What is Secure FTP?
In today’s fast-paced, tech-driven, closely interconnected world, file and data sharing is central to how firms do business with each other. Sensitive financial data, stock and order data, large media files and confidential contracts are among the documents shared between businesses every day – and they need a secure (and often automated) way to do it.
Keeping sensitive information like this out of the hands of online criminals is critical. Secure File Transfer Protocol (SFTP) has become a trusted and highly compatible solution for this purpose. But what exactly is SFTP, how does it work, and why is it considered the gold standard for secure file transfers? Let’s explore.
22nd January 2025
What is SFTP?
SFTP, or Secure File Transfer Protocol, is a method of transferring files between computers, servers, or systems over a secure connection. It builds on the traditional File Transfer Protocol (FTP) but adds layers of encryption and security to keep information confidential.
While standard FTP without encryption facilitates file transfers, it does so in plain text – leaving data more vulnerable to interception and tampering. SFTP solves this problem by using encryption to secure the data being transferred and the connection itself. This protects files against unauthorised access and eavesdropping.
How does SFTP work?
SFTP operates over a secure channel provided by SSH (Secure Shell). SSH encrypts the data being transferred as well as the authentication process, meaning that passwords and sensitive information cannot be intercepted.
Here’s a simple breakdown of how SFTP works:
The user and server authenticate each other using login credentials, SSH public/private keys or both.
An encrypted channel is created to protect the data.
Files are uploaded, downloaded or managed securely, ensuring data integrity and confidentiality.
Unlike FTP, which requires multiple channels for data and commands, SFTP operates over a single secure port connection. This makes it both safer and more efficient for configuration
What is SFTP used for?
SFTP is a highly versatile tool, which is why it’s used in many industries for a variety of applications. These include:
Sharing files securely. Whether it’s legal documents, financial reports, stock/order information or personal data, SFTP ensures files are transmitted safely and remain confidential.
Data backups. Many businesses use SFTP to securely backup critical data to remote servers or cloud storage.
System integrations. Automated file transfers between systems often rely on SFTP to ensure security and reliability – this is because it is a very common and compatible protocol between systems.
Compliance requirements. Industries like healthcare, finance and government are subject to stringent data protection requirements. SFTP helps organisations in these sectors abide by these regulations by providing secure transfer protocols.
Which industries use SFTP?
SFTP is widely used across a variety of industries, particularly those dealing with sensitive or regulated data. Industries which use SFTP include:
Financial services: Banks and financial institutions use SFTP to securely transfer transaction records, reports and customer data.
Healthcare: Hospitals and clinics rely on SFTP to share patient information while complying with privacy regulations.
Retail, Wholesale & Transport: Exchange of real-time stock, order, transport and tracking details between e-commerce, shops/stores and clients/suppliers
Education: Institutions such as universities use SFTP to protect student records, administrative files and research data during transfer.
Media and entertainment: Large files like videos and graphics are often shared via SFTP to ensure quick, secure delivery in a centralised location.
IT and software development: Tech companies use SFTP for secure deployment of code, code releases, updates, patches and sharing of proprietary information.
Frequently asked questions about SFTP
Q: How is SFTP different from FTP?
A: Standard FTP is one of the oldest methods for transferring files, but it lacks built-in security without extra configuration. SFTP, by contrast, encrypts the data and the connection by default, making it far more secure.
Q: Do I need special software to use SFTP?
A: To use SFTP, you will need an SFTP client, which is a software tool that connects to an SFTP server. Examples of SFTP clients include FileZilla, WinSCP and Cyberduck. These tools allow you to upload, download and manage files securely. You may also have an option to access your SFTP server through a web-based interface in your browser if your supplier provides this.
Q: Is SFTP the same as FTPS?
A: No. Although both are secure, they use different methods. SFTP relies on SSH for encryption, while FTPS (FTP Secure) uses SSL/TLS. SFTP is generally considered the simpler method of the two as it only requires one port for communication, whereas FTPS needs multiple ports.
Q: Can SFTP data transfers be automated?
A: Yes. Many businesses use SFTP for automated workflows, such as system-to-system transfers or nightly backups. Scripts or integration/automation software tools can be set up to perform these tasks without manual intervention.
Q: How much does SFTP cost to implement?
A: The cost of implementing SFTP will vary depending on your specific needs. Open-source SFTP servers and clients are available for free, but businesses with complex requirements are likely to be better off investing in managed SFTP hosting services for added support, reliability and security, without the need to make changes your network.
Why choose SFTP?
If your organisation handles sensitive information or operates in a regulated industry, secure file transfers are non-negotiable. SFTP combines ease of use with robust security features, making it a reliable choice for businesses of all sizes.
At Ridgeon Network, we specialise in providing secure and scalable SFTP hosting solutions tailored to your specific requirements. Contact our team today to find out more about our SFTP hosting and support services.