SOC 2 Compliance: Selecting A Secure File Transfer Service

If you’re handling sensitive or regulated data, you need a secure file transfer and storage platform that reduces risk and supports your compliance goals.

That includes not just the technical safeguards you expect, like encryption, authentication, access control, but also the behind-the-scenes policies and operational practices that keep data safe day to day. Here’s how the right file transfer service should fit into that SOC 2 picture.

What is SOC 2 and who’s it for?

SOC 2 stands for System and Organization Controls 2. It’s a set of auditing standards designed by the AICPA to assess how digital and cloud service providers handle customer data.

The scope is broad: it evaluates not only technical security measures but also the non-technical organizational policies, operational practices, and risk management processes that keep that data protected.

While it was originally aimed at SaaS companies, SOC 2 is now a baseline for any platform that stores or moves data for clients, including secure file transfer services, MFT solutions, and cloud storage platforms.

If your business depends on a third-party system to transmit or store internal documents, regulated information, or client data, then SOC 2 is for you, even if you’re not the one being audited. A SOC 2 compliant cloud storage and file transfer provider helps you meet your own obligations by reducing the risk of a weak link.

If all this is new to you and you need the full rundown, please read our introduction to SOC 2.

How should SOC 2 inform my choice of a secure file transfer service?

A file transfer service can support SFTP, encrypt everything, and talk about security, and still fall short of what SOC 2 requires. That’s why the audit matters. It forces the provider to prove that its processes match its claims, both on paper and in practice.

In addition to security practices at the product level, the SOC 2 audit report also covers the overall policies and controls set in place to reduce the risk of security breach, such as operational procedures and other factors that could potentially breach the Trust Services Criteria, which we’ll discuss later.

The audit scope will typically address the functionality of the product and the aspects relevant to it. In the case of managed cloud storage and file transfer, this means encryption of data in transit and at rest, automation events, authentication methods, and access roles may all be examined.

What matters is that the platform has been independently audited to show it can manage both its own systems and its dependencies in a way that aligns with SOC 2’s trust principles.The more deeply you rely on the MFT cloud file transfer system, the more tightly it should align with how SOC 2 defines trust.

What does a SOC 2 audit involve for the cloud transfer service that I use?

For cloud file transfer and cloud storage providers (many services provide both), a SOC 2 audit examines how securely data is handled across the whole data lifecycle, from upload and transmission to long-term storage and deletion.

Auditors may examine how files are isolated between customers, how transfer activity is tracked, and how infrastructure is maintained for availability and continuity. They’ll also look for operational gaps, mishandling, or other non-technical issues that could breach the Trust Services Criteria. When evaluating vendors, ask for their most recent SOC 2 report and confirm it covers both file transfer and storage capabilities.

Read SOC 2 Compliance For Startups: Our SOC 2 Journey, where SFTP To Go’s CEO, Saggi Neumann offers a candid look at the SOC 2 certification process.

Type I vs Type II: What’s the difference for MFT service providers, and for you?

A SOC 2 Type I report shows you that your chosen cloud storage and transfer provider has designed controls that align with the Trust Services Criteria. It reflects what the system looks like on a specific day. It confirms intent, documentation, and SOC 2 readiness. Good start, but not enough for you.

A SOC 2 Type II report is what you really want to see, because it tests whether those controls function over time. The audit spans several months and focuses on real-world performance and operational practices.

This includes how the cloud file transfer provider handles authentication, monitors file activity, and enforces access scopes, and the human side of how incidents are handled, employee training, vendor management, and operational procedures. It shows whether the platform actually follows its own policies under operational load.

For secure file transfer and cloud storage platforms, this distinction is everything. Type I can signal that the groundwork is there, but Type II proves that the MFT provider can maintain compliance through regular usage, across multiple users and automated workflows.

So, if your team is handling regulated data or integrating file exchange into core systems, you’ll need more than policy and promises. A Type II report gives you evidence that the secure file transfer system you’ve chosen to use has already been tested, didn’t break under pressure, and adheres to the highest standards for secure data transfer.

Who needs a SOC 2 report: secure cloud transfer providers and their customers

Any provider offering secure file transfer or cloud storage should have a valid SOC 2 report.

This includes managed file transfer platforms, SFTP services, and hosted systems that store, send, or process customer files. A SOC 2 report confirms that the service has implemented security, availability, and confidentiality controls, and that those controls have been independently audited.

Businesses that use these platforms don’t need their own SOC 2 report, but they do need access to their provider’s. If your team relies on a third-party system to handle internal files, client data, or regulated content, you're responsible for verifying that the platform is compliant. Reviewing the SOC 2 report helps you assess how the provider handles access control, storage isolation, uptime, incident response, and more.

SOC 2 reports are now a standard part of vendor due diligence. Security teams, procurement leads, and compliance officers often ask for them early in the evaluation process. If the provider can’t produce a current report, most buyers won’t move forward.

Applying the Trust Services Criteria to file access and storage

SOC 2 audits are based on the Trust Services Criteria. These include Security, Availability, Confidentiality, Processing Integrity, and Privacy. Each one applies directly to how a file transfer and storage platform is designed and operated.

Security covers access control, authentication, and encryption. Cloud storage and transfer systems must prevent unauthorized access, restrict privileges, and protect data in transit and at rest. This also depends on human oversight , employees must follow documented access policies, avoid credential sharing, and be trained to recognize and respond to security threats.
Availability focuses on uptime, failover, and recovery. The cloud transfer platform must remain usable during routine maintenance and recover quickly after outages without losing files or blocking transfers. Operational planning matters here too: staff must follow incident response playbooks, maintain continuity plans, and coordinate effectively during disruptions.
Confidentiality relates to how files are stored and accessed. Data must be isolated between users or tenants. Retention and deletion policies must be enforced, and access must be fully logged. Non-technical factors include clear policy enforcement, periodic reviews of who has access, and ensuring that users understand their confidentiality obligations.
Processing Integrity applies when the MFT platform automates file handling. Transfers must be completed reliably. Routing, delivery, and automation must work as expected, without silent errors or modification. This also requires operational discipline, such as verifying automation scripts before deployment, documenting workflows, and monitoring for anomalies in real time.
Privacy applies when files include personal or regulated data. The secure file transfer system must limit access, support secure deletion, and track how sensitive information is stored, used, and removed. Human responsibilities include honoring data subject requests, following legal retention limits, and making sure privacy commitments in contracts are actually upheld in practice.

A platform that claims SOC 2 compliance needs to pass their SOC 2 audit to verify that they support each of these areas with clear controls. Auditors review how those controls are built into the system and whether they function in practice.

Choosing a SOC 2 compliant provider for file transfer and storage

A SOC 2 report should tell you all you need to know about a given file transfer service, but maybe you like to do your own assessment as well.

As a systems admin weighing a platform to integrate into your data ecosystem, start with its technical design, but also look at its operations. It should be evident that compliance is just a product of good architecture and policy, not an added service, a patch, or an afterthought.

1. Secure protocols must be supported by default.

File transfers should use SFTP, FTPS, or HTTPS. Key-based authentication, TLS encryption, and configurable endpoints should be available for automated and manual workflows.

2. Storage must be encrypted and integrated.

File retention should take place on encrypted storage. SFTP To Go uses built-in Amazon S3 storage with per-tenant isolation, or you can bring your BYOB (Bring Your Own Bucket) if preferred.

3. Permissions must be configurable.

User access should be limited by scope, command, and IP. Role-based access control must be available for teams with layered responsibilities.

4. Logs must be accessible and exportable.

Every file transfer and user action must be recorded. Logs should be visible in real time and available for export. SFTP To Go includes detailed logging, webhook triggers, and real-time alerts.

5. The infrastructure must reduce your compliance burden.

Externally managed platforms should reduce your audit surface. SFTP To Go handles patching, monitoring, and availability as part of the service, and it’s SOC 2 compliant. This means time, trouble, and cash saved as there’s no need for your team to manage low-level infrastructure compliance.

6. Operational consistency must be proven.

Onboarding and offboarding of employees, and digital account management procedures should be documented and followed in practice. Look for evidence of regular access reviews and timely deprovisioning in the SOC 2 audit.

7. Incident response and business continuity must be tested.

The SOC 2 compliant file transfer provider should maintain a written incident response plan and business continuity plan, run drills, and document outcomes. A Type II report should show how these processes performed over time.

8. Employee eligibility and training must be in place.

Security training, acceptable use policies, and background checks (where lawful) should be standard. The audit should confirm that staff understand and follow procedures that protect file transfer and storage workflows.

9. Vendor and change management must be controlled.

Third-party services should be assessed and monitored, and production changes should follow a defined review and approval process. The SOC 2 report should include how risks from dependencies are managed.

Operational practices that support SOC 2 compliance on your side

Choosing a SOC 2 compliant cloud storage and transfer platform is only one part of the equation though. The other is how you use it. What kind of data you store and transfer using the platform defines the controls you have to apply to mitigate the risk associated with sharing said data. Your own configuration decisions determine whether you meet your compliance goals. You can’t just rely on your MFT’s default settings, even with a top tier solution like SFTP To Go!

Segment users by access role.

Avoid giving every user upload and delete rights. Use scope-limited credentials for integrations and automation. If a process only reads files, its token shouldn’t be able to write or remove anything, same with a user and their permissions.

Automate file cleanup.

Leaving sensitive files in long-term storage without a purpose brings risk. Use scheduled scripts or the platform's API to remove outdated files based on age, status, or usage.

Monitor events beyond logins.

SOC 2 isn't only about access, it's also about how access is used. Configure event notifications for file uploads, changes to user permissions, or unexpected transfer patterns. SFTP To Go supports webhook-based real-time notifications for all of these.

Rotate keys and tokens regularly.

Audit scopes often include credential hygiene. Use automation to expire SSH keys, API tokens, or passwords on a rolling basis. Build this into your CI/CD process or provisioning tools.

Document your file-handling workflows.

SOC 2 auditors will want to understand how data moves through your system. If you're using SFTP To Go as part of a larger pipeline, document the transfer paths, retention rules, and cleanup policies. A clear workflow makes your next audit faster and less painful.

Train staff on handling sensitive data.

Even with the best controls, human mistakes can break compliance. Run periodic training on secure transfer practices, phishing awareness, and incident reporting so everyone understands their role in protecting files.

Review vendor access and dependencies.

If third-party tools or contractors connect to your MFT platform, ensure they meet your security standards. Regularly review their access scopes and remove them when projects end.

If you’re unfamiliar with the CCs and TSCs or looking for deeper guidelines on SOC 2, please refer to our full SOC 2 Compliance Checklist.

Test a cloud storage and file transfer platform that’s already passed the SOC 2 audit

If you're handing off your precious files to a third party, the platform shouldn't just claim compliance. It should show you a current SOC 2 Type II report and back that up with architecture built for security, not just patched for it.

SFTP To Go does exactly that. Encryption, tenant isolation, scoped credentials, exportable logs, and real-time alerts are all built in.

Explore our plans and start your free trial today.

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What is SOC 2 compliance for cloud storage and file transfer services?

SOC 2 compliance is an independent audit standard that evaluates how a cloud storage or file transfer provider secures customer data. It verifies controls across security, availability, confidentiality, processing integrity, and privacy, making it a benchmark for choosing a secure managed file transfer (MFT) or SFTP service.

Why is SOC 2 compliance important when selecting a secure file transfer service?

SOC 2 compliance proves that a provider’s encryption, authentication, access control, and operational practices have been independently audited. It reduces the risk of data breaches and ensures that sensitive files are handled according to the AICPA Trust Services Criteria, giving customers confidence in the provider’s cloud storage and transfer security.

What is the difference between SOC Type I and Type II for file transfer providers?

A SOC Type I report confirms that a provider has designed security and compliance controls at a single point in time. A SOC 2 Type II report goes further, testing those controls over several months to verify that they work in practice. For managed file transfer and cloud storage, a Type II report provides stronger assurance of ongoing compliance.

Does choosing a SOC 2 compliant cloud file transfer provider help with my SOC 2 attestation?

Yes, it helps but does not guarantee attestation. A provider’s SOC 2 report reduces vendor risk and supports your audit evidence, but your own policies, controls, and operations must still meet SOC 2 standards.

How do SOC 2 Trust Services Criteria apply to secure file transfer and storage?

The Trust Services Criteria require providers to enforce encryption, uptime controls, data confidentiality, accurate transfer processing, and privacy protections. For example, a compliant MFT service must encrypt files in transit and at rest, log all access, enforce retention policies, and support incident response planning.

What should I look for in a SOC 2 audit report when choosing a provider?

Focus on the exceptions or gaps the auditor identified and how the provider mitigates them. A clean Type II report shows that controls were tested over time and found effective. If there are gaps, review whether they affect your risk and whether the vendor has clear remediation plans.

Can SOC 2 compliance help with other regulatory frameworks?

SOC 2 compliance doesn’t replace HIPAA, GDPR, PCI DSS, or other frameworks, but the mindset and controls it enforces can make adapting easier. You’ll still need to implement additional policies and safeguards specific to each framework, but working with a SOC 2 compliant provider helps you build a stronger baseline for security and vendor oversight.