Email Encryption in Microsoft 365 –
Microsoft 365 encrypts email so only intended recipients can read it, inside or outside the organization. This article covers which encryption method to use, how admins enable and automate it, how users send encrypted mail, and what recipients see.
Audience: Microsoft 365 / Exchange Online admins, help desk staff, and end users.
Scope: Exchange Online mailboxes. On-premises Exchange and third-party gateways are out of scope.
Encryption options compared
For most organizations, Microsoft Purview Message Encryption is the default choice: it works with any recipient (including Gmail and Yahoo) and needs no certificates. Legacy Office 365 Message Encryption (OME) is deprecated; Purview Message Encryption is built on the Azure Rights Management service (Microsoft Learn).
| Method | What it protects | Works with external recipients | Setup effort | Best for |
|---|---|---|---|---|
| TLS (in transit) | Connection between mail servers | Yes, if the other server supports TLS | None — on by default in Exchange Online | Baseline protection for all mail |
| Purview Message Encryption — Encrypt-Only | Message and attachments; recipients can forward/print | Yes, any provider (portal for non-Outlook) | Low | Everyday sensitive mail to anyone |
| Purview Message Encryption — Do Not Forward | Message plus rights: no forward, print, or copy | Yes | Low | Confidential mail that must not spread |
| Sensitivity labels with encryption | Message plus custom permissions defined by label | Yes | Medium (Purview label policy) | Classification-driven protection |
| Purview Advanced Message Encryption | Adds expiry, revocation, multiple branding templates | Yes (via web portal) | Medium; extra license | Regulated data, external sharing control |
| S/MIME | End-to-end, certificate-based signing and encryption | Only if recipient has a certificate you trust | High (PKI, cert distribution) | Government, partner-to-partner requirements |
TLS alone does not protect a message once it lands in a mailbox. Use one of the other methods when content is sensitive.
Licensing and prerequisites
Standard Message Encryption is included in most business and enterprise plans; expiry and revocation need E5-level licensing. Each user who sends encrypted mail must be licensed. Confirm current entitlements in the Microsoft Purview licensing guidance before rollout.
| Capability | Included in | Add-on route |
|---|---|---|
| Purview Message Encryption (Encrypt-Only, Do Not Forward) | Office 365 / Microsoft 365 E3 and E5, Microsoft 365 Business Premium, Office 365 A1/A3/A5, Office 365 G3/G5 | Azure Information Protection Plan 1 for plans without it (e.g. Business Basic/Standard) |
| Purview Advanced Message Encryption (expiry, revocation, multiple branding templates) | Microsoft 365 E5, Office 365 E5, Office 365 A5, and their nonprofit variants | Microsoft 365 E5 Compliance or E5 Information Protection and Governance add-on |
Technical prerequisites
- Azure Rights Management (Azure RMS) is activated for the tenant. It is on by default in tenants created after early 2018.
- Exchange Online is the mail host; admins hold the Exchange Administrator or Compliance Administrator role.
- Exchange Online PowerShell module (
ExchangeOnlineManagement) installed for verification steps.
Admin setup: verify encryption is enabled
In most licensed tenants encryption is already on: when Azure RMS is active, Purview Message Encryption activates automatically. Run the checks below to confirm, per Set up Message Encryption.
- Connect to Exchange Online PowerShell:
Install-Module ExchangeOnlineManagement # first time only
Connect-ExchangeOnline -UserPrincipalName admin@contoso.com- Check that encryption is licensed in the tenant.
AzureRMSLicensingEnabledmust beTrue:
Get-IRMConfiguration | Format-List AzureRMSLicensingEnabled, SimplifiedClientAccessEnabled- If it is
False, enable it:
Set-IRMConfiguration -AzureRMSLicensingEnabled $true- Test end to end with any two mailboxes in the tenant. Every check should report PASS:
Test-IRMConfiguration -Sender admin@contoso.com -Recipient user@contoso.com- Confirm the protection templates exist (Encrypt and Do Not Forward appear by default):
Get-RMSTemplate | Format-Table Name, Type- Show the Encrypt button in Outlook on the web, if hidden:
Set-IRMConfiguration -SimplifiedClientAccessEnabled $trueIf step 4 fails with “Failed to acquire RMS templates”, connect with the AIPService module and point Exchange at the RMS licensing URL, then retest:
Connect-AipService
$RMSConfig = Get-AipServiceConfiguration
$LicenseUri = $RMSConfig.LicensingIntranetDistributionPointUrl
Set-IRMConfiguration -LicensingLocation $LicenseUri
Set-IRMConfiguration -InternalLicensingEnabled $truePurview Message Encryption does not work while Exchange Online is still bound to on-premises AD RMS; migrate to Azure RMS first.
Admin: auto-encrypt with mail flow rules
A mail flow (transport) rule encrypts any message that matches its conditions before it leaves Exchange Online, so users don’t have to remember. The most common rule encrypts external mail whose subject contains a keyword such as [secure]. Full reference: Define mail flow rules to encrypt email messages.
In the Exchange admin center
- Go to admin.exchange.microsoft.com > Mail flow > Rules > Add a rule > Apply Office 365 Message Encryption and rights protection to messages.
- Name the rule, e.g. Encrypt – [secure] keyword to external.
- Apply this rule if: The recipient is located > Outside the organization. Add a second condition: The subject or body > subject includes any of these words >
[secure],encrypt. - Do the following: Modify the message security > Apply Office 365 Message Encryption and rights protection > select Encrypt (or Do Not Forward).
- Optional: add the exception The sender is > a service account or system mailbox that must not be encrypted.
- Set mode to Enforce, save, and enable the rule. Allow up to 30 minutes for the rule to take effect.
Same rule in PowerShell
New-TransportRule -Name "Encrypt - [secure] keyword to external" `
-SentToScope NotInOrganization `
-SubjectContainsWords "[secure]","encrypt" `
-ApplyRightsProtectionTemplate "Encrypt"Other useful rule patterns
| Goal | Key condition | Action / template |
|---|---|---|
| Encrypt outbound mail with financial or personal data | -MessageContainsDataClassifications (e.g. Credit Card Number, U.S. SSN) + -SentToScope NotInOrganization | Encrypt |
| Encrypt all mail from a department | -FromMemberOf "Finance Team" | Encrypt, optionally a branding template |
| Block forwarding of board communications | -SubjectContainsWords "Board Confidential" | Do Not Forward |
| Remove encryption from internal-only mail | -SentToScope InOrganization | -RemoveOMEv2 $true |
A Data Loss Prevention (DLP) policy in the Purview portal can apply the same encryption action and is the better choice when the condition is sensitive data rather than a keyword.
End user: send an encrypted email
In every desktop and web Outlook client the path is the same: Options > Encrypt, then choose Encrypt or Do Not Forward (Microsoft Support).
Which option to pick
- Encrypt (Encrypt-Only): recipient can read, reply, forward and print. Use for most sensitive mail.
- Do Not Forward: recipient cannot forward, print, or copy. Office attachments stay protected after download.
- Sensitivity label (if your org publishes them): e.g. Confidential – External. The label applies your organization’s protection settings for you.
| Client | Steps |
|---|---|
| New Outlook for Windows | New mail > Options tab > Encrypt > choose Encrypt or Do Not Forward > Send |
| Classic Outlook for Windows (Microsoft 365 Apps, 2016–2024) | New Email > Options tab > Encrypt > pick an option > Send |
| Outlook on the web | New mail > Options on the message toolbar > Encrypt > choose option > Send |
| Outlook for Mac | New Email > Options > Encrypt (or Sensitivity) > choose option > Send |
| Outlook for iOS / Android | Apply an encryption-enabled sensitivity label from the compose menu, or use the subject keyword your admin configured (e.g. [secure]). |
Tip: If your admin created a keyword rule, typing [secure] in the subject encrypts the message automatically from any client, including phones.
To remove encryption before sending, open Encrypt again and choose No permission set or remove the label.
S/MIME is a separate, certificate-based option under Options > Encrypt with S/MIME (classic) or Message options (web). Use it only if your organization has issued certificates and the recipient has one too.
Recipient experience
Microsoft 365 and Outlook.com recipients read encrypted mail like any other message; everyone else opens it in a browser portal after signing in or entering a one-time passcode (Open encrypted and protected messages).
| Recipient uses | What they see | What they do |
|---|---|---|
| Microsoft 365 work/school account in Outlook (desktop, Mac, web, mobile) | Message opens inline with a banner showing restrictions | Nothing extra |
| Outlook.com / Hotmail | Message opens inline in supported Outlook apps | Nothing extra |
| Gmail or Yahoo | Notification email with a Read the message button | Sign in with Google/Yahoo, or request a one-time passcode |
| Any other provider or on-premises Exchange | Notification email with Read the message | Request a one-time passcode |
Instructions to share with external recipients
- Open the email and select Read the message. A browser tab opens.
- Select Sign in with Google / Yahoo / Microsoft, or Sign in with a one-time passcode.
- For a passcode, check the same inbox for an email from Microsoft, copy the code, paste it in the browser, and select Continue.
- Passcodes expire after 15 minutes. If one expires, open the original email again and request a new code.
- On a private computer, tick This is a private computer. Keep me signed in to avoid repeated passcodes.
- Reply from the portal; the reply stays encrypted.
An attachment named message.rpmsg or message.html is part of the protected message and isn’t opened directly.
Branding, expiry and revocation
Every tenant can rebrand its single default template; extra templates, expiry and revocation need Advanced Message Encryption and work only for external recipients who read through the encrypted message portal.
Brand the default template (all licensed tenants)
Set-OMEConfiguration -Identity "OME Configuration" `
-Image ([System.IO.File]::ReadAllBytes('C:\Temp\logo.png')) `
-BackgroundColor "#FFFFFF" `
-IntroductionText "has sent you a secure message." `
-DisclaimerText "This message is confidential. If you received it in error, delete it." `
-PrivacyStatementUrl "https://www.contoso.com/privacy"Create an expiring template and apply it (Advanced)
- Create a template that expires portal access after 7 days (valid range 0–730; 0 = never), per New-OMEConfiguration:
New-OMEConfiguration -Identity "Expire in 7 days" -ExternalMailExpiryInDays 7- Apply it with a mail flow rule. A branding template on the rule forces external recipients through the portal:
New-TransportRule -Name "Encrypt external - 7 day expiry" `
-SentToScope NotInOrganization `
-SubjectContainsWords "[secure]" `
-ApplyRightsProtectionTemplate "Encrypt" `
-ApplyRightsProtectionCustomizationTemplate "Expire in 7 days"Revoke a sent message (Advanced)
- Find the Message ID with a message trace in the Exchange admin center, or in the Purview Encryption report.
- Confirm it can be revoked, then revoke and verify (Microsoft Learn):
Get-OMEMessageStatus -MessageId "<messageId>" | Format-List Subject, IsRevocable
Set-OMEMessageRevocation -Revoke $true -MessageId "<messageId>"
Get-OMEMessageStatus -MessageId "<messageId>" | Format-List Subject, RevokedSenders can also revoke portal-delivered mail to a single Gmail or Yahoo recipient from Outlook on the web. To audit portal access, run Set-IRMConfiguration -EnablePortalTrackingLogs $true, then search Encrypted message portal activities in Purview Audit.
Troubleshooting and FAQ
Most issues trace back to licensing, a disabled Encrypt button, or a passcode email caught by spam filtering.
| Symptom | Likely cause | Fix |
|---|---|---|
| No Encrypt button in Outlook | User not licensed, or button hidden in Outlook on the web | Assign a qualifying license; run Set-IRMConfiguration -SimplifiedClientAccessEnabled $true; restart Outlook |
| Encrypt list is empty or greyed out | Azure RMS not active, or templates not yet downloaded | Run Get-IRMConfiguration and Test-IRMConfiguration; wait up to 24 hours after activation |
Test-IRMConfiguration fails: “Failed to acquire RMS templates” | Licensing location not set | Run the Get-AipServiceConfiguration / Set-IRMConfiguration -LicensingLocation fix in the setup section |
| Mail flow rule not encrypting | Rule disabled, in test mode, lower priority, or still propagating | Check rule mode is Enforce and priority; allow 30 minutes; check message trace |
| External recipient never gets the passcode | Passcode mail in spam or quarantined by their gateway | Ask them to check spam/quarantine or allow-list Microsoft; or sign in with Google/Yahoo |
| “Passcode expired” | Code older than 15 minutes | Reopen the original email and request a new code |
Recipient in Outlook sees only a message.rpmsg attachment | Old or unsupported client, or conversation view | Open the message in its own window; update Outlook; use Outlook on the web |
| Third-party mail apps (e.g. iOS Mail) can’t open | Client doesn’t support Rights Management | Use Outlook mobile, Outlook on the web, or the portal link |
FAQ
- Are replies encrypted? Yes. Replies from recipients to an encrypted message are encrypted too.
- Are attachments encrypted? Yes. With Encrypt-Only, recipients can download unprotected copies of most attachments; with Do Not Forward, Office files stay protected.
- Can I recall an encrypted message? Only with Advanced Message Encryption, and only when the recipient reads it through the portal.
- Is there a size limit? Encrypted messages follow normal Exchange Online limits; very large attachments can fail in the portal. Share large files via OneDrive/SharePoint links instead.
- Does encryption stop phishing or malware? No. It protects confidentiality only; Defender for Office 365 handles threats.