I want to restrict SFTP users to their home folder so that they won't see anybody else's folder/home directories. Unfortunately all SFTP users can see other user's folders at the moment. All the posts and examples points out ChrootDirectory but for some reason I cannot get it working.
$ sudo nano /etc/ssh/sshd_config
Subsystem sftp internal-sftp
Match Group sftp
ChrootDirectory %h # The %h causes "Broken pipe" error while trying to login
ChrootDirectory /var/sftp # This allows login but all SFTP folders are visible to all user
X11Forwarding no
AllowTcpForwarding no
AllowAgentForwarding no
PermitTunnel no
ForceCommand internal-sftp
Users, Permissions and Folders
I used command below to create users and folders.
sudo useradd -m -d /var/sftp/hello -G sftp hello --shell /usr/sbin/nologin
Result
ubuntu@linux:~$ grep hello /etc/passwd
hello:x:1001:1002::/var/sftp/hello:/usr/sbin/nologin
ubuntu@linux:~$ grep world /etc/passwd
world:x:1002:1003::/var/sftp/world:/usr/sbin/nologin
ubuntu@linux:~$ ls -l /var/
drwxr-xr-x 4 root root 4096 May 7 14:48 sftp
ubuntu@linux:~$ ls -l /var/sftp/
drwxr-xr-x 3 hello sftp 4096 May 7 14:01 hello
drwxr-xr-x 2 world sftp 4096 May 7 14:48 world
SOLUTION
The problem here is that, I had to let root:root own the home folder of my users and create another folder under users' home folder (e.g. uploads) then own it as hello|world:sftp. Originally the home folders were owned by hello|world:sftp.