include sftp jail

[lucien144]

1. Create the sftp group and put desired user to that group.

$ sudo groupadd sftp
$ sudo usermod -g sftp yournewuser

2. Update the SSH settings

$ sudo nano /etc/ssh/sshd_config

Change the /etc/ssh/sshd_config

# override default of no subsystems
#Subsystem      sftp    /usr/lib/openssh/sftp-server
# 👇
Subsystem sftp internal-sftp

Add this to the end of the /etc/ssh/sshd_config

Match group sftp
        X11Forwarding no
        ChrootDirectory %h
        AllowTcpForwarding no
        ForceCommand internal-sftp

3. Check the permissions

⚠️ All directories up to the user root must be owned by root with permissions 755

$ sudo chown root: /var/www/vhosts/USERSHOME
$ sudo chmod 755 /var/www/vhosts/USERSHOME

4. Restart SSH

$ sudo service ssh restart

5. Optional

To disable the bash entirely for this user, you can run $ sudo usermod -s /bin/false USER

Reference: https://shapeshed.com/chroot-sftp-users-on-ubuntu-intrepid/