Secure file transfer for business: How to send sensitive documents safely

Email attachments and free file-sharing apps might be convenient, but when it comes to contracts, customer data or financial records, convenience isn’t worth the risk. One wrong click or unsecured link can lead to data loss, compliance breaches and damaged client trust – and none of them are easy to fix.

As more and more businesses are switching to the cloud, we look at the risks involved, what secure file transfer looks like in practice, and how you can do it right without overcomplicating things.

You can also download our free checklist to help you get up and running.

Want to go back to basics? Here’s more on cloud-based file sharing.

The risks of unsafe file sharing

Sharing information is an essential part of how most of us work. But the way you do it matters. And the risks are more common – and more serious – than you might think:

Data breaches

A mistyped email address or an unsecured link can be all a cybercriminal needs, and cost small businesses anywhere between $120,000-$1.24m, depending on how severe it is.

Compliance failures

If you handle personal or sensitive data, you’re subject to regulations like GDPR, CCPA, HIPAA or other industry-specific rules. An unsecured transfer can lead to hefty fines and unwelcome scrutiny.

Legal trouble

Mishandling or mismanaging contracts or client files can land you in court and cost you dearly in financial penalties.

Ransomware attacks

A phishing email that slips through can open the door to ransomware, where hackers encrypt your data, put your systems out of action, and demand money. Plus, because they’re seen as a softer target, 55% of ransomware hits businesses with fewer than 100 employees.

Business disruption

Recovering from a cyberattack can take weeks – pulling teams off key projects, slowing productivity and impacting revenue.

Reputational damage

Your partners and customers expect you to look after their data. If it ends up in criminal hands, trust can vanish in an instant – often for good.

Accidental internal exposure

Not every incident involves an outsider. Sending sensitive HR data, for example, to the wrong person inside your business can see a simple mistake become a serious incident if that data’s unprotected.

Best practice for secure file transfer

So, what’s the secure way of transferring files? And how do you do it without turning simple tasks into complicated hurdles?

It's about building security into your daily workflow, not bolting it on as an afterthought. The key is a layered approach – choosing the right tools, using them smartly, and empowering your team.

Choose the right platform

Free or personal file-sharing tools might work for individuals, but they're not built for handling sensitive, business-critical documents. For secure data transfer, you need a platform designed for business use.

Look for:

• End-to-end encryption. This scrambles your files when they’re moving and when they're stored, so only authorised recipients can read them.

• Access controls. You can choose who can view, edit, or reshare a file so only the right people have access.

• Two-factor or multi-factor authentication (2FA or MFA). An extra layer of security that requires a second (or more) form of verification, like a text message or code sent to your phone.

• Compliance credentials. Make sure it meets and supports relevant standards like ISO 27001, SOC 2, or GDPR.

Need help choosing? Our guide to the best cloud storage solutions can give you a head start.

Set guidelines to protect your files

Even with the best platform, security ultimately depends on your team. Most mistakes aren’t malicious. They come from poor habits or a lack of clear guidelines. Building simple practices into everyday work can make a big difference, including:

• Double-check or rollover suspicious email addresses to prevent falling for phishing attempts.

• Always password protect sensitive documents and share the password separately – never in the same email.

• Set expiry times on links and limit the number of times a file can be downloaded to reduce exposure.

• Avoid personal accounts or tools for all sensitive work. They typically don’t have the same security features and oversight businesses need.

• Remove access for former team members immediately.

• Regularly review who needs access to what. The fewer people who can access a file, the lower the risk if something goes wrong.

Build a security-aware culture

Security is a team effort. That means building a culture where everyone understands their role in the secure sending of files.

Provide regular training on how to securely transfer files, spot phishing attempts, and why strong passwords are a must. It doesn't always need to be formal. A quick how-to guide or team briefing can also be effective.

Encourage your team to speak out if they see anything suspicious – like an unfamiliar login attempt or a download they didn't expect or ask for. Even if they’re mistaken, ‘better safe than sorry’ is a cliché worth sticking to.

Make sure there are simple, clear steps for reporting issues quickly. The faster a security concern is flagged, the faster it can be tackled, potentially preventing a full-blown incident.

If your team works remotely – even part of the time – it’s important your file-sharing setup supports it.

And if something does go wrong, a solid backup plan can make all the difference. Our cloud backup guide shows you how to recover quickly and keep disruption to a minimum.

Getting secure file transfer right protects your data, safeguards your customers, and reinforces your reputation. By choosing the right tools, putting controls in place, and building good habits across your team, you can take the risk out of everyday file sharing.

Our free downloadable checklist can help you get started or spot any gaps.