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Transferred data is encrypted, so it is not sent in clear text.

We highly recommend using SFTP for file transferring because: It is a file transfer protocol such as FTP yet operates over a secure network protocol like SSH. SFTP stands for Secure File Transfer Protocol (also known as SSH File Transfer Protocol). You can also run additional tools such as Composer, Git, WP-CLI for WordPress, and database queries using SSH. This means that any device in the middle is unable to decipher the communication because only your end device/server is able to decrypt the information exchange. Secure Shell provides strong authentication and encrypted data communications between two computers or servers connecting over an open network such as the internet.