Secure data rooms secure every document as they transfer between servers and stored, unlike storage and file sharing services such as Dropbox which only protect documents during the uploading and downloading process. This is essential to stop hackers from gaining access the information in case it is lost.
However it is essential to remember that most data rooms are only as secure as the security measures implemented by the server hosting them. So whilst encryption of Tracking Progress in Virtual Data Rooms data while it is in storage is essential, it’s not enough to guarantee complete security. It is also important to know whether the data room’s security system can encrypt temporary files that are created when documents are downloaded to the browser. If not, that could mean that thousands of documents are left unprotected on a server that is easily compromised.
Another feature that is important is the capability to add personal notes to a document that can only be read by the person who wrote them – this minimizes the chance of third parties having access to confidential information and facilitates collaboration during due diligence. Additionally, the most secure data rooms come with dynamic watermarks that update in real-time to deter unwelcome file sharing and help to identify the source of a file if a leak does occur.
In the end, ensure that the data room is compliant with industry-standard security practices by checking that it has ISO 27001 certification or other similar assurances. Find a data room with robust encryption and detailed reports on access and activity.
