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To monitor and detect higher-than-normal volumes of password resets, you need to gather password reset event data both from Azure Active Directory (cloud identities) and from on-premises Active Directory (domain accounts). Microsoft’s official Defender XDR and Sentinel integration guidance describes that:

Azure AD Password Protection enforces and monitors password policies in both cloud and hybrid environments. It can detect weak, commonly used, or compromised passwords and logs related password change/reset activities. Deploying Azure AD Password Protection extends password reset visibility to on-premises domain controllers through the Password Protection proxy and DC agent. This makes it the correct choice for implementing monitoring at the identity environment level.

In Microsoft Sentinel, to ingest and analyze password reset activities from on-premises servers (e.g., domain controllers), you must use the Windows Security Events via AMA connector. This connector collects Event ID 4723 (password change), 4724 (password reset), and related security logs directly from Windows Servers into the Sentinel Log Analytics workspace through the Azure Monitor Agent (AMA). Once the events are available in Sentinel, they can be correlated with other identity or behavioral analytics to detect abnormal reset volumes or potential compromise attempts.

The other options are not suitable:

Microsoft Defender for Identity focuses on identity compromise detection, not specifically on password reset volume monitoring.

Smart lockout protects against brute-force sign-in attempts but doesn’t generate detailed reset event telemetry.

Microsoft security rule and UEBA are higher-level analytic configurations, not data ingestion mechanisms.

Therefore, to meet the Sentinel requirements for monitoring password reset anomalies:

✅ Implement in the identity environment: Azure AD Password Protection

✅ Configure in Microsoft Sentinel: The Windows Security Events via AMA connector

As outlined in Microsoft’s official Defender for Office 365 documentation, this service provides comprehensive protection against threats targeting Microsoft 365 collaboration tools—such as SharePoint Online, OneDrive for Business, and Microsoft Teams. The marketing team uses SharePoint Online for vendor collaboration and has experienced incidents in which vendors uploaded malicious files. Microsoft Defender for Office 365 specifically addresses this scenario through features like Safe Attachments and Safe Links, which automatically scan uploaded or shared files for malware and block access to harmful content.

When a vendor uploads a file to SharePoint Online, Defender for Office 365 inspects the file in real time within a virtual sandbox environment before allowing users to open or share it. If malware is detected, the system quarantines or removes the file and notifies administrators. These detection and remediation capabilities prevent infection propagation, protect sensitive marketing data, and maintain compliance with Contoso’s security posture.

By leveraging Defender for Office 365, Contoso’s marketing team can continue external collaboration safely, ensuring that all uploaded files are scanned and validated before internal access—thereby resolving their specific malware-related issue.

Azure Sentinel “playbooks” are Azure Logic Apps. Granting the minimal permissions to configure (create/edit) playbooks requires the Logic App Contributor role on the resource group where the playbooks reside. This satisfies the business requirement to use least privilege and specifically enables admin1 to design, modify, and manage Logic Apps that Sentinel automation rules or analytics rules will invoke. Roles like Automation Operator or Automation Runbook Operator apply to Azure Automation, not Logic Apps, and therefore don’t allow creating or editing Sentinel playbooks. Azure Sentinel Contributor allows managing Sentinel resources (incidents, analytics rules, workbooks) but, by itself, does not grant permissions to author Logic Apps. Assigning Logic App Contributor provides precisely what is needed to configure Sentinel playbooks without unnecessary broader permissions.