Email remains the primary attack vector for cybercriminals, yet it’s also one of the most overlooked areas when it comes to regulatory compliance. Laws like GDPR, HIPAA, PCI DSS, SEC/FINRA regulations, ISO 27001, and state privacy laws all place increasing pressure on businesses to protect sensitive data—but many fail to recognize that insecure email is a direct compliance risk.
Adding to the challenge, these laws often use ambiguous language when it comes to email security, leaving organizations vulnerable to regulatory interpretation. A company might think it has taken “reasonable” steps to secure email, but after a breach, regulators may disagree—leading to costly penalties.
Let’s talk about this legal “gray area,” dive into how email security fits into leading regulations, and how IRONSCALES helps clients meet their compliance needs.
Before diving into the specifics of compliance, it’s important to acknowledge a major challenge: regulatory ambiguity. Many of these laws include phrases like “reasonable security measures” or “appropriate safeguards”, but what does that actually mean? The lack of clear, prescriptive guidance leaves businesses struggling to interpret their obligations, especially when it comes to securing email.
This “gray area” is problematic when it comes to email security. Very few compliance frameworks explicitly state how businesses should protect against phishing attacks in particular. Should companies rely on traditional Secure Email Gateways (SEGs)? Are AI-driven solutions required to demonstrate adequate protection? Regulators often leave these questions unanswered, giving them broad authority to determine non-compliance after an incident. This means organizations can believe they’re compliant—until a breach happens, and regulators decide otherwise.
The safest approach isn’t to do the bare minimum but to go beyond the baseline of compliance. Instead of waiting for regulators to set clearer standards, businesses should adopt proactive, AI-powered email security solutions that exceed expectations. By preventing phishing, business email compromise (BEC), and credential theft before they happen, organizations significantly reduce their compliance risk—regardless of how regulators interpret the rules in the future. As you read through the following laws and ordinances, consider how securing email upfront can provide insurance against regulatory uncertainty.
What does email security have to do with it?
The General Data Protection Regulation (GDPR) requires businesses to protect the confidentiality, integrity, and availability of EU citizens’ personal data. While GDPR doesn’t explicitly define email security requirements, phishing attacks that expose customer data directly violate GDPR’s security mandates. Every email sent or received containing personal data must be protected against unauthorized access and disclosure.
The Risk of Non-Compliance
GDPR violations can lead to fines of up to €20 million or 4% of annual global turnover—whichever is higher. A single phishing attack leading to a data breach could trigger investigations and penalties if regulators determine that email security controls were insufficient.
What does email security have to do with it?
HIPAA requires healthcare organizations to protect electronic protected health information (ePHI) at all times—including when it’s shared over email. Given that 90% of healthcare organizations have experienced a phishing attack, insecure email poses a major compliance risk under HIPAA’s Security Rule.
The Risk of Non-Compliance
A single HIPAA violation can result in fines of up to $50,000 per incident, with an annual maximum of $1.5 million. Beyond financial penalties, healthcare data breaches destroy patient trust—a costly consequence in an industry built on confidentiality.
What does email security have to do with it?
For businesses handling credit card transactions, PCI DSS requires that payment card data be securely stored and transmitted—including in email. Phishing attacks targeting employees or customers can expose sensitive cardholder information, leading to instant non-compliance.
The Risk of Non-Compliance
Failure to comply with PCI DSS can result in fines ranging from $5,000 to $100,000 per month, potential lawsuits, and even the loss of payment processing privileges. If a phishing attack leads to a credit card data breach, companies may also be forced to cover legal and remediation costs.
What does email security have to do with it?
Financial institutions are high-value targets for phishing and BEC attacks. The SEC (Securities and Exchange Commission) and FINRA (Financial Industry Regulatory Authority) require firms to implement security controls that protect customer financial data from cyber threats—including email-based attacks.
The Risk of Non-Compliance
SEC and FINRA penalties for cybersecurity failures can result in fines reaching millions of dollars, plus legal costs and damage to an organization’s reputation. If an email phishing attack leads to the exposure of client financial data, firms risk enforcement actions, investor lawsuits, and regulatory scrutiny.
What does email security have to do with it?
Before you jump to conclusions, I know these are not regulations. They are frameworks many organizations rely on when assessing partners and new business opportunities. While ISO 27001 and the NIST Cybersecurity Framework are not legally binding, they are recognized as best practices for cybersecurity. Many businesses, including government contractors and enterprise vendors, require ISO 27001 certification to prove they follow strict security standards—and email security is a key part of those requirements.
The Risk of Non-Compliance
Failure to meet ISO 27001 standards can lead to contract losses, failed audits, and reputational damage. Without proper email security controls, businesses risk being disqualified from working with regulated industries that mandate strong cybersecurity practices.
What does email security have to do with it?
State-level data privacy laws like California’s CCPA, Virginia’s VCDPA, and Colorado’s CPA (the first 3 states to enact privacy laws in the Unites States) require businesses to protect consumer data and promptly report breaches. Securing email is essential to complying with these evolving state regulations.
The Risk of Non-Compliance
Under CCPA, businesses can face fines of up to $7,500 per violation if a data breach occurs due to insufficient security measures. Virginia and Colorado impose similar penalties, and businesses risk class-action lawsuits from affected consumers.
Regulatory compliance isn’t just about checking a box—it’s about proactively preventing breaches before they happen. It’s about shifting security left and ensuring your business is as prepared as possible to prevent the breach and ensuing chaos.
IRONSCALES helps businesses stay ahead of compliance risks by:
Compliance is complex—email security shouldn’t be.
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