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Please note this change does not affect SMTP AUTH and we will continue to support Basic Authentication for it in Exchange Online at this time. With the large number of solutions, devices, and appliances that use SMTP for sending mail we are working on ways to further secure SMTP AUTH and will continue to update you as we make progress. This change also does not impact on-premises versions of Exchange Server and only applies to Exchange Online. This means that new or existing applications using one or more of these API’s/protocols will not be able to use Basic Authentication when connecting to Office 365 mailboxes or endpoints and will need to update how they authenticate.
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Today, we are announcing that on October 13th, 2020 we will stop supporting and retire Basic Authentication for Exchange Active Sync (EAS), Post Office Protocol (POP), Internet Message Access Protocol (IMAP), and Remote PowerShell (RPS) in Exchange Online. Modern Authentication is a more secure method to access data as compared to Basic Authentication. Last year, we decommissioned Basic Authentication on Outlook REST API and announced that on October 13th, 2020 we will stop supporting Basic Authentication for Exchange Web Services (EWS) to access Exchange Online. Over time, we’ve introduced Modern Authentication, which is based upon OAuth 2.0 for authentication and authorization. For many years we’ve supported Basic Authentication based connections to Exchange Online. Basic Authentication means that the client application passes the username and password with every request. Although simple to setup and use, Basic Authentication makes it easier for attackers armed with today’s tools and methods to capture users’ credentials and increases the chance of credential re-use against other endpoints or services.