations can define rules based on various conditions, such as the presence of specific keywords, sensitive information types, or particular recipients. Once a rule detects that a message meets the criteria, it can apply Office 365 Message Encryption automatically, ensuring that sensitive content is protected in transit.

B Microsoft Defender Antivirus focuses on endpoint threat protection and does not control or encrypt email messages. C Conditional Access App Protection Policies enforce app-level restrictions on devices but do not provide encryption for email messages. D Azure AD Access Reviews manage user access permissions but are unrelated to email encryption.

Transport Rules offer organizations a powerful method to enforce security policies without relying on end users to manually secure sensitive messages. This is critical in maintaining compliance with regulations such as GDPR, HIPAA, or ISO standards, where organizations are required to protect personally identifiable information, health data, financial records, and other confidential content. Administrators can configure rules to notify users when a message is encrypted, log the event for auditing purposes, or block message delivery if necessary.

By leveraging Transport Rules, organizations achieve consistent, automated enforcement of email protection policies, reducing human error and minimizing the risk of accidental data leaks. These rules also allow detailed reporting and auditing, giving administrators insight into policy effectiveness and ensuring that sensitive emails are properly handled. Transport Rules work seamlessly with other Microsoft 365 security features, creating a comprehensive data protection strategy that safeguards communications without impeding productivity. Automated encryption helps maintain trust with external partners, protects intellectual property, and supports overall organizational security posture.

Question 126

Which method allows automatic classification and protection of documents in Microsoft 365 based on their content?

A Microsoft Teams Compliance Center
B Sensitivity Labels in Microsoft Purview
C Azure Information Protection Scanner
D Microsoft Endpoint Manager

Answer: B

Explanation:

Sensitivity Labels in Microsoft Purview enable organizations to automatically classify and protect documents based on the content detected within Microsoft 365 services, including SharePoint Online, OneDrive for Business, Exchange Online, and Microsoft Teams. These labels help ensure that sensitive or confidential data, such as personally identifiable information, financial records, intellectual property, and other critical organizational content, is secured according to predefined policies. Labels can be applied manually by users or automatically through rules that detect specific patterns or keywords in documents.

Once a document is labeled, various protections can be applied. These protections include encryption, access restrictions, restriction of external sharing, and retention policies. This automation ensures that sensitive content is consistently protected without relying solely on human intervention, significantly reducing the risk of accidental data exposure. Administrators can configure labels to automatically enforce compliance with industry regulations such as GDPR, HIPAA, ISO standards, and internal corporate policies.

A Microsoft Teams Compliance Center focuses on monitoring collaborative activities within Teams but does not provide automated classification or protection of documents. C Azure Information Protection Scanner helps discover sensitive content in on-premises repositories but does not enforce real-time labeling and protection in cloud environments. D Microsoft Endpoint Manager primarily manages devices and applications and does not offer document-level classification or encryption capabilities.

Using Sensitivity Labels, organizations can implement a comprehensive data governance strategy that combines detection, classification, and protection of sensitive content. Labels can also integrate with Data Loss Prevention (DLP) policies to automatically detect and prevent the sharing of sensitive information. The combination of these tools allows organizations to maintain security, enforce compliance, and reduce human error while enabling employees to collaborate effectively. By automating the classification and protection process, Microsoft 365 ensures that sensitive content is always handled securely and consistently, enhancing overall organizational security posture.

Question 127

Which Microsoft 365 feature can help monitor user activity and generate alerts for unusual or risky behavior?

A Microsoft Defender for Identity
B Azure AD Identity Protection
C Microsoft Purview Audit Logs
D Microsoft 365 Security Score

Answer: C

Explanation:

Microsoft Purview Audit Logs provide detailed, centralized records of user and administrative activities across Microsoft 365 services. These logs capture events such as file access, sharing actions, mailbox activities, administrative changes, and more. By analyzing this data, organizations can detect unusual or risky behavior, investigate potential security incidents, and maintain regulatory compliance. Alerts can be configured to notify administrators when specific events occur, such as multiple failed login attempts, unusual file downloads, or external sharing of sensitive data.

A Microsoft Defender for Identity focuses on detecting suspicious activity in on-premises Active Directory but does not provide comprehensive cloud activity monitoring. B Azure AD Identity Protection evaluates risk for user accounts and sign-ins but does not provide detailed activity logs for collaboration services. D Microsoft 365 Security Score gives recommendations to improve security posture but does not actively monitor user activities or generate alerts for specific risky events.

Purview Audit Logs enable proactive monitoring of organizational activity, helping security teams identify patterns that may indicate compromised accounts or insider threats. Logs can be integrated with Security Information and Event Management (SIEM) systems for centralized monitoring, correlation of events, and advanced threat detection. Administrators can also generate detailed reports to satisfy compliance audits and demonstrate proper governance over sensitive information. By leveraging these logs and alerts, organizations gain visibility into user behavior, reduce the likelihood of unauthorized access, and respond to potential security incidents promptly. Effective use of Purview Audit Logs ensures that user activity is monitored continuously, supporting a secure and compliant Microsoft 365 environment.

Question 128

What tool allows you to control access to Microsoft 365 resources based on device compliance, location, or risk level?

A Microsoft Defender Antivirus
B Conditional Access Policies
C Microsoft Purview DLP Policies
D Azure AD Access Reviews

Answer: B

Explanation:

Conditional Access Policies in Microsoft 365 provide a dynamic and flexible framework to control access to organizational resources based on a wide range of conditions, including device compliance, user location, application context, and risk level. These policies enable administrators to enforce security requirements such as multi-factor authentication, device health checks, or blocking access from high-risk or unmanaged devices. Conditional Access allows organizations to adopt a zero-trust security model, evaluating each access attempt and applying appropriate controls based on the context.

A Microsoft Defender Antivirus protects endpoints from malware but does not enforce access control based on user context. C Microsoft Purview DLP Policies help prevent sensitive data leakage but do not manage access to resources. D Azure AD Access Reviews provide governance for periodic access validation but do not enforce real-time access restrictions.

By implementing Conditional Access Policies, organizations ensure that only trusted users on compliant devices can access critical data and applications. These policies can be integrated with risk detection mechanisms such as Azure AD Identity Protection, allowing automated responses to high-risk sign-ins or potentially compromised accounts. Conditional Access Policies also support granular controls, including blocking access, requiring approved client apps, or enforcing session controls for cloud apps. This proactive approach reduces the risk of unauthorized access, strengthens compliance, and protects sensitive information while maintaining productivity for legitimate users. Organizations using Conditional Access benefit from real-time enforcement, reporting capabilities, and the ability to adapt policies dynamically as threats evolve, making it a cornerstone of Microsoft 365 security strategy.

Question 129

Which feature ensures that sensitive emails are encrypted and cannot be forwarded or printed outside the organization?

A Transport Rules in Exchange Online
B Office 365 Message Encryption with Rights Management
C Conditional Access App Protection Policies
D Azure AD Identity Protection

Answer: B

Explanation:

Office 365 Message Encryption combined with Rights Management is designed to protect sensitive email content by applying encryption and access restrictions. When configured, it ensures that only authorized recipients can read the email, while preventing actions such as forwarding, copying, or printing that could compromise confidentiality. This is particularly important for organizations dealing with sensitive financial, legal, or healthcare-related communications that require strict control over message handling.

A Transport Rules in Exchange Online can enforce encryption based on content conditions but do not provide full control over forwarding, printing, or copying. C Conditional Access App Protection Policies secure organizational data within apps but do not directly protect emails. D Azure AD Identity Protection monitors user sign-in risks but does not provide email encryption or rights management.

Using Office 365 Message Encryption with Rights Management allows organizations to maintain regulatory compliance and safeguard intellectual property. Administrators can define policies that automatically detect sensitive content, apply encryption, and enforce access restrictions. This reduces the risk of accidental data exposure while preserving seamless email functionality for users. The integration with Exchange Online and Outlook ensures that encryption and usage restrictions are applied transparently, maintaining productivity while enforcing strict security standards. Organizations gain visibility into encrypted emails, tracking delivery and access, and can generate reports for compliance audits. By automating encryption and rights management, Office 365 helps organizations protect confidential communications effectively while reducing human error.

Question 130

What is the primary purpose of Microsoft Defender for Identity in a hybrid environment?

A Protect devices from malware
B Detect lateral movements and identity-based attacks
C Apply DLP policies on documents
D Enforce access control based on device compliance

Answer: B

Explanation:

Microsoft Defender for Identity is designed to detect identity-based attacks and suspicious activity in hybrid environments that include both on-premises Active Directory and Microsoft 365 cloud services. Its primary purpose is to identify threats such as lateral movement, privilege escalation, compromised credentials, Pass-the-Hash attacks, and other identity-based attacks. It continuously monitors user behavior, analyzes network traffic, and correlates events to detect abnormal activity that may indicate an ongoing security breach.

A Microsoft Defender Antivirus protects devices from malware but does not detect identity-based threats or lateral movements. C DLP policies prevent data leaks but do not monitor identity behavior or attacks. D Conditional Access enforces access control but does not detect or respond to compromised accounts or lateral movement within the network.

Defender for Identity provides actionable alerts to security teams, enabling rapid investigation and response to potential threats. The system correlates suspicious activities with known attack patterns and can integrate with Microsoft 365 security solutions to provide a comprehensive view of security events across the environment. This proactive monitoring helps organizations mitigate attacks before they escalate, protect sensitive resources, and comply with security standards. It is especially valuable in hybrid setups where attackers may exploit both on-premises and cloud environments, as it provides a unified approach to detecting, investigating, and responding to identity-based threats. Implementing Defender for Identity strengthens overall security posture, enhances threat detection, and supports compliance and governance objectives.

Question 131

Which Microsoft 365 feature allows administrators to review user access periodically and remove unnecessary permissions?

A Azure AD Access Reviews
B Microsoft Purview Audit Logs
C Conditional Access Policies
D Microsoft 365 Security Score

Answer: A

Explanation:

Azure AD Access Reviews provide a structured process for administrators to review user access to resources, groups, and applications within Microsoft 365. By conducting periodic access reviews, organizations can ensure that only authorized users retain access to sensitive resources, reducing the risk of unauthorized access or over-privileged accounts. This capability is crucial for maintaining a secure environment and complying with regulatory frameworks that require regular verification of user permissions.

B Microsoft Purview Audit Logs focus on capturing activity records for monitoring and investigation but do not manage access rights. C Conditional Access Policies enforce real-time access controls based on conditions like device compliance or risk but do not periodically validate existing permissions. D Microsoft 365 Security Score evaluates overall security posture and provides recommendations but does not directly enforce access reviews.

With Azure AD Access Reviews, administrators can automate review cycles, assign reviewers, and configure approval workflows. Reviewers can approve, deny, or remove access based on the user’s role, employment status, or necessity of access. This automation reduces administrative overhead and ensures consistent application of the principle of least privilege. Additionally, access reviews can be applied to guest users, external collaborators, and internal users, helping organizations maintain a secure environment while facilitating collaboration.

Access Reviews also provide reporting capabilities, allowing organizations to track review progress, detect anomalies, and demonstrate compliance with internal policies and external regulatory requirements. They are especially valuable in large organizations with dynamic user populations or frequent role changes, as manual access management would be inefficient and error-prone. By integrating access reviews into a comprehensive identity governance strategy, organizations can enhance security, reduce the risk of insider threats, and maintain a strong compliance posture. Ultimately, Azure AD Access Reviews create a continuous process of access validation, helping ensure that organizational resources remain protected while maintaining user productivity.

Question 132

Which Microsoft 365 tool can detect sensitive data in files and emails and prevent accidental sharing externally?

A Microsoft Purview Data Loss Prevention (DLP)
B Microsoft Defender Antivirus
C Azure AD Identity Protection
D Microsoft 365 Security Score

Answer: A

Explanation:

Microsoft Purview Data Loss Prevention (DLP) is specifically designed to identify, monitor, and prevent the sharing of sensitive data across Microsoft 365 services. DLP policies enable administrators to define conditions that detect content containing sensitive information such as social security numbers, credit card details, health records, or confidential business data. Once detected, DLP can enforce protective actions, such as blocking the sharing of content, sending alerts to administrators, encrypting documents, or providing user notifications to prevent accidental data leakage.

B Microsoft Defender Antivirus protects endpoints from malware but does not monitor or prevent sensitive data sharing. C Azure AD Identity Protection evaluates identity-based risks, such as compromised credentials or risky sign-ins, but does not manage content or prevent leaks. D Microsoft 365 Security Score provides recommendations to improve security posture but does not actively prevent data exposure.

DLP policies in Microsoft 365 can be applied to Exchange Online, SharePoint Online, OneDrive for Business, and Microsoft Teams, ensuring comprehensive protection across the organization. Policies can be configured to operate in audit mode initially, providing insights and reporting without enforcing restrictions, before moving to active enforcement. This approach allows organizations to fine-tune rules, understand potential risks, and educate users on proper data handling practices.

Implementing DLP ensures that sensitive organizational data is protected from accidental leaks and intentional misuse, supporting compliance with legal and industry standards, such as GDPR, HIPAA, or ISO requirements. Administrators gain visibility into data usage patterns, identify risky behaviors, and generate detailed reports for auditing and compliance purposes. By combining DLP with sensitivity labels and encryption policies, organizations can create a robust data protection strategy that balances security with productivity, ensuring that sensitive information is consistently handled securely throughout Microsoft 365.

Question 133

What type of policy can prevent users from copying organizational data to personal apps on unmanaged devices?

A Microsoft Defender Antivirus Policies
B Conditional Access App Protection Policies
C Azure AD Access Reviews
D Microsoft Purview DLP Policies

Answer: B

Explanation:

Conditional Access App Protection Policies are designed to protect organizational data within mobile and desktop applications, particularly on unmanaged devices or BYOD scenarios. These policies enforce rules at the application level, preventing users from copying, pasting, saving, or printing organizational data outside of approved applications. This ensures sensitive information remains protected, even if accessed from personal or unmanaged devices that cannot be fully controlled by IT administrators.

A Microsoft Defender Antivirus protects endpoints against malware but does not control app-level data handling. C Azure AD Access Reviews validate access periodically but do not enforce real-time app-level restrictions. D Microsoft Purview DLP Policies prevent sensitive data sharing in Microsoft 365 but do not apply to personal applications on devices.

App Protection Policies integrate with Conditional Access to enforce security requirements based on device compliance, user risk, and other conditions. For example, a policy can block the opening of corporate documents on non-compliant devices or prevent saving to cloud storage outside the organization. These policies help organizations adopt a zero-trust approach, where every access and data interaction is controlled and verified.

Implementing App Protection Policies reduces the risk of accidental data leakage, enforces compliance, and allows secure collaboration in modern hybrid work environments. Users can continue working productively on personal devices without compromising security, while administrators retain control over how data is accessed and shared. Policies also support auditing and reporting, enabling organizations to monitor compliance and improve security awareness. By combining App Protection Policies with DLP, encryption, and sensitivity labels, organizations can establish a comprehensive, multi-layered security framework that protects sensitive data at all points of access.

Question 134

Which feature allows administrators to configure alerts for risky sign-ins or unusual activity in Microsoft 365?

A Azure AD Identity Protection
B Microsoft Purview Audit Logs
C Microsoft Defender for Identity
D Microsoft 365 Security Score

Answer: A

Explanation:

Azure AD Identity Protection is a comprehensive tool designed to detect and respond to identity-based risks in Microsoft 365. It continuously monitors sign-in activity and evaluates the risk level associated with each user and sign-in event. By using advanced machine learning and heuristics, Identity Protection can identify unusual behaviors, such as impossible travel scenarios, sign-ins from unfamiliar locations, multiple failed login attempts, or the use of anonymous IP addresses. Administrators can configure alerts for high-risk activities and automatically trigger responses like enforcing multi-factor authentication, requiring password resets, or blocking access entirely.

B Microsoft Purview Audit Logs provide detailed records of activities but require manual monitoring and analysis to detect anomalies. C Microsoft Defender for Identity focuses on monitoring on-premises Active Directory for lateral movement and identity-based attacks but does not generate cloud-based alerts for sign-ins. D Microsoft 365 Security Score evaluates overall security posture but does not provide real-time alerts for risky activity.

Identity Protection enables organizations to take a proactive approach to identity security by combining detection, reporting, and automated response mechanisms. Automated risk-based policies allow organizations to respond immediately to suspicious activity, minimizing the chance of account compromise and protecting sensitive organizational data. Reports and dashboards provide visibility into user risk levels, the effectiveness of applied policies, and historical trends in sign-in risk.

By integrating Azure AD Identity Protection with Conditional Access and other security tools, organizations can enforce contextual access controls, ensuring that only legitimate users on compliant devices can access sensitive resources. This approach supports a zero-trust security model, reduces the risk of breaches, and enhances regulatory compliance. Ultimately, Identity Protection helps maintain organizational security while providing administrators with actionable insights and automated controls to mitigate identity-based risks.

Question 135

How can administrators ensure email messages containing sensitive information are protected from being forwarded outside the organization?

A Transport Rules in Exchange Online
B Office 365 Message Encryption with Rights Management
C Conditional Access App Protection Policies
D Microsoft Purview DLP Policies

Answer: B

Explanation:

Office 365 Message Encryption combined with Rights Management is a critical tool for securing sensitive email content in Microsoft 365. This feature not only encrypts messages but also allows administrators to apply strict access controls, preventing recipients from forwarding, copying, or printing the content. These protections ensure that sensitive communications, such as financial reports, personal health information, or confidential business agreements, remain secure, even when shared externally.

A Transport Rules in Exchange Online can trigger encryption based on content detection but do not provide full control over message usage after delivery. C Conditional Access App Protection Policies protect data at the app level but do not directly control email content or prevent forwarding. D Microsoft Purview DLP Policies can detect sensitive data and block sharing in some contexts but are not specifically designed to enforce message-level rights management in email.

Using Office 365 Message Encryption with Rights Management allows organizations to implement automated policies based on message content. For example, emails containing sensitive keywords, financial information, or personal identifiers can be automatically encrypted and restricted from being shared outside authorized recipients. This helps organizations comply with privacy regulations, maintain confidentiality, and protect intellectual property. Administrators can also track the delivery and access of encrypted messages, providing an audit trail for compliance and reporting purposes.

By automating email encryption and rights management, organizations reduce the risk of accidental data leaks, ensure consistent enforcement of security policies, and maintain productivity for end users. This approach integrates seamlessly with Exchange Online and Outlook, providing transparent protection without requiring manual intervention from users. Office 365 Message Encryption with Rights Management thus forms a vital component of a comprehensive data protection and compliance strategy in Microsoft 365.

Question 136

Which Microsoft 365 feature helps identify suspicious lateral movement in a hybrid Active Directory environment?

A Microsoft Defender for Identity
B Azure AD Identity Protection
C Microsoft Purview Audit Logs
D Microsoft 365 Security Score

Answer: A

Explanation:

Microsoft Defender for Identity is specifically designed to monitor on-premises Active Directory environments and detect suspicious identity-related activities that may indicate potential security breaches. One of the key threats in hybrid environments is lateral movement, where attackers compromise one account and then attempt to move through the network to gain access to additional accounts or sensitive resources. Defender for Identity analyzes user and entity behavior, network traffic, and authentication events to identify anomalies that could signal lateral movement, privilege escalation, or other identity-based attacks.

B Azure AD Identity Protection focuses on cloud-based identity risks, such as compromised user accounts or risky sign-ins, but does not detect lateral movement within on-premises Active Directory. C Microsoft Purview Audit Logs provide detailed activity records but do not proactively detect or alert administrators about lateral movement in real time. D Microsoft 365 Security Score evaluates an organization’s overall security posture and offers recommendations, but it does not detect specific security incidents such as lateral movement.

Defender for Identity uses advanced behavioral analytics to build a baseline of normal activity, enabling it to identify deviations that could indicate malicious behavior. For example, if a user account suddenly accesses resources it never interacted with before, or logs in from an unusual location, Defender for Identity will trigger alerts for investigation. It also detects well-known attack techniques such as Pass-the-Hash, Pass-the-Ticket, and reconnaissance activities within Active Directory.

Implementing Defender for Identity in hybrid environments enhances security by providing early detection and actionable insights. Administrators can respond to alerts, investigate potential threats, and take proactive steps to mitigate risk before attackers escalate their privileges or exfiltrate sensitive data. Integration with Microsoft 365 security tools and SIEM solutions allows organizations to correlate alerts across cloud and on-premises environments, offering a unified security view. This holistic approach ensures comprehensive protection, strengthens compliance, and helps organizations maintain a resilient security posture in a hybrid identity environment.

Question 137

What is the main benefit of using Microsoft Purview Data Loss Prevention (DLP) in Microsoft Teams?

A Prevent malware infection
B Detect and block sharing of sensitive information
C Enforce device compliance
D Monitor user sign-ins

Answer: B

Explanation:

Microsoft Purview Data Loss Prevention (DLP) in Microsoft Teams helps organizations identify, monitor, and protect sensitive information shared during collaboration. Teams is widely used for chats, file sharing, meetings, and group collaboration, making it critical to ensure that sensitive data, such as financial records, personal data, or confidential business documents, is not inadvertently or intentionally shared externally. DLP policies in Teams allow administrators to define conditions that detect sensitive content and enforce actions like blocking messages, preventing file sharing, alerting users, or logging incidents for further review.

A Microsoft Defender Antivirus protects endpoints against malware but does not detect or prevent data sharing within Teams. C Conditional Access Policies enforce device or user-based access controls but do not monitor content. D Azure AD Identity Protection monitors risky sign-ins but does not enforce data protection in collaboration platforms.

By implementing DLP policies in Teams, organizations can achieve consistent enforcement of data protection rules across chat, channels, and file-sharing environments. DLP policies can automatically detect sensitive content in messages or files and prevent it from being sent to unauthorized recipients, including external users. This automated enforcement reduces reliance on user judgment, minimizes human error, and ensures compliance with privacy and regulatory standards.

Administrators can configure DLP policies to operate in audit mode initially to gain insight into data-sharing practices before enforcing strict controls. Integration with sensitivity labels further enhances protection by classifying and labeling content automatically based on sensitivity, which DLP policies can then enforce. Detailed reporting and monitoring allow security teams to track policy effectiveness, investigate incidents, and generate compliance reports for auditing purposes. Ultimately, using DLP in Teams strengthens data governance, prevents leaks of sensitive information, and fosters a secure collaborative environment without impeding productivity.

Question 138

Which Microsoft 365 feature allows automatic labeling of documents based on sensitive content detection?

A Sensitivity Labels in Microsoft Purview
B Microsoft Endpoint Manager
C Azure AD Access Reviews
D Microsoft Defender for Identity

Answer: A

Explanation:

Sensitivity Labels in Microsoft Purview are a powerful tool for automatically classifying and labeling documents and emails based on their content. Administrators can configure labels to detect sensitive information, such as social security numbers, financial data, personal identifiers, or intellectual property, and apply protections automatically. This ensures that documents are consistently classified and protected without relying solely on user intervention, significantly reducing the risk of accidental exposure of confidential information.

B Microsoft Endpoint Manager focuses on managing devices and applications, but it does not classify or label documents. C Azure AD Access Reviews validate user access periodically but do not label content. D Microsoft Defender for Identity monitors for suspicious activity within Active Directory but does not classify or label files.

Automatic labeling enhances security and compliance by enforcing encryption, restricting access, applying retention policies, and integrating with Data Loss Prevention (DLP) to prevent sharing of sensitive content. Labels can be applied in real-time to documents stored in SharePoint, OneDrive, or Teams, as well as to emails in Exchange Online. Policies can be fine-tuned with exceptions, thresholds, and scope definitions, providing flexibility while maintaining strong security controls.

By automating classification and protection, organizations reduce reliance on user actions, prevent human errors, and enforce consistent policies across cloud and hybrid environments. Reporting and monitoring tools provide visibility into labeled content, enabling administrators to track compliance, detect policy violations, and respond proactively to potential security incidents. This integration of automatic labeling, DLP, and encryption forms a comprehensive approach to data governance, protecting sensitive information, supporting regulatory compliance, and maintaining organizational trust.

Question 139

What is the purpose of Conditional Access App Protection Policies in Microsoft 365?

A Apply antivirus protection
B Control app-level access and data handling on devices
C Monitor lateral movement in Active Directory
D Audit user sign-ins

Answer: B

Explanation:

Conditional Access App Protection Policies are designed to safeguard organizational data at the application level, particularly on mobile and unmanaged devices. These policies allow administrators to enforce controls over how corporate data is accessed, shared, and stored within approved applications such as Outlook, Word, Excel, PowerPoint, and Teams. Policies can prevent copying, pasting, printing, or saving data to unauthorized locations, ensuring that sensitive content remains secure even on personal devices.

A Microsoft Defender Antivirus protects endpoints from malware but does not enforce app-level controls. C Microsoft Defender for Identity monitors lateral movement and identity-based attacks but does not control application-level data handling. D Microsoft Purview Audit Logs track activities but do not enforce app protection policies.

By using App Protection Policies, organizations can implement a zero-trust security approach that treats every access attempt as potentially risky and applies protective measures dynamically. These policies integrate with Conditional Access to enforce additional security requirements, such as multi-factor authentication or device compliance, before allowing access to sensitive applications. This ensures that organizational data remains protected in BYOD scenarios or when employees work remotely.

Administrators can monitor and report on policy enforcement, track user behavior, and detect attempts to bypass restrictions. Combining App Protection Policies with sensitivity labels and DLP further strengthens data protection, providing a multi-layered security framework. This approach reduces the risk of data leakage, supports regulatory compliance, and ensures a consistent security posture across Microsoft 365 environments, all while maintaining user productivity.

Question 140

Which tool in Microsoft 365 helps detect sensitive data in emails and apply encryption automatically?

A Microsoft Purview DLP
B Transport Rules in Exchange Online
C Office 365 Message Encryption with Rights Management
D Microsoft Defender for Identity

Answer: C

Explanation:

Office 365 Message Encryption with Rights Management allows organizations to automatically encrypt emails containing sensitive content and enforce usage restrictions, such as preventing forwarding, printing, or copying. This ensures that sensitive information, including financial, legal, or personal data, is protected when sent externally, maintaining confidentiality and regulatory compliance. Policies can be configured to trigger encryption based on content detection, recipient type, or specific keywords, making protection seamless and automated.

A Microsoft Purview DLP can detect sensitive information in emails but does not automatically apply encryption with rights management. B Transport Rules can enforce encryption under certain conditions but lack the full rights management capabilities, such as restricting printing or forwarding. D Microsoft Defender for Identity focuses on detecting suspicious activity and threats in identities but does not encrypt emails.

By automating email encryption and rights management, organizations reduce reliance on users to manually protect sensitive communications, minimizing human error and ensuring consistent application of security policies. Integration with Exchange Online and Outlook provides a seamless user experience, allowing employees to continue collaborating effectively without compromising security. Administrators can generate audit logs and reports to track message protection, ensuring compliance with regulatory frameworks such as GDPR, HIPAA, or ISO standards.

Office 365 Message Encryption with Rights Management is essential for maintaining secure communications, protecting intellectual property, and preventing accidental data leakage. It complements other Microsoft 365 security tools, such as sensitivity labels, DLP policies, and Conditional Access, to create a comprehensive data protection strategy across the entire organization. Automated encryption ensures that sensitive emails are always protected, enabling secure communication internally and externally without sacrificing productivity.

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