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After verifying the password with the Exchange server, the Outlook service uses the device key to encrypt the password, and the encrypted password is then stored in the service.
The device key, meanwhile, is wiped from memory and never stored in the Outlook service (the key is only stored on the user's device).
Before you enable anything that allows for the transmission of passwords from your on-premises Exchange environment, be sure to consider the possible ramifications.
For example, transmitting passwords to Outlook services might result in your inability to meet the requirements of PCI-DSS or ISO/IEC 27001.
This information might be contained in and found within emails, calendar items, and so on.This architecture means that for a malicious party to gain access to a user's password, they would need both unauthorized access to the Outlook service and physical access to that user's device.By enforcing PIN policies and encryption on devices in your organization, the malicious party would also have to defeat a device's encryption to get access to the device key.If quitting and relaunching Mail isn’t reasonable, Apple has offered their own workaround to deal with the new mail issue until a future update comes out to fix the problem: taking the troubled account offline, then bringing it back online, thus forcibly reestablishing a connection between Mail app and the remote email server.Here’s how to do that: This forces a connection to be made between the Mac Mail app and the remote mail server, thereby downloading new emails and updating the inbox as expected.