Why Email Authentication (DKIM, SPF, and DMARC) Is Not Optional
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Why Email Authentication (DKIM, SPF, and DMARC) Is Not Optional:
A Plain-Language Guide for Small Businesses and Real-Estate Professionals**
Introduction
Most people think of email as simple: you type a message, click send, and it arrives.
Behind the scenes, however, there are important security protections that every business is expected to have in place especially those that handle client data, financial transactions, or any form of personal information. Three of the most important protections are SPF, DKIM, and DMARC.These tools are not “technical extras.”
They are required safeguards. More importantly, the law now views them the same way it views locks on a physical office door: if you do not have them, you are failing to take reasonable steps to protect customer information, which can lead to financial penalties, lawsuits, and regulatory investigations.
1. What Are SPF, DKIM, and DMARC? (Explained Simply)
Think of email like physical mail:
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SPF is your approved mailing list. It tells the world which servers are allowed to send mail on your behalf.
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DKIM is the tamper-proof seal on your envelope, proving the message wasn’t altered.
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DMARC is your enforcement rule that tells receiving mail servers what to do if an email claiming to be from you is fake.
Without these protections, anyone can send an email pretending to be you, which is how wire-fraud attacks, escrow scams, and fake invoice scams happen in the real-estate and small-business world.
2. Why This Is a Legal Requirement Not a Preference
Across the United States—and especially in states like California—businesses are required by law to take “reasonable security measures” to protect customer information.
Email authentication protocols are considered reasonable security measures.
The moment your business sends or receives emails that include:
- customer names,
- addresses,
- financial details,
- transaction information,
- escrow-related communication,
- or any information covered under privacy laws…
…you fall under state and federal data-protection requirements.
Below is a summary of how your legal obligations connect directly to SPF, DKIM, and DMARC.
3. Legal and Regulatory Requirements You Must Follow
A. California Consumer Privacy Act (CCPA)
(CCPA §1798.100, §1798.150)
CCPA requires businesses to use reasonable security procedures to protect personal information.
Failing to implement modern, industry-standard email protections—such as DKIM, SPF, and DMARC—can be considered a violation.Penalties for violations:
- $2,500 per unintentional violation
- $7,500 per intentional violation
Consumers may sue for $100–$750 per affected individual if a breach occurs and you failed to put reasonable safeguards in place.
If a scammer spoofed your email because you did not have SPF/DKIM/DMARC set up, the business can be held responsible for damages.
B. Federal Trade Commission (FTC) – FTC Safeguards Rule
(Affects any business handling sensitive customer data)
The FTC requires that a business maintain technical controls to prevent unauthorized access or disclosure of consumer information.
Email spoofing made possible when SPF/DKIM/DMARC are missing is classified as a preventable security failure.
Penalties:
- Civil penalties of up to $46,517 per violation
- Mandatory corrective actions
- Possible customer refunds and damage payments
C. NAR, RESO, and Real-Estate Industry Requirements
Real-estate professionals deal with legally protected financial and personal information every day.
To reduce wire-fraud losses, the real-estate industry now treats SPF, DKIM, and DMARC as basic cybersecurity requirements.Brokerages and settlement companies that fail to use modern email authentication can be found negligent if a cyber-incident occurs.
Consequences may include:
- Loss of license (in extreme cases)
- E&O insurance claim denial
- Client lawsuits for negligence
- Financial restitution for losses caused by wire-fraud or email spoofing
D. Email Providers’ Mandatory Policies (Google, Microsoft, Yahoo)
- As of 2024–2025:
- Google Workspace
- list itemMicrosoft 365
- Yahoo Mail
and most major email services
REQUIRE SPF, DKIM, and DMARC for all business domains.
Emails without these protections may be completely rejected or sent to spam.
This is not optional these companies enforce these rules industry-wide, and they expect businesses to comply.
4. What Happens If These Protections Are Not Set Up?
Your email can be easily impersonated.
Hackers can send emails that look like they came from you.
Your business may be legally responsible for resulting damage.
Failure to set up SPF/DKIM/DMARC can be viewed as failure to take basic security steps.
Your emails may be blocked or marked as spam.
Google and Microsoft now reject unauthenticated email by default.
Your business becomes a target for wire-fraud attacks.
This is one of the major sources of loss in real estate.
You may be fined for failing to follow data-protection laws.
Especially if customer information is exposed or misused as a result.
5. Why Regulators View These Protocols as “Basic Security”
These protections have been industry standards for many years.
Regulators expect that:- every business domain
- every professional email address
- every transaction involving customer information
…uses them.
Not having them is like leaving the front door of your office wide open.
Courts have repeatedly ruled that when a breach happens and “reasonable security practices” were ignored, the business is liable.
6. Summary: This Is Not Optional
Setting up SPF, DKIM, and DMARC is not a technical preference it is:
- a legal obligation,
- a regulatory expectation,
- a requirement from major email providers,
- and a baseline protection against financial and identity theft.
For small-business owners and real-estate professionals, failing to put these protections in place creates legal, financial, and operational risks that are completely avoidable.
These settings take minutes to configure and protect both your business and your clients.
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