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

6 mins

Mar 15, 2025

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 unauthorized 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 organization, 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.

A group of people huddle around a laptop in a conference room while planning together.

What is cloud encryption?

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

Protect business data—three layers of encryption

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, 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.

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

Complete data security

See how secure, encrypted cloud storage is just part of the way Dropbox protects data.

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 unauthorized access. 

Using E2EE in Dropbox locks files down—ensuring only authorized 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 unauthorized 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.

4. Encrypted access anytime, anywhere

In a typical modern business setup, a remote IT team might securely retrieve encrypted files while traveling—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, for 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. 

A demonstration of one-click end-to-end encryption of files and folders in a Dropbox account.

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 authorized users—no hassle, no risk.

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.

Frequently asked questions about encrypted cloud storage

Encryption safeguards cloud storage by converting data into an unreadable format, accessible only to authorized users with the appropriate decryption key.

Yes, encrypted cloud storage is considered safe as it employs robust encryption mechanisms to protect data from unauthorized access, even in the event of a security breach.

Yes, encrypted files stored in Dropbox can be accessed from any device with an internet connection, as long as the user has the necessary credentials and decryption key.

Dropbox stands out as one of the most secure cloud storage providers, offering multiple layers of encryption, including encryption in transit, encryption at rest, and end-to-end encryption (E2EE).

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