Financial services organizations are being hit particularly hard. The average cost of a security breach reached $6.08 million in 2024, which is 22% higher than the average cost faced by other industries. Email remains the primary entry point that attackers use.
Email security compliance is now a requirement. Regulators expect it, and the consequences of getting it wrong are too severe.
In this article, we explore the best practices that actually work. You’ll learn how to strengthen your security while meeting compliance requirements. We’re covering practical ways to stop phishing attacks, ransomware, and the data breaches that can shut down operations.
These are the essentials every IT security team needs to have in place.
1. Implement robust email authentication protocols
Everything starts with email authentication. Three protocols work together to prove who’s really sending your messages and stop spoofing attempts before they cause damage.
Deploy SPF records to authorize sending servers
SPF (Sender Policy Framework) informs the world which mail servers are authorized to send email on behalf of your domain. You’re creating a list of authorized IP addresses. When a message claims to come from you, receiving servers verify that it originated from an approved source.
If the IP isn’t on your list, receiving servers know something’s wrong. They can reject or flag the message. This prevents attackers from forging messages that appear to originate from your organization.
In financial services, strong email authentication isn’t just a recommendation. It’s necessary.
For example, Abacus Global uses SPF records to protect its domain and reduce the risk of spoofing. This reinforces their reputation and supports compliance requirements around secure electronic communication.
Add DKIM signatures for message integrity
DKIM (DomainKeys Identified Mail) adds a digital signature to every message you send. This cryptographic signature does two things. It proves that the email originated from your domain and confirms that it was not tampered with during transit.
Your server signs messages using a private key. When the message arrives, receiving servers verify that the signature matches your public key in DNS. If everything matches, they know the message is legitimate.
This builds trust with mailbox providers. Messages with valid DKIM signatures get better deliverability. They’re less likely to end up in spam folders, where your recipients won’t be able to see them.
Enforce DMARC policies for comprehensive protection
DMARC (Domain-based Message Authentication, Reporting, and Conformance) brings SPF and DKIM together. It tells receiving servers exactly what to do when messages fail authentication.
You decide the policy. Want to quarantine suspicious messages? Reject them completely? It’s your call. DMARC also sends you reports showing which messages failed and why.
These reports are incredibly valuable. You can spot unauthorized senders immediately and fix configuration problems before they affect legitimate email by using a DMARC lookup tool. Major providers now require DMARC if you’re sending bulk messages to your lead list, so it’s no longer optional.
If you haven’t enabled DMARC yet, start with the policy p=quarantine. Monitor for a few weeks to make sure that no valid emails are failing. Once you’re satisfied, change the policy to p=reject.
Enable BIMI for visual authentication
BIMI (Brand Indicators for Message Identification) displays your verified logo in recipients’ inboxes when messages pass DMARC authentication. This visual trust signal makes it harder for scammers to impersonate your brand.
For financial services, that visual confirmation increases trust. When clients see your logo, they know the message is genuine. BIMI email security enhances your authentication setup and reduces successful phishing email attempts, as recipients can instantly verify the authenticity of the sender.
2. Deploy advanced threat protection against phishing and malware
Advanced threat protection goes way beyond basic spam filters. These systems scan email content, attachments, and URLs in real time. They catch the sophisticated attacks that slip past traditional defenses.
Link click protection is a clever part of phishing protection. It rewrites URLs in messages before they reach recipients. When someone clicks, the system checks the destination against threat intelligence databases first. Even if attackers launched the malicious site after sending the email, you’re protected.
Then, there’s attachment sandboxing. This works by opening suspicious files in isolated environments. The system watches for malicious behavior before anyone sees the attachment. This prevents malware and ransomware from reaching your network.
Modern advanced anti-phishing software uses machine learning to spot new attack patterns. It adapts to evolving threats without requiring manual updates, which is crucial when attackers continually change their tactics.
3. Establish comprehensive email encryption standards
Encryption keeps sensitive financial data private when it’s traveling across networks and when it’s stored. You need both types working together.
TLS (Transport Layer Security) encrypts email while it moves between mail servers. This prevents eavesdropping and tampering while messages are in transit. Modern TLS versions (1.2 and 1.3) provide the strong encryption that compliance standards require.
S/MIME (Secure/Multipurpose Internet Mail Extensions) and end-to-end encryption protect the actual message content. The sender encrypts before transmission, and only the intended recipient can decrypt and read it. Nobody in between can access the data.
When it comes to compliance with GDPR, HIPAA, and PCI DSS, encryption isn’t negotiable. Financial institutions must encrypt messages containing account numbers, cardholder data, and personal information.
Set your email systems to require TLS for every connection. Implement S/MIME certificates for executives who handle sensitive transactions. And make sure to document your encryption policies so you’re prepared when auditors show up.
4. Implement strict access controls and multi-factor authentication
User access controls determine who can read, send, and manage email in your organization. Role-based permissions restrict employees to only access the data they need for their work.
Security policies like multi-factor authentication (MFA) aren’t optional anymore. Microsoft research shows that MFA can block more than 99.2% of account compromise attacks.
MFA requires at least two ways to verify identity. Something you know (like a password), something you have (like your smartphone), or something you are (like a fingerprint). Even if attackers steal your password, they cannot access your account without the second factor.
Zero-trust principles flip the old security model completely. They assume nobody and nothing is automatically trusted, period. Every access request needs verification, whether you’re in the office or working remotely. This approach prevents attackers from moving through your systems if they compromise a single account.
Setting up multi-factor authentication protects against credential theft and account takeovers. Make sure MFA is enabled for all email accounts, especially the ones with admin privileges.
You also need to log everything, including access and authentication events. Not only do you need to do this for compliance requirements, but it also helps you spot suspicious activity.
5. Configure automated email retention and archiving
Email archiving and retention aren’t just best practices in financial services. They’re regulatory requirements. You need to know how long to keep communications and how to store them properly.
Meet FINRA WORM compliance requirements
FINRA WORM compliance requires non-rewritable, non-erasable storage. WORM stands for Write Once, Read Many. Once you archive a message, nobody can alter or delete it.
This immutability protects evidence integrity. It proves messages haven’t been tampered with since you archived them. Courts and regulators depend on this guarantee when they’re investigating issues.
Financial institutions must store emails in a format that meets SEC 17a-4 standards. Your system must prevent the deletion or modification of archived data, and it requires complete audit trails that show who accessed what and when.
Enable automated retention policies
Automated retention policies classify and store messages based on their content and metadata. They automatically apply rules when messages arrive or go out.
For example, you’ll want to tag and auto-classify emails related to private student loans so PII (SSNs, loan numbers, co-signer data) triggers encryption, DLP holds, and retention policies. Clear labeling plus secure transport keep advisors fast and regulators happy.
FINRA’s books and records requirements mandate that broker-dealers maintain legible, accurate records of all business communications for at least six years, with the first two years being immediately accessible. Check data privacy laws in your area to make sure you don’t keep sensitive data for longer than necessary.
Legal hold features preserve messages related to litigation or investigations. These messages remain intact even after regular retention periods expire. eDiscovery tools let compliance teams search and retrieve archived messages quickly when regulators request information.
6. Secure financial transaction communications
Payment-related emails need extra layers of protection. Attackers specifically target wire transfer instructions and invoice communications because that’s where the money is.
Vendor email compromise attacks jumped 137% in 2023 among financial services organizations. Attackers can intercept legitimate payment conversations and slip in fraudulent account details. By the time anyone notices, the money’s already gone.
You need verification protocols for all financial transaction requests. Require voice confirmation for wire transfers above certain thresholds. Use out-of-band communication to verify any account changes. Don’t rely on email alone.
Train your staff to spot BEC (Business Email Compromise) red flags. Urgent payment requests, slight variations in sender addresses, and pressure to bypass standard procedures are all warning signs.
Financial institutions handle large amounts of sensitive data across emails, internal records, and transactions. Using secure tools like a corporate credit card with built-in spend tracking and encrypted reporting helps protect financial data, along with client communications.
Trading firms face similar risks. Tools like LuxAlgo trading indicators rely on accurate data and system integrity, so the same level of care should apply to email and messaging. Encrypted email, multi-factor authentication, and strict access controls help keep trade alerts, client details, and internal discussions secure while meeting regulatory requirements.
Also, implement DLP (Data Loss Prevention) rules that flag outbound messages containing account numbers or cardholder data. These systems can block or quarantine suspicious messages before they leave your network.
7. Establish incident response and breach notification protocols
Create an incident response plan by listing common breach scenarios. For each, document who you’ll contact, how to escalate, and the steps to take to resolve the breach.
SEC and FINRA rules require reporting breaches within strict timelines, sometimes within 48 hours. After any incident, review what happened and update your policies to prevent similar issues from recurring. If in doubt, check with your lawyers and forensic experts.
Conclusion
Email security compliance demands ongoing attention. The threat landscape evolves constantly, and what protected you last year might not work today.
Start with the fundamentals: SPF, DKIM, and DMARC. Add BIMI for that visual authentication layer. Make sure MFA is enabled across all accounts and add threat protection with strict access controls. These steps alone stop most email-related attacks aimed at financial organizations.
But email security isn’t something you set up once and walk away from. It needs regular attention. Stay updated on new threats and changing regulations. Your consistency is what protects your organization and keeps your clients’ trust.
Author Bio:
Jeremy is co-founder & CEO at uSERP, a digital PR and SEO agency working with brands like Monday, ActiveCampaign, Hotjar, and more. He also buys and builds SaaS companies like Wordable.io and writes for publications like Entrepreneur and Search Engine Journal.