How to stop users creating security groups in Entra ID

Set "Users can create security groups in Azure portals, API or PowerShell" to No.

Every Microsoft 365 security check · Identity & Authentication · NL-IDN-107

What this check looks at

Checks whether ordinary users can create security groups in the Azure portals, the API or PowerShell.

The Entra ID setting Users can create security groups in Azure portals, API or PowerShell decides whether any member of the tenant can create security groups and become their owner. Microsoft’s default is Yes. It is separate from the setting for Microsoft 365 groups, which Teams uses and this check does not cover.

The check reads the default user permissions in the tenant’s authorisation policy. It fails when ordinary users can create security groups and passes when they cannot.

Security groups grant access: to apps, to SharePoint sites, to Azure resources, and as inclusions or exclusions in Conditional Access policies. When anyone can create and fill them, groups appear with no owner in IT, official-looking names and members nobody reviews. An attacker with one compromised account can create a convincingly named group and ask for it to be added somewhere useful, and a group made for a project often keeps its access long after the project ends.

Why it matters

Security groups grant access to apps, files and Conditional Access exclusions. When anyone can create and fill them, groups appear that nobody owns or reviews, and access granted through them goes unseen.

Over a few years, a tenant where anyone can create security groups gathers dozens of unowned groups with confusing names. An administrator asked to give "Finance-Team" access to a site cannot tell the real finance group from one created by a temp, and access goes to the wrong people. During an incident, every unknown group is another thing to investigate.

Limiting creation to administrators, or to a group-management role, ties every security group to a request and an owner, which is what makes later access reviews meaningful. The cost is the occasional request to IT for a new group.

The CIS Microsoft 365 Foundations Benchmark (5.1.3.2) asks that users cannot create security groups. The rule maps to NIST CSF 2.0 PR.AA-05: access permissions defined, managed, enforced and reviewed.

How to fix it

Where: Entra admin centre → Groups → General

Before you start

  • Check who creates security groups today (audit log, activity "Add group") and give them a group-management role if they still need to.

Step by step

  1. Check who creates security groups today. In the Microsoft Entra admin centre, go to Entra ID > Monitoring & health > Audit logs and filter Activity on Add group over the last 30 days. Note who, other than administrators, creates security groups for their work.
  2. Give a group role to anyone who still needs it. If someone genuinely needs to manage groups, assign them the Groups Administrator role in Entra ID > Roles & admins (scoped to an administrative unit where possible), or agree that IT creates groups for them on request.
  3. Change the setting. Go to Entra ID > Groups > General. Under Security Groups, set Users can create security groups in Azure portals, API or PowerShell to No and select Save. Leave the Microsoft 365 groups setting as the client wants; it is not part of this check.
  4. Or make the change in PowerShell. In Microsoft Graph PowerShell: Connect-MgGraph -Scopes Policy.ReadWrite.Authorization, then Update-MgPolicyAuthorizationPolicy -DefaultUserRolePermissions @{ AllowedToCreateSecurityGroups = $false }.
  5. Tidy up existing groups. In Entra ID > Groups > All groups, filter on Group type Security and look for groups with no owner in IT or no clear purpose. Give each an owner, or delete it after checking what access it grants.
  6. Confirm. Reload Groups > General and check the setting shows No. Re-run the assessment to confirm the finding passes.

What users will notice

Ordinary users can no longer create security groups in the portals, PowerShell or the API. Microsoft 365 groups and Teams are not affected by this setting.

How to confirm it worked

Entra admin centre, Groups, General: "Users can create security groups in Azure portals, API or PowerShell" is No.

Frameworks and controls

This check maps to controls in 13 frameworks. Passing it is evidence that the setting is in place, not a certification against any of them.

The frameworks and controls NL-IDN-107 maps to
FrameworkControl
NCSC CAFB2.d Identity and access management (IdAM)
DSPTStandard 4: Managing data access
NIS2Art. 21(2)(i) Access control and asset management
Microsoft Cloud Security BenchmarkPA-7 Follow just enough administration (least privilege)
Zero TrustIdentities
SOC 2CC6.3 Role-based access and least privilege
NIST SP 800-1713.1.5 Employ the principle of least privilege
CMMC Level 2AC.L2-3.1.5 Least Privilege
ISO 27001:2022A.5.15 Access controlA.5.18 Access rights
CIS M3655.1.3.2 Ensure users cannot create security groups
CIS Controls v8.16.8 Define and maintain role-based access control (IG3)
NIST CSF 2.0PR.AA-05: Access permissions, entitlements, and authorizations are defined in a policy, managed, enforced, and reviewed, and incorporate the principles of least privilege and separation of duties
NCSC 10 StepsIdentity and access management

The framework mappings were last checked against the published standards in October 2026.

Microsoft’s documentation

The full Microsoft 365 security checklist, worst first

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ConfigCheckup runs this check on every tenant you connect and offers an approved fix. You see a dry run of exactly what will change, approve it, and can roll it back.

14 days of daily monitoring and alerts, every finding with its fix guide, and reports on up to 3 tenants, from your first connected tenant. No card. Then choose the plan that fits.Where this check fits: Microsoft 365 security assessment for MSPs