What Is a Secure Data Room?
Virtual data rooms are places where companies can store and distribute privileged documents to a selected group of third party. This reduces the risk of confidential business information being leaked to unauthorised individuals. Traditionally, due diligence took place in physical rooms, however nowadays, it’s done online in what are called virtual data rooms (VDRs).
The best VDR providers provide security-first features which significantly cut down on the costs that are associated with data breaches as well as unauthorized sharing. They offer granular access controls with multi-factor authentication, as well as session timeouts. They also provide restricted locations and secure spreadsheet viewers, as well as the ability to watermark and block screenshots. All of these combine to create a robust digital fortress around the information stored and shared in the VDR which can help organizations achieve compliance with regulatory requirements and establish trust with their customers.
However, when selecting a secure data storage space, it is crucial to make sure that the service is really suited for the task – that it does not just allow authorized users to login and share your data on external platforms. Some “secure” systems claim that they can halt this. However, they only decrypt the files on the server, and then forward them to the browser.
They depend on your browser being equipped with a certificate and being configured to only accept certificates from reliable sources. This doesn’t mean that your VDR can’t be hacked. However it will ensure that hackers are only able to access your encrypted files, and not your temporary ones.
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