A consulting firm has created a File Transfer Protocol (FTP) site for the purpose of receiving financial data and has communicated the site's address, user ID, and password to the financial services company. The IS auditor's greatest concern with this process is that if data is not encrypted, an unauthorized external party may download sensitive company data.
FTP (File Transfer Protocol) is a network protocol for transmitting files between computers over Transmission Control Protocol/Internet Protocol connections. Within the TCP/IP suite, FTP is considered an application layer protocol. Although many file transfers can be conducted using HTTP, FTP is still commonly used to transfer files behind the scenes for other applications, such as banking services. It is also sometimes used to download new applications via web browsers.
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