Benefits of password-protected file sharing

Say you’re working on a confidential project and need to share crucial documents with your colleagues. You don’t want just anyone to access this information, right? This is where a layered approach to security comes in. 

Assigning roles and permissions within your file sharing platform is a first step, but password protection adds an extra line of defense. You get peace of mind that your documents stay in the right hands. 

Here’s everything you need to know to password-protect your files. 

What is password-protected document sharing? 

Password-protected document sharing is a method of securing and sharing digital documents where you restrict access with a password. This way, you ensure only those with the correct password can open the file and view its contents. 

Let’s review common use cases. 

Benefits of password protection for your files 

Passwords increase the security of enterprise file sharing, acting as a barrier between unauthorized users and sensitive content. 

Here’s a breakdown: 

1. Enhanced access control 

Let’s say you have role-based access controls in which everyone from the sales department can access documents in a folder. But for a certain file in particular, you want to restrict access to specific collaborators within the team. By assigning a password to the file, only those with the unique code can open and view it. Since only individuals with the correct password can access protected files, you limit even more who can handle those specific documents. 

2. Improved data privacy 

Protecting files with passwords helps maintain the confidentiality of client information, essential for building trust and meeting professional standards. And you ensure compliance with industry regulations and privacy laws, reducing the risk of penalties and loss of business. 

Let’s not forget that human errors — like sending files by mistake — contribute to 68% of data breaches. If you password-protect your files, the extra layer of security reduces the risk of unauthorized access. Even if you accidentally send the documents to the wrong recipients or share them prematurely, those individuals would still need the correct password to view the content. 

Keep learning: Data leakage best practices for collaborative teams

3. Robust breach protection 

In the first quarter of 2024, the average number of cyberattacks per organization increased 28% over the previous quarter, according to CheckPoint. 

With the escalating threat landscape, you need enhanced cyber defenses. Encrypted, password-protected files reduce the potential damage and loss of sensitive data in case a security breach occurs. 

4. Better data integrity 

By making files less accessible, you reduce the number of individuals who can make changes, whether accidental or malicious. This way, you can protect in-progress team project files. 

Let’s say you’re working on a critical project and have a folder containing all related files, including drafts, notes, and preliminary designs. Even though your entire team has access to the project folder for collaboration, you don’t want them to read or modify these files until they’re ready for your content review process. 

Password-protecting these in-progress files ensures that they remain confidential until you’re ready to present them to your collaborators. This prevents premature feedback, confusion, or unapproved changes, allowing you to control the quality and timing of the information shared with your team. 

Keep reading: Benefits of document version management

How to password-protect a file 

Now that we’ve made the case for password-protected file sharing, follow these general steps to get started. 

1. Create your document, spreadsheet, or other file type using your preferred software application. Ensure that you’re working in a secure and private environment to prevent unauthorized access during the creation process. 

2. To password-protect a file, use the built-in security features of your document creation and storage software. Most platforms offer options to set a password in addition to defining the roles and permissions of collaborators in the file. For example, you can configure access controls for shared links, determining who can access the content:

   • Anyone with the link
   • Only people in your company
   • Invited people only

   Keep reading: The best features of secure cloud collaboration tools

3. If you need to send password-protected files to someone, use secure file sharing systems. 
4. Provide the password to the recipient through a separate, secure channel. Let’s say you’re sharing a file or link to a file via email or Slack. Avoid including the password in the same communication to prevent unauthorized access. 

Best practices for password protection 

LastPass reports that only one-third of employees create strong passwords for their work accounts. While password protection increases file sharing security, it won’t help much if you set up an easy-to-guess access code. 

Make sure to follow these password best practices. 

• Avoid simple passwords or easily guessable information like birthdays or pet names. Instead, create complex codes that combine uppercase and lowercase letters, numbers, and symbols. The longer and more intricate the password, the harder it is to crack. 
• Use different combinations for different files. A staggering 56% of respondents of a Keeper’s study admit to reusing their passwords on multiple accounts. Reusing passwords increases the risk of unauthorized access if one of them is compromised. 
• Periodically update your passwords. According to Forbes Advisor, 42% of people only change their passwords when prompted instead of changing them regularly to avoid hacks. The problem is that even the strongest combinations can become compromised over time. 
• Store your passwords securely. Tools like password managers, for example, help you keep track of different passwords without having to remember each one. 

Get secure file sharing with Box 

Box makes it simple to share password-protected files. With the Intelligent Content Cloud, you get a centralized, secure location to create, edit, and collaborate on documents. 

You can share links to content stored in Box with people inside and outside your organization. With password protection (one of our premium features, unavailable on free personal accounts), owners, co-owners, and editors can set passwords to files or folders whose scope is “People with the link.” 

Plus, we take a zero-trust approach to security — meaning that every access attempt is verified, reducing the risk of breaches. Our controls include encryption at rest and in transit, stronger authentication with MFA and SSO, shared link expiration, audit logs, and more. 

Contact us and learn how our password-protected file sharing features help you keep your content secure. 

While we maintain our steadfast commitment to offering products and services with best-in-class privacy, security, and compliance, the information provided in this blog post is not intended to constitute legal advice. We strongly encourage prospective and current customers to perform their own due diligence when assessing compliance with applicable laws.