Virtual data rooms are places where businesses can store and distribute confidential documents to selected third party. This reduces the risk of sensitive business information being disclosed to unauthorized individuals. Traditionally, due diligence was conducted in physical rooms, but nowadays, it’s conducted online in what’s known as virtual data rooms (VDRs).
The top VDRs have security-first features that help reduce the risk of data breaches and unauthorized sharing. They offer granular control over access to documents and access, multi-factor authentication, session timeouts, restrictions on location and secure spreadsheet viewers. watermarking, screen-blocking, and encryption. All of these features work together to create a solid digital fortress that protects the information stored in the VDR and is shared with customers.
When selecting a secure storage facility it is essential to ensure that the solution is fit to the purpose. It should not only allow authorized users to log in and upload your files on external platforms. Many “secure” systems claim that they stop this, but what’s really happening is that they don’t they simply secure your files on the server before delivering them to your browser.
They rely on your browser having an SSL certificate and being set to only accept certificates from reliable sources. This does not mean that your VDR cannot be hacked, but it does ensure that hackers only have access to your encrypted files, not your unencrypted temporary files.