As opposed to file sharing or storage solutions such as Dropbox, which only encrypt your files during uploading Secure data rooms secure every document as it moves between servers and in storage. This is essential to stop hackers from gaining access the data in the event it goes missing.
However it is vital to remember that most data rooms are only as secure as the security this article measures implemented by the server hosting them. So, whilst encryption of data in transit is vital, it’s still not enough to guarantee complete security. Additionally, it’s important to check if the virtual data room’s security system can encrypt temporary files created when downloading documents to the browser – if it doesn’t, that could lead to thousands of documents unprotected sitting unprotected on a server that could easily be hacked.
Another key feature is the capability to add personal notes to documents which are only accessible to the person who wrote them – it reduces the possibility of third parties being able to view confidential information, and also improves collaboration during due diligence. The best secure datarooms also have dynamic watermarks that are updated in real-time, preventing uninvited file sharing. They can be used to trace the source of a file if it is exposed.
Make sure that the virtual data room is compatible with industry-standard security standards by ensuring that it has ISO 27001 certification or other similar assurances. Also look for a secure data room that has robust encryption techniques and also provides detailed information on the user’s access and activities.