Secure data rooms secure all documents as they move between servers and are stored, unlike storage and file sharing services like Dropbox which only encrypt files during the uploading and downloading process. This is crucial to stop hackers from getting access to the data in the event that it is lost.
However, it is important to remember that most data rooms are only as secure as the security measures implemented by the server hosting them. So whilst encryption of data at rest is vital, it’s still not enough to guarantee total security. It is also https://www.wedataroom.com/virtual-data-room-pricing-how-to-choose-a-plan-based-on-your-budget/ worth determining whether the virtual data room’s security system encrypts temporary files that are created when documents are downloaded to the browser. If not, that could mean that thousands of documents remain unprotected on a server which could be easily hacked.
Another feature that is important is the ability to add personal notes to documents that can only be viewed by the person who created them – this reduces the risk of third parties seeing confidential information and enhances collaboration during due diligence. Additionally, the most secure data rooms have dynamic watermarks that are updated in real-time which deter unsolicited file sharing, and also helps to trace the source of files if the leak does occur.
Verify that the data room you’re considering is in compliance to industry standards for security by determining if it holds ISO 27001 or similar certification. Find a data room with robust encryption and thorough reports on access and activity.