Encrypted cloud storage guide: How to encrypt company files for cloud storage

Cloud storage keeps work moving but for businesses handling sensitive data, encryption isn’t optional—it’s essential. Without it, your company could be risking data breaches, compliance violations and unauthorised access to your systems and content.

The stakes are high. In 2024, the average cost of a data breach reached $4.88 million, according to IBM. While large enterprises may absorb these costs, for smaller teams, the impact can be devastating. No matter the size of your organisation, IT leaders need a proactive approach to security.

That’s where Dropbox comes in. With built-in encryption and seamless compliance tools, we make protecting business-critical data effortless—without disrupting your workflow. Stay secure, stay compliant and keep work moving with Dropbox.

What is cloud encryption?

Cloud encryption ensures that only authorised users can access your files by converting them into unreadable code. Dropbox secures data at every stage, protecting against breaches and unauthorised access.

Encrypted vs secure file sharing

Encrypted file sharing protects the file’s contents by scrambling data with encryption, such as AES-256 at rest and TLS 1.2 or higher in transit—as is the case with Dropbox.

Secure file sharing builds on encryption with controls and visibility—such as file permissions or shared link settings (including password protection, expiry dates and disabling downloads) and audit logs—so you can manage access and track what happens after you share .

Protect business data—three layers of encryption

Dropbox encrypts files both in transit and at rest. That means your content stays protected while it’s moving between devices and your cloud storage and while it’s stored in the cloud.

Here’s how Dropbox gives you multiple layers of security and encryption to protect business data at all levels:

• Encryption in transit—protects files while uploading, transferring or syncing using SSL/TLS protocols
• Encryption at rest—uses 256-bit AES encryption to secure stored files, which keeps them safe even in case of a breach
• End-to-end encryption (E2EE)—ensures files stay encrypted until decrypted by the recipient, a zero-knowledge security practice designed for total security

Cloud encryption prevents interception or tampering during file transfers—and keeps stored data protected, even if access is compromised.

Here are a few of the business benefits our customers enjoy from using cloud encryption in Dropbox: 

• Stay compliant easily—Dropbox holds substantial compliance certifications, such as SOC 2 Type II reports and CSA STAR listings or ISO 27001, which help companies meet GDPR, HIPAA and other requirements
• Prevent data breaches—even if an attack occurs, encrypted files remain unreadable, so Dropbox can monitor for breaches effectively with dark web monitoring providing extra peace of mind
• Collaborate securely—Dropbox helps businesses easily protect IP, financial data and other sensitive business files used in our collaboration tools, which makes working with external stakeholders simple

In addition to other cloud storage features, Dropbox offers cloud encryption. This boosts security, helps with compliance and protects private company data—leading to a range of business benefits.

How to encrypt files for cloud storage in Dropbox

End-to-end encrypting files in your cloud storage via your team Dropbox account is simple and hassle-free. 

Follow these steps:

1. Log in to dropbox.com with your admin credentials.

2. Click Admin console in the left sidebar.

3. Click Content.

4. Click Create team folder.

5. Add your folder name and select who can access it as normal.

6. Tick the box saying Encrypt this folder end-to-end.

How can I ensure large file transfers are encrypted?

To keep large file transfers encrypted, use a file transfer tool that encrypts data in transit (TLS 1.2 or higher) and add access controls to the transfer link. With a tool like Dropbox, you can send large files up to 250 GB and protect them with password protection and expiry dates so only the right people can download them.

How to securely store proprietary designs and source files in the cloud

Create a dedicated team folder for proprietary designs or source files and turn on end-to-end encryption so only authorised users can decrypt the contents. Then lock down access with folder-level permissions and share externally using controls like passwords, expiry dates and disabled downloads, with audit logs and content reporting to monitor sharing and revoke access if needed.

It’s that simple and takes just a single click—see more details about E2EE.

4 cloud storage encryption benefits

For IT leaders, data security isn’t optional. Without encryption, sensitive business data is exposed to breaches, compliance risks and unauthorised access. 

Using E2EE in Dropbox locks files down—ensuring only authorised users can decrypt them. Here’s how it delivers real-world security advantages:

1. Secure collaboration without risk

Imagine if a law firm shares confidential case files with external counsel using E2EE, preventing unauthorised access. This is important because data leaks lead to financial and reputational damage. The extensive file permission controls in Dropbox can also help IT admins ensure only the right people see sensitive files.

2. Protection against cyber threats and breaches

Banks encrypt client data with E2EE, keeping financial records unreadable even if intercepted. Cyberattacks are inevitable—and this is important because data exposure isn’t. E2EE ensures that even the cloud provider can’t access your files, which helps to keep your reputation solid within your customer base.

3. Compliance without complication

Think of a scenario where a healthcare provider secures patient records for HIPAA and GDPR compliance—they use E2EE and strict access controls. It’s crucial in this case, as non-compliance leads to fines, legal risks and brand damage. Dropbox automatically provides access logs and offers role-based access to stay compliant effortlessly.

For HIPAA-compliant file sharing, Dropbox gives admins audit logs and external sharing controls—like passwords and expiry dates—to help keep protected health information in the right hands.

4. Encrypted access any time, anywhere

In a typical modern business setup, a remote IT team might securely retrieve encrypted files while travelling—with no risk of exposure thanks to E2EE. Teams need flexibility without sacrificing security. It’s easy to add folders with E2EE in your Dropbox account, as cloud storage security keeps that data protected across all devices.

Encryption should enhance workflows, not slow them down. Try encrypted cloud storage in Dropbox today. 

Privacy and accessibility with encrypted cloud storage in Dropbox

Keeping business data secure and compliant shouldn’t come at the cost of your team’s productivity. With one-click E2EE, our tool locks down sensitive files while keeping them accessible to authorised users—no hassle, no risk.

Your video and other project content in online storage is protected in Dropbox with AES-256 encryption at rest and TLS 1.2 or higher in transit and you can use end-to-end encryption for folders when you want content to stay private—even from Dropbox. When you share files, you can add controls like passwords, expiry dates and watermarking on to help discourage unauthorised redistribution.

You can securely store, share, collaborate and stay in control of sensitive files thanks to enterprise-grade security built into all the powerful features of Dropbox.

Secure your cloud storage without trade-offs. Security is non-negotiable and with Dropbox, you get enterprise-grade encryption that works effortlessly in the background. Try it today and explore how our Enterprise plans can support your team’s evolving needs.