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Using App Passwords for a secure connection between Dynamics 365 and external apps

Post Author: Joe D365 |

There are many awesome Dynamics 365 add-ons (including PowerObjects’ PowerPack add-ons) that all require a username and password to connect to your Dynamics 365 online environment so that data can flow between the two systems. With increasing awareness of – and need for – additional security, many Dynamics 365 online customers have turned on MFA (multi-factor authentication) for their users, which means their users are required to both enter a password AND get a phone call/text message with a verification code. However, these add-ons don’t come with the ability to enter an additional verification code. So, Office 365 has introduced something called App Passwords, which allows users to generate a password to use for these add-ons in order to bypass the MFA for that user. In today’s blogpost, we’ll show you how it works.

There are two ways to generate an app password:

  • If you are signing in for the first time after MFA has been turned on, you’ll be prompted to set up a phone number to verify your account. On the next screen, you’ll be given an app password (as shown below). Copy it and paste it in the PowerPack solution under the CRM credentials portion. Then Submit. And that’s it!

app passwords

  • If you are an existing user, you’ll need to log into Office 365 and navigate to Settings > Office 365

app passwords

Next, go to Security & privacy > Additional security verification

app passwords

Finally, click Create and manage app passwords and then click Create.

app passwords app passwords

Note: You will not be able to view the password after you close the window, so make sure to copy the password to your clipboard before you leave that screen.

You can now choose to create a single app password for all apps or a separate app password for each app to which you’d like to connect your Dynamics 365 environment.

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Happy Dynamics 365’ing!

Joe CRM
By Joe D365
Joe D365 is a Microsoft Dynamics 365 superhero who runs on pure Dynamics adrenaline. As the face of PowerObjects, Joe D365’s mission is to reveal innovative ways to use Dynamics 365 and bring the application to more businesses and organizations around the world.

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