To add a SFTP-only user, you'll need to make sure your SSH config settings are correct, add a new user/group and set permissions for your new user. For step-by-step directions, see below. Omit sudo if you're logged in as root.
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Edit
/etc/ssh/sshd_configand make sure to add the following at the end of the file:Match group filetransfer
ChrootDirectory %h