Prepare infrastructure for devices · Topic 7 of 7

Windows Hello for Business, LAPS and Local Groups

MD-102 local identity: configure Windows Hello for Business with Intune, manage Windows LAPS passwords with Entra ID, and control local group membership.

  • 5 min
In a nutshell
  • Hello for Business uses a device bound key with a PIN or biometric. Cloud Kerberos trust is the simple hybrid option.
  • LAPS needs the Entra tenant setting, an Account protection policy and permission to read passwords.
  • Backup directory choices are Disabled, Entra ID and Active Directory. Intune shows passwords only for Entra ID.

What it is

Three Windows features reduce the risk of stolen passwords. Windows Hello for Business replaces passwords with a PIN or biometric tied to the device. Windows LAPS (Local Administrator Password Solution) gives each device a unique, rotating local administrator password. Local group membership policy controls who is in groups such as Administrators. You configure all three with Intune.

Windows HelloPIN or biometric, no passwordLAPSunique local admin passwordLocal groupswho is an administratorSafer devicesless credential theft

How it works

Windows Hello for Business

Hello for Business is a strong, two factor credential: the device (with its TPM) plus a PIN or biometric. The private key stays on the device, so the secret cannot be replayed from another machine. You configure it in Intune in two ways.

  • Tenant wide at enrollment: under Devices, Enrollment, Windows, Windows Hello for Business, a default that applies as devices enroll.
  • Targeted policy: an Account protection policy (Endpoint security) or a settings catalog policy for groups.

Common settings:

SettingEffect
Configure Windows Hello for BusinessEnabled, Disabled or Not configured
Minimum and maximum PIN lengthBetween 4 and 127 characters
Lowercase, uppercase and special charactersComplexity rules
PIN expiration (days) and Remember PIN historyRotation and reuse limits
Use a Trusted Platform ModuleRequired, Preferred or Not required
Use security keys for sign inAllows FIDO2 keys
Enable PIN recoveryLets users reset a forgotten PIN
Cloud trust (cloud Kerberos trust)Lets Hello reach on premises resources without a PKI, for hybrid scenarios

For a hybrid device that needs on premises resources, the cloud Kerberos trust model is the simplest, because it needs no certificates.

Windows LAPS

Windows LAPS creates a random local administrator password on each device, stores it in the directory and rotates it. A stolen password then only opens one device. Setup has three parts.

  1. Entra tenant setting: to store passwords in Entra ID, turn on Enable Microsoft Entra Local Administrator Password Solution (LAPS) in device settings.
  2. Intune policy: Endpoint security, Account protection, create a Local admin password solution (Windows LAPS) policy. Key settings:
SettingDetail
Backup directoryDisabled (the default), Microsoft Entra ID only, or Active Directory only
Password age (days)Default 30. Maximum 365, and at least 7 when the backup is Entra ID
Administrator account nameThe local account to manage, otherwise the built in administrator
Password complexity and lengthLength 8 to 64, default 14
Post authentication actionsReset the password, or reset and log off or reboot, after use
  1. Permissions: to view a password you need the Entra permission microsoft.directory/deviceLocalCredentials/password/read. The Cloud Device Administrator and Intune Administrator roles can read it. A custom role can have just that permission.

Operations to know:

  • The Rotate local admin password remote action rotates it on demand, and it restarts the age timer. It needs a successful earlier backup.
  • Passwords are visible in the Intune admin center only when backed up to Entra ID, not to Active Directory.
  • Changing the password age does not rotate the password immediately.
  • LAPS with Entra ID is not supported for Entra registered devices, and a conflicting policy (GPO or legacy LAPS) can block the backup. The Account protection report shows conflicts.

Local group membership

An Account protection policy of type Local user group membership controls who belongs to a local group. You choose:

  • The local group, such as Administrators, Users, Remote Desktop Users or Power Users.
  • The action: Add (Update), Remove (Update) or Add (Replace). Replace removes everyone not listed.
  • The members: users or groups from Entra ID, or manual entries by name or SID.

Use Replace to make the Administrators group contain only approved accounts, which removes drift. Use Add to give a help desk group admin rights without touching other members. Combine with LAPS so the built in account stays protected.

A worked scenario

A company wants no shared admin passwords, and a PIN instead of a password for office staff. The admin turns on the Entra LAPS setting, creates a LAPS policy with backup to Entra ID, a 14 day password age and the built in administrator, and gives help desk staff a role with password read. She enables Windows Hello for Business through the tenant wide enrollment policy with TPM required, and a local group policy that replaces the Administrators group membership with the IT admin group.

What to remember for the exam

  • Hello for Business uses a device bound key with a PIN or biometric. Cloud Kerberos trust is the simple hybrid option.
  • LAPS needs the Entra tenant setting, an Account protection policy and permission to read passwords.
  • Backup directory choices are Disabled, Entra ID and Active Directory. Intune shows passwords only for Entra ID.
  • Password age defaults to 30 days, with a maximum of 365 and a minimum of 7 for Entra ID.
  • Local group policy actions are Add (Update), Remove (Update) and Add (Replace).
Exam tip

To reset a compromised local admin password right now, use the Rotate local admin password remote action.

How the exam asks about this

  • "Each device needs a unique local administrator password." Windows LAPS.
  • "View the LAPS password in Intune." Back up to Entra ID and have password read permission.
  • "Ensure only IT admins are local administrators." A local user group membership policy with Add (Replace).
  • "Sign in without a password, using the TPM." Windows Hello for Business.

Common mistakes

Forgetting the Entra LAPS toggle. Passwords are not stored.

Backing up to Active Directory and expecting to see it in Intune.

Using Add when you meant Replace. Old members stay.

Expecting a new password age to rotate at once.

Check yourself

  • Where does Intune show a LAPS password?

    In the device view, when the password is backed up to Microsoft Entra ID.

  • Which local group action removes everyone not listed?

    Add (Replace).

  • What is the default LAPS password age?

    30 days.

Topic 7 of 7 in Prepare infrastructure for devices

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