Microsoft Entra Security: Hidden Guest Account Risks You Must Know

Guest Accounts Are Not Low-Risk

Many organizations assume that Microsoft Entra B2B guest accounts pose minimal threat due to their limited privileges. However, a hidden Microsoft Entra security gap allows these users to gain unexpected control—by creating and transferring Azure subscriptions into your tenant. This effectively grants them Owner access over those subscriptions, even though they are only guests.

How the Exploit Works

This privilege escalation technique works in the following way:

1. A guest user from another organization (with billing privileges in their home tenant) is invited to your Microsoft Entra tenant.
2. Through the Azure Portal, they create a subscription and associate it with your tenant.
3. The new subscription lands in your root management group, giving them Owner RBAC permissions by default.

This method can bypass traditional permission boundaries, creating a serious security risk within Microsoft Entra security.

What Makes This a Critical Threat

Once the guest account gains Owner access, it can:

• Identify high-privilege users through RBAC inheritance.
• Modify or disable Azure policies to avoid detection.
• Create persistent user-assigned managed identities within your directory.
• Register trusted devices to bypass Conditional Access policies.
• Leverage dynamic groups to escalate access and automate privilege changes.

These actions can be carried out without raising obvious alerts in standard monitoring tools. Strengthening Microsoft Entra security measures can help mitigate these risks.

How to Protect Your Microsoft Entra Tenant

To defend your environment from this type of attack:

• Enable subscription restrictions in Microsoft Entra to block guests from creating subscriptions in your tenant.
• Remove unnecessary guest accounts regularly.
• Disable guest-to-guest invitation capability to prevent further exposure.
• Monitor all Azure subscriptions for any that appear without authorization.
• Audit device registrations and dynamic group rules for signs of abuse.
• Use Azure Policy to enforce least privilege access and ownership restrictions.

These settings can drastically reduce the risk of stealth privilege escalation and improve Microsoft Entra security.

Expand Your Security Model Beyond Admin Accounts

This threat vector shows that identity misconfigurations can be just as dangerous as compromised administrator accounts. Billing roles, dynamic access groups, and guest permissions must be reviewed regularly.

Organizations should shift focus from only securing admin accounts to managing all forms of elevated access, including billing and ownership roles, particularly those involving guests.

Additional Security Recommendations

• Implement Conditional Access policies to reduce unauthorized access.
• Require multi-factor authentication (MFA) for all users, including guests.
• Leverage Microsoft Entra ID Protection to detect and respond to risky user behavior.
• Enable security alerts in Azure Security Center and review them regularly.
• Conduct frequent access reviews to ensure all accounts are compliant with your least privilege policies.

Final Thoughts

Microsoft Entra B2B guest accounts can introduce hidden attack paths if left unchecked. By understanding the risks and enforcing proper subscription and identity governance through effective Microsoft Entra security practices, you can secure your Azure environment against privilege escalation threats.

Make guest access a part of your security review process—not an exception. It only takes one overlooked configuration in Microsoft Entra security to compromise an entire cloud infrastructure.