Category: SharePointRead time: 5 MinsPublished on: 03 Oct 2025

SharePoint Security Features and Best Practices

Are you aware that your organisation’s SharePoint environment could be the very doorway attackers are waiting to exploit? Without the right security measures, sensitive files, workflows, and collaboration spaces can become prime targets for breaches. That’s exactly where SharePoint has become a business-critical priority. SharePoint can protect collaboration and productivity at scale with the correct controls, governance, and best practices in place. With our SharePoint consulting services, we help organisations strengthen these security controls and ensure their environment is protected.

In this article, we will discuss the security features every person using SharePoint must understand and also the best practices for enhanced collaboration. Let’s start.

1. Quick Facts About SharePoint

With such wide usage and popularity, ensuring SharePoint security is a must for every organisation.

2. Understanding SharePoint’s Core Security Model

At its core, SharePoint’s security system is built on a layered, role-based architecture that defines how users and sites interact with libraries and content. The model primarily uses authentication through Azure Active Directory or Active Directory Federation Services for on-premises applications to verify users.

After authentication, authorization is applied through a granular permissions-and-groups system, allowing users to access only the resources explicitly granted to them. This is managed across site collections, subsites, lists, and item-level permissions, providing fine-grained control. SharePoint also uses inheritance principles, where child objects (such as lists or documents) inherit permissions from parent sites unless explicitly broken.

Modern SharePoint Online enhances security further with conditional access policies, multi-factor authentication, and data loss prevention (DLP) integration to counter emerging cloud threats. Together, these elements create a security framework that is manageable, governable, and enables organizations to protect sensitive information without hindering collaboration.

3. Essential SharePoint Security Features to Enable

When setting up SharePoint, it is important to enable the appropriate security features to ensure sensitive data is protected without compromising collaboration efficiency. Here are the top eight features that play a significant role in managing SharePoint security:

  1. Multi-Factor Authentication (MFA)

    Multi-Factor Authentication provides a second layer of authentication beyond passwords and minimizes the threat of account breaches. This is particularly necessary in today’s remote and hybrid workplaces, where phishing is on the rise. Administrators can deploy MFA using Microsoft 365 security settings on an organization-wide basis at the tenant level.

  2. Role-Based Access Control (RBAC)

    Role-based access control in SharePoint allows fine-grained control over user and group permissions. Permissions can be scoped at different levels—from site collections to individual objects—allowing administrators to tailor access precisely. RBAC minimizes the risk of unintended data exposure while still enabling employees to collaborate efficiently.

  3. Information Loss Prevention (DLP) Policies

    DLP policies help organizations protect sensitive information by automatically examining content for data such as credit card numbers or personal identifiers. Policies may block sharing or alert administrators when risky activity is detected. This is a critical feature for organizations subject to compliance regulations such as GDPR or HIPAA.

  4. IRM (Information Rights Management)

    IRM protects documents at the file level by encrypting them and limiting actions such as copying, printing, or forwarding. Unlike other access controls, these protections persist even after a document is downloaded or shared outside the SharePoint environment, making IRM essential for highly confidential data.

  5. Conditional Access Policies

    Conditional access allows organizations to enforce contextual policies, such as device type, location, or user risk score, before granting access to SharePoint. This ensures sensitive data is not accessed via unmanaged or high-risk endpoints. The feature is seamlessly integrated with Azure Active Directory and applies across all Microsoft 365 services.

  6. Versioning and Audit Logs

    SharePoint supports versioning, which preserves a complete history of changes to documents and allows rollback to previous versions when necessary. Combined with audit logs tracking user activity, downloads, and permission changes, these features provide transparency for compliance audits and valuable insights for security investigations.

  7. Encryption In Transit and at Rest

    SharePoint Online secures data both in transit and at rest. TLS/SSL protects data in transit, while BitLocker and per-file encryption protect data at rest. This dual-layer encryption model helps organizations meet enterprise-level security requirements and prevents data interception or compromise.

  8. Surveillance and Security Alerts

    To detect abnormal activity, such as excessive access permissions, administrators can configure alert policies. When combined with Microsoft Defender for Office 365, SharePoint provides enhanced threat detection and monitoring, enabling security teams to quickly identify and respond to potential insider threats or external attacks.

4. Best Practice in Permissions Management

The following are key best practices that any SharePoint administrator must observe:

  1. Apply to Groups, Rather Than Individuals

    Grant access to groups (e.g., Owners, Members, Visitors) rather than directly to individual users. This simplifies management and makes onboarding, role changes, and offboarding easier.

  2. Use the Minimum Privilege Principle

    Grant users only the access they need to complete their tasks. Over-permissioning is one of the most common causes of data exposure.

  3. Take Advantage of Default Inheritance

    Allow permission inheritance between sites and libraries, but deliberately break inheritance for highly sensitive repositories. Limit exceptions to avoid unnecessary complexity.

  4. Audit Duties Regularly

    Periodically review site collections, libraries, and groups. Remove inactive accounts, unnecessary groups, or permissions that may create security risks.

  5. Monitor and Log Activities

    Enable audits to track who accessed, edited, or shared data. Regular reporting increases transparency and provides a clear trail for investigations or compliance audits.

  6. Integrate with Conditional Access Policies

    Apply contextual controls on access, such as device type, location, or user risk, even if the user is authorized. This adds an extra layer of protection for sensitive data.

  7. Educate Site Owners

    Train site owners on permission inheritance, sharing, and security implications. Informed, decentralized management helps eliminate bottlenecks without compromising governance.

5. The Common Security Vulnerabilities in SharePoint

Any collaborative platform is only as safe as it has been configured, and SharePoint is no exception. Although Microsoft has integrated powerful security features in SharePoint Online as well as on-premises deployments, misconfigurations, legacy environments, and weak governance practices regularly leave backdoors to vulnerabilities.

To counter these vulnerabilities, organizations need not only to remain vigilant but also to proactively address issues using technical expertise before the platform becomes a liability.

  1. Over-Permissioning and Uncontrolled Sharing

    Over-permissioning is one of the most prevalent vulnerabilities, as users may open access more than necessary, including document permissions for all users or allowing external guests unrestricted access to files. This creates avenues through which sensitive information can be leaked. Administrators should routinely audit sharing activity, enforce least-privilege access, and apply sensitivity labels or DLP policies on shared content.

  2. Unpatched and Legacy Systems

    Zero-day exploits, such as the 2025 “ToolShell” vulnerability, highlight the risks of running outdated or unsupported SharePoint servers. Unpatched systems are high-value targets for attackers. Organizations should implement disciplined patch management, focus on migrating to SharePoint Online, and decommission older versions, like SharePoint 2013, which no longer receive security updates.

  3. Weak Authentication Practices

    Relying on passwords alone exposes accounts to credential theft and brute-force attacks. Implementing multi-factor authentication (MFA), Azure Conditional Access, and monitoring suspicious sign-in activity can significantly reduce the risk of account compromise.

  4. Data Governance Gaps

    The absence of appropriate retention policies, external sharing protocols, and monitoring can lead to insider threats and compliance breaches. Enabling audit logs, configuring alert policies, and integrating Microsoft Defender for Office 365 provides insights and strengthens the management of potentially malicious activities.

  5. Weak Encryption and Information Security

    SharePoint Online encrypts data both at rest and in transit; however, improper configuration can undermine this protection. Ensuring that IRM (Information Rights Management) and sensitivity labels are correctly applied protects files even when shared outside the platform.

  6. Continuous Lifecycle of Protection

    SharePoint vulnerabilities cannot be addressed as a one-time effort but require ongoing attention. Organizations should incorporate monitoring, patching, auditing, and training into their governance strategy. By treating SharePoint security as a dynamic system, enterprises can prevent breaches, maintain compliance, and support safe collaboration at scale.

6. Governing SharePoint External Sharing

SharePoint external sharing is a double-edged sword. On one hand, it facilitates smooth collaboration with partners, vendors, and clients. On the other hand, it creates potential entry points for sensitive information that may not be effectively managed.

External sharing must be controlled through both strategic and technical measures. This ensures business requirements are met without compromising data integrity. The following areas are important when governing external sharing:

  1. Defining Sharing Boundaries

    Administrators must decide whether sharing should occur at the tenant, site, or document level and adjust it according to business-critical collaboration needs. Highly sensitive sites should remain inaccessible for sharing, while project-based sites can allow restricted guest access under strict controls.

    SharePoint Online’s granular controls enable admins to determine whether external sharing is restricted to authenticated users, secured via one-time passcodes, or enabled through open anonymous links, allowing different ways to implement security measures.

  2. Implementation of Secure Link Policies

    Rules should ensure that shared links have time limits and cannot be forwarded if they contain critical or sensitive information. Combined with Microsoft Information Protection, sensitivity labels can be applied. These labels enforce encryption and limit external sharing by default for data classified as confidential.

  3. Educating Users

    Educating users and employees is essential, as they must understand that external sharing is a privilege, not a workaround to bypass secure workflows. Security awareness ensures responsible use in conjunction with technical controls.

Tip: Start with tenant-wide default restrictions (e.g., authenticated users only) and enable broader external sharing privileges only after conducting a risk analysis for specific sites.

7. SharePoint Security Monitoring and Auditing Tools

SharePoint monitoring and auditing tools provide the oversight necessary to identify abuse, address incidents, and demonstrate compliance with regulatory standards.

The following are essential monitoring and auditing security tools and practices:

  1. Microsoft Purview Compliance Portal

    SharePoint Online is natively interoperable with the Microsoft Purview Compliance Portal. Administrators can use it to set up audit log searches or record activities such as file access, sharing, or permission changes. These logs may be stored for months or even years, depending on licensing, and can be analyzed for forensic examination of suspicious behavior.

  2. Microsoft Defender for Office 365

    Defender can supplement SharePoint monitoring and anomaly detection by notifying administrators of abnormal activities, such as mass downloads or repeated failed logins.

  3. Hybrid/On-Premises Monitoring

    Unified audit logging and Security Information and Event Management (SIEM) integration are important for organizations using hybrid or on-premises deployments. By exporting SharePoint logs to applications like Microsoft Sentinel, organizations can correlate them with other system data to gain enterprise-wide security intelligence.

  4. Reporting and Alert Policies

    High-risk actions, such as granting site collection administrator privileges or sharing with external users, should be configured as alert policies by administrators.

Tip: Automate permissions audits and create dashboards with PowerShell scripts or third-party reporting tools. Automated monitoring not only saves time but also ensures that blind spots do not accumulate between manual reviews.

8. Conclusion

SharePoint security is all about the ability to establish a dynamic governance system that responds to changing threats, user practices, and compliance requirements. Whether it involves external sharing, permissions management, activity monitoring, or addressing vulnerabilities, each security layer strengthens your organization’s collaboration ecosystem. SharePoint becomes a reliable, scalable, and secure platform for collaboration when these measures are carefully implemented.

Congruent helps organizations unleash the full potential of SharePoint Security while remaining secure, compliant, and efficient. With over 20 years of experience in governance structures, permissions controls, external sharing management, automation, and continuous monitoring, Congruent delivers customized solutions that improve the balance between productivity and protection.

Congruent helps organizations unleash the full potential of SharePoint Security while remaining secure, compliant, and efficient. With over 20 years of experience in governance structures, permissions controls, external sharing management, automation, and continuous monitoring, Congruent delivers customized solutions that improve the balance between productivity and protection.

9. FAQs

Is SharePoint secure enough for storing sensitive business data?

Yes, SharePoint is built with enterprise-grade security features such as encryption, identity management, and compliance certifications. However, the level of security depends on proper configuration and governance. Businesses that implement advanced controls—like multi-factor authentication and conditional access—can safely store sensitive financial, legal, or healthcare data in SharePoint.

What are the risks of not securing a SharePoint environment?

An unsecured SharePoint environment can lead to unauthorized access, accidental data leaks, ransomware attacks, and compliance penalties. Common risks include weak authentication, over-permissioned users, and unmonitored external sharing. Without proactive security measures, organizations may face reputational damage, financial loss, and regulatory violations.

How does SharePoint security support compliance requirements?

SharePoint security aligns with major compliance frameworks, including GDPR, HIPAA, and ISO standards. Features such as data loss prevention (DLP), audit logs, and information rights management (IRM) help organizations track data usage, restrict unauthorized sharing, and maintain detailed audit trails, making regulatory compliance easier and more reliable.