Encryption uses cryptographic algorithms to change readable data into an unreadable format that can only be decrypted through the use of a key generated prior to or during the encryption process by the same algorithm. File transfer systems like managed file transfer (MFT) and file transfer protocol (FTP) servers use encryption to keep information safe in case someone tries to access the data without permission.
Two main types of encryption exist:
- Encryption at rest: Protects data when it’s stored
- Encryption in transit: Uses secure file transfer methods like SFTP, FTPS or HTTPS to encrypt data when it is moved
Employing both types of encryption helps an organization mitigate a wider range of potential attack vulnerabilities.
How to encrypt files for file transfer
Your MFT or FTP server will typically include utilities for transfer encryption based on the file transfer protocol you select.
- HTTPS and FTPS/FTPES will use TLS to encrypt your data
- SFTP and SCP will use SSH to do so
In both cases, your first step will be to enable encryption on your file transfer application, then select your chosen protocol (instructions for doing so in Cerberus by Redwood can be found here). Depending on your selected protocol, you may then have the option to choose your encryption algorithm and cipher settings.
With these choices in place, you will then be ready to transfer your encrypted files.
How to encrypt files on your operating system
Data may be at risk when it is stored at rest outside of your file transfer server. To protect these files, each operating system provides built-in tools to apply encryption with varying levels of control.
Windows
On Microsoft Windows, you can enable file-level encryption through the file’s Properties > Advanced settings. For broader coverage, BitLocker encrypts entire drives, and PowerShell can apply encryption across directories. These features require Windows Pro or Enterprise editions.
Mac
Mac users can encrypt files by creating a password-protected disk image with Disk Utility. FileVault offers full-disk encryption, while permissions and access control are handled through user settings. Terminal also supports encrypted archives using hdiutil.
Linux
Linux systems provide command-line tools such as gpg for file encryption using symmetric or public-key methods. Users can also encrypt home directories with ecryptfs or create secure containers using cryptsetup and LUKS. Scripts can automate encryption tasks.
How encryption works
Encryption takes normal text and hides it using a code. This code is not random. It follows a set of steps called an algorithm. These steps shuffle and swap parts of the data. Some methods use short strings. Others work with longer blocks and repeat the process many times. Longer strings and more rounds make it harder to crack. A hacker would need to try every possible key. That takes time and power. Without the right key, the file stays locked. Even if someone grabs the file, they cannot read or change what’s inside.
File transfer systems like MFT and FTP servers use two main kinds of encryption.:
- Asymmetric encryption: This method uses two keys — one to lock the data and another to unlock it. Asymmetric encryption supports secure key exchange without sharing secrets.
- Symmetric encryption: This method uses the same key to lock and unlock the data, which is generated using a shared secret. Symmetric encryption is faster and often used for large file transfers.
In both cases, keys must be managed securely to avoid compromising data.
Secure protocols like SFTP and FTPS use encryption at the protocol level. To do so, they will use common algorithms including AES, RSA and ECC. These processes support secure file exchange by applying encryption methods that align with transfer protocols and organizational security policies.
Encryption vs. decryption
Encryption and decryption are steps in protecting data. Encryption changes readable data into a scrambled format. This unreadable format is called ciphertext. Decryption takes the ciphertext and returns it to its original form. It uses a specific key to do this. Both steps follow the same method. The key and algorithm must match. If they do not match, the data will not be accurate. This process helps keep the data safe and unchanged.
Encryption
- Converts plaintext/cleartext into ciphertext using an algorithm and key
- Protects data from being read during transfer or storage
Decryption
- Converts ciphertext back into readable plaintext
- Fails if the private or shared key is missing, incorrect or compromised
Together, encryption and decryption form the basis of secure communication in MFT and FTP systems to support confidentiality during automated and scheduled file transfers.
Benefits of file encryption
File encryption helps protect private data during storage and transfer. It keeps information hidden from people who should not see it. This protection helps your organization stay compliant with data rules. It also lowers the risk of leaks or breaches. Encryption works well with MFT and FTP systems. It makes automated transfers safer. It also helps create records that are ready for audits. Only approved users can open or view the files.
Other file encryption benefits are that it:
- Adds a layer of protection to backup and archival processes
- Helps meet compliance requirements such as GDPR, HIPAA and PCI DSS
- Prevents unauthorized access to files during transmission or storage
- Reduces the risk of data leaks from compromised endpoints or networks
Using encryption across file transfer operations improves security posture and helps maintain trust in data exchange processes.
Common file encryption algorithms
There are many ways to encrypt data. Each method fits different needs. Some work better for speed. Others focus on stronger protection. Your choice should match your goals and security rules. MFT and FTP systems use trusted methods. These methods follow known standards. They protect files while they move or while they are stored. This keeps the data safe at all times. Each encryption method differs in key management, processing speed and compatibility with protocols.
Some common file encryption methods include:
- AES: Used for fast, strong symmetric encryption
- Blowfish: Provides fast encryption for legacy systems or smaller data sets
- ECC: Offers strong encryption with smaller key sizes
- RSA: Uses a public and private key pair for secure asymmetric encryption
- Twofish: Features a flexible symmetric cipher that’s often used as an AES alternative
These file encryption methods allow you to apply encryption in a way that aligns with your organization’s technical and compliance needs.
Important considerations about encryption
Implementing encryption in MFT or FTP environments requires more than selecting an algorithm. Success depends on how you manage, deploy and maintain the encryption process. Key storage, user access and recovery planning also influence security outcomes.
When encrypting your files, it’s important to remember:
- Algorithm selection: Use standards-based encryption algorithms with proven security.
- Key management: Securely storing and managing the encryption key(s) in asymmetric encryption is crucial.
- Loss of key: If an asymmetric key is lost or forgotten, accessing the encrypted data may become impossible.
- Password strength: Use strong, unique passwords or passphrases for authenticating accounts that will have access to encryption.
- Performance impact: Encryption can affect transfer speed and CPU usage depending on the file size and method.
These factors help determine whether encryption adds protection without introducing unnecessary risk or complexity.
File encryption FAQs
Encryption hides information from people who are not allowed to see it. It uses a special formula called an algorithm. A key is added to scramble the data into a secret code. Only someone with the right key can unlock the data. This makes the content readable again.
Encryption keeps files safe during transfer or while stored. Many systems use it, including banking and messaging tools. It also protects data in storage spaces. If someone steals the file, they still cannot read it. The data stays locked without the key.
The three common types of encryption are:
– Asymmetric: Uses a public key to encrypt and a private key to decrypt
– Hashing: Converts data into a fixed-length value and is typically used for verification, not direct decryption
– Symmetric: Uses a single shared key for both encryption and decryption
Each type serves a different role in data security. Symmetric encryption is used for speed, asymmetric is used for secure key exchange and hashing is used for integrity checks. The method you should use will depend on your organization’s performance, trust boundaries and regulatory needs.
The right file encryption method depends on your system and purpose. Windows users can use EFS or BitLocker. These tools protect files or entire drives. Mac users can turn to Disk Utility. It creates encrypted disk images. Linux users may use gpg or cryptsetup. These tools let users create encrypted volumes.
File transfers need different tools. SFTP and FTPS encrypt data during the transfer. This removes the need to encrypt files by hand before sending. Strong encryption also needs careful setup. The key must be stored in a safe place. A strong password or phrase should protect it. If the key is lost, the file cannot be opened. Use secure standards like AES-256 or RSA. Pick a method that fits your needs and meets data rules.
Standard FTP does not use encryption. It sends data in plain text. This includes usernames and passwords. Anyone watching the network can read this information. That makes FTP unsafe for private or sensitive files.
To fix this problem, secure options are used. FTPS adds encryption with SSL or TLS. SFTP uses SSH to protect both commands and data. These tools give safer ways to transfer files. Many MFT and FTP systems use them when encryption is needed.
