An error occurred when processing the security tokens in the message:You are using Ws-Tust authentication which has been deprecated and no longer supported in your environment. Please use oAuth2.0 authentication in Dynamics 365 / CDS

While trying to connect to Dynamics 365 instance through Online Federation authentication type (deprecated) using CDS/ CRM connection manager of KingswaySoft

you would get the below error –

KingswaySoft.IntegrationToolkit.DynamicsCrm.CrmServiceException: CRM service call returned an error: An error occurred when processing the security tokens in the message:You are using Ws-Tust authentication which has been deprecated and no longer supported in your environment. Please use oAuth2.0 authentication. (SSIS Integration Toolkit for Microsoft Dynamics 365, v20.2.0.3083 – devenv, v15.9.28307.905)System.ServiceModel.FaultException

: An error occurred when processing the security tokens in the message:You are using Ws-Tust authentication which has been deprecated and no longer supported in your environment. Please use oAuth2.0 authentication.

The solution is to use the OAuth connection type as shown below.

More on OAuth 2.0 – https://nishantrana.me/2019/08/30/oauth-2-0-with-dynamics-365-ce-web-api/

Here we have selected Password as OAuth type.

And specified username and password, and for Client App Id we have specified the default client app id.

2ad88395-b77d-4561-9441-d0e40824f9bc

https://nishantrana.me/2019/08/23/connect-to-dynamics-365-web-api-using-oauth-2-0-resource-owner-password-credential-ropc/

This connection succeeds this time.

The same will be the experience with XrmToolBox while trying to create a new connection using the connection wizard

Microsoft.Xrm.Tooling.Connector.CrmServiceClient    Error    2    06/11/20 07:18:46 Unable to connect to CRM: An error occurred when processing the security tokens in the message:You are using Ws-Tust authentication which has been deprecated and no longer supported in your environment. Please use oAuth2.0 authentication.

Error    : An error occurred when processing the security tokens in the message:You are using Ws-Tust authentication which has been deprecated and no longer supported in your environment. Please use oAuth2.0 authentication.

Try the alternate connection method like SDK Login Control, Client ID secret, etc.

https://www.xrmtoolbox.com/documentation/for-users/connecting-to-an-organization/

Please refer to the below articles to get more details –

Use of Microsoft 365 authentication with the WS-Trust security protocol

Deprecation of Office365 authentication type and OrganizationServiceProxy class for connecting to Common Data Service

https://colinvermander.wordpress.com/2020/02/09/cds-crm-sdk-ws-trust-auth-and-organizationserviceproxy-deprecated-what-does-it-mean/

Hope it helps..