Secure Data Room Review – What to Look For in a Data Room

As opposed to file sharing or storage solutions such as Dropbox that only encrypt your files when you upload them Secure data rooms encrypt every document that moves between servers and in storage. This is crucial to prevent hackers from having access to the data in the event it gets lost.

It is vital to remember that the security of a majority of data rooms is only as secure as the server that hosts them. Encryption at rest is vital, but it is not enough to guarantee absolute security. It is also worth asking whether the data room’s security features encrypt temporary files that are created when documents are downloaded to the browser. If not, it could mean that thousands of documents are unprotected on a server which can be easily compromised.

A key feature is that you can include notes to documents that can only be seen only by the person who wrote them. This reduces the chance of third parties viewing confidential information and enhances collaboration during due diligence. Also, the most secure data rooms come with dynamic watermarks that update in real-time which deter unsolicited sharing of files and can help to identify the source of a file if a leak does occur.

Check that the virtual data room you are considering is compliant with industry standards for security by determining whether it has ISO 27001 or similar certification. Look for a data room with strong encryption and detailed reporting on activity and access.

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