550 5.7.520: your organization doesn't allow external forwarding
Likely causes
- A user's Inbox rule forwards mail to an external address.
- Mailbox (SMTP) forwarding to an external address is set on the mailbox.
- Automatic forwarding in the outbound spam policy is Off, or Automatic (which now means Off for most tenants).
- The forwarding rule was created by an attacker on a compromised account.
How to fix it
- Find the forwarding: check the user’s Inbox rules and the mailbox’s forwarding setting. The Auto forwarded messages report in the Exchange admin center lists users who forward externally.
- If nobody knows why the forward exists, treat the account as compromised: reset the password, revoke sessions, and remove the rule.
- If the forward is legitimate and approved by your security policy, an admin creates a custom outbound spam filter policy with automatic forwarding set to On – Forwarding is enabled and applies it only to the users who need it.
- Leave the default policy set to Off. Don’t turn forwarding on for everyone to fix one user.
Checked against: learn.microsoft.com, learn.microsoft.com