The insecure nature by which data is transferred through a network between an FTP server and a client computer has made it necessary to create software that can make the transfer more secure. Given the importance of the information that is transferred among large companies, which involves large amounts of money, it is vital that confidentiality is protected. The software that has been developed uses different systems to protect the information that is being transferred.

Some security software used in FTP provides both the FTP server and the client computer with software that will secure the data that is uploaded or downloaded. Other software also provides encryption technology as to further secure the information and to prevent others from viewing the files that have just been transferred. The information on this software is not transferred, so as not to be seen by others; rather it is used to protect the information while the transfer is being done. It does so by activating software that will accept, validate, and secure incoming connections and file transfers. The software will also be able to monitor and analyze file-transfer activity with real-time reports and alerts and provide receipts of the transfers made for record purposes. Such software can be used on Windows and other operating systems as well, which makes it very practical and cost-efficient.

With the security issue of file transfers slowly being resolved, the importance of such technology will further be highlighted as it becomes a vital part in the operations of various companies.