Enabling Enterprise App Controls in M365

Most organizations lock down email filtering, MFA, and device security.

But they may be forgetting one critical control: Third-Party app access.

Who is allowed to grant third-party apps access to your Microsoft 365 data?

If users can freely click “Sign in with Microsoft” and approve permissions, they may be granting external applications access to:

• Exchange mailboxes

• SharePoint and OneDrive files

• Teams data

• User profile and directory information

This is why we recommend only allowing Admins to approve third-party enterprise applications.

The Risk: User Consent to Enterprise Apps

When a user signs into a third-party SaaS app using Microsoft, they are often presented with a permissions screen.

Examples:

• “Read your mail”

• “Access your files”

• “Maintain access to data you have given it access to”

• “Read directory data”

If user consent is enabled, they can approve this without IT involvement.

From a technical perspective, this creates:

• Shadow IT integrations

• Persistent OAuth tokens outside your control

• Potential data exfiltration paths

• OAuth phishing attack exposure

Attackers increasingly use consent phishing campaigns where a malicious app requests broad API permissions and the user unknowingly grants access.

Unlike traditional phishing, there is no password theft involved — the user authorizes the access themselves.

Recommended Configuration: Require Admin Consent

In most business environments, standard users should not be allowed to add new third-party or Enterprise Apps.

Instead, configure Microsoft Entra ID to require administrator approval.

Where to Configure This Setting

In the Microsoft Entra Admin Center:

1. Go to Microsoft Entra - https://entra.microsoft.com/

2. Navigate to Enterprise Apps on the left pane

3. Select Consent and permissions (under the Security area)

   

4. Review User consent settings

5. Select Do not allow user consent.

   

6. Build out a Admin Consent request workflow in the Admin consent settings.

You can also review your existing app:

• Enterprise Apps→ All Applications

• Sort by creation date

• Identify apps added by users

• Review granted API permissions

This audit step often surfaces unknown integrations.

What This Protects Against

Requiring admin approval helps prevent:

• Unauthorized third-party SaaS integrations

• Data leakage through API access

• OAuth-based phishing attacks

• Compliance violations related to data handling

• Cyber insurance exposure from unmanaged integrations

It also forces a governance process:

• Why is this app needed?

• What permissions does it request?

• Is there a safer alternative?

Final Thought

If you have not reviewed your enterprise application consent settings recently, it is worth a quick check.

If you would like help auditing your Microsoft 365 tenant and identifying hidden risks, schedule a conversation here:

Schedule a free consultation