Virtual data rooms are places where businesses can store and distribute privileged documents to a select group of third parties. This minimizes the risk of sensitive business information being leaked to unauthorised individuals. Traditionally, due diligence was performed in physical rooms, but nowadays, it’s conducted online in what’s known as virtual data rooms (VDRs).
The top VDR providers offer security-first features that drastically reduce the expenses of data breaches and unauthorized sharing. These include granular controls over document access, multi-factor authentication, session timeouts, location restrictions and secure spreadsheet viewers. watermarking, screenshot blocking, and encryption. All of these combine to create a robust digital fortress around the data stored and shared in the VDR, which helps organizations achieve compliance with regulatory requirements and establish trust with their customers.
However, when choosing a secure data room, it is important to make sure that the solution is really suited for the task and doesn’t simply enable authorized users to log in and share your data on external platforms. A lot of “secure” solutions claim to stop this, but the truth is that they do not – they simply secure your files on the server and then send them to your browser.
To accomplish this, they rely on the fact that your browser is equipped with a certificate and that your browser is configured to only accept certificates from an authentic source. This does not mean your VDR isn’t vulnerable to hacking. However it does guarantee that hackers are only able to access your encrypted files, and not your temporary ones.
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