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MFT vs SFTP

  • Writer: David Heath
    David Heath
  • Apr 7
  • 6 min read

Updated: Apr 15


MFT vs SFTP
MFT vs SFTP

What is SFTP and Its Limitations?

SFTP, or Secure File Transfer Protocol, uses SSH encryption to securely transfer files, protecting data from interception. However, it lacks centralized management, requiring manual processes for large-scale operations, and can be vulnerable to enumeration, where hackers gather network information to move laterally.


Key Points

  • Research suggests traditional SFTP is secure for file transfers but lacks centralized management, making it vulnerable to enumeration and lateral movement by hackers.

  • It seems likely that modern MFT solutions, like IBM Sterling Connect:Direct, offer enhanced security and efficiency through automation and robust access controls.

  • The evidence leans toward MFT preventing lateral movement by limiting enumeration, while SFTP can be exploited if not properly secured.


Why Upgrade to MFT?

Upgrading to MFT in 2025 is crucial for businesses to enhance security with features like multi-factor authentication and prevent lateral movement. MFT also improves efficiency through automation, reducing manual errors and ensuring compliance with regulations.


How SFTP Enables Lateral Movement

Hackers can use SFTP to enumerate network details, like directory structures, enabling them to identify vulnerabilities and move laterally within the network, especially if access controls are weak.


How Connect:Direct Prevents Lateral Movement

IBM Sterling Connect:Direct prevents lateral movement with security-hardened transfers, centralized control, and limited enumeration, ensuring files are transferred securely without exposing network information.


Survey Note: Detailed Analysis of MFT vs SFTP and Security Implications

In the rapidly evolving digital landscape of April 2025, secure file transfer is a cornerstone for business operations, especially as cyber threats grow more sophisticated. This survey note compares traditional Secure File Transfer Protocol (SFTP) with modern Managed File Transfer (MFT) solutions, highlighting why organizations must upgrade for enhanced security and efficiency. It also explores how SFTP and enumeration enable lateral movement by viruses and hackers, and how protocols like IBM Sterling Connect:Direct mitigate these risks.


Understanding Traditional SFTP and Its Limitations

SFTP, or Secure File Transfer Protocol, is an encrypted version of the File Transfer Protocol (FTP), using SSH for encryption to protect data during transit. According to What is Managed File Transfer (MFT)? | Globalscape, SFTP is particularly useful for businesses seeking to enhance the security of file transfer operations and user access. Its key benefits include:

  • Encryption: Data is encrypted, safeguarding it from interception during transfer.

  • Authentication: Supports secure methods like public key authentication to verify users.

However, SFTP has significant limitations that make it less suitable for modern business needs, especially in large-scale environments:

  • Lack of Centralized Management: Each SFTP server must be managed individually, leading to complexity and increased risk of misconfiguration. As noted in MFT vs. SFTP: Six benefits of modern Managed File Transfer, this decentralized approach can hinder visibility and control.

  • No Built-in Automation: File transfers often require manual intervention, which is inefficient for high-volume data exchanges and prone to human error, as highlighted in What is Managed File Transfer (MFT)? | IBM.

  • Vulnerability to Enumeration: Hackers can exploit SFTP to gather information about the system, such as directory structures, file names, and user lists, through enumeration. This process, defined in Cyber Security – Types of Enumeration | GeeksforGeeks, involves gathering network details to identify vulnerabilities, enabling lateral movement within the network.


The Rise of Managed File Transfer (MFT)

Managed File Transfer (MFT) is a comprehensive technology platform that manages all aspects of file transfer, including security, automation, and compliance. Unlike SFTP, which is a protocol, MFT is a full system that can utilize various protocols, including SFTP, for file transfers. According to What is Managed File Transfer (MFT)? | IBM, MFT is designed to reliably exchange electronic data securely and in compliance with regulations, outpacing traditional methods like FTP and SFTP.

Key features of MFT include:


Comparing SFTP and MFT: A Detailed Table

To illustrate the differences, consider the following comparison:

Feature

Traditional SFTP

Modern MFT (e.g., Connect:Direct)

Encryption

Yes, uses SSH for data in transit

Yes, with additional layers like TLS

Authentication

Secure, supports public key

Supports MFA, SSH keys, and certificates

Access Control

Limited, server-specific

Granular, centralized management

Automation

Minimal, manual processes

Automated scheduling, checkpoint restart

Auditing and Logging

Limited or none

Extensive logs, compliance reporting

Scalability

Limited for high-volume transfers

Optimized for high-volume, reliable delivery

Security Against Lateral Movement

Vulnerable to enumeration and exploitation

Prevents through controlled access and monitoring

This table underscores why MFT is a superior choice for modern businesses.


Why Businesses Must Upgrade to MFT in 2025

Upgrading from traditional SFTP to MFT offers several compelling benefits, especially given the cybersecurity landscape of April 2025:

  1. Improved Security: MFT provides robust security features that protect against data breaches and unauthorized access. For instance, IBM Sterling Connect:Direct - Overview highlights features like Certificate and Certificate Revocation List (CRL) checking and MFA, which strengthen overall security.

  2. Increased Efficiency: Automation and high-speed transfer capabilities optimize file transfer processes, reducing operational delays. This is crucial for businesses handling large volumes of data, as noted in What is Managed File Transfer (MFT)? | Globalscape.

  3. Better Compliance: Detailed logging and reporting ensure that file transfers meet regulatory standards, essential for industries like finance and healthcare, as discussed in SEEBURGER: What is Managed File Transfer? The what, how and why of MFT.

  4. Prevention of Lateral Movement: MFT’s controlled environment reduces the risk of hackers moving within the network through enumeration, a significant advantage over SFTP, as seen in What Is Lateral Movement? | IBM.

The Risks of SFTP and Enumeration in Lateral Movement

Hackers can exploit SFTP for lateral movement in the following ways:

  • Enumeration Defined: Enumeration is the process of gathering information about a target system or network, such as usernames, machine names, and shares, to identify vulnerabilities. In network security, this is a critical step in reconnaissance, as detailed in Cyber Security – Types of Enumeration | GeeksforGeeks.

  • SFTP Vulnerabilities: Despite encryption, SFTP can be targeted by brute force attacks and is vulnerable if server software is outdated. For example, weak password policies can be exploited, as noted in SFTP Vulnerabilities and Strategies to Secure Your File Transfers. Hackers can use SFTP to list directories and files, gathering intelligence that helps them move laterally—spreading within the network to access more systems, as discussed in What is Lateral Movement? | CrowdStrike.

  • Enabling Lateral Movement: Once hackers gain access to an SFTP server, they can enumerate connected systems, exploiting weak points to expand their control. This combination poses significant risks, especially in environments where SFTP servers are not properly secured.


How IBM Sterling Connect:Direct Prevents Lateral Movement

IBM Sterling Connect:Direct, a leading MFT solution, is designed to mitigate the risks of lateral movement through several security features, as outlined in IBM Sterling Connect Direct - Secure, Reliable file transfers:

  • Security-Hardened Transfers: Connect:Direct ensures point-to-point file transfers are secure, using encryption and robust authentication mechanisms. It supports protocols like TCP/IP and SNA, with options for high-speed transfers, as noted in IBM Sterling Connect:Direct - Overview.

  • Centralized Control and Visibility: By offering centralized management, Connect:Direct allows IT teams to monitor and control file transfers effectively, reducing the risk of unauthorized access. This is crucial for detecting suspicious activities, as highlighted in Sterling Integrator File Transfer Protocol Configurations.

  • Access Controls and Authentication: Granular access controls ensure only authorized users can perform specific actions, limiting hackers’ ability to move laterally. It supports MFA and extensive logging for auditing, as seen in IBM Sterling Connect:Direct - Overview.

  • Prevention of Enumeration: Connect:Direct’s controlled environment restricts the ability to enumerate the network, as it does not expose as much information to users as SFTP might. This reduces the risk of hackers gathering information for lateral movement, aligning with its design for secure, managed transfers.


Conclusion

Given the increasing sophistication of cyber threats in April 2025, upgrading to MFT solutions like Connect:Direct is essential for businesses. The limitations of SFTP, especially when combined with enumeration, highlight the need for robust security measures. MFT offers enhanced security, improved efficiency, and reduced risk of lateral movement, making it a necessary component of any robust cybersecurity strategy.



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