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Why SMBs Need The Best Email Security for Microsoft 365?

Secure your Indian SMB with the best email security for Microsoft 365. Protect against 2026's AI-driven phishing and BEC threats. Expert insights for CTOs.

Subhajeet Naha

Cybersecurity Expert with 27+ years of experience in enterprise security. Currently leads Protecte Technologies.

3 February 2026
8 min

an image showing a security protocols of computers and online stuff

One billion emails. That is the estimated volume of malicious messages targeting Indian mailboxes every single month in this AI era. As a security researcher who has audited hundreds of M365 tenants, I’ve seen firsthand that if your startup or SMB runs on Microsoft 365, you aren't just using a productivity suite; you’re operating on the world’s most targeted communication surface.

While Microsoft’s native Defender offers a solid foundation, the good enough era of security is over. For Indian CTOs and business leaders, the question isn’t whether Microsoft 365 is secure, but whether your specific configuration can withstand a $4.5 million Business Email Compromise (BEC) attempt tailored for the Indian market. In this guide, we’ll move past the theory and show you exactly how to fill the gaps in your defense.

How to Secure Microsoft 365 Email?

Most Indian SMBs make the mistake of assuming that a Microsoft 365 license automatically equals total immunity. However, hackers specifically study Microsoft’s default filters to find blind spots. In this era, we are seeing a surge in living-off-the-land attacks where hackers use legitimate Microsoft tools like SharePoint or OneNote to send malicious internal emails that bypass standard gateways.

Why You Are a Target

Indian startups are currently in a Goldilocks Zone for cybercriminals. You have enough capital and data to be a lucrative target, but often lack the massive Security Operations Center (SOC) of a NIFTY 50 company.

The Trust Gap: Indian business culture relies heavily on WhatsApp and Email. Attackers exploit this by moving seamlessly between platforms, a tactic known as Multi-Channel Phishing.

Rapid Digitization: As we move toward a $5 trillion economy, the sheer volume of digital invoices makes Invoice Fraud the #1 threat for Indian mid-market firms.

Native vs. SEG vs. API-Based (ICES)

Choosing the best architecture is the first step for any admin. Here is how the three main models compare in the 2026 threat landscape: Native vs SEG vs API Based email security Software

Top 7 Email Security Tips for Microsoft 365 Users - Practical M365 Admin Checklist

Based on our recent security audits for Bengaluru-based fintechs, these seven pillars are the difference between a secure week and a catastrophic breach. Email security tips for Microsoft 365 Users

1. Enable Phishing-Resistant MFA

Standard SMS-based OTPs are dead. In this era, Adversary-in-the-Middle (AiTM) attacks can bypass them easily. Switch your leadership team to FIDO2 security keys or biometric passkeys.

2. Deploy an ICES Layer

Integrated Cloud Email Security (ICES) uses APIs to sit inside your inbox. Unlike traditional gateways, it can scan internal-to-internal emails, the primary vector for lateral movement in Indian startups.

3. Implement DMARC, SPF, and DKIM

For Indian SMBs selling globally, your domain reputation is everything. Without these protocols, your Official Quote might end up in your client’s spam folder or worse, a hacker could spoof your domain to steal from your vendors.

4. AI-Powered Behavioral Analysis

The Best email security for Microsoft 365 India must include AI that understands normal. If your Finance Head usually logs in from Mumbai but suddenly sends an urgent wire transfer request from an IP in Eastern Europe, your system should kill the session automatically.

5. Automate Incident Response

In a fast-paced startup, your IT guy shouldn't be manually deleting 500 phishing emails. Use tools that offer Zero-hour Auto Purge"(ZAP) to claw back malicious mail before a single employee clicks.

6. Regional Threat Intelligence

Your security should know about the Jamtara-style social engineering tactics. Generic Western filters often miss the nuance of Hinglish or local context used in Indian phishing campaigns.

7. Continuous Awareness Training

Simulated phishing is your best friend. Test your team with fake Income Tax Refund emails, a lure that still has a 30% click rate among Indian employees.

Report your Phishing Attacks

Why Native Microsoft 365 Security Isn’t Enough

Microsoft is a productivity company first. Their filters are designed for breadth, not depth.

A comparison table titled Microsoft 365 Native vs Best-in-Class Add-on (Mailarmor) highlighting key differences in BEC protection, internal email scanning, Indian threat intelligence (including Hinglish support), and ease of use for SMBs.

How to Choose the Best Email Security for Microsoft 365

When evaluating vendors, look for these three India-Specific markers to ensure compliance and efficiency:

1. Data Residency: Does the vendor store your email logs in an Indian data center? (Crucial for DPDP Act compliance).

2. Support Timezone: When your CEO’s account is compromised at 9 AM IST, do you have to wait for a US-based support team to wake up?

3. Hinglish Detection: Can their NLP (Natural Language Processing) detect threats written in a mix of Hindi and English?

You can also check out this guide to get a Buyer's Checklist for Best Email Security Software

Don't Wait for the Unintended Invoice

The landscape for Indian SMBs is changing. As we embrace AI and cloud-native workflows, our vulnerabilities scale with us. Relying solely on default settings is like leaving your front door locked but your windows wide open. Securing your Microsoft 365 environment with a specialized, AI-driven layer ensures that your team can focus on innovation, not remediation.

Ready to see what Microsoft 365 is missing?

Don't let your business become a statistic. Mailarmor provides the precision-engineered protection Indian SMBs need to stay ahead of AI era most sophisticated threats.

Join Our Waitlist to Gain Early Benefits Today

FAQs

1. Is Microsoft Defender for Office 365 not enough?

A. While Defender handles high-volume spam, it often misses targeted, low-volume Spear Phishing.Third-party layers like Mailarmor provide the specialized AI needed to catch these needle-in-a-haystack threats.

2. How does the Indian DPDP Act affect my email security?

A. The Digital Personal Data Protection (DPDP) Act requires businesses to take reasonable security safeguards. Enhanced email security is now a compliance necessity to prevent unauthorized access to personal data.

3. Will adding a security layer slow down my email delivery?

A. Modern API-based solutions scan emails in milliseconds after they hit the inbox but before the user opens them, ensuring zero latency.