In contrast to file sharing and storage solutions such as Dropbox and Google Drive, which only secure your files when intralinks review you upload them Secure data rooms secure every document that is transferred between servers or in storage. This is important to prevent hackers from getting access to the data in the event it is lost.
However it is vital to remember that the majority of data rooms are only as secure as the security measures put in place by the server hosting them. So although encryption of data while it is in storage is vital, it’s still not enough to ensure total security. Additionally, it’s important to check if the virtual data room’s system is able to encrypt temporary files created by downloading documents to the browser – if not, that could result in thousands of documents that are not protected in the clear on a server that could easily be hacked.
A major feature is that you can attach notes to documents that are only visible by the person who created them. This decreases the risk of third parties gaining access to confidential information, and also improves collaboration during due diligence. In addition, the most secure data rooms have dynamic watermarks that change in real-time which deter unsolicited file sharing and help to identify the source of a file if there is a leak.
In the end, ensure that a virtual data room is able to meet industry-standard security practices by ensuring that it holds ISO 27001 certification or other similar assurances. Choose a data room that is secure and has detailed reports on access and activity.