Microsoft SC-401 Administering Information Security in Microsoft 365 Exam Dumps and Practice Test Questions Set 2 Q16-30

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Question 16:

Your organization needs to ensure that users can only share files externally if the files are labeled as “Public.” All other labeled content must be restricted to internal sharing only. Which feature should you configure?

A) Communication Compliance
B) SharePoint Access Control
C) Sensitivity Label Policies
D) Information Barriers

Answer: C

Explanation:

 Communication Compliance is designed to detect inappropriate communication patterns such as harassment, threats, or policy violations involving internal conversations. It does not control how users share files internally or externally, and cannot restrict sharing behavior based on metadata such as classification. Since its purpose is monitoring communication, not enforcing sharing limitations, it does not meet the requirement.

SharePoint Access Control manages broad tenant-level or site-level restrictions, such as blocking external sharing or limiting sharing by domain. While helpful for establishing large-scale access boundaries, it cannot enforce rules tied to classification labels on a per-file level. Since it does not evaluate metadata like sensitivity categories, it cannot selectively allow public files to be shared externally while blocking others.

Sensitivity Label Policies allow organizations to define classification categories and specify controls associated with each one. These controls can govern file encryption, sharing capabilities, access permissions, and whether a file can be shared outside the organization. By configuring labels such as “Public,” “Internal,” or “Highly Confidential,” administrators can apply granular rules. For instance, the “Public” classification can allow external sharing, while all other labels enforce restrictions preventing the content from being shared outside of trusted boundaries. This directly satisfies the requirement and ensures enforcement is automatic and consistent.

Information Barriers create internal communication boundaries between defined segments, such as financial teams and research departments. These boundaries are intended to prevent regulated internal groups from communicating with each other when required. Although critical for compliance scenarios, this feature does not manage external file sharing or integrate with sensitivity-based enforcement.

Sensitivity Label Policies, therefore, stand out as the correct solution because they can directly tie sharing permissions to classification levels. They ensure that only files marked “Public” can be shared externally, while all others remain internal-only.

Question 17:

Your security team wants to block users from synchronizing sensitive documents to their local machines using the OneDrive sync client. How should you achieve this?

A) Device Compliance Policies
B) OneDrive Folder Protection
C) Microsoft Purview Information Protection with Conditional Access
D) Endpoint DLP

Answer: D

Explanation:

 Device Compliance Policies evaluate devices against organizational security requirements such as encryption, password strength, or OS version. These policies ensure that only compliant devices access corporate resources. However, they do not provide direct control over file activities such as downloading, synchronizing, or copying sensitive content from cloud services to local devices.

OneDrive Folder Protection secures local user folders by redirecting them to OneDrive for backup. This feature is useful for data protection and recovery, but does not provide any restrictions on which files users can sync. Instead, it ensures that local folders are backed up to the cloud but does not restrict file traffic coming from the cloud.

Microsoft Purview Information Protection with Conditional Access restricts access based on label sensitivity, risk level, or device state. While it can block users from opening sensitive files under certain conditions, it does not provide granular event-level controls over specific actions like syncing content to local drives. Conditional Access evaluates access decisions, not granular file activity.

Endpoint DLP provides detailed controls over file activities performed on devices, including copying, printing, pasting, uploading, and syncing. It can detect file classification, track sensitive content, and block or warn users when sensitive files are attempted to be synced via the OneDrive client. This capability integrates labeling with event-based enforcement, ensuring sensitive data cannot be automatically downloaded to local storage. It directly blocks unauthorized synchronization of labeled information.

Endpoint DLP is therefore the correct solution because it provides precise control over file activities, including blocking sync operations based on label sensitivity.

Question 18:

Your administrator needs to investigate user sign-ins that were flagged as high-risk and determine whether they originated from unfamiliar locations or leaked credentials. What tool should be used?

A) Azure AD Authentication Strength
B) Identity Protection
C) Cloud App Security Policies
D) Privileged Identity Management

Answer: B

Explanation:

 Azure AD Authentication Strength defines which authentication methods are allowed for specific policies, such as requiring phishing-resistant methods or MFA. While this improves security posture, it does not provide investigative dashboards or insights into anomalous sign-ins, nor does it detect risky user behavior or potential compromised credentials.

Identity Protection detects and analyzes risky sign-ins using signals such as unfamiliar locations, impossible travel, leaked credentials, or suspicious IP addresses. Administrators can view detailed reports, evaluate the root cause of risk, and take action by enforcing secure authentication or blocking access. The tool provides deep insight into abnormal sign-ins and user risk profiles, making it essential for investigating scenarios where sign-ins are marked as high-risk.

Cloud App Security Policies detect unusual behavior in SaaS applications, such as mass downloads or suspicious access patterns. While helpful for cloud-threat visibility, it does not specialize in sign-in risk investigation and does not evaluate credential leak events or identity-based anomalies during authentication.

Privileged Identity Management focuses on managing privileged roles, enforcing just-in-time access, and providing approval workflows. It is not designed for risk investigation or sign-in anomaly detection.

Identity Protection is therefore the correct choice because it provides the analytics, dashboards, and risk event details needed to investigate high-risk sign-ins effectively.

Question 19:

Your organization must ensure that Team messages associated with a compliance investigation remain preserved even if users attempt to delete them. What should you implement?

A) Information Governance Archiving
B) Hold in an eDiscovery Case
C) Teams Retention Labels
D) Microsoft Defender for Cloud Apps Alerts

Answer: B

Explanation:

Information Governance Archiving in Microsoft 365 is designed to maintain organizational content over extended periods, supporting lifecycle management, regulatory compliance, and long-term data retention strategies. By archiving emails, documents, and other content, organizations can ensure that historical information is accessible for reporting, audits, or general preservation purposes. However, archiving alone does not guarantee that content relevant to a specific investigation is preserved immediately. Users may still delete items, intentionally or accidentally, before the archived copy can be captured or reviewed. Consequently, archiving is a general preservation tool rather than a solution tailored for investigative or legal compliance needs.

A hold in an eDiscovery Case addresses these limitations directly. When a hold is applied, Teams messages, emails, SharePoint documents, OneDrive files, and other Microsoft 365 content are preserved in place, preventing permanent deletion even if users attempt to remove the items. This ensures that all content relevant to ongoing investigations, legal cases, or regulatory inquiries remains intact and defensible. eDiscovery holds are tightly integrated with legal workflows, allowing compliance teams to manage cases efficiently, track preserved content, and maintain an auditable chain of custody for evidentiary purposes.

Other tools provide partial capabilities but do not meet the investigation-preservation requirement. Teams Retention Labels allow organizations to classify content and apply retention schedules, but their effectiveness depends on correct label configuration, application, and timing. Microsoft Defender for Cloud Apps Alerts can identify suspicious cloud activity, but they do not preserve content for legal or investigative purposes.

Therefore, for scenarios where immediate and legally defensible preservation of content is required, a hold in an eDiscovery Case is the correct solution. It ensures that all relevant data remains intact, regardless of user actions, and supports structured workflows for investigation and compliance.

Question 20:

You want to detect when users attempt to exfiltrate data by uploading large quantities of sensitive files to personal cloud storage services. What should you configure?

A) Safe Links Policies
B) Data Loss Prevention for Cloud Apps
C) Azure AD B2B Collaboration Settings
D) Retention Policies

Answer: B

Explanation:

Safe Links policies in Microsoft 365 are designed to protect users from malicious URLs embedded in emails, documents, or Office applications. When a user clicks a link, Safe Links checks the URL in real time against Microsoft’s threat intelligence database and can block access to known malicious or phishing websites. While this functionality is critical for defending against external threats and ensuring safe browsing within emails and Office apps, Safe Links does not address internal data protection concerns. Specifically, it does not detect attempts to exfiltrate sensitive data from the organization, monitor large-scale uploads to personal storage accounts, or prevent users from transferring confidential information to unsanctioned cloud services. Its focus is strictly on URL security and user protection from malicious links, not data movement monitoring.

Data Loss Prevention (DLP) for Cloud Apps, on the other hand, is purpose-built for monitoring and controlling the movement of sensitive data across cloud services. It can identify when users attempt to upload or share sensitive information to unsanctioned or personal cloud accounts, such as Dropbox, Google Drive, or personal OneDrive accounts. DLP policies analyze content and context, detect high-volume uploads or unusual access patterns, and can enforce actions such as blocking the upload, alerting administrators, or encrypting the content. By integrating with activity logs and cloud usage analytics, DLP provides organizations with proactive protection against data exfiltration, insider threats, and accidental leaks.

Other tools, such as Azure AD B2B settings, regulate external collaboration but do not track uploads to personal cloud storage. Retention policies preserve data for compliance purposes but do not monitor exfiltration behavior or enforce real-time prevention. Therefore, for scenarios involving the detection and prevention of sensitive data leaving the organization via cloud services, Data Loss Prevention for Cloud Apps is the correct solution, as it directly addresses content movement, behavior patterns, and policy enforcement.

Question 21:

Your company wants to automatically classify and protect documents containing personal data, such as Social Security numbers, even if users do not manually apply any labels. What should you deploy?

A) Auto-labeling policies in Microsoft Purview
B) Retention policies
C) Access reviews
D) Conditional Access

Answer: A

Explanation:

 Retention policies provide control over how long content must be kept and when it must be deleted. They help organizations meet regulatory and compliance obligations related to data lifecycle management. Although essential for managing data retention, they do not scan content for sensitive information and do not apply protection or classification automatically. They preserve or delete content rather than securing it based on detected patterns.

Access reviews ensure that users maintain only appropriate access to resources such as groups, applications, and privileged roles. These reviews are part of identity governance and help organizations manage access risk. They do not inspect content for sensitive data and do not apply classification or protection to files based on content analysis. Their focus is on access rights rather than data sensitivity.

Conditional Access enforces access rules based on conditions such as device state, user risk, location, or authentication requirements. While essential for identity-based security, it does not classify files or detect personal data. Conditional Access regulates access but not the content itself, so it cannot automatically label or protect documents containing personal identifiers.

Auto-labeling policies in Microsoft Purview examine data stored in SharePoint, OneDrive, Exchange, and other supported locations to identify sensitive information. They use predefined sensitive information types, machine learning classifiers, and pattern matching to detect items such as Social Security numbers, financial details, or health data. When sensitive information is identified, labels can be automatically applied to protect the file through encryption, access restrictions, or usage limitations. This meets the requirement by ensuring that personal data is identified and protected without requiring user action. Auto-labeling policies provide consistent enforcement and prevent reliance on manual classification.

Auto-labeling policies are therefore the best solution because they automatically classify and protect sensitive documents based on content detection.

Question 22:

Your security department requires alerts whenever users attempt to share confidential files with unauthorized external recipients. What should you configure?

A) SharePoint user profile policies
B) Multi-factor authentication registration policy
C) Data Loss Prevention
D) Compliance Manager

Answer: C

Explanation:

 SharePoint user profile policies control attributes within user profiles and govern how profile information is displayed and synchronized. These policies play a role in user directory management but have no involvement in monitoring or controlling file sharing. They do not evaluate document sensitivity or manage alerts related to unauthorized sharing attempts, making them unsuitable for the requirement.

Multi-factor authentication registration policies ensure that users register the authentication methods required for MFA. While this improves security posture by strengthening identity verification, these policies do not monitor file-sharing activity or detect interactions with confidential documents. Their purpose is authentication readiness, not data-sharing enforcement.

Data Loss Prevention identifies sensitive content using pattern matching, sensitive information types, and machine learning classifiers. It can analyze email, SharePoint, OneDrive, Teams, and other workloads to detect confidential information. Policies can alert administrators when users attempt to share such documents with unauthorized external recipients. They can also block or restrict such actions, generate user policy tips, or require business justification. This directly aligns with the requirement to detect and alert on unauthorized sharing attempts of confidential files. DLP examines both content and context, offering effective oversight.

Compliance Manager assesses an organization’s adherence to regulatory requirements by providing recommendations and tracking improvement actions. Although vital for compliance posture management, it does not monitor real-time user activities or file-sharing behavior.

Data Loss Prevention is therefore the appropriate choice because it provides active detection and alerting capabilities tied to sensitive content sharing.

Question 23:

A user claims that documents they deleted last week were removed unintentionally and must be recovered. You need to determine whether the deleted content is still recoverable based on retention settings. What should you review?

A) Retention policies
B) Insider Risk Management
C) Safe Documents
D) Privileged Identity Management

Answer: A

Explanation:

 Insider Risk Management analyzes user activity to detect potentially risky behavior such as mass downloads or unusual file movements. Although useful for identifying insider threats, it does not manage the lifecycle of documents or track whether deleted content remains recoverable. It focuses on user actions rather than content retention or recovery outcomes.

Safe Documents evaluates files opened from untrusted locations and scans them for malicious content. This feature enhances security by preventing harmful documents from causing damage. However, it does not deal with content recovery, deletion, or lifecycle management. It focuses on security scanning rather than retention behavior.

Privileged Identity Management manages elevated access for roles, providing just-in-time access or approval workflows. This improves control over administrative privileges but has no role in document recovery or evaluating how long deleted content remains available.

Retention policies determine how long data must be preserved and whether deletion is permitted. They control whether deleted items enter preservation hold libraries, stay recoverable, or are permanently deleted after specific timeframes. By reviewing retention policies, administrators can see whether content was subject to preservation rules that make it recoverable even after deletion. These policies govern whether deletions performed by users are overridden, postponed, or allowed. Reviewing them helps determine whether the user’s deleted files still exist in a recoverable location.

Retention policies are, therefore, the correct component to review when assessing the recoverability of deleted content.

Question 24:

Your organization wants to restrict access to a confidential SharePoint site so that only managed devices can access it. What should you use?

A) Sensitivity labels
B) Conditional Access App Control
C) SharePoint sharing settings
D) Network perimeter firewalls

Answer: B

Explanation:
Sensitivity labels apply classification and protection to individual documents and emails. They provide encryption, content marking, and usage permissions. Although they can control access to labeled items, they do not enforce conditions tied to device management states for accessing SharePoint sites. Their scope covers protected files rather than device-based access enforcement for entire sites.

SharePoint sharing settings control how users can share content, such as allowing external collaboration or limiting sharing by domain. These settings provide broad access controls but cannot enforce device-specific conditions. They determine who can access content, but not whether a device is managed, compliant, or protected.

Network perimeter firewalls provide network-layer filtering based on IP addresses, ports, and protocols. Modern cloud environments require identity-based controls rather than traditional network boundaries. Firewalls cannot restrict SharePoint Online access based on device compliance since cloud access uses identity signals rather than internal network presence.

Conditional Access App Control uses session-based controls applied through Microsoft Defender for Cloud Apps. It allows real-time enforcement of browser access conditions, such as requiring managed devices. By integrating with Conditional Access, it evaluates device state and provides session controls such as blocking downloads, limiting access, or enforcing device compliance. This capability meets the requirement by restricting access to confidential SharePoint sites to managed devices only.

Thus, Conditional Access App Control is the correct choice.

Question 25:

A security auditor needs a complete history of user and admin actions in your Microsoft 365 tenant for the last 12 months. Which feature should be used?

A) Audit log search
B) Endpoint DLP
C) Privacy Risk Management
D) Azure AD Password Protection

Answer: A

Explanation:

 Endpoint DLP monitors and controls file activities performed on devices, such as copying, printing, or uploading. While it captures device-level events, it does not maintain a complete record of all user and admin activities across the tenant. Its scope is limited to endpoint interactions, not tenant-wide auditing.

Privacy Risk Management evaluates privacy-related incidents within the organization. It identifies potential breaches of privacy policies and provides workflows for handling privacy issues. However, it is not designed to maintain or retrieve user activity logs or administrative actions across services.

Azure AD Password Protection enforces password rules to prevent users from choosing weak or banned passwords. While critical for identity security, it does not provide logging or auditing of actions performed in the tenant.

Audit log search in Microsoft 365 provides a centralized, unified view of activities across multiple services, including Exchange, SharePoint, OneDrive, Azure Active Directory, Teams, and other workloads. Aggregating user and administrative actions into a single searchable repository allows organizations to track critical events such as file access, edits, sharing, deletions, mailbox operations, login attempts, and configuration changes. These logs provide detailed metadata that includes who performed an action, what the action was, where it occurred, and when it happened. This level of visibility is essential for auditing, compliance, and internal investigations, enabling organizations to reconstruct events and assess accountability in the event of a security incident or regulatory review.

One of the key strengths of audit log search is its ability to retain historical data for extended periods. With the appropriate Microsoft 365 licensing, audit logs can preserve up to 12 months of activity, giving auditors and compliance officers ample time to investigate past events or identify trends that may indicate potential risks. This long-term retention is crucial for organizations that must meet regulatory requirements, such as GDPR, HIPAA, SOX, or FINRA, where demonstrating historical oversight of activities is necessary. The ability to search and filter logs by user, activity type, date range, or other criteria makes it easier to pinpoint specific events, generate reports, and maintain evidence for internal or external audits.

Audit log search is also highly valuable in scenarios where multiple Microsoft 365 services are in use. Because it consolidates events from across the environment, it enables a holistic view of tenant activity, rather than requiring administrators to review logs individually for each service. This comprehensive oversight improves operational efficiency, supports incident response, and enhances accountability across the organization. While audit log search does not enforce policies, prevent data loss, or manage legal holds, its primary role is to provide visibility and historical context, which is critical for maintaining a secure and compliant environment.

Therefore, audit log search is the correct solution for organizations that require a thorough, long-term record of user and administrative activity within Microsoft 365. By delivering centralized access to detailed activity data, it empowers compliance teams, security officers, and auditors to monitor, investigate, and report on tenant operations effectively and reliably.

Question 26:

Your organization wants to ensure that all email messages containing credit card information cannot be sent to external recipients. Which Microsoft 365 feature should you configure?

A) Exchange Transport Rules
B) Data Loss Prevention (DLP)
C) Retention Labels
D) Information Barriers

Answer: B

Explanation:

 Exchange Transport Rules allow administrators to inspect email content and apply actions based on conditions such as sender, recipient, subject, or message content. Administrators can configure rules to block certain patterns, append disclaimers, redirect messages, or notify users. While Transport Rules are powerful for certain types of content inspection, they lack deep integration with Microsoft 365’s sensitive information types. Credit card detection is complex because it requires pattern matching, checksum validation, and context awareness to avoid false positives or negatives. Transport Rules can be configured for simple patterns, but they are not as robust as Microsoft’s Data Loss Prevention capabilities in detecting and protecting sensitive financial data. Therefore, while Transport Rules might partially address the requirement, they are not optimal for the precise enforcement of blocking credit card information in emails.

Data Loss Prevention (DLP) is designed to identify, monitor, and automatically protect sensitive information across Microsoft 365 workloads, including Exchange Online, SharePoint Online, OneDrive, and Teams. DLP policies leverage predefined sensitive information types, such as credit card numbers, social security numbers, financial data, health data, and custom patterns. When DLP detects content that matches a policy, it can block the email from being sent externally, generate notifications to administrators, display policy tips to users, and enforce encryption or access restrictions. The key advantage of DLP over Transport Rules is its ability to detect sensitive information with contextual analysis and pattern validation. For credit card numbers, DLP not only checks numeric patterns but also performs checksum validation to minimize false positives. Additionally, DLP integrates with reporting and audit capabilities, allowing security and compliance teams to track violations and refine policies. This makes DLP the ideal solution for preventing credit card data from leaving the organization through email, while ensuring compliance with regulations such as PCI DSS.

Retention Labels manage the lifecycle of content by defining how long items must be preserved or when they should be deleted. They can be applied automatically or manually to emails and documents. While Retention Labels are essential for regulatory compliance and information governance, they do not evaluate content in real time or prevent outgoing emails based on sensitive information detection. Labels primarily enforce retention and deletion rules rather than controlling information sharing or email content transmission. Therefore, they cannot satisfy the requirement to prevent credit card data from being sent externally.

Information Barriers are designed to prevent communication between specific groups of users within an organization. For example, they can restrict financial analysts from interacting with research teams to comply with legal or regulatory requirements. While crucial for internal separation policies, Information Barriers do not inspect email content or enforce restrictions on messages containing sensitive information. They do not block transmission of financial data externally and are unrelated to DLP functions.

Data Loss Prevention is the correct solution because it provides precise detection, blocking, alerting, and reporting capabilities tailored for sensitive information such as credit card data. DLP ensures that emails containing credit card information cannot leave the organization, automatically enforcing policies without relying on user behavior. It is robust, scalable, and integrates across Microsoft 365 services, providing both proactive prevention and auditing capabilities. By using DLP, the organization can meet regulatory compliance obligations, mitigate the risk of data leakage, and enforce security policies consistently and reliably. In contrast, Transport Rules, Retention Labels, and Information Barriers either lack detection accuracy or serve different purposes and cannot meet the requirement comprehensively.

Question 27:

You need to ensure that users accessing Microsoft 365 apps can only do so from devices that are compliant with your company policies and enrolled in Intune. Which feature should you configure?

A) Conditional Access
B) Privileged Identity Management
C) Microsoft Defender for Identity
D) Access Reviews

Answer: A

Explanation:

 Conditional Access is a Microsoft 365 feature that evaluates multiple signals during user sign-in attempts to enforce access controls dynamically. It integrates with Azure Active Directory and Intune to enforce rules based on device compliance, location, user risk, authentication strength, and other parameters. By leveraging Conditional Access, an organization can ensure that only devices enrolled in Intune and meeting compliance policies are allowed access to Microsoft 365 applications. This is done by defining policies that evaluate the device’s compliance state reported by Intune, which checks configuration items like encryption, OS version, antivirus presence, firewall status, and endpoint protection. When a device does not meet the policy, access can be blocked, limited, or require additional verification, such as Multi-Factor Authentication (MFA). This aligns directly with the requirement to enforce access only for compliant and managed devices. Conditional Access policies are highly flexible, allowing administrators to target specific users, groups, or applications, and they support session controls to restrict activities based on device posture or user risk levels. This makes it a comprehensive solution for controlling access while supporting a zero-trust approach to security.

Privileged Identity Management (PIM) is a feature for controlling and managing administrative roles in Azure AD and Microsoft 365. PIM provides just-in-time access, approval workflows, and auditing for privileged roles. While PIM improves governance and reduces standing privileges, it does not enforce device compliance or restrict access to Microsoft 365 applications for regular users. Its primary focus is managing elevated privileges rather than ensuring endpoint compliance for access, so it does not satisfy the requirement of controlling access based on device posture.

Microsoft Defender for Identity monitors on-premises Active Directory and cloud identities for suspicious activities such as lateral movement, privilege escalation, or compromised credentials. While Defender for Identity is critical for threat detection and identity security, it does not enforce conditional access controls based on device compliance or Intune enrollment. It functions primarily as a monitoring and alerting tool rather than an access enforcement mechanism, meaning it cannot directly prevent non-compliant devices from accessing Microsoft 365 applications.

Access Reviews provide governance over user access to applications, groups, and roles by allowing administrators to periodically review and verify if users should retain their access. Although this is important for reducing unnecessary access and maintaining security hygiene, it does not actively block or enforce sign-in policies based on device compliance at the time of access. Access Reviews are retrospective in nature and do not enforce real-time access decisions.

Conditional Access is the correct solution because it evaluates device state, user risk, and compliance in real time, ensuring that only devices meeting organizational policies can access Microsoft 365 apps. Integrating with Intune allows granular enforcement of device posture requirements, supports session-level controls, and aligns with zero-trust principles. Unlike PIM, Defender for Identity, or Access Reviews, Conditional Access provides proactive access enforcement based on device compliance rather than just monitoring or retrospective evaluation. This ensures consistent, real-time enforcement across all applications, reducing risk and meeting the organizational requirements effectively.

Question 28:

Your organization wants to prevent sensitive information from being copied to USB drives, printed, or uploaded to personal cloud storage from managed devices. Which Microsoft 365 feature should you configure?

A) Data Loss Prevention (Endpoint DLP)
B) Sensitivity Labels
C) Conditional Access
D) Retention Policies

Answer: A

Explanation:

 Data Loss Prevention (Endpoint DLP) is an advanced Microsoft 365 feature that extends traditional DLP policies to managed endpoints. It monitors file activity in real time across devices, applications, and storage locations. Endpoint DLP can detect when sensitive documents are copied to USB drives, printed, uploaded to unmanaged cloud services, or otherwise exfiltrated. By integrating with Microsoft Purview sensitivity labels, it ensures that protection is applied according to the sensitivity classification of the document. Endpoint DLP policies allow administrators to define actions when risky behavior is detected, including blocking the operation, generating alerts, or displaying policy tips to educate users. This approach addresses the requirement comprehensively because it controls file movement and enforces security on the device itself, not just in the cloud. Endpoint DLP policies can target Windows 10/11 devices managed by Intune, ensuring consistent enforcement across the organization while protecting sensitive information from leaving corporate control. The solution supports integration with Microsoft 365 compliance dashboards, enabling reporting, auditing, and incident investigation.

Sensitivity Labels classify and protect files or emails based on their sensitivity. Labels can enforce encryption, usage restrictions, and access control, ensuring that only authorized users can view or edit content. However, sensitivity labels alone do not monitor device activity or prevent files from being copied, printed, or uploaded to unauthorized storage locations. They provide persistent protection but rely on endpoints and applications respecting the labels. While labels are essential for protecting content, they are not sufficient to proactively block risky activities at the device level, making them an incomplete solution for the requirement described.

Conditional Access evaluates access to Microsoft 365 applications based on user, device, and location conditions. While it can enforce that only compliant or Intune-managed devices access cloud services, it does not monitor or control specific file activities such as copying, printing, or uploading sensitive content. Conditional Access governs access decisions rather than ongoing user actions, meaning it cannot directly prevent sensitive information from leaving the organization once the user is signed in.

Retention Policies preserve data for compliance or legal reasons by keeping content for a specified duration. While they ensure data cannot be permanently deleted prematurely, they do not prevent data exfiltration or control how users interact with files. Retention policies govern storage and deletion timelines rather than operational usage, making them unsuitable for blocking USB copies, printing, or cloud uploads of sensitive content.

Data Loss Prevention (Endpoint DLP) is the correct solution because it combines classification awareness, real-time monitoring, and enforcement across managed devices. Unlike Sensitivity Labels alone, Endpoint DLP actively blocks risky actions rather than simply protecting files passively. Unlike Conditional Access or Retention Policies, it controls user activity at the device level in real time, ensuring that sensitive information does not leave the organization through USB drives, printing, or cloud uploads. Endpoint DLP provides full auditing and alerting for compliance reporting and investigation, making it a comprehensive solution for protecting sensitive content and meeting the organizational security requirements effectively.

Question 29:

Your compliance team wants to ensure that Teams messages and files related to a legal case are preserved even if users try to delete them. Which Microsoft 365 feature should you use?

A) eDiscovery Legal Hold
B) Retention Labels
C) Communication Compliance
D) Microsoft Defender for Cloud Apps

Answer: A

Explanation:

 eDiscovery Legal Hold in Microsoft 365 is designed to preserve content that may be relevant to ongoing investigations, audits, or litigation. When a legal hold is applied, messages, emails, and documents—including Teams messages, chats, and attachments—are preserved regardless of user deletion attempts. The content remains accessible to compliance administrators and investigators but is shielded from normal deletion processes by end users. This ensures that all relevant evidence is retained for the duration of the investigation or legal requirement. Legal holds are often used in combination with eDiscovery cases, which provide structured workflows for searching, reviewing, and exporting content while maintaining an auditable record of the investigation. The hold applies across workloads such as Exchange Online, SharePoint Online, OneDrive, and Teams, ensuring that all relevant items are retained. This is critical for compliance with regulatory requirements and for preserving evidence in a defensible manner.

Retention Labels are used to enforce data retention or deletion schedules for emails and documents. Labels can be applied automatically or manually to content, specifying how long the information should be preserved. While retention labels can preserve content for a fixed period, they are not specifically designed for legal investigations and cannot selectively preserve content based on a case or investigation. Retention labels operate at the content level but do not provide the structured workflow, case management, or direct legal preservation capabilities that eDiscovery Legal Hold provides. Therefore, retention labels alone cannot ensure preservation in response to a specific legal case or audit.

Communication Compliance is focused on monitoring internal communications for policy violations, offensive language, or regulatory risks. It can detect inappropriate behavior in Teams chats, emails, and other communication channels. While Communication Compliance provides alerts, review workflows, and reporting for risky communications, it does not enforce preservation of content for legal or investigative purposes. It is designed for policy enforcement and compliance monitoring, not for retaining content during legal holds. Content flagged in Communication Compliance may still be subject to deletion unless additional preservation mechanisms like eDiscovery Legal Hold are applied.

Microsoft Defender for Cloud Apps monitors cloud activity, identifies risky behavior, and applies session or access controls to cloud apps. It can detect anomalies, such as large file downloads or unsanctioned cloud service usage, and can block risky activity. However, Defender for Cloud Apps does not provide legal-preservation features or maintain content for investigative purposes. It is focused on threat detection and enforcement rather than ensuring data is retained for eDiscovery or legal compliance.

eDiscovery Legal Hold is the correct solution because it directly addresses the requirement to preserve Teams messages and files for a legal case. It ensures that even if a user attempts to delete content, the system retains it for the duration of the hold. Legal holds integrate with eDiscovery workflows, providing case management, search, review, and export capabilities for compliance teams. Unlike Retention Labels, which are time-based and generalized, eDiscovery Legal Hold applies targeted preservation for specific users or content relevant to a case. Unlike Communication Compliance, it is not limited to policy monitoring but ensures legally defensible preservation. Unlike Defender for Cloud Apps, it focuses on retention rather than threat detection. By applying eDiscovery Legal Hold, organizations can ensure regulatory compliance, maintain a defensible audit trail, and protect the integrity of evidence for investigations or litigation.

Question 30:

Your organization wants to detect and respond to users attempting to send sensitive information to personal email accounts. Which Microsoft 365 feature should you implement?

A) Data Loss Prevention (DLP)
B) Sensitivity Labels
C) Retention Policies
D) Privileged Identity Management

Answer: A

Explanation:

 Data Loss Prevention (DLP) in Microsoft 365 is specifically designed to detect, monitor, and protect sensitive information across the organization. It can be configured to evaluate emails, documents, and collaboration tools for sensitive data types, such as financial records, personally identifiable information (PII), health data, and intellectual property. DLP policies allow administrators to define rules that determine what constitutes sensitive information and to specify actions when violations occur. In the scenario of users attempting to send sensitive information to personal email accounts, DLP can identify the recipient as external and compare it to the defined policies. If a policy violation is detected, DLP can automatically block the message, alert the user with a policy tip, notify administrators, or log the incident for compliance review. DLP integrates seamlessly with Exchange Online, Teams, SharePoint Online, OneDrive, and other Microsoft 365 services, providing comprehensive coverage across communication and collaboration platforms. Its content-aware detection ensures that sensitive information is not accidentally or maliciously transmitted outside the organization.

Sensitivity Labels apply classification and protection to documents and emails. Labels can encrypt content, restrict access, or mark it according to sensitivity level. While they provide persistent protection and can prevent unauthorized access, they do not actively monitor communications in real time or enforce blocking actions based on outbound emails to personal accounts. Labels rely on users to interact with protected content correctly, meaning they cannot detect or automatically respond to policy violations without being paired with additional enforcement mechanisms like DLP. As a result, Sensitivity Labels alone cannot prevent the exfiltration of sensitive data to personal email accounts.

Retention Policies govern how long content is kept or deleted to meet regulatory, legal, or organizational requirements. They ensure that emails, documents, and Teams messages are preserved or removed according to policy schedules. Although Retention Policies help organizations manage data lifecycle and regulatory compliance, they do not inspect content for sensitive information nor prevent users from sending it to external recipients. Retention policies preserve data after the fact but do not provide proactive, real-time control over sensitive communications, making them insufficient for preventing leaks to personal email accounts.

Privileged Identity Management (PIM) manages elevated administrative access in Microsoft 365. PIM provides just-in-time access, approval workflows, and role activation audits. While critical for limiting standing privileges and controlling administrative actions, PIM does not monitor standard user behavior, inspect content for sensitive information, or prevent data exfiltration to personal accounts. Its focus is on privileged roles and administrative oversight rather than end-user data protection.

Data Loss Prevention is the correct solution because it provides real-time content inspection, policy enforcement, alerts, and automated actions for sensitive information. It can detect attempts to send sensitive data to unauthorized personal email accounts and prevent those actions proactively. Unlike Sensitivity Labels, it does not rely solely on user behavior and ensures enforcement across multiple services. Unlike Retention Policies, it acts before data leaves the organization rather than preserving it after the fact. Unlike Privileged Identity Management, it applies to general users rather than privileged roles. DLP ensures regulatory compliance, prevents accidental or intentional data leaks, and provides reporting for security and compliance teams, making it the most effective feature for detecting and responding to the transmission of sensitive information to personal email accounts.