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SFTP (SSH File Transfer Protocol, also known as Secure FTP) is a widely used method for securely transferring files over remote systems. Unlike the traditional FTP protocol, SFTP encrypts the data till it reaches your server, making it indecipherable during the process. SFTP transfers the file using the connection established between the client and the server by SSH protocol. SFTP has replaced FTP, a traditional file transfer protocol due to the security it provides.
Authentication is required to view the files, and this safeguards it from unauthorized access. Although SFTP doesn't require a multi-factor authentication, you have the option to enable the requirement of having both, a username and password, and SSH keys, for a highly secure connection.
Any attempt to hack the SFTP server proves to be futile since the hacker can get only one signature, which cannot be reused. They cannot get access to your private key or password, and hence they fail in the attack.
SFTP operates over SSH, making it essentially secure. The encryption cannot be triggered or turned off using AUTH commands like in FTPS and FTP protocols.
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