Secure data rooms secure every document as they move between servers and stored, in contrast to storage and file sharing services such as Dropbox which only protect documents during the uploading and downloading process. This is necessary to prevent hackers from accessing your data in the event of its loss.
However it is vital to remember that most data rooms are only as secure as the security measures put in place by the server hosting them – so although encryption of data at rest is crucial, it’s not enough to ensure complete security. It is also worth checking whether the virtual data room’s security features encrypt temporary files that are created when documents are downloaded to the browser. If not, it could mean that thousands of documents remain unprotected on a server that is easily compromised.
One of the key features is that you can add notes to documents that are only visible by the person who created them. This reduces the likelihood that third parties will be able to view confidential information, and also improves collaboration during due diligence. In addition, the most secure data rooms feature dynamic watermarks that are updated in real-time, which discourages unintentional file sharing, and also helps to track file sources if a leak does occur.
Finally, make sure that the virtual data room is in line with industry-standard security practices by ensuring that it is equipped with ISO 27001 certification or other similar assurances. Also ensure that you choose an encrypted data room that has robust encryption techniques and provides detailed reports on access and activity of users.