I have just set up a client with a new Office 365 tenancy and they were having problems scanning to email.
The error they were getting was 027-227, which if you look up says Fault Code 027-779: Authentication Failure with SMTP AUTH
It wasn’t clear what the actual error was, or why authentication was failing. I was able to send a test email over SMTP with PowerShell, and this showed me exactly what the error was.
To send the test email via PowerShell, launch PowerShell and type:
$Creds = GetCredential
This will prompt for a username and password – enter the username and password for the MS365 account that you’re trying to send email from.
Then type in:
Send-MailMessage –From <MS365 Email Address> –To <Test Recipient Email Address> –Subject "Test Email" –Body "Test SMTP Service from Powershell on Port 587" -SmtpServer smtp.office365.com -Credential $Creds -UseSsl -Port 587
I got back an error letting me know that SMTP was disabled for the organisation.
I was then able to go in and edit the individual user account in MS365 to enable Authenticated SMTP for just that user. To do this, go to admin.microsoft.com and go to Users. Click on the User and go to the Mail tab. Under Email apps, go to Manage Apps and make sure that Authenticated SMTP is enabled.