SFTP provides a secure way for providing FTP access to clients. It comes built-in with the openssh-server package. Creating SFTP accounts is straightforward like normal user accounts. However if you want to limit the users to access their designated folder only, then a chroot setup is needed. This improves security in a way that sftp users cannot login to a normal bash shell and they cannot view system folders when they are logged-in. This tutorial will walk you though SFTP server setup.
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Everyday Notes from a Linux Administrator