Written by Eve Turzillo, Principal Developer Advocate, Progress Software
Anyone relying on outdated methods to transfer sensitive data file information is taking a gamble with their organizations data security. Whether these mistakes happen because of outdated workflows or overreliance on legacy systems that no longer meet today’s strict compliance regulations, the negative consequences can threaten overall business operations and undermine your security strategies.
While file transfer missteps affect businesses of all sizes, UK and Europe-wide regulations, such as the General Data Protection Regulation (GDPR), mean these errors could not just prove costly but have regulatory repercussions for the entire organisation. Below we explore five of the most common file transfer mistakes affecting businesses and the steps they can take to avoid them in future.
- Using insecure transfer methods
Too many companies still use File Transfer Protocol (FTP), a network protocol for transferring files online. This was developed in the 1970s and transmits all information in plain text format: passwords, sensitive customer data, bank details and so on. However, FTP lacks sufficient encryption, and in doing so actively causes security gaps – for example, through dynamic port assignment, which makes firewalls de facto obsolete. There are also no integrity checks, meaning damaged files can be transferred unnoticed. It’s a good idea to switch to more up-to-date and secure protocols such as SFTP, FTPS or HTTPS, which use TLS 1.3 encryption as standard.
- Treating compliance as ‘optional’
Failing to comply with regulations such as GDPR risks harsh financial penalties, which can amount to up to 4% of annual revenue. Businesses not adhering to applicable security legislation also risk a loss of reputation and eroded public trust as a result. Compliance must become a central point in security strategy, and leading file transfer solutions integrate these directly into the system design. This includes tamper-proof protocols, multi-factor authentication and comprehensive reporting tools to help businesses prepare for audits further down the line.
- Developing custom scripts
A simple script with 50 lines of PowerShell code for file transfers can often evolve into an entity that’s difficult to oversee and maintain – let alone secure. In addition, these can often go undocumented, meaning employees struggle to understand what exactly the script does once developers have left the organisation. Solving this means swapping individual scripts for a no-code automation engine. These should offer an intuitive web interface and automatically document the workflows developed with them.
- Accepting suboptimal systems
Traditional and outdated file transfer systems mean employees often have to intervene manually when these fail, with 15 failed transfers per week costing the average company about 585 working hours. Modern MFT (Managed File Transfer) solutions can not only support the secure delivery of files but also provide extensive monitoring and tracking capabilities to monitor transmission. If a transfer does not work, they trigger an automated retry.
- Developing your own file transfer systems
Developing custom file transfer functionality is a complex undertaking that demands advanced expertise across encryption protocols, automation and data stewardship practices. Investing in a managed file transfer (MFT) solution, rather than building an in-house system, offers enhanced security through a comprehensive suite of features focused on encryption, access control and compliance. The potential savings in opportunity cost are significant, allowing IT teams to concentrate on more strategic initiatives while benefiting from the peace of mind that comes with a solution designed for today’s modern security standards. When evaluating build versus buy, purchasing an MFT solution is the optimal choice if security and compliance are essential pillars of your data exchange strategy.
The right MFT solution can make file transfers a straightforward process. If you choose not to adopt an enterprise file transfer platform and continue to rely on insecure protocols, or manual heavy processes, you’re putting your organisation’s security posture at risk and inviting inefficiency. Now is the time to reevaluate your current file transfer processes and calculate the hidden costs of not investing in a solution that aligns with your needs for security, control and operational efficiency.