5 ways AI is making MFT more secure for B2B enterprises

20 December 2024

Author

David Heath

Americas Sales Leader, IBM Sustainability Software

For many years, managed file transfer (MFT) systems have formed the backbone of the process of exchanging sensitive data such as financial records, customer information and supply chain information, helping ensure information moves safely between organizations. But as cyberthreats become more advanced, even traditional MFT systems need to step up.

That's where artificial intelligence comes in. With its ability to analyze huge volumes of data, recognize patterns and adapt quickly, AI is changing how companies approach MFT security. Here's a closer look at the 5 ways AI is raising the bar and why it matters for businesses.

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1. Stopping threats in real-time

Hackers can use AI to show the vulnerabilities of different MFT products and have the AI write code to exploit those hacks. One of the biggest weaknesses of older MFT systems is that they rely on preset rules to identify risks. If a hacker finds a way around those rules, the system might not notice until it's too late.

AI takes a different approach: it can parse events in real-time and learn what "normal" behavior looks like in your file transfers and flag anything that doesn't fit. It can also detect event codes that are flagged for hacking, such as an IP address from a blocklist attempting to log in, a revoked certificate or a denial of service (DoS) attack. AI can also detect unrestricted file uploads, such as what happened recently to a certain file transfer software.

To use another example, let’s say your system normally runs file transfers during business hours, yet suddenly there is a huge amount of data being transferred to some unknown location in the middle of the night. An AI-enhanced MFT system would not wait for you to notice. It would stop the transfer, investigate the anomaly and call your IT team to prevent a possible data breach. This kind of proactive defense is a game-changer. It means that businesses can respond to threats instantly instead of after the damage is done.

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2. Smarter encryption and key management

Encryption is crucial for the safety of data in transit, but it's only as good as the system behind it. Poorly managed keys or outdated methods of encryption can leave your files open to attack. AI enhances this with hands-on key management.

When encryption keys are monitored in real-time and 1 is compromised, AI can detect the issue and automatically rotate the key, rendering the compromised 1 useless. It also analyzes the strength of encryption protocols, ensuring they are always up to date and ready to defend against the latest hacking techniques.

As we move toward a future in which quantum computing might challenge encryption standards, AI plays an essential role in developing and maintaining post-quantum cryptography.

3. Keeping access under control

Most data breaches occur due to improper use of access by someone who has valid credentials, either an employee or an outsider. Static methods of access control, such as passwords or preset permissions, fall short. AI offers a smarter way to handle access by learning how users interact with the system.

Let's say an employee who normally transfers small files suddenly attempts to download a large amount of sensitive data they don’t usually need. AI would recognize this anomaly and act—whether by triggering additional authentication steps, flagging the activity for review or even blocking access entirely.

AI can also identify longer-term risks. If someone's behavior changes drastically over time—such as repeatedly accessing files they don't usually work with—it could indicate an insider threat. The earlier these red flags are addressed, the better, saving businesses from bigger problems down the line.

4. Preventing downtime before it happens

We tend to focus on the threat of hackers, but a secure system must also be reliable. If your MFT system goes down for a technical issue, that creates an opening for bad actors. AI steps in here, too, by predicting and preventing failures before they occur.

AI can monitor how your MFT system is performing, notice patterns indicative of possible trouble—such as a trend of increasing error rates or slower transfer speeds—and then alert your team to take proactive corrective action and avoid unexpected downtime.

Think of it like the check engine light for your MFT system, only it's much smarter. AI watches for problems before they appear and keeps your operations running undeterred.

5. Simplifying compliance

Whether it’s the field of healthcare, finance or retail, most businesses are familiar with regulations on the processing and storage of information, such as General Data Protection Regulation (GDPR), Health Insurance Portability and Accountability Act (HIPAA) or Payment Card Industry Data Security Standard (PCI DSS). Noncompliance is not only illegal, it also undermines customer confidence in your enterprise. But keeping track of a moving target is exhausting.

AI and Digital Loss Prevention (DLP) simplify compliance by automatically monitoring all data transfers for regulatory violations. It identifies whether sensitive personal data gets sent to an unauthorized location. It also helps ensure that files are properly encrypted before transfer. Moreover, it develops detailed logs of every transfer, making it easier to show compliance during audits.

AI doesn't just react to compliance issues; it helps you stay ahead of them. By analyzing trends in regulatory changes, it might suggest adjusting your processes before you are out of compliance.

Why this matters for your business

Secure file transfers are about more than just technology—they’re about trust. Your partners and customers need to know that their data is safe with you. Integrating AI into your MFT systems keeps you up to speed with today’s threats and prepares you for the ones coming tomorrow.

AI doesn't just add another layer of protection; it makes your entire system smarter, faster and more resilient. From stopping threats in real time to ensuring compliance with ever-changing regulations, AI is helping businesses build the kind of robust, secure systems they need to thrive in a connected world.

If you have not started exploring AI-powered MFT yet, now is the time. With the right tools and strategies, you can turn your file transfer system into a competitive advantage.

Learn more about AI-powered MFT

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