Last Updated: 05/02/2024
The Need for Secure File Transfer Protocols
“FTP (File Transfer Protocol) served its purpose for its day, but it was never designed to offer up the level of security today’s organizations require, whether for compliance or to help prevent the enormous fiscal and reputational costs a data breach can bring about,” said Chris Spargen, Senior Manager, Solutions Engineering, Fortra. “Not only does FTP lack encryption and multi-factor authentication, there have been no new security features added to the protocol. This is unlike other options that have come into play, such as SFTP, HTTPS, AS2, and others used by managed file transfer solutions, that continue to evolve to address today’s cybersecurity concerns.”
What is FTP
File Transfer Protocol (FTP) was once the go-to protocol for sending files. That time was simpler, and security was far less of an issue than it is today. No more. Hackers have grown more sophisticated and discovered FTP’s lack of security.
Hackers know there are limitations in how FTP ensures the identity of the person accessing files (single-factor authentication), making it an excellent method to gain access to sensitive files and folders. In fact, FTP retains a user’s login credentials "in the clear," opening the door for hackers to lift information from an organization.
The risks of retaining FTP for file transfers today are simply not worth it. Take a look at the math. According to IBM’s Annual Cost of a Data Breach Report, the average per record cost of a breach was $165 in 2023.
Related Reading: Think Like a Hacker and Secure Your Data
Corporations and other entities have daily requirements for file sharing, both within their organizations and among their larger external networks. These requirements are compounded by the need to demonstrate compliance with various industry mandates, such as HIPAA, SOX, the GDPR, and PCI DSS.
The good news is there are secure and effective FTP alternatives for transferring files that can help avoid the many risks associated with FTP.
1. SFTP
SFTP enables organizations to transfer data over a Secure Shell (SSH) data stream, providing excellent security over FTP. SFTP’s major selling point is its ability to prevent unauthorized access to sensitive information—including passwords—while data is in transit. The connection between the sender and receiver requires the user to be authenticated via a user ID and password, SSH keys, or a combination of the two.
Because SFTP is a more secure FTP solution, it is often used with trading partners to share information as SFTP is platform independent and firewall friendly, only requiring one port number to initiate a session and transfer information.
Related Reading: How SFTP Works
2. FTPS (FTP over SSL/TLS)
FTPS, known as FTP over SSL/TLS, is another option for businesses to employ for internal and external file transfers.
FTPS has two security modes, implicit and explicit. Implicit mode requires the SSL connection to be created before any data transfer can begin. With Explicit SSL, the negotiation takes place between the sender and receiver to establish whether information will be encrypted or unencrypted. This means sensitive files or credentials can be set to require an encrypted connection before they will be shared.
Like SFTP, the FTPS protocol can use a second authentication factor.
Related Reading: Is FTPS or SFTP More Secure?
3. AS2 (Applicability Statement 2)
Applicability Statement 2 (AS2) is used to transfer critical data securely. AS2 wraps the data to be transferred in a secure TLS layer so it can travel from point to point over the internet encrypted as well as with digital certifications for authentication.
Related Reading: What is AS2 and how does it work?
AS2 is a transfer protocol widely used in the retail industry, particularly with larger companies that require it for trading partner communications. This facilitates the efficient, secure, and reliable exchange of information and removes much of the chance for human error.
4. HTTPS (Hypertext Transfer Protocol Secure)
Hypertext Transfer Protocol Secure (HTTPS) adds security to HTTP by offering certificate authentication. Additionally, it encrypts a website’s inbound traffic and introduces an encryption layer via TLS to ensure data integrity and privacy. HTTPS protects a web visitor’s identity and secures account details, payments, and other transactions involving sensitive details.
When it comes to transferring files, this protocol enables the use of a simple but secure interface for uploading data from business partners or customers.
5. MFT (Managed File Transfer)
A managed file transfer (MFT) solution is an overarching secure file transfer solution that supports each of the secure FTP solution alternatives listed above (SFTP, FTPS, AS2, and HTTPS) for secure data transmissions among internal users and external entities. Robust MFT solutions, such as Fortra’s GoAnywhere MFT, include an extensive list of security features that make it an ideal choice for meeting the stringent compliance guidelines of many industries.
“Organizations that still use outdated, unsecure FTP to transfer files that are the lifeblood of their organizations are asking for a data breach,” added Spargen. “With alternatives that are easy to implement that offer more security and automation, mitigating the risks that come with dated file transfer methods is a no-brainer.”
Get the Guide: Beyond FTP: Securing and Managing File Transfers
Encrypt and Centralize File Transfers
MFT uses standards for GPG and PGP encryption to encrypt, sign, and decrypt files. It can also encrypt files automatically at rest in targeted folders. The ability to centralize file transfers using MFT also gives valuable (and often required) reporting capabilities that display user access and all associated file transfers.
Automate and Streamline Workflows
Not only does managed file transfer deliver a rock-solid method of exchanging critical business information with vendors and trading partners securely; it also supports workflow automation, file transfer monitoring, notifications, and auditing. This can enhance productivity while keeping security at the forefront.
Simplify File Sharing
With secure file transfer in place, organizations can continue using everyday tools like email and folders to share files – with added security. Tools like GoAnywhere’s Secure Mail and Secure Folders enable users to send and share files with encrypted document sharing. Both allow for simplified sharing of ad-hoc and large files. Access can also be granted to specific users and files can be sent via email with unique links for each recipient for security and tracking purposes. Secure Mail packages can also be password protected.
Protect Your Files with MFT: A Secure, Modern FTP Alternative
It is easy to safeguard files in transit and at rest with MFT. GoAnywhere Managed File Transfer is a robust tool for exchanging data with trading partners, automating encryption and workflows, and for tracking file movement with detailed audit logs. See for yourself with a risk-free trial.
