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What Is a Secure Data Room?
A virtual data room is a space where businesses can store and share documents that are protected with trusted third parties and reduces the chance that sensitive business information could be divulged to unauthorised individuals. Due diligence was once performed in physical rooms. Nowadays, it’s done online in virtual data rooms.
The top VDRs have security-first features that help reduce the risk of data breaches and illegal sharing. These include granular control of access to documents multi-factor authentication, session timeouts, location restrictions secure spreadsheet viewers, watermarking, screenshot blockage, and encryption. All of these create a robust digital fortress around the information stored and shared in the VDR which allows organizations to ensure compliance with the law and establish trust with their customers.
However, when selecting a secure data room, it is crucial to make sure that the choice is actually suited to the purpose and does not simply enable authorized users to login and share their files on different platforms. Many’secure’ systems claim that they can stop this. In reality, they only decrypt the files on the server, and then transfer them to the browser.
To accomplish this it is based on the fact that your browser has a certificate and that your browser is configured to accept only certificates issued by a trusted source. This doesn’t mean that your VDR can’t be hacked. However it does guarantee that hackers are only able to access your encrypted files, and not your temporary ones.