Virtual data rooms are areas that businesses can use to store and distribute confidential documents to selected third party. This minimizes the risk of sensitive business data being disclosed to unauthorized individuals. Traditionally, due diligence was performed in physical rooms. However, nowadays, it is conducted online in what’s known as virtual data rooms (VDRs).
The best VDRs offer security-first features to cut down on the cost of data breaches as well as unauthorized sharing. These include granular access control and multi-factor authentication as well as session timeouts. They also offer restricted locations, secure spreadsheet viewers, as well as blocking screenshots and watermarking. All of these create a strong digital defense around the information stored and shared in a VDR that helps businesses ensure compliance with the law and establish trust with their customers.
When choosing a secure data space, it is essential to make sure that the choice is actually suitable for the job and does not simply enable authorized users to log in and share your files on other platforms. Some “secure” systems claim to stop this, but the fact is that they don’t – they simply encode your files on the server prior to delivering them to your browser.
They rely on your browser having a certificate and being set to only accept certificates from trusted sources. This does not mean your VDR cannot be hacked. However it does guarantee that hackers are only able to access your encrypted files and not your temporary files.