What Is a Secure Data Room?

Secure dataroom is a cloud-based system that’s designed to protect and share confidential business data. It is utilized for M&A due diligence, IPOs and litigation, fundraising and other document-related processes that are sensitive. It provides a higher level of security than file sharing websites. The server space used data room provider is encrypted, which blocks hackers from gaining access to the data Some also provide features such as granular permissions and search capabilities, as well as customizable NDAs with a Q&A function personal watermarking, and multi-factor authentication.

However, these features do not prevent authorized users from taking copies of the files that they have legal access, and sharing them with others – something that is quite simple to do. Furthermore, these services do not offer the linkage needed to determine the source of the unauthorized distribution.

This is the reason why it’s vital for businesses seeking a more sophisticated method of storing and share documents to look into the possibility of a virtual data room (VDR). Unlike the low-level protection provided by email, Google Drive and Dropbox, VDRs protect confidential information as well as intellectual property by utilizing advanced encryption and tracking features that make it difficult for users to copy or distribute protected files. Dynamic watermarking applies unique identifiers, such as the email address of the person who received the document or IP address on each document to stop sharing that is not authorized. A reputable data room, such as Digify can also monitor who is viewed documents frequently, how often and for how long.

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