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Yes, Dropbox uses a secure connection to transmit files to their servers. They may or may not encrypt your files on the server. Usually their privacy policy would tell you if they do encrypt the files. However, it is best not to use Dropbox for items you're concerned about because they can be forced to hand over decryption keys to law enforcement. Always encrypt your files using your own method of encryption and never store decryption keys on the server.
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