Exchange OnlineTroubleshooting

Users blocked from sending in Exchange Online: Restricted entities and NDR 550 5.1.8

Why Exchange Online stops a user from sending with 550 5.1.8, why you secure the account before unblocking it, and how to unblock, tune outbound limits and verify.

One user suddenly can't send any mail. Every message bounces with 5.1.8, yet mail still arrives in their inbox. Exchange Online has placed the account on the Restricted entities list because it sent more than the outbound limits allow, and Microsoft treats that as a sign of compromise. In this post I'll go through the order that matters: secure the account, find out what it sent, lift the block, then tune limits and alerts so you hear about it first next time.

Errors this guide fixes

  • 550 5.1.8 Access denied, bad outbound senderNDR
  • Your message couldn't be delivered because you weren't recognized as a valid sender.NDR (user text)
  • User restricted from sending emailMicrosoft Defender portal (alert)+1 more guide
  • Email sending limit exceededMicrosoft Defender portal (alert)
  • Suspicious email sending patterns detectedMicrosoft Defender portal (alert)
  • 5.1.90 Your message can't be sent because you've reached your daily limit for message recipientsNDR
  • The message can't be submitted because the sender's submission quota was exceededNDR
How this guide is organized: Symptoms → Why it happens → How to fix it → Verify the fix → Prevent it next timeFlow diagram of the article's sections in reading order: 1. Symptoms. 2. Why it happens. 3. How to fix it. 4. Verify the fix. 5. Prevent it next time. Toolbox: Get-BlockedSenderAddress, Review › Restricted entities, Threat policies › Anti-spam.1Symptoms2Why it happens3How to fix it4Verify the fix5Prevent it nexttimeTOOLBOXGet-BlockedSenderAddressReview › Restricted entitiesThreat policies › Anti-spamHow this guide is organized: Symptoms → Why it happens → How to fix it → Verify the fix → Prevent it next timeFlow diagram of the article's sections in reading order: 1. Symptoms. 2. Why it happens. 3. How to fix it. 4. Verify the fix. 5. Prevent it next time. Toolbox: Get-BlockedSenderAddress, Review › Restricted entities, Threat policies › Anti-spam.1Symptoms2Why it happens3How to fix it4Verify the fix5Prevent it next timeTOOLBOXGet-BlockedSenderAddressReview › Restricted entitiesThreat policies › Anti-spam
At a glance: how this guide is organized · 5 sections · 3 key tools

Symptoms#

Every message the user sends comes back with this non-delivery report (NDR), as Microsoft documents it:

Text
Your message couldn't be delivered because you weren't recognized as a valid sender. The most common reason for this is that your email address is suspected of sending spam and it's no longer allowed to send email. Contact your email admin for assistance.

Remote Server returned 550 5.1.8 Access denied, bad outbound sender
  • The user still receives mail. Only sending is blocked.
  • The account appears on the Restricted entities page in the Microsoft Defender portal.
  • Admins may have received the default alerts User restricted from sending email, Email sending limit exceeded or Suspicious email sending patterns detected. By default they go to Global Administrators.
  • Related NDRs for the same sending limits are 5.1.90 Your message can't be sent because you've reached your daily limit for message recipients or The message can't be submitted because the sender's submission quota was exceeded. Microsoft notes that both can mean the account was compromised.

Why it happens#

When a user exceeds the service's outbound sending limits or the limits in an outbound spam policy, Microsoft 365 restricts the account from sending and adds it to Restricted entities. Suspicious outbound mail is also routed through a separate high-risk delivery pool to protect the service's reputation. Microsoft documents the per-user recipient rate limit as 10,000 recipients per day. It and the message rate limit are hard limits that can't be raised.

Microsoft's position is that a sender exceeding outbound limits indicates a compromised account. Usually that's true: a phished account sends spam until the limit trips. Sometimes the volume is legitimate, for example a scanner or line-of-business app that sends through a user's mailbox with SMTP AUTH, or a user sending a large mailing by hand. Inbound connectors can be restricted too, and they show the entity type Connector on the same page.

How to fix it#

Unblocking a restricted sender in the right orderStep 1: Secure the account before you unblock it. Reset the password, revoke sessions, review MFA and app consents, remove unexpected rules Step 2: See what was sent in message trace. Hundreds of copies of one lure point to compromise; identical app alerts to a device Step 3: Remove the restriction. Restricted entities page or Remove-BlockedSenderAddress; the number of unblocks is limited Step 4: Move legitimate volume off the mailbox. SMTP relay through a connector or a bulk email service instead of SMTP AUTH Step 5: Review the outbound spam policies. Lower recipient limits can produce this NDR without any compromise Step 6: Verify the user can send again. Get-BlockedSenderAddress no longer lists the user; a test message shows Delivered1Secure the account beforeyou unblock itReset the password, revokesessions, review MFA and appconsents, remove unexpected rules2See what was sent inmessage traceHundreds of copies of one lurepoint to compromise; identical appalerts to a device3Remove the restrictionRestricted entities page orRemove-BlockedSenderAddress;the number of unblocks is limited4Move legitimate volume offthe mailboxSMTP relay through a connector ora bulk email service instead ofSMTP AUTH5Review the outbound spampoliciesLower recipient limits can producethis NDR without any compromise6Verify the user can sendagainGet-BlockedSenderAddress nolonger lists the user; a testmessage shows DeliveredUnblocking a restricted sender in the right orderStep 1: Secure the account before you unblock it. Reset the password, revoke sessions, review MFA and app consents, remove unexpected rules Step 2: See what was sent in message trace. Hundreds of copies of one lure point to compromise; identical app alerts to a device Step 3: Remove the restriction. Restricted entities page or Remove-BlockedSenderAddress; the number of unblocks is limited Step 4: Move legitimate volume off the mailbox. SMTP relay through a connector or a bulk email service instead of SMTP AUTH Step 5: Review the outbound spam policies. Lower recipient limits can produce this NDR without any compromise Step 6: Verify the user can send again. Get-BlockedSenderAddress no longer lists the user; a test message shows Delivered1Secure the account before you unblock itReset the password, revoke sessions, review MFA andapp consents, remove unexpected rules2See what was sent in message traceHundreds of copies of one lure point to compromise;identical app alerts to a device3Remove the restrictionRestricted entities page orRemove-BlockedSenderAddress; the number ofunblocks is limited4Move legitimate volume off the mailboxSMTP relay through a connector or a bulk email serviceinstead of SMTP AUTH5Review the outbound spam policiesLower recipient limits can produce this NDR without anycompromise6Verify the user can send againGet-BlockedSenderAddress no longer lists the user; atest message shows Delivered
Figure 1 · Process Unblocking a restricted sender in the right order. Secure the account before you remove the block: unblocking a compromised account puts the attacker straight back in business, and the number of unblocks is limited.
  1. Secure the account before you unblock it. Microsoft requires this step. Reset the password, revoke sessions, review MFA methods and app consents, and remove any forwarding or Inbox rules you didn't expect. The compromised mailbox guide walks through it with scripts.
  2. See what was sent. Message trace shows whether it was spam or a legitimate burst:
    PowerShell
    Connect-ExchangeOnline
    Get-MessageTraceV2 -SenderAddress adele@contoso.com -StartDate (Get-Date).AddDays(-2) -EndDate (Get-Date) -ResultSize 5000 |
        Group-Object Subject | Sort-Object Count -Descending | Select-Object -First 10 Count, Name

    Hundreds of copies of an invoice or a password-reset lure point to compromise. Identical alert mails from an app point to a device using the mailbox.

  3. Remove the restriction. In the Microsoft Defender portal, go to Email & collaboration › Review › Restricted entities (or open security.microsoft.com/restrictedentities), select the user and unblock it. You need Organization Management or Security Administrator permissions. In Exchange Online PowerShell:
    PowerShell
    Get-BlockedSenderAddress
    Remove-BlockedSenderAddress -SenderAddress adele@contoso.com -Reason "Password reset, sessions revoked, rules cleaned"

    Microsoft says the restrictions are usually removed within an hour. The number of times you can unblock an account is limited. Beyond that limit, you get an error and only Microsoft Support can unblock the user.

  4. If the volume was legitimate, move it off the mailbox. For apps and devices that send a lot, Microsoft recommends SMTP relay through a connector or a non-Microsoft bulk email service instead of SMTP AUTH with a user account (relay options). Otherwise, the same account will be blocked again.
  5. Review the outbound spam policies. In Email & collaboration › Policies & rules › Threat policies › Anti-spam, each outbound policy sets hourly external and internal recipient limits, a daily limit, and what happens when a user reaches one. The options are alerting only, blocking until the next day, or blocking until an admin unblocks the user. A policy with lower limits can produce this NDR without any compromise.
    PowerShell
    Get-HostedOutboundSpamFilterPolicy | Format-List Name, RecipientLimitExternalPerHour,
        RecipientLimitInternalPerHour, RecipientLimitPerDay, ActionWhenThresholdReached

Watch out: unblocking a compromised account without securing it first puts the attacker straight back in business. Because the unblock count is limited, a second block may leave you waiting for Microsoft Support.

Verify the fix#

  • Get-BlockedSenderAddress no longer lists the user, and the Restricted entities page is clear.
  • A test message to an external mailbox shows Delivered in message trace:
    PowerShell
    Get-MessageTraceV2 -SenderAddress adele@contoso.com -StartDate (Get-Date).AddHours(-1) -EndDate (Get-Date) |
        Format-Table Received, RecipientAddress, Subject, Status
  • The user's sign-ins show only known devices and locations, and no new restriction alerts arrive over the following days.

Two other blocks look similar but don't clear from Restricted entities. If the NDR says 5.7.501 Access denied, spam abuse detected or 5.7.502/5.7.503 Access denied, banned sender, the account was banned for spam. Microsoft's guidance is to resolve the account issues, reset its credentials and contact Microsoft Support to restore sending. If the whole tenant can't send rather than one user, you are looking at a tenant-level block such as 5.7.705 or 5.7.708, which only Microsoft Support can lift.

Prevent it next time#

  • Require MFA for every user, and phishing-resistant methods for admins. Most restricted users are compromised users.
  • Microsoft recommends the default alert policies over the notification settings in outbound spam policies. Under Email & collaboration › Policies & rules › Alert policy, make sure they reach a monitored mailbox, not only the Global Administrators.
  • Keep bulk mail, newsletters and app notifications off user mailboxes.
  • Check the outbound mail flow reports in the Exchange admin center regularly, so a sending spike stands out before the service blocks it.

References#

Written and checked against current Microsoft Learn documentation. Test changes with a pilot group before rolling them out to everyone, and if an admin center path has moved since, search for the setting name instead.

Spotted a mistake, or did this fix work differently for you? Email me or message me on LinkedIn — corrections are credited in the article.

Written by

Omer Eltayeb

Intune Subject Matter Expert in Cairo, Egypt, former Microsoft Cloud Solutions Architect, Microsoft Certified Trainer and Microsoft Innovative Educator Expert (2024–26) and Microsoft Elevate Educator Expert (2026–27). I share practical, step-by-step guides, study plans, scripts and toolkits for Microsoft Intune, Configuration Manager, Microsoft Entra ID, Microsoft Defender, Exchange and Microsoft 365 with the community.

Microsoft Certified Trainer (MCT) 2026Microsoft Innovative Educator Expert 2025–2026Microsoft Elevate Educator Expert 2026–2027ISC2 Certified Information Systems Security Professional (CISSP)Microsoft 365 Certified: Enterprise Administrator Expert (MS-102)