Office 365 account interfering with local account Windows 10 PIN setup

Iron Contributor

We have workstations joined to local active directory.

Users sign into computers using local AD accounts that are synced to Office 365 for Exchange Hybrid, Skype Online etc..

The users need to set up biometric authentication for a fingerprint reader.  Before the fingerprint reader can be set up a PIN is required.  When the user attempts to set up their PIN, they first are prompted to confirm their local AD credentials, then a popup from Office 365 appears stating that your organization **requires** Windows Hello and then they have to authenticate to Office 365 to continue.

Where is this coming from?  We don't want that and never set a policy requiring this.

If they go through complete that setup, the PIN is enabled, but the option to reset or remove the PIN disappears from the Sign-In Options setting UI.  The only option left is "Change" which doesn't help them if they forget the PIN.  Change requires knowing the original password.  They used to be able to reset the PIN using their AD credentials.

How can we get rid of this Windows Hello PIN connection to Office 365 or re-enable the option for users to remove and reset their PINs? 

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