Why Email Encryption Should Be in Every MSP’s Security Stack
Email is a prime attack vector, Regulations like HIPAA, FINRA, and GDPR require strict protection.
Nearly every business has experienced attempts to take over an email account. Finance, healthcare and technology companies are the most targeted industries. Securing email is the basis of compliance in the modern age.
Why Email Is Central to Compliance
Communications via email are typically the weak link that causes regulators’ scrutiny. Experts in the field say that email is “the primary attack vector” for cyber-attacks, yet it is often overlooked within an organization’s compliance programs.
Every email that is not secured, poses a possible compliance violation and a security breach.
Regulations require that sensitive information like medical records for HIPAA or client information under FINRA/SEC must be encrypted, and the encryption method is not arbitrary. For instance, HIPAA requires certain cipher strength and OCSP/CRL validation (TLS certificate revocation checking), when using TLS to encrypt sensitive information. Mail systems, like Microsoft 365 and Google Workspace do not meet these requirements out of the box. A single email containing regulated data can instantly put an organization at odds with regulators and their customers.
Regulatory Requirements Involving Email
HIPAA (Health Insurance Portability and Accountability Act)
In healthcare, emails frequently contain electronic Personal Health Information (ePHI). Users often include “PHI” in emails unknowingly. The HIPAA Security Rule requires encryption of ePHI during transport and at rest, together with robust security controls for access and auditing.
The sending of PHI using unencrypted emails or using an uncompliant provider, is a glaring breach of the patient’s trust and HIPAA. The consequences of even a single unprotected email can lead to having to send mandatory “breach notification” letters to all your customers, audits by regulatory authorities, as well as financial sanctions.
FINRA/SEC (Financial Regulations)
Financial firms and broker-dealers fall in the scope of FINRA as well as SEC “books and records” rules that explicitly require the archiving and storage of all communications with business, including emails. Firms are required to keep the originals as well as copies of every message or email for a number of years (typically 3 to 6 years) and the documents must be easily available during any audit.
To fulfill these requirements, several financial institutions have implemented secure, tamper-proof email archive solutions. These archives are encrypted and indestructible copies of messages and have extensive audit trail. In the real world, failing to keep or create the required emails in the course of the course of a FINRA audit or SEC audit could result in harsh penalties or even suspending operations.
GDPR and Data Privacy
While the GDPR may be an EU regulation however, it has significant consequences for U.S. organizations handling data of EU citizens. GDPR requires that businesses protect the integrity, confidentiality and accessibility of personal information which includes information sent via email.
Any breach of email which exposes customer data could be considered a GDPR violation. The regulators expect “appropriate technical measures,” like encryption and access controls to ensure the security of data while it is in transit. The penalties for not complying can be as high as 4 percent of the global revenue or EUR 20 million (or higher), whichever is the greater. A lot of U.S. organizations choose to consider all personal information in emails as confidential, implementing the use of encryption as well as monitoring as a normal method to lower the risk.
State-level laws, such as the California’s CCPA and CPRA, are based on the same principles safeguarding personal information, and demanding transparency and accountability, which includes the exchange of data via email.
Email Threats That Lead to Compliance Failures
Cybercriminals are targeting email constantly. Research has shown that virtually every business has been victim to BEC (Business Email Compromise) attempts and phishing attacks, as well as frauds involving email credential information.
If an attack is successful, it could trigger mandatory breach notification pursuant to HIPAA and GDPR. Every leak, every unprotected email containing regulated data, and every compromised mailbox is likely to carry significant financial and legal repercussions. Violations could result in fines of up to $50,000 per email as well as FINRA and SEC fines for communications record infractions can reach the millions.
Cybercriminals target email because it is often the easiest way to steal sensitive data -and regulators hold businesses accountable for not preventing this.
Essential Email Security Controls for Compliance
To reduce compliance risks, businesses must use layers of security measures for email that focus on data protection as well as accountability, visibility and protection.
1. Encryption (In Transit and At Rest)
Email encryption is the foundation for secure email communications. The HIPAA Security Rule explicitly requires a encryption mechanism for ePHI emails. For financial and healthcare organizations encryption of emails isn’t mandatory, it’s an essential requirement.
Secure encryption ensures that, even the messages are intercepted the contents are not readable. Most companies that are regulated or concerned about overall compliance, filter all outbound email though an automatic encryption service that can detect compliance violations using Data Loss Prevention policies that automatically encrypt an email so that it is compliant with privacy regulations.
2. Data Loss Prevention (DLP)
Data Loss Prevention policies scan emails for sensitive data, such as credit card numbers and Social Security numbers. DLP rules automatically encrypt messages that contain data that is regulated.
HIPAA, PCI DSS, as well as GDPR all require that organizations be proactive in preventing unintentional disclosures of sensitive data. A robust DLP system helps to protect organizations from accidentally transmitting sensitive unprotected data to a recipient or to an outside party.
3. Email Archiving and Retention
Archiving doesn’t only serve as a business tool; it’s a legal obligation for companies under FINRA or SEC regulations. An acceptable email archive should be secure, tamperproof and searchable. It must also be able to store records for legally specified time frames.
Modern cloud-based archiving systems automatically journal every outbound and inbound message. They implement retention schedules that are based on policy and keep audit trails that are unchangeable. This is not just a way to ensure compliance but also helps in responding to audit and e-discovery requests significantly quicker and more reliable.
4. Advanced Threat Protection
Anti-phishing, anti-malware and impersonation security are essential to prevent breaches that can result in compliance breaches. Regulations normally do not define the specific technology to be implemented, so that organization maintain flexibility in the way they control confidential data. However, preventing access by unauthorized persons is a fundamental part of every compliance framework.
Secure Email Gateways (SEGs) and cloud-based threat protection solutions employ artificial intelligence-based detection and sandboxing as well as link analysis to stop malicious content before it is delivered to users. This significantly reduces the likelihood of data exposure and compromised credentials due to attacks involving phishing.
5. Access Controls and Policy Enforcement
Above technology, compliance demands strict access control and clear guidelines. Systems should track who has used what data, establish unique user IDs for each user, and also provide multi-factor authentication. Accounts must be removed at the time of departure for employees.
It is equally important to train users. Studies have consistently shown that over 90% of all breaches are caused by human errors. Training employees on data handling, phishing and safe email practices helps to build the culture of compliance, and decreases the chance of accidental breaches.
Comparing Leading Email Security and Compliance Solutions
Modern email security companies incorporate regulatory compliance right into their products. Here is a look at the ways that top platforms handle the regulatory requirements.
1. EntrustedMail
EntrustedMail is regarded as a leading enterprise security of email. Its security suite offers advanced protection against threats and data loss prevention encryption and the archiving of compliance. The tools for compliance from EntrustedMail automate data retention, offer legal hold options, and make audit preparation easier. For companies that fall under HIPAA, FINRA, or GDPR, the EntrustedMail platform provides complete protection from beginning to end and transparency in reporting and transparency, making it a great option for environments that are regulated.
2. Mimecast
Mimecast provides a platform that is integrated that combines security, archiving and continuity. The cloud archive is encrypted, unchangeable copies of all email traffic which meet FINRA as well as SEC requirements for auditability and retention. The Mimecast Secure Messaging portal permits HIPAA-compliant exchange of PHI. Its DLP features make sure that sensitive information is kept within authorized channels. Mimecast’s centralized policy management makes it easier to ensure the process of ensuring compliance for large and dispersed organizations.
3. Microsoft 365 (Office 365)
Microsoft’s email platform comes with built-in tools to ensure compliance including Data Loss Prevention, Office Message Encryption as well as Litigation Hold. With the correct configuration and an signed Business Associate Agreement (BAA), Microsoft 365 can be HIPAA-compliant. Microsoft 365’s Compliance Center provides templates for GDPR and FINRA that allow companies to have the same policies and schedules for retention. For many small- and medium-sized businesses.
4. Trustifi
Trustifi claims to be an easy-to-install compliance solution for SMBs. It combines email encryption and advanced phishing detection and DLP into one system. The Trustifi automation engine enforces regulations that align with HIPAA as well as GDPR and CCPA and may be a great choice for companies that do not have large IT departments but require strict compliance security.
Other Vendors
Barracuda, Zix, Cisco and many others provide specialized tools for compliance. Baracuda’s Message Archiver provides immutable storage and retention policies for FINRA and HIPAA. Zix concentrates on secure messaging and encryption delivery. Cisco incorporates threat intelligence as well as DLP to stop leaks of data. Although their capabilities vary but all major companies now offer compliance-readiness as a standard part of their security suites for email.
Turning Compliance Into a Business Opportunity for MSPs and OEMs
To Managed Service Providers (MSPs) and Original Equipment Manufacturers (OEMs) Compliance isn’t only a problem, it’s a lucrative business opportunity. Customers in finance, healthcare as well as technology are all under increasing pressure to demonstrate the ability to comply.
By offering managed email security and compliance-as-a-service, MSPs can differentiate themselves in a competitive market. Selling advanced email protection, encryption, archiving directly addresses basic compliance issues. These services aren’t discretionary but are vital for conducting business legally and safely.
OEMs also have the ability to incorporate compliance functions within their platforms for communication to position themselves as trustworthy as data security partners. With the tightening of regulations each year, consumers are looking for proactive solutions not just technology, but also proof of compliance.
Conclusion: Compliance Begins With Email
In industries that are regulated the security of email isn’t a choice. it’s mandatory. The majority of the costly violations of compliance and data breaches are the result of poor email management or lack of security measures. With the help of strong encryption, DLP, archiving and sophisticated threat protection businesses can comply with the most essential demands in HIPAA, FINRA, and GDPR.
To MSPs and OEMs it’s a simple message it’s not just about preventing malware or spam; it’s about ensuring your customers their financial and legal rights. The first step in any successful compliance plan begins by securing one of the most used yet vulnerable communications channel that is email.