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12 data security tips to protect your file transfers 

Data breaches are increasingly common, so securing your file transfers is essential. Use these tips to audit your data protection strategies and ensure your sensitive information remains safe.

Written by Editorial Staff. Last Updated:

Data breaches can cause severe financial losses, damage your reputation and lead to legal issues. Protecting your data is critical, but it’s also important to keep it flowing smoothly. Yet, information security and cybersecurity are growing more complex in a world where nearly all business is conducted virtually and hackers are more sophisticated than ever.

Here, we’ll cover 12 cybersecurity tips to help you safeguard your data during file transfers, plus advice for vetting managed file transfer (MFT) solutions that will strengthen your data protection strategy.

Top tips for MFT data security

A wide range of threats can jeopardize the confidentiality, integrity and availability of your data. External threats, such as malware, phishing and ransomware, are worrisome. But there’s also the concern that human error or internal actors could expose your organization’s critical information.

Keep your data secure by keeping these key strategies top of mind.

1. Implement multi-factor authentication 

Unauthorized access to sensitive data is one of the most significant risks organizations face. Relying solely on strong passwords is no longer sufficient, as cybercriminals have developed sophisticated methods to bypass these traditional defenses. 

Multi-factor authentication (MFA) provides an extra layer of security by requiring users to verify their identity through two or more independent credentials. These could include something the user knows (like a password), something they have (like a security token or smartphone) or something they are (like a fingerprint or facial recognition).  

2. Use strong encryption

Encryption is the cornerstone of data security during file transfers. By converting your data into unreadable code, encryption ensures that even if your data is intercepted in transit, it will remain inaccessible to unauthorized users. Modern encryption techniques use complex algorithms to encode data, making it virtually impossible to decrypt without the proper key.

For maximum protection, implement end-to-end encryption, which secures data from the moment it leaves the sender until it reaches the recipient. Encrypting at both the file and transport levels adds multiple layers of defense. Using a solution with automatic encryption triggers can help you be sure that sensitive data will stay encrypted whether you upload, download or transfer it.

3. Employ role-based access control

Role-based access control (RBAC) is essential for only giving your employees access to the data necessary for their roles. You can minimize the risk of unauthorized data exposure by assigning access permissions based on job responsibilities — tightly controlling who can view, edit or transfer sensitive information. You should regularly review and update these permissions, as employees’ roles and responsibilities can change over time. 

Implementing RBAC within your MFT systems in particular gives you granular control and prevents users from accumulating excessive access. 

4. Conduct regular security audits

Routine security audits can help you feel confident that your data security measures are up to date. Audits should be comprehensive, covering all aspects of your file transfer process. They should highlight areas that require improvement and verify compliance with your industry’s standards and regulations.

Because weaknesses can be overlooked during planned assessments, you may also want to conduct surprise audits. These are beneficial for keeping your data transfer protocols tight and reinforcing best practices.

5. Develop and enforce data transfer policies

Clear, well-defined data transfer policies should outline your procedures for securely transferring data. They might include how you’ll use encryption, authentication and access controls. Like permissions, they need to be updated regularly.

In an MFT context, enforcing these policies helps standardize security practices across all file transfers, regardless of the data’s origin or destination.

6. Adopt data loss prevention strategies

Data loss prevention (DLP) strategies give you another layer of protection from unauthorized access. DLP solutions monitor, detect and prevent data breaches by enforcing data protection policies across all communication channels, including email, cloud services and MFT platforms.

With DLP rules, you can automatically identify and block sensitive data transfer. Integrating DLP processors into your MFT solutions enables you to do so in real time. DLP offers a truly proactive approach to reducing the risk of costly breaches and penalties.

7. Deploy advanced firewalls and intrusion detection systems

Firewalls and intrusion detection systems (IDS) are the first lines of defense against cyber threats targeting your network and data transfers. Advanced firewalls monitor and control incoming and outgoing network traffic based on predetermined security rules to build a barrier between trusted internal networks and untrusted external sources. Integrating IDS with your firewall solutions enables you to detect suspicious activities in real time.

Use an MFT solution that offers continuous monitoring of your firewall traffic. 

8. Utilize secure cloud environments

If your organization is increasingly relying on cloud-based solutions and services, including cloud storage, secure data transfer is paramount. Reliable cloud security involves implementing robust measures to protect your data, both at rest and in transit.

If you use a SaaS MFT solution, it’s crucial to use secure communication protocols such as HTTPS and TLS. Properly segment your customer data in dedicated zones, and stay on top of regular updates and patches to maintain your cloud security protocols.

Choose an MFT platform that leverages cloud providers like Amazon Web Services (AWS) to add additional security layers to ensure your data transfers stay compliant with industry standards such as HIPAA, PCI DSS or regulations for personally identifiable information (PII).

9. Monitor and manage third-party security risks

Third-party vendors often have access to your organization’s data. Thus, they’re a potential vulnerability in your security strategy. Effective third-party risk management involves thoroughly vetting third-party vendors and continuously monitoring their security practices to ensure they align with your organization’s standards. 

Collaborate with your vendors to align security protocols, ensure they agree with your terms and engage in regular audits of their services to shore up your data protection efforts.

10. Back up data and develop recovery plans

Data backups ensure business continuity in the event of a cyberattack, system failure or other disaster. Regularly backing up your data, both on-premises and in the cloud, makes it easy to quickly restore critical information. When it comes to file transfers, implementing automated backups will prevent data loss and help you maintain a strong relationship with external parties who depend on your transfers.

Equally important is having a disaster recovery plan in place. It should include failover mechanisms that automatically switch to a backup server if the primary server becomes unavailable.

Learn why JSCAPE by Redwood’s failover mechanisms make it a standout MFT solution.

11. Set up automated security triggers

Automated triggers are a powerful tool for protecting data during file transfers. Event-based triggers allow you to define the specific security measures that need to be enforced whenever certain conditions are met.

You might configure triggers to automatically encrypt files that contain sensitive information or alert administrators if a file transfer originates from an unrecognized device. Triggers can make your security management more efficient because they streamline tasks and communications and reduce human error.

12. Educate employees on security best practices

Employees can play key roles in defending your organization against cyber threats. Training them well can help them stay vigilant and prevent common threats like phishing scams, social engineering and accidental data breaches. It also creates a security-forward culture and establishes organization-wide priorities, making your team more likely to think about each email click, social media share, online account login and software update.

Your enablement practices should focus on the importance of secure file transfer and how each person, regardless of role, contributes to your overall data protection approach. Update your materials regularly to reflect the proper response to current threats.

How to find an MFT provider with data security as a priority

Selecting an MFT provider is not just about finding the best feature set. First and foremost, they should care about and be equipped to protect your sensitive information, no matter your use cases or industry.

Demonstrated expertise

Trustworthy providers have a well-established reputation in the field, particularly in areas like encryption key management, DLP and Identity and Access Management (IAM) systems. Look for vendors with a proven history of securing data, backed by industry certifications and a portfolio of satisfied customers. Their track record should point to a consistent commitment to high security standards across various use cases.

Customizable security features 

Your MFT solution should offer the flexibility to customize security measures to match your organization’s specific needs. The ability to tailor access controls, enforce encryption and implement policies that address your unique regulatory and operational requirements is essential. Also, seek broad compatibility using a wide range of connectors and API-powered integrations to enable strong file transfer practices as your tech stack evolves.

Multi-layered defense

The best security approach is one that integrates multiple defense mechanisms to mitigate risk. Solutions that combine firewalls, MFA, access management and advanced threat detection can help you develop a more resilient security posture. Your organization will be better prepared to protect itself against diverse threats.

Ease of use

Security is only as effective as its implementation. Solutions with intuitive, user-friendly interfaces minimize the learning curve and reduce the likelihood of human error. Comprehensive training resources and low-code or no-code automation can support quick and consistent adoption.

Zero-trust principles

A zero-trust architecture (ZTA) is increasingly vital. Unlike traditional security models that rely on inherent trust, ZTA assumes that all network traffic is potentially malicious. Embed security in the core of your network design by choosing an MFT provider that incorporates these principles and applies them via strict access controls, continuous verification and thorough inspection of all traffic. 

Proven incident response capabilities

Consider MFT providers with the ability to quickly detect, respond to and recover from an incident. These vendors should offer real-time monitoring, automated alerts and a well-documented incident response plan to minimize your downtime and data loss during a security event.

Integrating MFT with easy-to-use workload automation 

One of the best ways to stay on top of data security for your file transfers is to use tools that offer full visibility and allow you to seamlessly incorporate them into your processes. 

ActiveBatch by Redwood is the easiest-to-use workload automation solution. Integrated with JSCAPE by Redwood, it can transform your end-to-end processes and build in secure, automated MFT practices.

Book a demo to see how ActiveBatch and JSCAPE can strengthen your IT infrastructure and file transfer processes.