Managed File Transfer: MFT Software, GDPR, DORA, and HIPAA

Why MFT matters for compliance

For organizations in healthcare and other compliance-driven industries, swift, secure file transfers and storage are an ethical concern, an efficiency factor, and legal requirement. 

GDPR (General Data Protection Regulation), DORA (Digital Operational Resilience Act), and HIPAA (Healthcare Insurance Portability and Accountability Act) impose strict standards for handling sensitive data like personally identifiable information (PII) and electronic protected health information (ePHI). These laws demand encryption, access controls, auditability, and more, leaving no room for error. 

Unfortunately, traditional file transfer methods, especially self-managed ones, tend to fall short of these requirements, exposing enterprises to the risk  of breaches, non-compliance fines, and enduring reputational damage. 

Managed File Transfer (MFT) software represents a reliable, secure, and automated solution. What MFT services offer is externally hosted and managed file transfer, which may incorporate cloud storage as well, bundled up with a range of other convenience and security features.

By integrating compliance features directly into its framework, MFT helps ensure that organizations meet regulatory demands without undue complexity and cost.

What is Managed File Transfer (MFT)?

Managed File Transfer (MFT) services provide secure solutions for transferring and, in some cases, storing data. While many MFT services include self-hosting options, their cloud-hosted solutions are particularly beneficial as they significantly reduce total cost of ownership and maintenance hassles for the companies that rely on them.

Unlike traditional methods, MFT platforms are generally designed with convenience, compliance, and security in mind, offering features like encryption, automation, and centralized control.

Solutions vary per vendor, but companies handling sensitive data, such as in the healthcare industry, should look out for the following features:

How MFT features support compliance: Managed File Transfer benefits

MFT solutions often advertise one or more industry specific applications such as healthcare, finance, or legal, for example, which is usually an indication that they have a security and compliance focus.

Great MFT solutions will go through a process of being independently audited and certified to ensure they meet the appropriate standards to serve these industries compliantly. You should certainly look out for this when choosing a solution.

Good MFT software integrates compliance-focused features to help organizations meet these regulations efficiently:

Security and encryption

• Ensures sensitive data is secure during transfer and storage, fulfilling GDPR Article 32 and HIPAA encryption guidelines.
• Secure protocols like SFTP, HTTPS, and FTPS encrypt data in transit and at rest.
• Role-based access controls (RBAC) ensure only authorized personnel can access sensitive files.
• Detailed audit trails log every action, enabling GDPR reporting and HIPAA audits.
• Real-time monitoring alerts administrators to suspicious activities or breaches, supporting HIPAA integrity controls and GDPR breach notification rules.

Automation and compliance efficiency

• Eliminates manual errors by automating tasks such as encryption enforcement, scheduled transfers, and compliance reporting.
• Centralized compliance management integrates audit logs, access controls, and compliance tools into a single platform.
• Some solutions, like SFTP To Go, offer cloud integration and built-in and secure cloud storage and backup with Amazon S3, to support scalability, efficient workflows, and high availability as file transfer volumes grow.

Managed infrastructure and future-proofing

• Many MFT services offer externally hosted solutions, meaning updates, patches, and infrastructure are handled by experts.
• Internal IT workloads and resource expenditure are reduced, ensuring high reliability.
• Hosted solutions help organizations stay compliant with evolving regulations like GDPR, DORA, and HIPAA.
• Shifting maintenance responsibilities to the provider ensures long-term security and continuous compliance.
• Expert 24/7 support with staff who are well versed in all applications of the product and equipped to handle all levels of query.

GDPR, DORA, and HIPAA compliance requirements for data transfer and storage

Both GDPR, DORA, and HIPAA outline strict guidelines for data protection in their respective regions, with overlapping but distinct areas of focus. 

GDPR regulates the protection of personal data across the EU, mandating strict privacy and security measures for any organization handling EU citizen data. DORA is also EU focused, but targets the financial sector, prioritizing cybersecurity and operational resilience for institutions handling financial data. 

HIPAA, on the other hand, operates in the US, focused on any institutions handling PHI or ePHI, Electronic Personal Health Information.

Failing to comply can result in crippling fines, regulatory scrutiny, and damage to customer trust.

GDPR compliance requirements (EU):

1. Encryption of personal data (Article 32): All personal data must be encrypted during transfer and storage to prevent unauthorized access.
2. Access control and authentication (Article 25): Data must be accessible only to authorized users, enforced through secure authentication methods like multi-factor authentication.
3. Auditability and breach reporting (Articles 30 & 33): Detailed records must track all data transfers, and breaches must be reported within 72 hours.
4. Data transfers to third parties (Articles 44-49): Transfers outside the EU require specific safeguards, like standard contractual clauses.

DORA compliance requirements (EU):

1. Operational Resilience Testing (Article 23):Financial entities must conduct regular testing of their ICT systems to ensure resilience against operational disruptions.
2. Incident Reporting (Article 18):Entities are required to establish and implement procedures for the management, classification, and reporting of ICT-related incidents to competent authorities.
3. Third-Party Risk Management (Articles 28-31):Organizations must manage risks arising from ICT third-party service providers, including due diligence and monitoring of their performance and security measures.
4. Data Security and ICT Risk Management (Article 10):Entities are obligated to implement policies and procedures to ensure the security of data and manage ICT risks effectively.

HIPAA compliance Requirements (USA):

1. Encryption in transit and at rest (45 CFR § 164.312(a)(2)(iv)): While encryption is technically addressable, implementing it is highly recommended to secure ePHI.
2. Audit controls (45 CFR § 164.312(b)): Systems must record and examine access to ePHI, making comprehensive audit logs critical.
3. Access management (45 CFR § 164.312(a)(1)): Unique user IDs and role-based access controls (RBAC) ensure data is only accessible to authorized personnel.
4. Integrity controls (45 CFR § 164.312(c)(1)): Validates that ePHI is not improperly altered or destroyed during transfers.

Download the Complete HIPAA Checklist for 2025 and take the next step towards securing your organization’s future. From staff training, to managing workstations, to breach response—it's got absolutely everything you need to know condensed into a practical and interactive checklist. It’s free, so download it.

Choosing the right MFT solution: Why SFTP To Go?

SFTP To Go is a fully managed Managed File Transfer MFT solution designed to simplify data management; secure file transfers in compliance with regulations like GDPR, DORA, and HIPAA; and provide outstanding customer support.

SFTP To Go brings all the MFT benefits mentioned earlier, and supports compliance through three core pillars: 

• Simplicity: By handling the infrastructure, SFTP To Go eliminates the need for organizations to maintain servers, apply security updates, or scale resources. Its hosted platform is managed by experts to ensure uptime, reliability, and security. It also supports automation through APIs and webhooks that streamline workflows, improving efficiency and eliminating the risk of manual errors.
• Security: SFTP To Go is packed with compliance features, including secure protocols like SFTP, HTTPS, FTPS, and S3 encryption for data in transit and at rest, detailed audit logs for tracking file transfers and user actions, and role-based access controls to restrict data handling to authorized personnel. With built-in S3 cloud storage, the platform supports secure scalability and near-perfect availability. 
• Support: SFTP To Go boasts scores of reviews and accolades for outstanding customer service and technical support. Our expert team is always on hand for additional guidance and a friendly assist. 

Cloud FTP with maximum security and reliability

SFTP To Go offers managed cloud storage service - highly available, reliable and secure. Great for companies of any size, any scale.