Contrary to file sharing and storage solutions https://wedataroom.com/sharefile-citrix-systems/ like Dropbox, which only encrypt your files during uploading, secure data rooms encrypt every document that moves between servers and in storage. This is essential to stop hackers from gaining access to information in the event that it is lost.
It is important to keep in mind that the security of a majority of data rooms is only as good as the server hosting them. The ability to secure the data at rest is essential, but it does not guarantee total security. It is also worth checking whether the virtual data room’s security system can encrypt temporary files created when documents are downloaded to the browser. If not, it could mean that thousands of documents remain unprotected on a server which is easily hacked.
Another feature that is important is the capability to add personal notes to documents that are only viewable by the person who created them – this reduces the risk of third parties gaining access to confidential information, and also improves collaboration during due diligence. In addition, the most secure data rooms include dynamic watermarks that change in real-time which deter unsolicited file sharing and also help to trace the source of files if there is a leak.
In the end, ensure that the data room is able to meet industry-standard security practices by ensuring that it is equipped with ISO 27001 certification or other similar assurances. Also, look for an encryption-secure data room that has robust encryption techniques and also provides detailed information on the user’s access and activities.