Securing Office 365 with Defender

Configure Anti-Phishing Policies in Microsoft Defender for Office 365

Overview

Anti-phishing policies in Microsoft Defender for Office 365 protect users from:

  • Impersonation attacks
  • Business Email Compromise (BEC)
  • Domain spoofing
  • Credential harvesting emails

Proper configuration is critical. Many organizations enable Defender but leave impersonation protection misconfigured or too broadly scoped.

This guide explains how to configure Anti-Phishing policies correctly, what plans support them, and what administrators must verify.


Licensing Requirements

Anti-Phishing protection is available in:

FeatureExchange Online Protection (EOP)Defender Plan 1Defender Plan 2
Basic anti-phishing✅ Included
User impersonation protection
Domain impersonation protection
Spoof intelligenceLimited
Attack simulation integration

Minimum recommended: Microsoft Defender for Office 365 Plan 1


Where to Configure Anti-Phishing Policies

  1. Go to Microsoft 365 Defender Portal
    https://security.microsoft.com

  2. Navigate to: Email & Collaboration → Policies & Rules → Threat Policies → Anti-Phishing


Types of Anti-Phishing Policies

Microsoft provides:

  • Standard protection
  • Strict protection

Strict provides stronger protection and is recommended for high-risk users.


2. Custom Anti-Phishing Policies

Custom policies allow granular configuration and are recommended for:

  • Executives
  • Finance teams
  • HR departments
  • High-value targets

Step-by-Step: Creating a Custom Anti-Phishing Policy

Step 1: Create New Policy

  1. Click Create
  2. Select Anti-phishing policy
  3. Name the policy clearly (e.g., "Executive Protection Policy")

Step 2: Define Users and Domains to Protect

You can configure:

  • Specific users to protect (CEO, CFO, etc.)
  • Domains to protect
  • Targeted impersonation detection

Important: User impersonation protection is limited (typically 350 protected users per tenant).

Prioritize high-risk accounts.


Step 3: Configure Impersonation Settings

Enable:

  • User impersonation protection
  • Domain impersonation protection
  • Mailbox intelligence

Mailbox intelligence uses AI to detect unusual sender patterns.

Recommended: Enable mailbox intelligence with spoof intelligence turned on.


Step 4: Configure Actions

For detected impersonation:

Options include:

  • Move message to Junk
  • Quarantine
  • Redirect
  • Add warning banner

Recommended best practice:

  • Quarantine high confidence phishing
  • Add safety tips for suspicious messages

Step 5: Enable Safety Tips

Safety tips display warning banners to users.

Enable:

  • First contact safety tip
  • Impersonation safety tip
  • Domain impersonation tip

These improve user awareness without blocking legitimate emails.


Step 6: Review and Enable

  • Review policy settings
  • Confirm scope
  • Enable the policy

Allow 30–60 minutes for propagation.


Spoof Intelligence Configuration

Spoof intelligence detects senders spoofing your domain.

To configure:

  1. Navigate to: Threat Policies → Anti-phishing → Spoof Intelligence

  2. Review:

    • Allowed senders
    • Blocked senders
    • Spoofed domain attempts

Important: Do not blindly allow spoofed senders. Validate via header analysis first.


Key Settings Security Analysts Must Verify

  1. Impersonation protection is enabled for high-risk users
  2. Mailbox intelligence is turned on
  3. Safety tips are not disabled
  4. Quarantine is configured correctly
  5. Preset policies are not overridden by weaker custom rules
  6. DKIM and DMARC are properly configured (authentication impacts spoof detection)
  7. External forwarding is restricted

Common Misconfigurations

  • Only Standard preset enabled, no custom executive protection
  • Too many users added to impersonation list (exceeds limit)
  • Spoof intelligence not reviewed regularly
  • Safety tips disabled due to user complaints
  • Anti-phishing policy not applied to all domains

Monitoring and Investigation

Use:

  • Threat Explorer (Plan 2)
  • Real-time detections
  • Quarantine review
  • Alert policies

Search by:

  • Sender domain
  • Targeted user
  • Detection type (Impersonation, Spoof)

Limitations to Understand

  • Anti-phishing primarily detects impersonation patterns
  • Zero-day malicious links may still pass if not flagged
  • User interaction remains on endpoint device
  • Detection is based on heuristics and reputation

Layered protection is recommended.


Frequently Asked Questions (FAQ)


Is Microsoft Defender for Office 365 Plan 1 included in Microsoft 365 E3?

No. Microsoft 365 E3 includes Exchange Online Protection (EOP), but Defender for Office 365 Plan 1 is not included by default.

Plan 1 must be purchased separately unless bundled in another license.


Is Defender for Office 365 Plan 2 included in Microsoft 365 E5?

Yes. Microsoft 365 E5 includes Defender for Office 365 Plan 2.

Plan 2 provides advanced features such as:

  • Threat Explorer
  • Automated investigation and response
  • Attack simulation training
  • Campaign view
  • Advanced hunting capabilities

Is Defender for Office 365 Plan 1 included in Business Premium?

Yes. Microsoft 365 Business Premium includes Defender for Office 365 Plan 1.

This includes:

  • Anti-phishing protection
  • Safe Links
  • Safe Attachments
  • Impersonation protection

What is the difference between Plan 1 and Plan 2?

Plan 1 focuses on prevention:

  • Safe Links
  • Safe Attachments
  • Anti-phishing policies
  • Impersonation protection

Plan 2 includes everything in Plan 1 plus:

  • Threat Explorer
  • Automated investigation and response
  • Attack simulation training
  • Advanced reporting and hunting

Can I upgrade from Plan 1 to Plan 2?

Yes. Organizations can purchase Defender for Office 365 Plan 2 as an add-on if they already have Plan 1 or qualifying licenses.


Is Exchange Online Protection (EOP) the same as Defender for Office 365?

No. EOP provides baseline email filtering (anti-spam and anti-malware).
Defender for Office 365 adds advanced phishing, URL protection, and investigation capabilities.

What is the difference between Anti-Phishing and Anti-Malware policies?

Anti-Phishing focuses on impersonation and social engineering detection.
Anti-Malware scans attachments for malicious code.


How many users can be protected with impersonation protection?

Microsoft limits protected users (commonly up to 350 per tenant).
Prioritize executives and high-risk roles.


Should I use Standard or Strict preset policy?

Strict provides stronger protection and is recommended for high-risk departments.
Test in pilot group before full rollout.


Does Anti-Phishing stop domain spoofing completely?

It reduces spoofing risk, especially when combined with SPF, DKIM, and DMARC.
Authentication configuration is critical.


How do I know if impersonation protection is working?

Check:

  • Threat Explorer
  • Quarantine detections
  • Alert policies
  • Spoof intelligence dashboard

Does Defender Plan 1 include impersonation protection?

Yes. User and domain impersonation protection require Defender for Office 365 Plan 1 or Plan 2.


Why are legitimate emails being quarantined?

Possible reasons:

  • Overly strict policy
  • Similar display names
  • Misconfigured spoof intelligence

Review header authentication results before allowing.


Summary

Configuring Anti-Phishing policies correctly is one of the most important steps in securing Microsoft 365 email.

Ensure:

  • Impersonation protection is enabled
  • High-risk users are prioritized
  • Spoof intelligence is reviewed regularly
  • Policies are aligned with authentication controls

Proper configuration significantly reduces Business Email Compromise and impersonation attacks.