Transferring mountains of data is risky if your business is not doing it securely. Cybercrime is at an all-time high, and the moment you transfer files internally or externally, they're at risk. 

You must use a secure file transfer protocol to safeguard your data and simplify the process. So, how do you know which file transfer protocol is the best delivery method for your business's data? We researched for you, and here's what we found. 

Key Takeaways 

• Managed File Transfer (MFT) is the most secure file transfer protocol because it offers more than just a simple way to safely transfer files. It supports automation, reporting and improved compliance. 

• SFTP is a popular alternative to MFT because of its end-to-end encryption.

• When choosing a file transfer protocol, look at security, ease of use, compliance and speed. 

What is a File Transfer Protocol? 

A file transfer protocol is a bunch of file-sharing methods that use standardized protocols to ensure all data is transferred securely between devices over a network. 

Using a secure file transfer protocol, you can safely transfer, upload, and download your important data between computers or from one location to another.  

People use file transfer protocols because they come with some form of encryption, like passwords. File transfer protocols are common. You may have encountered them when downloading files from a website. 

What is the Most Secure File Transfer Protocol?

New file transfer protocols are created constantly to keep up with the demands of the constantly evolving world of data. 

So, which one do you choose? While all file transfer protocols provide a safe and secure way to transfer data, not all are created equal. In our opinion, Managed File Transfer (MFT) is the most secure file transfer protocol. 

This may be surprising, as many people feel Secure File Transfer Protocol (SFTP) is the most secure protocol. However, MFT offers more security features than SFTP, which is why we prefer it. 

MFT is not a file transfer protocol in the traditional sense. However, it allows you to choose which protocol to use to transfer files between systems like cloud storage platforms, network devices within or outside your business, and remote servers. 

SFTP is a protocol that only shares files, while MFT offers more. Businesses use MFT because of its other features like automation, reporting and better compliance. 

If your business deals with processing users' financial information, you must comply with the requirements set out by the Payment Card Industry Data Security Standards (PCI DSS). Using a platform like MFT can help ensure compliance. 

Some file transfer protocols use Secure Socket Shell (SSH), a security measure with encryption and authentication mechanisms. However, MFT offers users multiple security options. Some of these include: 

• Secure/Multipurpose Internet Mail Extensions (S/MIME) 

• Triple Data Encryption Standard (3DES) 

• Advanced Encryption Standard (AES)

• Rivest Shamir Adleman (RSA)

• Pretty Good Privacy (PGP) 

• Transport Layer Security (TLS)

• Secure Socket Shell (SSH) 

• Digital Signatures 

As you can see, MFT offers users a multitude of security measures to keep their sensitive information safe. So, how exactly does MFT work? 

Here’s a breakdown::

• The file transfer process starts with authentication. You must access the MFT system using secure login details.

• Once logged in, select the files you want to transfer. 

• MFT will begin the encryption process. 

• You then need to select a file transfer protocol like SFTP.

• Select the file destination and initiate the transferring process. 

• After the secure transfer is complete, you will receive a report from MFT with the details of the successful transfer.

Alternative File Transfer Protocols

The world of data is always evolving, and businesses are looking to cater to their specific needs. There are plenty of choices when it comes to picking a file transfer protocol for your business. Here’s a list of alternative file transfer protocols you can use instead of MFT. 

Secure File Transfer Protocol (SFTP) 

For many businesses, it’s usually a toss-up between using SFTP or MFT. Both are excellent, so SFTP is a good alternative to MFT. Unlike MFT, SFTP only uses SSH to encrypt your data during file transfers. 

SFTP is a popular alternative because of its end-to-end encryption. It also offers cross-platform support, which means it can transfer files across different devices and operating systems. SFTP also has a very easy user interface, which many businesses find desirable.  

SFTP works similarly to MFT. It doesn’t offer you the option to generate reports and logs on successful transfers or offer alternative security measures to the standard SSH encryption. So, while SFTP is secure, it's not as secure as MFT, but it’s still a good alternative we recommend using. 

Marketing Manager at ExaVault, Erin Snyder, explains:

“Both SFTP and FTPS provide a high level of protection. The biggest difference between these two protocols is how connections are authenticated and managed. Generally, we recommend SFTP over FTPS if you have the option for both, but either will work to keep your data secure.”

File Transfer Protocol (FTP)

File transfer protocol (FTP) is one of the oldest file-transferring protocols. With over 50 years under its belt, FTP is the backbone of file transfers. 

While the technology used for FTP isn’t the newest, it still gets the job done by using two separate channels: command and data channels. When using FTP, you can use anonymous or password-protected sharing. 

While FTP is one of the simplest file transfer platforms you can use, it has one downfall. A lack of security. There is no encryption, meaning your business will be at serious risk if it shares sensitive and confidential information.  

File Transfer Protocol Over SSL (FTPS)

File Transfer Protocol Over SSL fills in the security gaps FTP lacks. This protocol adds additional security features to FTP, like Secure Sockets Layer/Transport Layer Security. 

It uses certificates to authenticate users who send and receive data to prevent unauthorized users from accessing it. 

While the added layered security improves the platform's security, FTPS is less secure than MFT or SFTP. We recommend using this protocol with added caution if you want to share sensitive information.

Applicability Statement 2 (AS2)

This file transfer protocol is mostly used in the automotive and retail industries to send files and encrypted messages between trading partners. AS2 uses security protocols like HTTPS and S/MIME, which are public-key encryptions. What makes this a popular platform for retailers is that it enables Message Disposition Notification (MDN) and digital signatures. 

Retailers mainly use it to safely send encrypted messages from one server to another, not for sending sensitive files. 

ODETTE File Transfer Protocol 2 (OFTP2)

OFTP2 is a widely used file transfer protocol for businesses that transfer large volumes of data. This file-sharing protocol specifically allows the automotive industry to share data between business partners. OFTP2 uses Transport Layer Security (TLS/SSL) File encryption and Cryptographic Message Syntax. 

This file protocol is best suited to businesses operating within the automotive industry.  

User Datagram Protocol (UDP) 

UDP is one of the simplest file transfer protocols that use transport layer security similar to OFTP2. 

UDP is a platform that comes without all the bells and whistles of MFT and SFTP. People use it for sending video or audio files quickly. 

While this file transfer protocol does offer a fast way to transfer files, there is no built-in encryption. 

What to Look for in a File Transfer Protocol

When choosing a file transfer protocol for your business, you should be selective. Here are things to look for when picking a secure file transfer protocol. 

Security

You should first consider security, especially if your business transfers highly sensitive information like financial and medical data. 

You should pick a transfer protocol with built-in encryption, like SFTP. However, if you want added peace of mind, look for a transfer protocol like MFT with multiple security systems. 

Ease of Use

There’s no point in using a file transfer protocol that’s so complicated that you end up not using it correctly. This is frustrating and puts your files at risk. Not all file transfer platforms are difficult to use. For example, SFTP has a very easy-to-navigate user interface. 

Compliance

You also want a file transfer protocol that meets legal security standards. For example, if you're dealing with a client's medical information, your data handling practices must comply with the HIPAA guidelines, plus others like SOC 2 compliance. 

Speed   

When you're sending large volumes of data from one location to another, look for a file transfer platform that can handle large amounts of data at fast speeds. They usually have features that prevent packet loss and high latency. 

Best Practices for Secure File Transfers

Using a file transfer protocol is only one part of sending files securely. There are some best practices your business should follow to ensure your files are as secure as possible and you are using the transfer platform efficiently. 

Use VPNs

VPNs, virtual private networks, are especially useful for employees who don’t use your business's secure network to send sensitive information. Public wifi connections are less secure and put your files at risk, whereas a VPN shields your files from being intercepted by others. 

Have Strong Passwords  

Don't underestimate the power of using a strong password when transferring sensitive files from one location to another. If your files are already encrypted when using a file transfer protocol, adding password protection adds another security layer. 

Regularly Audit

The way data is transferred is always evolving, and cybercrime techniques are constantly improving. You must audit your security systems by reviewing who has access to what files and limiting access.

Review Files Before Transferring

Before sending your files to another location, review the file's contents to ensure you are not including incorrect information or data you shouldn't have. Reviewing your file only takes a few minutes, saving you from future hassles. 

Educate Users

All users must know how to use your file transfer protocol platform correctly. This ensures security is not compromised and that they don’t share files in the wrong location. Hold regular training sessions to educate users. 

Frequently Asked Questions

Is SFTP or FTPS better?

Between the two, SFTP is more secure and is the better choice. 

Is FTPS obsolete?

FTPS is not obsolete. Instead of using SSL, which was deprecated in 2015, it uses Transport Layer Security.

Which is more secure, SFTP or HTTPS? 

SFTP is more secure than HTTPS because HTTPS transfers data via a web browser. 

What is the downside of SFTP?

SFTP only uses one security measure, SSH encryption, which was deprecated in 2015, which means it does not use the latest encryption technology.