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Microsoft Is Replacing Text Message Sign-Ins with Passkeys

Microsoft has announced that it will begin moving users away from text message (SMS) and phone call verification codes and towards a more secure sign-in method called passkeys.

For most Westway IT clients, this change will happen automatically as part of Microsoft's ongoing security improvements.

What Is Changing?

From September 2026, Microsoft will start encouraging users to set up passkeys when signing into Microsoft 365.

From 28 January 2027, Microsoft's text message and phone call verification services will be retired.

As a result, businesses that still rely on text messages or phone calls for multi-factor authentication (MFA) will need to move to a different sign-in method.

What Is a Passkey?

A passkey is a secure way to sign in without using a password or receiving a code by text message.

Instead, you approve the sign-in using:

  • Face recognition
  • Fingerprint recognition
  • Your device PIN
  • A password manager that supports passkeys

Passkeys are easier to use and provide much better protection against phishing and account compromise.

What Does This Mean for Westway IT Clients?

For most clients managed by Westway IT, very little needs to be done right now.

We already configure Microsoft security settings using Microsoft's recommended approach, and we expect passkey registration prompts to begin appearing from September 2026 onwards.

Users will be able to register passkeys when prompted by Microsoft.

Additional Benefit for Managed Clients

Clients on our IPP, Standard and Premium plans already have access to a business password manager that supports passkeys.

This makes the transition straightforward and provides a secure place to store and manage passkeys across devices.

What Should You Do Now?

There is no immediate action required.

Westway IT will continue to monitor Microsoft's rollout and will contact affected clients if any changes are needed before the January 2027 deadline.

If you receive a prompt from Microsoft to set up a passkey after September 2026, we recommend completing the setup as part of your normal sign-in process.

Ready for Passkeys?

Many small businesses still rely on passwords, text message codes and outdated sign-in methods that can be vulnerable to phishing and account compromise.

Our IPP, Standard and Premium managed IT plans include a business password manager with passkey support, helping you prepare for Microsoft's move towards passwordless authentication while making sign-ins simpler and more secure for your team.

If you'd like to improve your Microsoft 365 security, reduce reliance on passwords and stay ahead of upcoming changes, get in touch with Westway IT to discuss the most suitable support plan for your business.

Contact us to learn more about our managed IT and cyber security services.

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John Fisher

John Fisher

Managing Director, Westway IT

John is the founder of Westway IT and works directly with small businesses across Gloucestershire to keep their IT secure, productive and stress-free.

With a BSc in Computer Science and hands-on experience supporting businesses from 1 to 40 users, he specialises in cyber security, Microsoft 365 and business automation.

An award-winning MSP owner and active member of the global IT community (including GTIA), John focuses on solving real business problems, not just technical ones.

Published: 14 July 2026 | Last Updated: 14 July 2026