[Zoho CRM] SDR Unable to Send Emails Due to “535 Authentication Failed” Error

[Zoho CRM] SDR Unable to Send Emails Due to “535 Authentication Failed” Error

Overview 

Some SDR users may encounter a 535 Authentication Failed error when attempting to send emails through Zoho CRM. 

This issue commonly occurs after enabling Two-Factor Authentication (2FA) on the user’s Zoho account after having already integrated email within Zoho CRM. Once 2FA is activated, the previous CRM email password becomes invalid for SMTP/IMAP authentication. 

As a result: 
  1. Emails fail to send  
  2. CRM outbound email authentication breaks  
  3. SMTP authentication errors appear  

Solution: Generate a Zoho CRM App Password 

Info
App Passwords are required for CRM email authentication when advanced security is enabled
  1. Navigate to Zoho My Account > Security > Application-Specific Passwords 
  2. Generate a new App Password with recommended name “Zoho CRM" 
  3. Copy the generated password immediately  
    1. This App Password will replace the regular email password inside Zoho CRM email integration tab.
  4. In Zoho CRM, navigate to Settings > Channels > Email > Email Configuration 

  5. Update both Inbound and Outbound passwords using the generated app password copied in Step 3 
  6. Set the Outbound Port to 587 and Security Type to TLS 
  7. Click Update