Restrict Emails to External Addresses in Microsoft 365

Restrict Emails to External Addresses in Microsoft 365

In Microsoft 365 environments, users send emails to external recipients for various purposes like client relationships, customer communication, project collaboration, etc. However, it can pose a significant risk to the organization’s data, especially if the external domains are suspicious or targeted by hackers for unauthorized access. To prevent such things, admins might want to restrict users from sending emails to external addresses to safeguard the organization. Admins can also implement this as one of the email security best practices to protect their organization’s data from harmful threats.

Let’s see how to block Microsoft 365 users from sending emails to external recipients.

How to Restrict Outgoing Emails to External Addresses?

Admins can restrict users from sending emails to external addresses using the Exchange Online mail flow rule (transport rule). The mail flow rule can be created either via Exchange admin center or PowerShell.

Note: You can also block email auto-forwarding to external domains to avoid emails being sent to external recipients.

Create a Mail Flow Rule to Block Emails to External Addresses

Admins can follow the steps below to create a mail flow rule for preventing users from sending emails to external addresses using Exchange admin center.

Step 1: Sign in to the Exchange admin center.

Step 2: Navigate to Mail flow –> Rules.

Step 3: Click on ‘Add a rule’ and select the ‘Restrict messages by sender or recipient’ default template.

Create a mail flow rule

Step 4: Set Mail Flow Rule Conditions

  • Name your rule. For ex: Restrict mails to external recipients.
  • Click on the first dropdown under ‘Apply this rule if’ and select ‘The recipient’.
  • Then, click on the adjacent dropdown and select ‘is external/internal’.
  • A side pane appears, requiring the recipient location. Click on the dropdown and choose ‘Outside the organization’. Click ‘Save’.

select recipient location

  • Click on the first dropdown under ‘Do the following’ and select the ‘Block the message’ option.
  • Click on the adjacent dropdown and choose your desired option to either reject or delete the message.
    For testing, we opted for the first option and the rejection reason was requested. You can also choose other options based on your requirements.
  • Click ‘Next’.

configure mail flow rule conditions

Tip: If admins want to exclude any specific external user or domain, they can use the ‘Except if’ option to exclude the recipient from this rule.

Step 5: Set Mail Flow Rule Settings

  • By default, the rule mode is set as ‘Enforce’. If required, admins can change it to test with or without policy tips.
  • Click on the Severity dropdown and choose the desired option.
  • If admins want to activate and deactivate the rule on a specific date, they can use the below checkboxes and specify the date & time.

Mail flow rule activation and deactivation

  • Leave the ‘Match sender address in message’ as ‘Header’ and click ‘Next’.

Configure mail flow rule settings

  • Review the policy conditions & settings and click ‘Finish.

Review the mail flow rule and confirm

  • Once the transport rule has been created, click Done.

After the rule is created, it will be in a disabled state. Admins need to enable the rule by clicking on the specific rule and enabling the toggle as shown below.

Enable the mail flow rule to restict emails to external addresses

Tip: To verify the inbound and outbound email details efficiently, admins can use the message trace in the Exchange admin center.

Create a Mail Flow Rule Using PowerShell

To create a transport rule using Exchange PowerShell, follow the steps below.

New-TransportRule -Name "Restrict Mails To External Recipients" -SentToScope NotInOrganization -RejectMessageReasonText "Not allowed to send emails to external users" -Mode Enforce -SetAuditSeverity Medium

Sample Output:

Configure a transport rule to restrict emails to external addresses

If you want to delete the message without notifying anyone, you can replace the ‘-RejectMessageReasonText’ parameter with the ‘-DeleteMessage $true’.

Note: Transport rules created using PowerShell will be enabled automatically.

How Will End Users Experience this Change?

After the mail flow rule is enabled, when users try to send emails to any external recipients, they will receive the following email.

Users getting undelivered email in Outlook

I hope this blog will help admins to restrict users from sending emails to external recipients efficiently using the mail flow rule in Microsoft 365. Feel free to reach out to us in the comment section for any queries.

Restrict Emails to External Addresses in Microsoft 365

by Sruthy time to read: 3 min
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