A secure data room is a cloud solution specifically designed for the storage and sharing of confidential business information. 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 services that are available online. The server space itself is secured, which prevents hackers from gaining access to the content and a lot of them also provide options like granular permissions and search capabilities, as well as customizable NDAs and a Q&A feature with personal watermarking and multi-factor authentication.
However, these features don’t stop authorized users from taking copies of the files to which they have legitimate access and then sharing those with others. This can be quite easy to do. Also, these tools do not offer links that could determine the source of the unauthorized distribution.
It’s for this reason that companies seeking an advanced method to share and store files should consider a virtual dataroom (VDR). VDRs offer a higher degree of security than email, Google Drive, and Dropbox. They accomplish this by using advanced encryption, tracking features and other security measures that make it impossible for users to copy and distribute protected documents. Dynamic watermarking adds unique identifiers, such as the email address of the recipient or IP address to each document to deter sharing without authorization. A robust data room, such as Digify can also keep track of who is viewing documents regularly, how often and for how long.