How Microsoft Defender XDR implements deception

• Automatic decoy generation: Defender XDR creates fake users, devices, and resources that match your organization’s naming conventions and environment profile.

• AI-driven recommendations: The system uses machine learning to suggest the best decoys and lures for your specific network.

• Manual customization: You can also manually create your own lures and decoys if you need tighter control.

• Seamless deployment: Deployment to endpoints happens automatically through PowerShell without needing manual installs.

Once planted, if an attacker interacts with a fake credential, file, or device — you’ll know immediately.

Key Components: Decoys vs. Lures

• Decoys are fake devices and accounts visible inside your network, waiting to be “touched” by attackers.

• Lures are planted items like documents, cached credentials, or configuration files, specifically designed to attract attackers.

There are two types of lures:

• Basic Lures: Static documents or link files.

• Advanced Lures: Cached credentials and active directory interactions that behave more like real assets when queried.

👉🏼 Important: At this point, lure deployment is limited to Windows clients (Windows 10 RS5 and up).

Server support is coming later.

When Deception Triggers an Alert

• Any interaction with a decoy or lure raises an immediate high-confidence alert.

• All alerts are automatically correlated into incidents inside Defender XDR.

• Alert titles always include the word “deceptive” so you can easily identify them.

Example alert titles you might see:

• Sign-in attempt with a deceptive user account

• Connection attempt to a deceptive host

And in the alert details, you’ll always find:

• The Deception tag

• The fake device or user account involved

• The type of suspicious activity detected (e.g., credential theft, lateral movement)

Deployment Prerequisites

Before you can use deception, make sure you meet these requirements:

• A valid subscription (Microsoft 365 E5, Microsoft Security E5, or Defender for Endpoint Plan 2).

• Defender for Endpoint is your primary EDR.

• Devices are joined or hybrid-joined to Microsoft Entra ID (formerly Azure AD).

• PowerShell must be enabled on endpoints.

• Automated Investigation and Response (AIR) must be configured.

Also, you need Security Admin or Global Admin permissions to configure it — though it’s best to avoid Global Admin whenever possible for better security hygiene.

Why Deception Matters

Attacks today — whether ransomware, BEC (business email compromise), organizational breaches, or even nation-state threats — heavily rely on lateral movement.

Catching them during that stage can mean the difference between a small incident and a full-blown breach.

With built-in deception:

• You turn attackers into your intelligence source.

• You observe real attacker behavior safely.

• You gain precious time to respond — while attackers waste time on fake assets.

It’s a classic cybersecurity move:

Make yourself a harder, smarter, and more deceptive target.

For more information:

https://learn.microsoft.com/en-us/defender-xdr/deception-overview

🔜 What’s next?

In Part 2, I’ll walk through how to configure Deception Rules properly, define scopes, and share some real-world tips for maximizing the value of the feature — including when to favor basic lures vs. advanced lures based on your environment 🔥.