What is encrypted file sharing?

Encrypted file sharing is a way of securely transferring your content online. Imagine you have a confidential business proposal for a client. Encryption scrambles the text, making it readable only for users with permission to decrypt the file. If someone tries to open the document without access to the decryption key, they only see a jumbled mess of characters.

Sharing encrypted files ensures privacy, protects your content from unauthorized access, and allows you to share sensitive information with confidence.

How file share encryption works 

Encrypted file sharing safeguards your data during transfer through six steps:

1. Preparation: You choose the file you want to share and the encrypted file sharing service — there are options available, from email to cloud-based platforms
2. Encryption at rest: The software scrambles the content of your file while it’s stored using a complex algorithm, like the Advanced Encryption Standard (AES)
3. Sharing: You can share your encrypted file via email, cloud data storage, or a file transfer service
4. Encryption in transit: Secure systems protect data while it’s traveling between locations — typically using a specific algorithm, like Transport Layer Security (TLS)
5. Receiving: The recipient accesses the encrypted file but can’t read it without a key
6. Decryption: The recipient then uses the decryption key — which you might provide separately or share through the service — to unlock the content and access the file

Now that you know the process, let’s explore the best use cases for this file sharing method.

Why you should share encrypted files

According to a report by the Business Research Company, the global secure file transfer market is projected to reach $2.28B in 2024. With data privacy and protection becoming a top priority due to rising cyber threats and complex compliance regulations, organizations are increasingly adopting solutions for sharing encrypted files securely.

Here’s why you should encrypt your files before sharing them:

Enhance protection against data breaches and leaks

Sharing encrypted files with your team mitigates the risk of data breaches and leaks by transforming sensitive information into an unreadable format for unauthorized users. If someone intercepts or steals the file, they can’t read the content unless they have permission to decrypt it.

With encrypted document sharing, you prevent malicious and accidental exposure of trade secrets, financial data, health records, or any other sensitive or confidential information.

Improve control of data privacy and integrity

The 2024 GDPR Enforcement Tracker Report shows that the total fines imposed for GDPR violations reached approximately $4.48B, a 61.7% increase from 2023. If you don’t encrypt personally identifiable information (PII), like customer data or employee records, you can’t comply with privacy regulations like GDPR, CCPA, HIPAA, or other industry-specific standards that require this measure.

Another benefit of encrypted file sharing is ensuring the integrity and accuracy of your documents by preventing unauthorized users from tampering with sensitive information. This is crucial in legal cases, for example, when a contract’s terms or intellectual property details need to be verified as authentic and unaltered throughout the judicial process.

Increase trust and collaboration

In a survey by Box and Pulse, 84%% of tech leaders said they consider collaboration very important or mission-critical. Encrypting and sharing documents and files with your clients or team members gives everyone peace of mind that sensitive information is safe from unauthorized access. It fosters a sense of trust between collaborators and makes teamwork seamless and efficient.

How to share encrypted files in the cloud

While email encryption provides a basic layer of protection against leaks and breaches, cloud-based platforms offer extra features like password protection and granular permission controls to ensure your content remains secure during transfers.

Follow these steps to share encrypted files in the cloud:

1. Choose a platform with end-to-end encryption

When you encrypt files in the cloud, advanced platforms protect your content from the sender’s device until it reaches the recipient’s device. This is end-to-end encryption file sharing, a method that secures your data even if:

• You accidentally send a document to the wrong recipient
• Someone steals your username and password
• An unauthorized user intercepts the content during transmission

Without access to the decryption key, your documents, images, and other files stay safe — even if your account is compromised. Key management services offer a secure central location for your encryption codes, preventing the risks of sending files by email or storing them on unsecured personal devices.

2. Choose how to share your content

When your encrypted content is ready, you can send it to team members, clients, or partners by sharing:

• Secure links, which means only users with the URL can access your file
• Password-protected files, so the recipient only accesses them with a passcode and a decryption key

Use both options if you want to reinforce protection. You can also set expiration dates for the secure links, ensuring access for a specific timeframe. If the link falls into the wrong hands, this step creates a strong defense against unauthorized access by minimizing the window of opportunity for attackers to exploit it.

3. Enable secure access to data

One of the benefits of using a cloud-based file-sharing system is that you can set granular access controls to choose who can view, edit, and download your encrypted content. With this feature, even if you share an encrypted file with someone, they can’t access it unless you grant them a specific permission level.

In the State of Zero Trust and Encryption Study, IT professionals ranked granular access controls as the second most important feature in cloud encryption services, just behind privileged permission. When sharing encrypted files, make sure you assign user permissions carefully to maintain control over your sensitive data.

Encrypt and share files securely with Box

Box simplifies encrypted file sharing while keeping your data secure. The Intelligent Content Cloud provides a unified platform for creating, storing, and sending your content from anywhere.

With our secure file sharing platform, your information stays safe, and you get peace of mind. You can encrypt data at rest and in transit using 256-bit AES and TLS 1.2 algorithms. Send encrypted documents in seconds, whether by a secure link or through cloud storage. And share content of all file sizes from any device to simplify collaboration with clients, colleagues, and other partners.

Encrypt and send files with these enterprise-grade security features: 

• Encryption key management: Centralize control of private keys that encrypt, decrypt, and re-encrypt data
• Granular access controls: Prevent unauthorized access to your content by controlling who can view or edit encrypted files
• AI-powered data leak prevention: Set controls to monitor user activity in real time and prevent the sharing of sensitive files
• High trust compliance: Ensure proper encryption of sensitive information to meet regulatory requirements

Let’s connect and discuss the best features for securely sharing your encrypted data with Box.

While we maintain our steadfast commitment to offering products and services with best-in-class privacy, security, and compliance, the information provided in this blog post is not intended to constitute legal advice. We strongly encourage prospective and current customers to perform their own due diligence when assessing compliance with applicable laws.