How to send encrypted files securely

Sharing files without encryption is like sending a personal letter on a postcard—anyone who intercepts it can read the contents—putting your financial records, customer data, and legal documents at risk.

And the threat is only growing. Cyberattacks are becoming more frequent and more costly—McKinsey predicts a 300% increase in cyberattack damage by 2025 compared to 2015. Meanwhile, businesses are handling more sensitive files than ever, making security a must-have, not a nice-to-have.

That’s why encryption isn’t optional—it’s essential. With built-in end-to-end encryption (E2EE), secure file sharing, and strict access controls, Dropbox gives you total confidence when sending sensitive files—keeping hackers, unauthorized users, and data leaks out.

Interested? Read on to learn how Dropbox makes encrypted file sharing effortless.

How encryption protects your files

Encryption ensures that only the right people can access your files—removing the issues of hackers, unauthorized users, and data breaches compromising financial documents, legal contracts, or other sensitive data.

Before we explore how to send encrypted files securely in Dropbox, here’s a quick overview of how it works and why it’s a must-have for businesses handling confidential information.

What is encryption?

Encryption is a way to keep files safe by turning them into code. Only people with the right key can unlock and read the files. Without the key, the files stay locked and can't be read.

For those tasked with protecting business data, encryption is not just a nice to have—it’s a vital part of security to protect data. 

Therefore, encryption is essential to managing reputational risk, preventing financial losses, and avoiding regulatory penalties in your industry.

How does encryption work?

There are two main encryption methods, one used in file sharing and the other used in storage:

• End-to-end encryption (E2EE): In file sharing, files stored in E2EE folders are encrypted before they leave a device. If intercepted, no one—including Dropbox—can read the data. It’s a great option for businesses handling highly sensitive documents, such as financial institutions, legal firms, and healthcare organizations.
• At-rest/in-transit encryption: In file storage, at-rest encryption protects data while it’s stored on cloud servers, making it unreadable to unauthorized users. In-transit encryption keeps files secure while being transferred between devices and servers—preventing interception. This secures files during normal workflows.

At-rest and in-transit encryption are standard cloud storage protections—but E2EE adds extra security for businesses that need total privacy, which delivers much stronger protection and other business benefits.

Why encryption matters for business 

Encryption isn't just for security. Here are a few key reasons to use it in your business:

• Easier compliance—meet GDPR, HIPAA, and other security regulations effortlessly with built-in encryption
• Better data protection—prevent leaks, breaches, and cyberattacks, securing sensitive business information
• Efficient collaboration—make remote work safe by protecting data shared among teams, and outside partners

Dropbox wraps encryption, secure file sharing, and easy collaboration features into one convenient tool.

6 ways to share encrypted files more securely

Data security challenges become more complex as you grow with more employees sharing files externally, stricter compliance regulations, and rising cyber threats.

With Dropbox, encryption is simple, scalable, and built into your workflow—even when sending files outside your organization. Here’s how to do it in just one click:

• Place sensitive files in an E2EE folder or create a new one and click Encrypt this folder end-to-end
• Provide recipients with a secure key to access the folder
• Share the folder with them, knowing only authorized users can decrypt the data

See the E2EE feature page for more information on how to encrypt your files in Dropbox before sending them—as well as other security-boosting capabilities you get access to when you sign up for an enterprise Dropbox account.

Here are six ways to make encrypted file sharing even more secure in Dropbox:

1. Use a shareable link to control access

Upload your file and generate an encrypted shareable link that only authorized recipients can access. It’s useful in many cases, like when finance teams need to share financial reports safely with people outside the company, keeping the information private while making teamwork easier.

2. Set an expiration date for links

Dropbox also lets you add an expiry date to shared links—so access is automatically revoked after a set time. This means a marketing team can send a campaign document to a client that will no longer be accessible after the project ends. It’s also just a good security practice to make sure shared links eventually expire.

3. Add a password

A tried and true method of authentication. It’s simple to add a password to your shared files in Dropbox—ensuring that only the right people can open them. This is great for legal teams sending private contracts. They can share them with clients safely, without the risks of sensitive information being intercepted.

4. Add a digital watermark

A useful security feature in Dropbox lets you add watermarks to files. These watermarks can show the recipient’s IP address, email, or the time they accessed the file. A good example is when a photographer shows early photos to a client. They can add a watermark to stop others from using or sharing the photos without permission.

5. Restrict or allow access with user permissions

Dropbox allows you to set granular permissions to control who can view, edit, or download files. This means HR teams can restrict access to employee records, making sure only approved managers can see private documents. It also makes it easy for system admins to set permissions and ensure nobody has access they don’t need.

6. Monitor file activity

Admins can also track when a file is opened, viewed, or downloaded from your Dropbox admin console. For example, a design team sharing intellectual property files might want to monitor access and ensure confidential assets remain protected—this adds an extra layer of security to prevent unauthorized access for all your files.

Send encrypted files with Dropbox

Keeping business data secure shouldn’t be complicated. Whether you’re handling financial records, customer data, or legal documents, you need to protect sensitive information without disrupting your workflow.

That’s where Dropbox comes in. With built-in end-to-end encryption (E2EE), secure file sharing, and customizable access controls, you can keep your team’s work safe while staying productive. No extra steps, no trade-offs—just seamless security designed to grow with your business.

Try encrypted file sharing in Dropbox and see how security and simplicity go hand in hand.