Exchange Online External Email Tags

The External Email Tag in Microsoft 365 clearly marks emails from outside your organization, making them easier to spot. Instead of relying on the older methods — such as prepending “[External]” to the subject line or inserting a yellow warning banner into the message body — this feature adds a clear visual indicator directly next to the sender’s email address in Outlook.This subtle but powerful change ensures users can immediately see whether the message is from an internal or external source, both when receiving and replying to emails.

By integrating the warning into the sender identity itself, the indicator feels more natural, harder to overlook, and less disruptive to message readability.

Why External Email Tags?


This control not only reduces phishing risk but also supports compliance with security frameworks such as ISO 27001 and NIST by strengthening user awareness.


The benefits are significant.

Comparison with Older Methods

Method Pros Cons
External Email Tag (New) Integrated next to sender, modern, hard to miss, clean design Requires newer Outlook clients
Subject Prefix ([External]) Works everywhere, simple to set up Clutters subject lines, easy to spoof, breaks threading
Yellow Banner in Body Visible in most clients, straightforward Can be ignored, adds noise, not linked to sender identity

See samples from Outlook Desktop:

Figure 1: Incoming email with External tag.

emailin

Warning and color mark the email as external, there is also action the recipient could take if needed direct.


Figure 2: Actions for Incoming email with External tag.

emailaction

Figure 3: If domain missing Email Security Frameworks (SPF,DKIM/DMARC), verification can't be done (Trash folder).

emailjunk1

Figure 4: Outgoing email with External tag.

emailout

The yellow frame appears as soon as email address has been written or added.


View Script

Step 1: Install ExchangeOnlineManagement.

This will require PowerShell to be started as Administrator, well configured computer (AntiMalware/EDR) will not allow you to modify %userprofile%\Documents\WindowsPowerShell. If nothing happens verify that you are allow to do this temporary.

 
Install-Module -Name ExchangeOnlineManagement -Force
         
       

Step 2: Connect to Exchange Online with PowerShell

 
Connect-ExchangeOnline -userPrincipalName yourusername@example.com
         
       

Step3: Check current status (fake info)

 
Get-ExternalInOutlook

Identity                             Enabled AllowList
--------                             ------- ---------
1111111a-aaa1-222b-3333-444444444444    False {}       
         
       

Step 4: Enabled/Disable the External IN/Out tags

 
# Enable
Set-ExternalInOutlook -Enabled $true
# Disable
Set-ExternalInOutlook -Enabled $false
         
       

tipsTip: If you dont like it turn it off.

Step 5: Add or remove email address or domain(s) to AllowList (optional)

Use the Get-ExternalInOutlook command to check current status.

tipsTip: Important: 🛡 Avoid using the AllowList unless there is a strong business need — it weakens protection against impersonation.

 
# Add
Set-ExternalInOutlook -AllowList  @{Add="example.com"}

# Remove
Set-ExternalInOutlook -AllowList  @{Remove="example.com"}
         
       

FAQ

Q: Does this block external emails?
A: No, it only highlights them for awareness.

Q: Can I exclude trusted partners?
A: Yes, via AllowList — but we recommend doing this only when absolutely necessary.

Q: Will this work on mobile?
A: Yes, the external tag is supported in Outlook mobile apps.

Q: Will this confuse employees?
A: No. The indicator is subtle but clear. It works as a simple reminder, reinforcing training without disrupting daily work.

Final Thoughts

Recommendation: Enable External Email Tags as the preferred method for distinguishing external messages. It offers stronger security, a cleaner experience, and aligns with Microsoft’s modern email security strategy.