Tracking file movement between folders involves monitoring when files are relocated within a storage system, typically on a computer or network server. It specifically refers to identifying when the location of a file changes from one folder (or directory) to another, as opposed to file copying (which creates a duplicate) or file renaming (which alters the name but not the original location). This is commonly achieved using built-in operating system auditing features (like Windows File Auditing or Linux auditd), specialized file monitoring software, or centralized security information and event management (SIEM) systems that capture these move events.

In practice, organizations use this capability for critical tasks. An IT department might track file movements on a sensitive project share to investigate potential leaks or unauthorized access attempts. Financial institutions often enable detailed file movement auditing on servers holding customer records to comply with strict regulatory requirements about data access and transfer. Common tools include native OS logs (Windows Event Viewer Security logs for move events), dedicated file integrity monitoring software, and platform-specific tracking features within enterprise content management systems like SharePoint.

While essential for security, compliance, and troubleshooting unauthorized access, tracking file movement has limitations. Extensive logging can generate enormous data volumes, requiring significant storage and processing power. False positives from benign administrative tasks can also occur. Ethically, transparency is crucial; organizations must clearly inform employees about monitoring policies to balance legitimate oversight with privacy expectations. Future improvements focus on smarter filtering within SIEM tools to automatically flag high-risk movements while reducing noise.