How to Securely Share Files: 9 Tips & Best Practices

To protect client and company data from cyber criminals, businesses must be able to share files securely.

If you’re looking for tips on how to securely share files, the best practices we outline in this article can help give you a great foundation. Before we get into our nine tips for how to send files securely, let’s review why this matters and what file-sharing options are available.

The importance of file sharing security

Cybercrime is on the rise. In 2023, there were 3,205 data breaches in the U.S. — a 72% increase from 2021. From November 2023 to April 2024 alone, there were more than 2,700 publicly acknowledged incidents that led to over 6 billion breached records. In this high-risk environment, file sharing security allows teams to collaborate on sensitive documents without creating opportunities for hackers to steal data.

To accomplish this, it’s essential for organizations to invest in file-sharing software with strong security features. Secure file-sharing software provides the following benefits:

• Increased productivity: Organizations can increase work output by sharing files more efficiently without compromising security.
• Streamlined collaboration: Features such as live document editing and commenting make it easier to collaborate with stakeholders. Teams can work together effectively while effortlessly upholding security measures.
• Legal compliance: Organizations can ensure they’re meeting regulations, avoiding fines, and protecting client data by investing in file-sharing software with strong security.

Related read: Great security doesn't have to get in the way of a great user experience

Understanding file sharing options

There are many technologies available for sharing files, but not all have the security features you may need. It’s important to be aware of file sharing risks for each type of file collaboration. Here are some of the most common file sharing methods and their security considerations:

• Peer-to-Peer (P2P) file sharing: Files are shared between computers without relying on a central server. P2P options let you share documents, videos, audio, and even video games, but it’s not designed to be secure. Using this file transfer method may expose businesses to malware and data breaches.
• File Transfer Protocol (FTP): FTP is used to exchange files over computer networks. It transmits data in plain text, which can be intercepted by hackers. To make the connection secure, companies must use encrypted forms of FTP such as FTP Secure (FTPS). This is widely supported and efficient, but FTP servers and clients can be complicated to configure and use.
• Email attachments: It’s quick and easy to attach files to an email and share them with colleagues. However, not all email providers enable end-to-end encryption. Most emails are encrypted while in transit using Transport Layer Security (TLS) encryption. However, free-to-use email services don’t typically encrypt an email after it arrives at your inbox or while it’s in drafts. This leaves gaps in security for hackers to exploit.
• Cloud-based file sharing: Cloud-based services save files and folders in cloud storage servers, providing robust data security and allowing authorized users to access files from anywhere. With the highest level of encryption, access controls, and audit trails, this method is one of the most secure and convenient for professionals to use.

You will find more detail on file sharing software security features in our nine tips below, but first, let’s discuss a question on a lot of business leaders’ minds.

What is the most secure file transfer method?

The most secure file transfer methods are FTPS and cloud-based. Each has security features that tend to be more rigorous, making them prime options across many industries.

If a file sharing method you are using presents security risks, you may be able to integrate a second solution that provides more security. However, this is not recommended. It’s less cost effective and may be more complex than file-sharing software with built-in security.

Another option is to upgrade your file sharing method by adjusting the security settings described in the tips below: strong passwords, two-factor authentication, and shared link expiration dates.

Top 9 tips for secure file sharing

Now that we’ve covered the importance of secure file sharing and what your options are, here are our top nine tips for file sharing security.

1. Emphasize end-to-end encryption

Encryption renders data unreadable for those without authorized access. Many file sharing methods implement encryption automatically, however, they don’t always enable encryption at every stage of the file exchange process. For example, as mentioned in the section about email attachments above, an email might be encrypted while in transmission but not when it’s sitting in your inbox. To prevent breaches, companies should ensure end-to-end encryption that protects data at every stage of file sharing, from generation to transmission and storage.

File encryption explained

Let’s take a moment to explain what encryption is. Encryption turns plain text or data into a code to prevent cyber criminals from interpreting it. This way, only authorized parties can access information with the decryption key.

When choosing a file sharing solution, be aware of what level of encryption it uses. The strongest level of encryption is the Advanced Encryption Standard with a key size of 256 bits, or AES-256. Employing AES-256 helps make sure that files remain secure.

Related Read: File encryption 101

2. Choose a privacy-focused provider with a strong track record

While you’re considering secure file sharing options, make sure to investigate how the company approaches security and whether or not its software has been hacked in the past. This helps you determine the vendor’s reliability, and ensures that you can count on the software you purchase to protect your files.

Focus on the following questions when you’re deciding if file sharing software is secure enough for your organization:

• Does the software meet your needs for security?
• Does the company have positive reviews that mention file security?
• Have there been any data breaches in the past five years? If so, what was the company’s response?

3. Implement strong passwords and enable two-factor authentication (2FA)

When it’s easy for hackers to access company accounts, it’s only a matter of time before a breach happens. In fact, the use of weak, easily-guessable passwords account for 21% of data breaches in 2024. To protect against brute-force attacks, companies should encourage staff to use strong passwords, with strict requirements for length, complexity, and uniqueness.

2FA is another important security method that prevents unauthorized log-ins. It requires two methods of identification, such as a cell phone and a computer, to log into accounts. This stops hackers from gaining access if they manage to hack into a single device.

4. Password-protect individual files for extra security

Many file-sharing solutions have the ability to password-protect individual files and folders. This way, even if a cyber criminal gains access to files through stolen devices or account passwords, the information within is protected. As a best practice, set up password protection for files that require the utmost security.

5. Set time limits or expiration dates for shared files

Changes to vendors or company structure can result in data being shared with individuals who no longer need access to it. Setting time limits and expiration dates helps ensure it’s only shared with necessary stakeholders and access isn’t granted indefinitely. This decreases opportunities for hackers to steal information.

6. Monitor file access to identify suspicious activity

Monitoring how company data is accessed can determine if hacking attempts are being made, letting you take steps to prevent it. Software with auditing and logging features maintain access records, so you can more easily investigate security incidents.

7. Use a VPN on public Wi-Fi networks for an extra layer of protection

A virtual private network (VPN) creates a secure connection between your device and the internet by encrypting data and masking your IP address. Sharing files over public Wi-Fi networks can be risky. For an added layer of security, your staff should use a VPN.

8. Consider additional security measures like digital watermarks or access controls

Digital watermarks are pieces of code embedded into visual or audio files that help detect and track illicit copies. Access controls manage who is able to get or read your data. These additional security measures provide further protection while sharing files.

9. Comply with industry data protection standards

Across industries there are set rules and standards for protecting data. For maximum security and to avoid fines, regularly familiarize yourself with updates to the regulations that apply to your industry. Your file sharing software should also be up-to-date with the latest data protection standards.

Share files securely to protect company data

Protecting sensitive information when sharing files is a necessity for companies across every industry. Make sure you’re using file sharing tools with a high level of encryption and following best practices so that data is never compromised. With the right tools and security solutions, you can have peace of mind that your files are protected and focus on driving better business outcomes.