Basic Authentication retirement in Microsoft 365 Apps

Microsoft 365 Apps are deprecating Basic authentication in Office Apps, as it sends a username and password with each request which can be accessed and misused by attackers. The retirement of this feature is not expected to affect Exchange Online or Exchange on-premises, but it will impact organizations with on-premises servers. Users with Office Version 2307 or higher on their devices will not be able to access resources from servers using Basic authentication. The retirement is set to begin rolling out in the Current Channel in August 2023. To ensure continued access to resources, Microsoft recommends moving to a more secure authentication method, such as Modern Authentication, and enabling multi-factor authentication based on OAuth2.0 token-based auth.

Note that Windows files share access and files stored on SharePoint Online, OneDrive for Business are not affected, but access to files stored on SharePoint on-premises server that are using Basic authentication will be blocked. It is recommended that organizations using Basic authentication to connect to Exchange on-premises/Exchange Online should use basic authentication without any changes to Exchange. This change does not apply to organizations without on-premises servers. For more information, see the link provided here.

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