Unlike file sharing and storage solutions like Dropbox that only encrypt your files during uploading Secure data rooms encrypt every document that moves between servers as well as in storage. This is important to prevent hackers from getting access to the data in the event it gets lost.
It is important to keep in mind that the security of many data rooms is only as secure as the server that hosts them. Secured at rest encryption is crucial, but it does not guarantee complete security. Additionally, it’s important to determine if a virtual data room’s system is able to encrypt temporary files created by downloading documents to the browser. If not that could mean thousands of unprotected files sitting unprotected on a server which could be easily hacked.
Another major feature is the capability to add personal notes to a document which are only accessible to the person who created them – this minimizes the chance of third parties being able to view confidential information, and also improves collaboration during due diligence. Likewise, the best secure data rooms feature dynamic watermarks that are updated in real time, which prevents unsolicited file sharing and help to track the source of files in case a leak does occur.
Check that the virtual data room you’re considering is in compliance to industry standards for security by confirming if it is ISO 27001 or similar certification. Find a data room that is secure and has detailed reports on activity and access.