Block External Email Forwarding in Microsoft 365

In this article, I’ll show you how to block external forwarding using a Spam Filter Policy and Exchange Mail Flow Rules.

Reasons to Block External Forwarding

  • Prevent data loss – Stops confidential or sensitive information from being sent outside the organization.
  • Protect against insider threats – Reduces the risk of employees forwarding data to personal or competitor addresses.
  • Mitigate account compromise risks – Prevents attackers from setting up forwarding rules to steal data silently.
  • Support compliance efforts – Helps meet requirements under regulations like GDPR, HIPAA, and others.
  • Enforce company communication policies – Ensures all email traffic remains within authorized channels.
  • Reduce risk of data breaches – Limits exposure of email data to unauthorized third parties.
  • Improve audit and monitoring capabilities – Keeps email traffic visible and traceable for security teams.
  • Avoid shadow IT – Blocks use of personal email accounts for company data, which are often less secure.

Block External Forwarding using Spam Filter Policy

Step 1: Log into Microsoft 365 Admin Center

Step 2: On the left side under Admin Centers select “Security”

click on security

Step 3: On the left-hand side go to Email & Collaboration > Polices & Rules

Email Collaboration and Polices

Step 4: Select Threat Polices then Click Anti-Spam Polices

policies anti spam

Step 5: Select “Anti-spam outbound policy” and “Edit protection settings”

Anti-spam outbound policy

Step 6: Select “Automatic forwarding rules” and then “Off – Forwarding is disabled” then select save at the bottom.

select Automatic forwarding rules

Block External Forwarding with Exchange Mail Flow Rules 

Step 1: Log into Microsoft 365 Admin Center

Step 2: On the left side under Admin Centers select “Exchange”

exchange online

Step 3: In the left-hand menu, click Mail Flow > Rules.

mail flow rules

Step 4: Click Add a rule and then choose Create a new rule.

create new rule

Step 5: Configure Rule Settings

  • Name: Give the rule a name
  • Apply this rule if: The recipient is external
  • The message properties: include the message type is AutoForwarded
  • Do the following: Reject the message and include an explanation
mail flow rule settings

Click “Next”.

On the set rule settings page click “Next”.

On the Review and finish screen click “Finish”.

Step 6. Click on the rule and enable it.

enable rule

Blocking external email forwarding in Microsoft 365 is a simple yet effective way to protect your organization from data leaks and phishing attacks. By using Spam Filter Policies or Exchange Mail Flow Rules, you gain more control over how information leaves your tenant and ensure that sensitive data stays secure.

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