The Biggest Microsoft 365 Myths Putting Small Businesses at Risk in 2026
If you’re a small business owner using Microsoft 365 , chances are you assume your setup is “good enough.” After all, you’ve got email, Teams, file sharing—and maybe even multi-factor authentication (MFA).
But in 2026, that assumption is one of the biggest risks businesses are taking.
After speaking with hundreds of small business owners, the same misunderstandings keep coming up again and again. These myths give a false sense of security - and attackers rely on that.
Let’s break down the biggest Microsoft 365 myths small business owners still believe, and what’s actually true.
“We have MFA, so we’re secure”
Multi-factor authentication is essential . But it is not a complete security solution.
Modern attacks often don’t steal passwords anymore. Instead, attackers hijack login sessions after a user has already signed in. MFA doesn’t:
- Know whether a device is trusted
- Control what browser is being used
- Protect a session once the user is logged in
Think of MFA like a seatbelt. You wouldn’t drive a car that only had seatbelts and no brakes, airbags, or steering. MFA is the starting point—not the finish line.
If MFA is the only thing protecting your business, you’re relying on luck.
“We bought Business Premium, so we’re covered”
Microsoft 365 Business Premium offers excellent value. But buying it does not automatically make your business secure .
In 2025, many small businesses are paying for Business Premium while barely using:
- Device management
- Conditional Access policies
- Microsoft Defender
- Admin account protections
If you treat Business Premium as “just email and Teams,” you’re missing most of the security you’re paying for. The tools are there—but they must be configured properly .
“Copilot will magically transform our business”
Copilot is powerful—but it’s not magic.
Copilot does not:
- Clean up messy SharePoint sites
- Fix bad permissions
- Secure your Microsoft 365 environment
- Replace IT or security processes
In fact, Copilot amplifies whatever environment you already have.
- Well-organised data → Copilot is brilliant
- Chaotic data → Copilot helps people find chaos faster
AI works best when the foundations are solid.
“We don’t store anything sensitive”
This is one of the most common—and dangerous—assumptions.
If you run a business, you absolutely store sensitive information:
- Customer data
- Employee records
- Contracts and invoices
- Financial details
- Emails
- Access to banking and cloud systems
Attackers don’t just want data—they want access. And Microsoft 365 is often the front door to everything else your business uses.
If your business has customers, money, or employees, you have something worth protecting.
“Microsoft backs everything up automatically”
This is arguably the most dangerous myth of all.
Microsoft protects availability , not backup .
That means:
- They keep the service online
- They protect the infrastructure
But they do not protect you from:
- Accidental deletion
- Malicious deletion
- Ransomware
- Files deleted outside retention periods
If ransomware encrypts synced files, that encryption syncs perfectly.
Microsoft is clear about this in their shared responsibility model. If your backup strategy is “it’s all in Microsoft,” then you don’t actually have a backup strategy.
Final Thoughts for Small Business Owners
You don’t need to become an IT expert—but you do need to ask better questions.
Microsoft 365 is an incredibly powerful platform, but it’s not “secure by default” in the way many people assume. The biggest risks in 2026 aren’t missing tools—they’re misunderstandings.
If this article made you uncomfortable, that’s a good thing. Awareness is the first step toward protecting your business properly.
Get in touch and see how FOS can help your small business