In contrast to file sharing and storage solutions such as Dropbox and Google Drive, which only secure your files during uploading secure data rooms protect every document that moves between servers as well as in storage. This is crucial to prevent hackers from gaining access information in the event that it is lost.
However it is essential to keep in mind that most data rooms are only as secure as the security measures put in place by the server hosting them. Therefore, whilst encryption of data at rest is critical, it’s not enough to guarantee complete security. It is also worth checking if the virtual data room’s security system encrypts temporary files that are created when documents are downloaded to the browser. If not, it could mean that thousands of documents are left unprotected on a server that could be easily attacked.
Another important feature is the ability to add personal notes to documents that can only be viewed by the person who wrote them – this reduces the risk of third parties having access to confidential information and enhances collaboration during due diligence. The most secure datarooms include dynamic watermarks that change in real-time, preventing uninvited file sharing. They can also be used to identify the origin of a file in the event that it is leaked.
Check that the virtual data room you’re considering is compliant to industry standards for security by determining if it holds ISO 27001 or similar certification. Choose a data room that is secure and has thorough reports on access and activity.
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