What is a Secure Data Room?

A secure data room (also called a virtual data room) is a solution using software to manage the sharing of sensitive information with authorized parties. It allows businesses to share documents in a controlled, organized and secure manner with multiple parties. This includes document tracking as well as version control and other advanced features. Traditionally companies have resorted to emailing and spreadsheets to share their due diligence files but they are not secure and could result in a range of liabilities if the wrong individuals get access.

Secure data rooms can have a lot to say about how secure their servers are by affirming that they have encryption while on the hosting servers which is great but it isn’t enough to prevent non-authorized users from gaining access to the system – and even if they didn’t, the server houses thousands of temporary files with your document’s content that can be easily downloaded by hackers using screen grabber software. The majority of browsers come with tools that let them grab high-quality images from webpages. Secure data rooms are powerless to stop this.

Certain “secure data rooms” claim that their system blocks sharing by requiring users login using 2FA. However this is just an extra layer of security that does not address the issue that users who are authorized are able to copy and paste links to others or forward their own email with links. DRM-based secure file sharing solutions are the best choice for businesses. They secure the files to certain devices and locations, which means they can’t be shared or forwarded.

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