Microsoft Exchange Online PSA

Date: 01/26/2026

Microsoft will permanently disable Basic Authentication for Exchange Online email services in March 2026. If your Xerox device uses Exchange Online for features like Scan to Email or fax notifications, it may need to be updated to support OAuth 2.0. We recommend contacting your IT provider to confirm whether this change affects you. Benchmark Office Systems is also available to assist if needed.

What is Microsoft changing in Exchange Online?

Microsoft is phasing out Basic Authentication for SMTP AUTH in Exchange Online. Beginning March 2026, Exchange Online will no longer allow devices or applications to send email using basic username-and-password authentication.

This change applies only to Exchange Online (Microsoft 365) and does not affect on-premise Exchange servers.

Why is Microsoft disabling Basic Authentication?

Basic Authentication is less secure and more vulnerable to:

  • Phishing attacks

  • Credential theft

  • Unauthorized access attempts

Microsoft is replacing it with OAuth 2.0, which uses secure, token-based authentication and aligns with modern security best practices.

Which Xerox features could be affected?

If your Xerox device sends email through Exchange Online, the following features may be impacted if no updates are made:

  • Scan to Email

  • Internet Fax (Send)

  • Fax Forward to Email

  • Automatic Email Notifications

  • Error Notifications via Email

Once Basic Authentication is disabled, these features may stop working until the device is updated.

Who should be concerned about this change?

You should review this update if:

  • Your organization uses Microsoft Exchange Online

  • Your Xerox device sends emails through Exchange Online

  • You rely on email-based workflows from your device

If you are unsure how your environment is configured, your IT provider is the best first point of contact to determine whether this applies to you.

What action should be taken?

Primary recommendation:
Contact your IT provider to confirm whether your organization uses Exchange Online for Xerox email workflows and whether updates are required.

If action is needed:

  • Xerox devices must be updated to use OAuth 2.0 for sending email

Xerox has released firmware updates and configuration guidance to support this transition.

Official Xerox information and downloads are available here:
https://www.xerox.com/MSOAuth2

When does this take effect?

  • Now: OAuth 2.0-compatible firmware is available

  • March 2026: Microsoft permanently disables Basic Authentication

While there is no immediate impact today, planning ahead helps avoid unexpected service interruptions closer to the deadline.

How does Benchmark Office Systems fit into this?

Benchmark Office Systems works closely with Xerox and can:

  • Help review device configurations if requested

  • Coordinate with your IT provider as needed

  • Assist with Xerox-related firmware updates and guidance

Your IT provider can lead the evaluation, but Benchmark is here to support you if questions come up along the way.

Final takeaway

This is a security-driven update, not a cause for alarm. Many organizations will already be prepared, but confirming now helps ensure your Xerox email features continue working smoothly after March 2026.

Start by contacting your IT provider.
If additional assistance is needed, Benchmark Office Systems is happy to help. Feel free to contact us with any questions.