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Outlook client for cloud based exchange launches and displays without password

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After setting up users with a local copy of Office 2010 Plus Professional and configuring their outlook client to connect to their cloud based Office 365 exchange email the users are able to launch Outlook without entering a password ( although it does prompt for one) and then view all emails present.

 

I need to be able to restrict outlook from launching if the incorrect password is entered.  Is there a way to do this?  I think it may have to do with the fact that we are using cached exchange mode?


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