Hi Team,

We have three virtual folders created as below

   Upload, Download, Encrypted

Download Folder has File Based Decryption and Private Key is selected.

Encrypted Folder has File Based Encryption and Public Key is selected.

We have a simple action, which move files from Upload to Download if filename matches .pgp and from Upload to Encrypted if filename matches *.txt

When we drop encrypted file in Upload, we are able to see decrypted file in Download, but when we upload plain text file it is not getting encrypted into the Encrypted folder.

Any ideas? 

If I'm understanding you correctly, that is expected behavior. The automatic encrypt/decrypt only happens when a file is uploaded/downloaded via an ActiveTransfer port (e.g. HTTPS, SFTP, etc.). In actions, you need an explicit step to encrypt or decrypt

Features in Virtual Folders

"The encryption and decryption settings are applicable only when a user connects to ActiveTransfer Server and performs an upload or download operation. ActiveTransfer does not use these keys when the virtual folder is used in an action. If you want to use the encryption and decryption keys in an action, create an encryption or decryption task in the action"

It sounds like the decryption process is functioning correctly (i.e., when you upload an encrypted file, the decrypted version appears in Download), but the encryption step isn't happening when plain text files are uploaded.

A few possible areas to investigate:

1. Trigger or Rule Configuration:
   Make sure there's an automation rule or event trigger configured to initiate encryption when plain text files are uploaded. If that rule is missing or misconfigured, encryption won't occur automatically.

2. File Type Detection:
   The system might only encrypt files matching certain types or extensions. Confirm that your plain text files are being correctly identified as files that require encryption.

3. Policy Restrictions:
   Check if encryption policies are restricting which file types, users, or directories are allowed to trigger encryption.

4. Error Logs:
   Review system logs during the upload to see if any errors are being thrown when attempting to encrypt plain text files.

5. Encryption Service Status:
   Verify that the encryption module or service is fully operational and capable of processing plain text files.

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Try using the Active transfer web client to drop the files. I ran in to similar issue where i was just dropping files on the virtual folders directly and it would not encrypt unless i used the AT web client or some other SFTP client to upload the file.