A secure data room (also called a virtual data room) is a software solution to manage the sharing of sensitive information with authorized stakeholders. It allows companies to share documents in an organized, controlled and secure manner with multiple parties. This includes document tracking, version control, and other advanced features. In the past, companies have used spreadsheets and emails to share due diligence documents. However, these methods are not secure and could result in several liabilities when they are used by the wrong people.
‘Secure data rooms’ like to promote the level of security their server system is by claiming they employ encryption on their hosting server. This is great but it does not stop hackers from hacking into the server. Most browsers have tools that let them download high-quality images from pages https://boardroomnow.net/digify-establishes-new-standards-in-due-diligence-vdr/ of documents. Secure data rooms are unable to stop this.
Some’secure data rooms,’ claim that their system prevents sharing by requiring users to sign-in using 2FA. However it’s just an additional layer of security that doesn’t address the fact that authorized users are allowed to copy and paste links to others or forward their own emails containing links. Secure file sharing using DRM are a better option for business. They restrict the files to certain devices and locations, which means they can’t be shared or forwarded.