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Secure File Transfer for Manufacturing: Best Practices and Solutions

by Tim Freestone updated August 17, 2023 Secure File Transfer

Reading Time: 9 minutes

Manufacturing companies deal with substantial volumes of sensitive content, including blueprints, product designs, CAD files, equipment usage readings, and customer information. Historically, such files were transferred using conventional methods like email, file transfer protocol (FTP), and physical media like CD-ROMs and thumb drives, leading to potential risks of data leakage, tampering, and loss. Today, secure file transfer solutions offer encryption, authentication, access controls, audit logs, and compliance tools, ensuring safe and efficient file transfer.

Businesses that adopt secure file transfer into their workflows achieve enhanced data security, streamlined processes, and regulatory compliance. In this blog post, we’ll cover best practices for implementing secure file transfers in the manufacturing industry and explore various solutions tailored to meet the unique needs of this sector.

Manufacturing companies encounter several obstacles in the process of exchanging files with multiple parties, including:

Table of Contents

Ensure Content Security in Manufacturing File Transfers

Manufacturing companies handle sensitive content that must be kept confidential and secure to protect their customers and intellectual property. These companies must ensure that the information they share with other parties, such as partners, consultants, vendors, suppliers, and regulators, remains protected from unauthorized access, which typically leads to a data breach and compliance violation. The consequences of a data breach can be severe, including reputation damage, litigation, and financial loss. Therefore, manufacturers must implement robust security measures like encryption, multi-factor authentication, and access controls to safeguard their content when it’s stored, accessed and transferred.

Maintain Reliability in Manufacturing File Transfer Processes

Manufacturers must ensure the sensitive files they send reach their intended recipient without errors or tampering. Any issues with file transfer can lead to production delays, increased costs, and lost opportunities. Hence, manufacturers must use reliable file transfer protocols such as File Transfer Protocol Secure (FTPS), Secure File Transfer Protocol (SFTP), or Hypertext Transfer Protocol Secure (HTTPS) to ensure the integrity of the data being sent and monitor the transfer process to ensure that it reaches the recipient without any tampering or loss.

Optimize Efficiency in Manufacturing File Transfer Operations

Automating file transfer can help reduce errors, improve productivity, and ensure timely delivery. Manufacturers that automate their file transfer process streamline their workflows, reduce manual intervention, and save valuable time. The use of batch processing, scheduling, and application programming interfaces (APIs) can automate file transfer and integrate it with other systems like enterprise resource planning (ERP), customer relationship management (CRM), and other enterprise applications.

Achieve Compliance in Manufacturing File Transfer Practices

Regulatory compliance is a vital aspect of file transfer in manufacturing. Companies must adhere to various regulations and industry standards such as the Health Insurance Portability and Accountability Act (HIPAA), SOX, and the General Data Protection Regulation (GDPR). Noncompliance with these regulations can lead to severe consequences, including legal action, fines, and damage to reputation. Manufacturing companies should also strongly consider adhering to best practice standards like Good Manufacturing Process (GxP) and the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF). These and other regulations and standards define for manufacturers secure file transfer processes. To ensure these and other data protection processes are followed, manufacturing companies undergo regular audits and assessments by regulatory bodies and assessment organizations to identify and address any compliance gaps.

Best Practices for Secure File Transfer

Manufacturing companies that want to ensure the privacy and authenticity of their most sensitive content should embrace secure file transfer. If they want to demonstrate regulatory compliance with industry, regional, or national data security regulations and industry standards, they absolutely must incorporate secure file transfer into their content communication processes. Consider the following a list of best practices manufacturing companies should follow to ensure secure file transfer:

Implement Encryption to Safeguard Manufacturing Data Transfers

Content that is transformed into an unreadable format using encryption can only be viewed with the appropriate decryption key. Encryption ensures that only the authorized recipient can read the file. Advanced encryption algorithms like AES-256 and RSA can secure the data from unauthorized access.

There are different types of encryption available, each with its unique features. The most commonly used encryption types in manufacturing include:

Utilize Symmetric Encryption for Secure Manufacturing Data Transfers

AES-256 is an example of a symmetric encryption algorithm used in manufacturing and other highly regulated industries. This type of encryption uses the same key for encryption and decryption. It is faster and more straightforward than other encryption methods, making it ideal for bulk or large files.

Employ Asymmetric Encryption for Enhanced Security in Manufacturing Data Transfers

This method uses a public key to encrypt the data and a private key to decrypt it. Asymmetric encryption is more secure than symmetric encryption but slower and more complex. RSA is an example of an asymmetric encryption algorithm.

Leverage Hash Encryption for Data Integrity in Manufacturing File Transfers

This method creates a fixed-length output known as a hash value, representing the original content. Any changes to the content result in a different hash value. Manufacturing companies use hash encryption to maintain data integrity and identify tampering or corruption during file transfer.

Establish Authentication Measures for Secure Access in Manufacturing File Transfers

Authentication is the process of verifying the identity of the user who is accessing the file. This process prevents unauthorized access to the data. Manufacturing companies can accomplish authentication through various techniques, such as using user IDs coupled with secret codes, employing protective devices, or leveraging the unique physical traits of an individual.

There are several authentication methods available, each with its unique features. The most commonly used authentication types used in manufacturing industry include:

Require Username and Password Authentication for Basic Access Control in Manufacturing File Transfers

This is the most common authentication method in file transfer. This method is simple and easy to use but can be vulnerable to password cracking or phishing attacks. Users are required to enter their username and password to access the content.

Implement Security Tokens for Improved Authentication in Manufacturing File Transfers

This authentication method involves using a physical device, such as a smart card or USB token, to authenticate the user. The device generates a unique code that the user enters to access the content. Security tokens are more secure than username and password authentication but can be costly.

Use Biometrics for Advanced Authentication in Manufacturing File Transfers

This authentication method involves using a user’s physical characteristics, such as fingerprints or facial recognition, to authenticate the user. Biometric authentication is highly secure, but it can be expensive to implement and may raise privacy concerns.

Incorporate Access Controls to Manage Permissions in Manufacturing File Transfers

Access controls establish the privileges and permissions for users accessing the data. By implementing access controls, we ensure that only authorized users can access the content they need for their job duties. We should base access controls on the principle of least privilege, providing users only the minimum access necessary to carry out their tasks.

Manufacturing companies should base access controls on the principle of least privilege, granting users only the minimum access necessary for their tasks. Several access control methods are available, each with unique features. The most common access control types used in manufacturing include:

Apply Role-based Access Control (RBAC) for Structured Permissions Management in Manufacturing File Transfers

This method assigns roles to users based on their job duties, and the access controls are defined based on those roles. This method is easy to manage and highly scalable, making it ideal for large manufacturing organizations.

Utilize Attribute-based Access Control (ABAC) for Granular Permissions Management in Manufacturing File Transfers

This method assigns access controls based on attributes such as the user’s location, device type, or time of day. ABAC is more flexible than RBAC but can be more complex to manage.

Adopt Mandatory Access Control (MAC) for Strict Permissions Enforcement in Manufacturing File Transfers

This method uses a centralized security policy that determines the level of access granted to users based on the sensitivity of the data. MAC is highly secure but can be challenging to implement and manage.

Maintain Audit Logs for Tracking and Monitoring Manufacturing File Transfers

Audit logs are records that document every event related to the file transfer process. They provide accountability and traceability for file transfer activities. These audit logs can be pieced together into an audit trail that tells a digital story about a file: who accessed it, who sent it, who received it, when, and more.

Audit trails serve several purposes, including:

Ensure Compliance in Manufacturing File Transfers

Audit trails help organizations meet regulatory requirements by demonstrating that they have maintained proper oversight of sensitive content access and sensitive file transfers.

Detect and Investigate Security Incidents in Manufacturing File Transfers

By tracking file transfer activities, audit trails can help identify unauthorized access and tampering, enabling a timely response and investigation.

Enhance Accountability in Manufacturing File Transfers

With detailed records of each file transfer event, audit trails promote responsibility among users by clearly attributing actions to specific individuals.

Facilitate System Troubleshooting

Audit trails can assist in diagnosing and resolving technical issues related to the file transfer process by providing valuable insights into the sequence of events and the actions taken.

Improve Security and Risk Management

By analyzing audit trail data, organizations can identify patterns and trends that may indicate potential vulnerabilities or areas for improvement in their file transfer processes, leading to enhanced security and risk mitigation.

Demonstrate Compliance With Manufacturing File Transfer Processes

Compliance ensures that the file transfer process adheres to regulatory and industry standards. Manufacturing companies must comply with several regulations, such as HIPAA, SOX, and GDPR, which mandate specific security and privacy requirements.

Failure to comply with these regulations can result in severe consequences, including legal action, financial penalties, and damage to the company’s reputation. In this context, let’s explore different compliance measures that manufacturing companies must consider for secure file transfer and describe each from a cybersecurity perspective.

Good Manufacturing Practice (GxP)

GxP, also known as Good x (anything) Practice, is a set of best practice standards for manufacturing in regulated industries, such as pharmaceuticals, medical devices, and food production. Although not a legislated regulation, GxP guidelines are critical for manufacturers to follow, as they ensure that products are safe, effective, and consistent in quality. The guidelines cover various aspects of manufacturing, including facility design, equipment validation, personnel training, and documentation practices. Companies that fail to follow GxP guidelines risk losing their license to operate, facing significant financial penalties, and damaging their reputation. Therefore, adherence to GxP standards is essential for manufacturers in regulated industries to ensure compliance with regulations and maintain a high level of product quality.

Health Insurance Portability and Accountability Act (HIPAA)

HIPAA is a federal law that mandates the protection of personal health information (PHI). Manufacturing companies that handle PHI must comply with HIPAA regulations. This includes implementing physical, technical, and administrative safeguards to protect PHI during file transfer. Cybersecurity measures such as encryption, authentication, access controls, and audit logs can help manufacturing companies comply with HIPAA regulations.

Sarbanes-Oxley Act (SOX)

SOX is a federal law that regulates financial reporting and accounting practices. Manufacturing companies that report financials—whether publicly or internally—must comply with SOX regulations. This includes implementing strong cybersecurity controls to protect financial data during file transfer. Encryption, access controls, and audit logs can help manufacturing companies comply with SOX regulations.

General Data Protection Regulation (GDPR)

The GDPR is a European Union regulation that mandates personal data protection for the EU’s citizens and residents. Manufacturing companies that process, handle, or share the personal data of EU residents must comply with the GDPR. This includes implementing cybersecurity measures to protect personal data during file transfers. Encryption, authentication, access controls, and audit logs can help manufacturing companies comply with the GDPR.

Payment Card Industry Data Security Standard (PCI DSS)

PCI DSS is a standard that regulates the protection of payment card data. Manufacturing companies that process payment card data must comply with PCI DSS regulations. This includes implementing cybersecurity measures to protect payment card data during file transfer. Encryption, authentication, access controls, and audit logs can help manufacturing companies comply with PCI DSS regulations.

Secure File Transfer Solutions for Manufacturing

Manufacturing companies have several secure file transfer solutions available to them. The following solutions or methods are the most commonly used in the industry:

Managed File Transfer (MFT) for Manufacturing

MFT is a software solution that manages the end-to-end file transfer process. MFT solutions automate file transfer processes, reducing manual intervention and ensuring reliability and efficiency. MFT solutions provide advanced security features like encryption, authentication, access controls, and audit logs.

Secure File Transfer Protocol (SFTP) for Manufacturing

SFTP is a secure file transfer protocol that uses encryption to transfer files between parties. SFTP is a widely used protocol in the manufacturing industry, and its adoption is increasing due to its high-security features. SFTP solutions provide high security for file transfer, and its encryption ensures confidentiality, integrity, and data authentication.

File Sync and Share (FSS) for Manufacturing

FSS solutions allow users to sync and share files across multiple devices and locations. FSS solutions provide secure file transfer capabilities, and its features enable users to share files with specific people, set file permissions and manage file versioning. FSS solutions are convenient for sharing files with partners, vendors, and customers, and their use of encryption ensures data security.

Application Programming Interfaces (APIs) for Manufacturing

APIs provide an interface between applications or systems, enabling secure file transfer. APIs allow the automation of file transfer processes and can integrate with other techniques and applications. APIs provide file transfer capabilities and can be customized to meet specific security requirements.

Manufacturing Companies Choose Kiteworks for Their Secure File Transfer Needs

The Kiteworks Private Content Network offers organizations a secure file transfer capability, which includes Managed File Transfer (MFT) and Secure File Transfer Protocol (SFTP) as well as file sharing capabilities like email, virtual data rooms, collaboration, and others. The Private Content Network enables manufacturing companies to share and manage large files securely, quickly, and easily from any device.

The platform features MFT and SFTP protocols, providing ultimate security and enabling secure transmission of files between different platforms regardless of location.

Kiteworks complies with data privacy regulations and standards, including HIPAA, GxP, SOX, and GDPR, ensuring that organizations’ data is always secure and never breached. The platform’s advanced security measures, such as encryption, access controls, and audit logs, provide a robust defense against cyber threats.

Schedule a custom demo today to learn how Kiteworks’ secure file transfer capabilities can help your manufacturing organization protect the sensitive content it shares with trusted third parties.

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